Digital Transformation Market to be Worth $5275.7 Billion by 2031

Digital Transformation Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Organization Size, Deployment Mode, Technology (Cloud Computing, AI&ML, IoT, AR&VR), End Use Industry (BFSI, Healthcare, Retail & E-commerce), and Geography - Global Forecast to 2031

Meticulous Research^®—leading global market research company, published a research report titled, ‘Digital Transformation Market by Offering (Solutions, Services), Organization Size, Deployment Mode, Technology (Cloud Computing, AI&ML, IoT, AR&VR), End use Industry (BFSI, Healthcare, Retail & E-commerce), and Geography—Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the global digital transformation market is projected to reach $5275.7 billion by 2031, at a CAGR of 22.4% from 2024–2031. The growth of the digital transformation market is driven by the high penetration of smart devices and apps and the increasing adoption of artificial intelligence & machine learning. However, data privacy & security concerns restraint growth of the market. Furthermore, the rise of blockchain as a major technology is expected to generate growth opportunities for the players operating in this market. Nonetheless, the reliance on legacy systems and outdated technologies is a major challenge impacting market growth. Additionally, the increasing adoption of IoT and edge computing in manufacturing facilities, and rising integration of robotic process automation (RPA) in E-commerce are the prominent trends in the market.

The global digital transformation market is segmented by offering (solutions and services [consulting services, planning & designing services, engineering services, support & maintenance services, application development services, network infrastructure management services, and other services]), deployment mode (cloud-based deployment and on-premise deployment), organization size (large enterprises and small & medium-sized enterprises), technology (mobile technology, internet of things (IoT), Network connectivity, digital twin & simulation, robotic process automation, cloud computing, artificial intelligence & machine learning, AR & VR, additive manufacturing & 3D printing, big data & real-time analytics, cybersecurity, and other technologies), end use industry (retail & E-commerce, government & public sector, healthcare, supply chain & logistics, energy & utilities, manufacturing, BFSI, IT & telecommunication, media & entertainment, education, transportation, and other end use industries), and geography. The study also evaluates industry competitors and analyses the market at the country & regional levels.

Based on offering, the global digital transformation market is segmented into solutions and services. In 2024, the services segment is expected to account for the larger share of over 57.0% of the global digital transformation market. The segment's large market share is attributed to the growing need to improve productivity and profitability through improved resource management using digital transformation services; increasing adoption of digital transformation services to increase organizational agility and resilience in business operations; the growing use of digital transformation to reduce errors by eliminating time-consuming manual data entry and human inefficiencies. Additionally, the growing use of digital transformation services to reduce overhead costs by integrating with back-office systems, automating delivery processes & product updates, and enabling inter-device activation.

Also, the services segment is expected to register the highest CAGR during the forecast period.

Based on organization size, the global digital transformation market is segmented into large enterprises and small & medium-sized enterprises. In 2024, the large enterprises segment is expected to account for the larger share of over 58.0% of the global digital transformation market. The segment's large market share is attributed to the growing adoption of digital transformation in large enterprises to automate processes and workflows to enhance operational efficiency. Digital transformation allows large enterprises to provide personalized experiences to customers through data analytics and targeted marketing strategies. Additionally, it helps to enhance security measures & data protection in large enterprises to mitigate risk associated with cyberthreats.

However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. The growth of this segment is attributed to the growing adoption of digital transformation in SMEs to reduce operational costs and improve productivity by automating routine tasks and processes, and the rising use of digital technologies in SMEs helping to adapt changing market conditions and customer demands for better agility in decision-making and operations. Moreover, digital transformation helps SMEs to streamline their operations and enhance customer relationship that help them grow and achieve sustainable success in their respective industries.

Based on deployment mode, the global digital transformation market is segmented into cloud-based deployment and on-premise deployment. In 2024, the cloud-based deployment segment is expected to account for the larger share of over 56.0% of the global digital transformation market. The segment's large market share is attributed to the growing adoption of cloud-based digital transformation systems that helps to improve access to data, allowing collaboration and communication of business processes in real time; the cloud-based digital transformation provides robust security measures such as data encryption, multi-factor authentication, and regular security audits to protect data and applications. Additionally, the increasing adoption of cloud architecture by organizations to enhance IT compliances and lower complexity of IT infrastructure management supports the growth of cloud-based deployment market.

Also, the cloud-based deployment segment is expected to register a higher CAGR during the forecast period.

