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

U.K. Digital Transformation Market Size, Share & Trends Analysis Report By Solution (Analytics, Cloud Computing, Mobility, Social Media), By Deployment, By Enterprise Size, By End Use, And Segment Forecasts, 2021 - 2028

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-543-5
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 100

Report Overview

The U.K. digital transformation market size was valued at USD 13.82 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 22.8% from 2021 to 2028. The outbreak of the COVID-19 pandemic positively impacted the market growth. The pandemic encouraged U.K. government departments to accelerate digital transformation and implement a policy within weeks, as opposed to months or years. The COVID-19 pandemic has impelled businesses to adopt cloud technology for remote working. This has resulted in the increased adoption of cloud services to ensure business continuity. The Government Digital Service (GDS), a unit of the Government of the U.K.'s Cabinet Office, has built services and a central hub of coronavirus information on GOV.UK to help vulnerable people.

U.K. digital transformation market size, by solution, 2018 - 2028 (USD Billion)

Digital transformation helps organizations improve their customer experience, customer retention ratios, and brand reputation through the implementation of software. This software also helps organizations in training and educating their internal teams on numerous aspects of their organizations. Furthermore, digitally transformed organizations can become accustomed to the growing technological landscape and confront sudden industry shifts. More importantly, a substantial part of the market growth is expected to be driven by companies investing in cloud platforms, mobility, and big data technologies to build Digital Experience Platforms (DXP).

Advanced technologies such as cloud, IoT, big data and analytics, mobility, and social media have sparked innovation and transformation in the business environment, resulting in increased revenue. Digital transformation is the adoption of digital technologies across business processes to transform the way technology and resources are used to deliver improved value to customers. In the U.K., companies have accelerated their digital transformation through cloud migrations, IoT, and by modernizing older IT infrastructure, among others. For instance, the key cloud providers such as Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) have invested millions of dollars in upgrading their cloud infrastructure, from improving redundancy and security to expanding capabilities.

The widespread use of mobile devices and apps has transformed many facets of modern life. Owing to the staggering rise in the customer base of smartphone and tablet users, opportunities for employing mobile technologies have significantly increased in the U.K. in recent years. Developments in the U.K. market include the increasing adoption of healthcare bio-sensing wearables, such as digital blood pressure monitors and glucose sensors, and patient and provider access to real-time healthcare data and information. Consumers now have access to different types of applications apps provided under digital transformation solutions due to increasing smartphone adoption. In the U.K., in 2020, there were more than 90 million smartphone subscriptions.

While implementing digital technologies, the security and privacy of critical business data is a major concern, which is compounded further when businesses invest in new technologies. As IoT becomes more pervasive, organizations are demanding more robust security and privacy to prevent breaches. Challenges faced in managing digital security and privacy risks are expected to hinder the adoption of digital transformation efforts across several businesses. Security issues, including cybersecurity risks, rigid technical infrastructure and legal environments, risk management, and/or compliance problems, can jeopardize the digitization plans of a business.  

Solution Insights

The analytics segment accounted for a market share exceeding 35% in 2020. Analytics-based solutions have a broad scope of applications across various industries. For instance, they can be utilized for predictive maintenance systems in the manufacturing sector to help reduce downtime and increase production. The growing deluge of data, including structured, unstructured, and raw, with enormous velocity or volume, is encouraging enterprises to digitize their processes. Businesses need to focus on the idea of harnessing organizational data to enhance business value. They can implement analytics for faster and intelligent decision-making, thereby boosting the business performance largely.

The cloud computing segment is anticipated to register considerable growth over the forecast period. The need for faster deployment, development, delivery and higher flexibility increases the demand for cloud computing. Companies adopt the digital transformation process to add value to the business, upgrade the IT infrastructure, and be competitive. Beyond implementing cloud solutions, a company should add new technologies that automate, speed up, and improve the business, such as machine learning, artificial intelligence, big data analytics, and the internet of things. Considering that these technologies need higher storage space and computational power, cloud computing provides an easy solution to integrate these technologies.

Deployment Insights

The on-premise segment accounted for the highest market share of more than 50% in 2020. Several businesses choose on-premise solutions due to the ease of customizability presented during implementation. These solutions provide high-end data security and enable easy compliance with several government regulations. The on-premise deployment offers large organizations better control over confidential data. Furthermore, on-premise deployment allows organizations to install a personalized network of digital transformation that suits the organizations’ needs most efficiently and accurately.

