GVR Report cover U.K. Digital Transformation Market Size, Share & Trends Report

U.K. Digital Transformation Market Size, Share & Trends Analysis Report By Solution (Social Media, Analytics, Cloud Computing, Mobility), By Deployment (Hosted, On-premise), By End Use, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68039-543-5
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The U.K. digital transformation market size was valued at USD 24.90 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.2% from 2022 to 2030. The growth can be attributed to the increasing adoption of advanced technologies, such as the Internet of Things (IoT) and machine learning, and the growing use of mobile devices, smartphones, and applications across business functions. The outbreak of the COVID-19 pandemic has impelled several businesses to adopt cloud technology for remote working. As technology becomes more pervasive, organizations are demanding more robust security and privacy to prevent breaches. This has resulted in the increased adoption of cloud services to ensure business continuity and helps in establishing a customized network of digital transformation.

U.K. digital transformation market size, by solution, 2020 - 2030 (USD Billion)

Several companies have started incorporating big data analytics, artificial intelligence, and other technologies into their existing servicing models to create new products and services and gain a competitive edge. In addition, the adoption of digital technologies offers numerous opportunities and enables customer-centric business models. For instance, Rolls-Royce Motors Cars Ltd, a British automobile company, used advanced analytics, industrial AI, and machine-learning techniques to develop data applications that unlock design, manufacturing, and operational efficiencies within Rolls-Royce, and create new service propositions for customers. This has contributed to the growing demand for technologies for digital transformation across different industry verticals.

The evolution of digital technologies, such as cloud computing, IoT, robotics, and cybersecurity has created the need for digitalization across several industries. IoT helps build smart products through new functionality, reliability, greater product capabilities, and product utilization. Many companies are considering IoT strategic tool for business scalability and are helping businesses generate new and innovative user experiences. As a result, companies are adopting digital transformation. For instance, KisanHub, a U.K.-based startup, uses satellite technology and in-field sensors to provide precise information on rainfall, irrigation, crop growth, wind speed, and cloud cover with the help of IoT. These developments are expected to boost the growth of the market.

The increasing demand for platform-independent or cross-platform applications from the education vertical translates into substantial growth opportunities for the digital transformation solution vendors. Several institutions have recognized the role technology can play in helping to plot a course through the changing landscape. For instance, in December 2018, The University of Nottingham, with three campuses across the world (U.K., China, and Malaysia), implemented Oracle’s PeopleSoft Campus Solutions. These solutions are integrated systems that increase efficiencies, reduce costs, and improve the user experience for both employees and students. While the adoption of Massive Open Online Courses (MOOCs) has yet to make the breakthrough many predicted, institutions are investigating innovative teaching techniques combining digital technologies.

The transformative impact of digital technology in the U.K.’s retail sector is significant and growing due to the increasing penetration of IoT and the adoption of cloud services. According to Forrester, a research and advisory company, by 2021, 55% of European sales will involve digital touchpoints, whether through direct digital transactions or digital influence on in-store sales. For instance, Microsoft Corporation offers Microsoft Cloud for retail which brings together different data sources across the retail value chain, uniquely connects experiences across the end-to-end shopper journey, and delivers more relevant personalized experiences and operational excellence for sustained profitability. These will aid organizations in moving forward in their journey in digital transformation during the forecast period.

Solution Insights

The analytics segment accounted for the largest market share of 35.4% in 2021. It allows businesses to have granular information about specific or different groups of customers. Businesses need to focus on the idea of harnessing organizational data to enhance business value. Additionally, these analytics tools (Cloud ERP systems and chatbots) can help small business owners see the impact of the decisions they make using this data, as well as current trends and projections. To complete their digital transformation, therefore, businesses need to adopt big data and data analytics.

The cloud computing segment is expected to grow at a CAGR of 22.9% during the forecast period The need for faster deployment, development, delivery, and higher flexibility increases the demand for cloud computing. Several companies have adopted the digital transformation process to add value to the business, upgrade the IT infrastructure, and be competitive. Certain applications like Microsoft 365, Salesforce, and Adobe, have become an integral part of an organization’s enterprise information technology systems. Moreover, these applications save an organization from the hassle of investing in varying IT resources by providing required computing resources, infrastructure, and platforms on the go. These benefits will supplement the growth of the segment.

Deployment Insights

The on-premise segment accounted for the largest market share of 53.9% in 2021. Several businesses choose on-premise solutions due to the ease of customizability presented during implementation. The on-premise deployment makes operations possible by storing the data in one location, effectively managing end-to-end student information. These solutions provide high-end data security and enable easy compliance with several government regulations. Furthermore, on-premise deployment allows organizations to install a personalized network of digital transformation that suits the organizations’ needs most efficiently and accurately. These benefits will supplement the growth of the segment during the forecast period.

