North America Digital Transformation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• The manufacturing sector experienced a significant transformation with the advent of Industry 4.0. Many factories are adopting advanced digital technologies to enhance, automate, and modernize their operations. These technologies integral to Industry 4.0 include robotics, the internet of things (IoT), artificial intelligence (AI), and big data analytics. As a result, enterprises are experiencing increased efficiency, reduced operational costs, and improved product quality. Integrating these technologies has become standard practice in numerous enterprises, driving the sector towards a more connected and intelligent manufacturing environment.
• Furthermore, according to a survey by Flexera Software, Americas have witnessed 65% of heavy usage of cloud services. The region's high demand for cloud services is expected to bloster growth opportunities for digital transformation.
• Rapid digitalization is taking place across end-user industries across the region. Companies are investing in the region to strengthen North America's digital infrastructure. For instance, in February 2024, Finastra, a global provider of financial software applications and marketplaces, and Tesselate, a global digital transformation consultancy and integrator, unveiled a comprehensive pre-packaged service to accelerate trade finance digitalization. It will allow US banks to automate manual processes, quickly respond to evolving market demands, and achieve value faster.
• AI is becoming progressively prevalent in the US and is being used to automate various tasks, improve decision-making, and drive innovation across various industries. United States holds a leading position in the field of AI in the world, and AI engineers are in high demand in the US. Additionally, the region is witnessing constant investments in AI, with private companies and startups focusing on AI technology for better performance and efficiency, influencing the region's digital transformation market.
• Moreover, Canada's tech industry is currently experiencing a significant upswing. Toronto, Montreal, and Vancouver are emerging as frontrunners, mainly in artificial intelligence and clean technology sectors. Canada has proactively sought to draw in tech talent, responding to the escalating demand. Industries spanning banking, healthcare, and telecom, among others, are increasingly seeking skilled Data Scientists and AI specialists. The demand for these professionals far outstrips the current supply. Canada's digital transformation market is set for a substantial boost with a growing emphasis on advanced IT solutions, AI, and IoT.
• However, despite substantial investments in digital service delivery, numerous individuals still face delays and gaps. These include enduring long lineups for in-person government services, navigating complex websites, and dealing with cumbersome paper-based applications.

North America Digital Transformation Market Trends

The IoT Segment is Expected to Occupy the Largest Market Share

• The internet of things drives digital transformation by linking physical devices and sensors to the internet, forming smart, interconnected systems. This connectivity allows for real-time data gathering and analysis, enhancing operational efficiency, facilitating informed decision-making, fostering novel business models, and bolstering automation in diverse industries.
• Enterprises and service providers focus on IoT as a pivotal tool to drive digital transformation. IoT enables real-time data collection and analysis, empowering organizations to optimize processes and make informed decisions, thereby unlocking operational efficiencies.
• The manufacturing industry is witnessing a data deluge, propelled by the widespread adoption of connected devices and sensors, facilitating M2M communication. This influx of data encompasses a spectrum of information, from basic metrics like processing times to sophisticated analyses, such as assessing material stress in automotive applications.
• Smart city initiatives are poised to lead the growth of the IoT sector in the upcoming years. IoT devices and systems are set to surge, especially in transportation, utilities, and infrastructure. Government initiatives are further propelling this trend, driving up adoption rates.

United States is Expected to be the Fastest Growing Market

• The digital transformation trend in the United States is rapidly evolving, driven by advancements in technology and the growing demand for digital solutions across various industries. Some of the key trends in the US digital transformation market include growth in cloud computing, connected devices, automation, among others.
• Cloud computing adoption is surging in the US, driven by organizations seeking enhanced flexibility, scalability, and cost-efficiency by migrating their IT infrastructure. The US stands as a pivotal hub for cloud computing, hosting headquarters of major players such as Google, Amazon, and Microsoft.
• According to IFR, in 2023, US manufacturing firms significantly ramped up their automation efforts, with industrial robot installations surging by 12% to a total of 44,303 units. Leading the charge was the automotive sector, closely trailed by the electrical and electronics industries.
• IoT is growing in popularity in the US, and is being used to improve operations, enhance the customer experience, and drive innovation across various industries. The US government is also providing sufficient funds and subsidies to drive IoT.
• Furthermore, the country is witnessing rising internet speed, which is enabling more businesses to expand their offerings to cloud, making digitization easy. According to OpenSignal, in the second quarter of 2023, the urban-rural gap in 5G mobile download speeds in the United States narrowed. Urban areas experienced a 3.4% speed boost, reaching an average of 145.7 Mbps, while rural speeds surged by 5.2% to hit 110.3 Mbps.

North America Digital Transformation Industry Overview

• June 2024: Tata Consultancy Services, a prominent player in IT services and consulting, unveiled its 'Bringing Life to ThingsTM Lab' in Cincinnati, Ohio. This facility is tailored for swift prototyping, extensive experimentation, and the deployment of AI, GenAI, and IoT engineering solutions. Through this initiative, TCS aims to expedite and streamline the process of implementing advanced solutions for its clients.
• March 2024: Microsoft Corp. and NVIDIA have strengthened their partnership, introducing new integrations that utilize NVIDIA's latest generative AI and Omniverse technologies. These integrations span across Microsoft's Azure, Azure AI services, Microsoft Fabric, and Microsoft 365. Microsoft will be among the first to incorporate NVIDIA's technologies into Azure, including the Grace Blackwell GB200 and the Quantum-X800 InfiniBand networking. This will enable Microsoft to deploy trillion-parameter foundation models, enhancing natural language processing, computer vision, speech recognition, and more capabilities.

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