The hosted segment is anticipated to expand at the highest CAGR over the forecast period. The hosted deployment segment is anticipated to witness remarkable growth owing to the flexibility provided by this deployment type. It allows users to access tools through both mobile devices and desktop computers. Additionally, it offers benefits such as low cost, easy accessibility and deployment, and reduced maintenance and upgrading efforts.

Enterprise Size Insights

The large enterprise segment accounted for the highest market share of over 55% in 2020. Large enterprises are observed making significant investments to enhance or maintain their market position in a competitive market. Additionally, they are readily adopting technological advancements to keep themselves upgraded in the industry. They are also undertaking various strategic initiatives such as partnerships and mergers & acquisitions to acquire new technologies.

Small and Medium Enterprises (SMEs) are becoming aware of the advantages gained by digitizing their business. Initially reluctant to invest in technologies, it is becoming necessary for them to provide customers with better services with the increasing levels of competition. 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 accounted for the highest market share of over 25% in 2020. The significant growth of this segment can be attributed to the shifting focus of banking and financial services providers toward providing customers with a better experience as the products and services within the industry are becoming commoditized. BFSI companies are constantly looking for a customer-centric approach while striving to meet customers’ needs and offering seamless assistance with technical support. The COVID-19 pandemic has changed the way banks cooperate with all their stakeholders. The demand for remote functioning abilities has increased, driving the sector to adopt digital transformation, where all processes and systems are digitally integrated to deliver a better customer experience.

U.K. digital transformation market share, by end use, 2020 (%)

The healthcare segment is anticipated to register the highest CAGR over the forecast period. Digital transformation in the healthcare sector is expected to help improve the quality of care. It can be utilized in health mapping, which helps monitor diseases and prevent them. For instance, Electronic Health Records (EHR) facilitate analytics-based decisions and diagnoses. During the COVID-19 pandemic, the industry quickly altered its processes to respond to the changing and emerging health situations. Digital transformation has been enabling the companies in this industry to keep up with the production and follow social distancing guidelines. All these factors are driving digital transformation in the healthcare industry.

Key Companies & Market Share Insights

The key players that dominated the U.K. digital transformation market in 2020 include Microsoft Corporation; International Business Machines Corporation; Google LLC; Accenture PLC; and Hewlett Packard Enterprise Development LP. These players have been ranked based on the key strategies adopted by them to maintain a competitive edge in the market, their product offerings, application segments served by them, the sophistication of technology, product differentiation strategy, and industry impact. The key strategies considered include strategic collaborations, partnerships, and agreements; new product development; capability expansion; mergers and acquisitions; and research and development initiatives.

The market is highly competitive, and the leading market players having an extended operating history, a large customer base, and significant competitive strengths. For instance, in April 2021, Broadcom Inc. collaborated with Google Cloud to encourage innovation and improve the integration of cloud services across the company's major software businesses. The collaboration envisages the company distributing its security and enterprise operations software on Google Cloud for businesses to implement Broadcom security, DevOps, and other solutions on Google Cloud's trusted global infrastructure. Some of the prominent players operating in the U.K. digital transformation market are:

  • Accenture PLC

  • Adobe Inc.

  • Broadcom Inc.

  • Dell Inc.

  • Google LLC

  • Hewlett Packard Enterprise Development LP

  • International Business Machines Corporation

  • Microsoft Corporation

  • Oracle Corporation

  • SmartStream Technologies Ltd 

U.K. Digital Transformation Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 16.38 billion

Revenue forecast in 2028

USD 68.81 billion

Growth rate

CAGR of 22.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Solution, deployment, enterprise size, end use

Key companies profiled

Accenture PLC; Adobe Inc.; Broadcom Inc.; Dell Inc.; Google LLC; Hewlett Packard Enterprise Development LP; International Business Machines Corporation; Microsoft Corporation; Oracle Corporation; SmartStream Technologies Ltd

Customization scope

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

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Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. 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 Million, 2018 - 2028)

    • Analytics

    • Cloud Computing

    • Mobility

    • Social Media

    • Others

  • Deployment Outlook (Revenue, USD Million, 2018 - 2028)

    • Hosted

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Million, 2018 - 2028)

    • Large Enterprise

    • Small & Medium Enterprise

  • End-use Outlook (Revenue, USD Million, 2018 - 2028)

    • BFSI

    • Government

    • Healthcare

    • IT & Telecom

    • Manufacturing

    • Retail

    • Others

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