Based on technology, the global digital transformation market is segmented into mobile technology, internet of things (IoT), Network connectivity, digital twin & simulation, robotic process automation, cloud computing, artificial intelligence & machine learning, AR & VR, additive manufacturing & 3D printing, big data & real-time analytics, cybersecurity, and other technologies. In 2024, the cloud computing segment is expected to account for the largest share of over 26.0% of the global digital transformation market. The segment's large market share is attributed to the growing adoption of cloud computing in digital transformation for enhancing collaboration within and outside an organization by enabling seamless access & sharing of data & applications across devices and departments, and cloud computing is increasingly adopted in digital transformation, providing automation benefits that boost efficiency, agility, and cost-effectiveness across various business operations. Additionally, it offers access to fast servers, current databases, and innovative technology tools essential for driving digital transformations.

However, the artificial intelligence & machine learning segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the growing adoption of AI in digital transformation to facilitate better decision-making through advanced analytics and predictive modelling, and the rising integration of AI in digital transformation due to advanced machine learning algorithms to analyze patterns & predict potential security threats. Additionally, the growing use of AI to gain a comprehensive understanding of customers by collecting real-time data helps to enhance customer engagement and automate routine CRM tasks.

Based on end-use industry, the global digital transformation market is segmented into retail & E-commerce, government & public sector, healthcare, supply chain & logistics, energy & utilities, manufacturing, BFSI, IT & telecommunication, media & entertainment, education, transportation, and other end-use industries. In 2024, the BFSI segment is expected to account for the largest share of over 29.0% of the global digital transformation market. The segment's large market share is attributed to the growing adoption of digital transformation in BFSI to streamline processes, improve customer services, and offer personalized experiences; the increasing integration of digital technologies such as AI & ML in banks & financial institutions to detect anomalous activity and prevent fraud. Moreover, the increasing adoption of cloud computing in banks & financial institutions to store and manage large volumes of information, increase productivity, and scale operations.

However, the healthcare segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the growing adoption of digital transformation in healthcare facilities to streamline appointment scheduling and maintaining patient records; the increasing use of digital technologies in healthcare is to improve patient outcomes such as better care coordination and individualized treatment regimens; and the rising use of telehealth and virtual care to ensure that patients receive remote monitoring and care from their homes.

Based on geography, the global digital transformation market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of over 44.0% of the global digital transformation market. North America’s significant market share can be attributed to the increasing investments in digital technologies such as cloud computing, IoT, and AI & ML in the region; the rising integration of robotic process automation (RPA) in retail & E-commerce companies in North America; and the increasing integration of digital technologies such as AI & ML in BFSI sector of the region to detect anomalous activity and prevent fraud.

However, the Asia-Pacific market is expected to register the highest CAGR of 24.0% during the forecast period. The growth of this market is attributed to the increasing government initiatives & policies towards digitization in developing nations in Asia-Pacific; the increasing adoption of AI & robotics in manufacturing industries in the region; the growing integration of AR & VR to enhance consumer experience in retail & E-commerce sector; and the rapid proliferation of smart devices and apps in business operation in the region.

Key Players

The key players operating in the digital transformation market are International Business Machines Corporation (U.S.), Siemens AG (Germany), Microsoft Corporation (U.S.), SAP SE (Germany), Capgemini SE (France), ABB Ltd. (Switzerland), Deutsche Telekom AG (Germany), Telefónica, S.A. (Spain), Accenture plc (Ireland), TE Connectivity Ltd. (Switzerland), NXP Semiconductors N.V. (Netherlands), Telefonaktiebolaget LM Ericsson (Sweden), Intel Corporation (U.S.), Tata Consultancy Services Limited (India), and Cisco Systems, Inc. (U.S.).

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Key Questions Answered in the Report:

Which are the high-growth market segments in terms of offering, organization size, deployment mode, technology, and end-use industry?
What is the historical market size for digital transformation?
What are the market forecasts and estimates for 2024–2031?
What are the major drivers, restraints, opportunities, challenges, and trends in the global digital transformation market?
Who are the major players in the global digital transformation market, and what are their market shares?
What is the competitive landscape like?
What are the recent developments in the global digital transformation market?
What are the different strategies adopted by major market players?
What are the trends and high-growth countries?
Who are the local emerging players in the global digital transformation market, and how do they compete with other players?

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