The hosted segment is expected to grow at a CAGR of 25.7% over the forecast period. The growth can be attributed to the massive developments in information sharing technologies and the growing utilization of mobile phones. Hosted deployment provides superior flexibility, and higher cost-effectiveness, and allows wide-scale customization of products and services. Solutions are provided through models like Platforms as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS), and can be accessed from anywhere on the demand by end-users. These capabilities will supplement the growth of the segment during the forecast period.

Enterprise Size Insights

The large enterprise segment accounted for the largest market share of 58.2% in 2021. Several large enterprises have implemented digital transformation solutions due to the benefits such as easy system integration & implementation, cost efficiencies, data privacy, and flexibility. These enterprises can speed up the digital transformation and implement exhaustive digital strategies across processes efficiently due to their strong economic position. Additionally, large enterprises do not confront challenges like restricted budget allocation. These aspects would fuel the growth of the segment during the forecast period.

The Small and Medium Enterprises (SMEs) segment is expected to grow at a CAGR of 23.7% over the forecast period. The growth in the number of SMEs in the region is driving the demand for the deployment of digital manufacturing solutions owing to their business optimization capabilities. For instance, in October 2021, The Package Pod, the U.K.-based mid-market retailer, implemented SAP Enterprise Resource Planning (ERP) to cope with increased transaction volumes. With this implementation, the company has transformed its infrastructure and developed a scalable retail business. This is making it essential for SMEs to implement innovative technologies to keep their businesses at par with competitors.

End-use Insights

The BFSI segment held a market share of 27.7% in 2021, attributed to the increasing adoption of digital technology by financial services companies and the surge in the need for digital services among the fintech to enhance and improve the customer experience. For instance, in March 2022, Ernst & Young (EY), the U.K.-based professional services and accounting firm, announced the collaboration with Infosys, a next-generation digital services and consulting, to support organizations in their end-to-end business transformation and growth. This approach leverages sector-specific platforms and solutions through emerging technologies such as cloud, IoT, blockchain, and AI. The growing demand for these technologies has increased leading to more adoption of digital transformation across the BFSI segment.

U.K. digital transformation market revenue share, by end use, 2021 (%)

The healthcare segment is expected to grow at a CAGR of 24.0% over the forecast period. The segment growth can be attributed to the surge in the adoption of novel and advanced technologies (AI, IoT, and machine learning) across various applications within the industry. Furthermore, several digital healthcare solution providers are now focusing on offering technology-enabled care solutions to enable easy access to data and information and to improve the quality and outcome of health and social care. This is primarily to encourage hospitals and clinics to adopt enhanced diagnostic tools and digital healthcare services to serve patients efficiently. This in turn is likely to increase the demand for digital transformation in healthcare in the near future.

Key Companies & Market Share Insights

The dominant market players include Microsoft Corporation; International Business Machines Corporation; Google LLC; Accenture PLC; and Hewlett Packard Enterprise Development LP. Market players are observed to invest resources in R&D activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in February 2022, Deloitte Consulting, the U.K.-based professional services provider, announced the acquisition of National Tele Consultants (NTC), a technology firm with expertise in the domain of media and broadcast, to provide end-to-end digital transformations for the media supply chain. This acquisition bolstered Deloitte’s engineering capabilities and offered a full range of complex and technical transformations, including business strategy, technical design, and engineering solutions.  Some prominent players in the U.K. digital transformation market include:

  • Accenture PLC

  • Adobe Inc.

  • Roland Berger

  • Dell Inc.

  • Google LLC

  • Hewlett Packard Enterprise Development LP

  • International Business Machines Corporation

  • Microsoft Corporation

  • Oracle Corporation

  • Alvarez & Marsal

U.K. Digital Transformation Market Report Scope

Report Attribute


Market size value in 2022

USD 29.44 billion

Revenue forecast in 2030

USD 146.63 billion

Growth rate

CAGR of 22.2% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Solution, deployment, enterprise size, end-use

Key companies profiled

Accenture PLC; Adobe Inc.; Roland Berger; Dell Inc.; Google LLC.; Hewlett Packard Enterprise Development LP; International Business Corporation; Microsoft Corporation; Oracle Corporation; Alvarez & Marsal

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.K. digital transformation market report based on solution, deployment, enterprise size, and end use:

  • Solution Outlook (Revenue, USD Billion, 2017 - 2030)

    • Analytics

    • Cloud Computing

    • Mobility

    • Social Media

    • Others (Cybersecurity, IoT, and AI, among others)

  • Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

    • Hosted

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

    • Large Enterprise

    • Small and Medium Enterprise (SME)

  • End-use Outlook (Revenue, USD Billion, 2017 - 2030)

    • BFSI

    • Government

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Retail

    • Others (Education, Construction, Energy & Utilities, and Telecommunications)

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