Digital Transformation Global Market Report 2024

The digital transformation market size has grown exponentially in recent years. It will grow from $1382.64 billion in 2023 to $1666.84 billion in 2024 at a compound annual growth rate (CAGR) of 20.6%. The expansion observed in the historical period can be ascribed to robust economic development in emerging markets, a rising trend in the integration of digital transformation within the healthcare sector, a surge in the generation of data volumes, and an escalating adoption of 5G networks.

The digital transformation market size is expected to see rapid growth in the next few years. It will grow to $3248.34 billion in 2028 at a compound annual growth rate (CAGR) of 18.2%. Forecasted growth is fueled by mobile device availability, government initiatives, increased internet penetration, higher marketing spending, and rising demand for industrial automation. Key trends include AI integration, advancing digital transformation, creative networks, frequent product launches, IoT prevalence, startups in big data and analytics, and a focus on strategic partnerships.

The anticipated surge in the adoption of machine learning and artificial intelligence is poised to propel the expansion of the digital transformation market in the foreseeable future. Traditional businesses are leveraging digital transformation solutions such as cloud computing, big data analytics, and data management, coupled with advanced features such as artificial intelligence and machine learning. These technologies optimize business operations, resulting in enhanced operational efficiency and reduced resource allocation. The pervasive integration of these solutions across various sectors, including healthcare, banking, transportation, and manufacturing, has significantly heightened the demand in the digital transformation market. Notably, a report by Cloudmantra revealed that the utilization of machine learning in the Indian manufacturing industry led to a 20% increase in manufacturing capacity and a 4% reduction in material usage in 2021. Moreover, machine learning empowered manufacturers to govern Overall Equipment Effectiveness (OEE) at the plant level, elevating OEE performance from 65% to 85%. The MIT Technology Review Insights report in 2022 indicated that approximately 60% of manufacturers are leveraging artificial intelligence to enhance daily operations, product design, and future planning. The escalating adoption of machine learning and AI is a driving force behind the digital transformation market.

The growth trajectory of the digital transformation market is further accentuated by favorable government initiatives in developed countries, charting a course for expansion in the forecast period. Notably, in April 2022, the United States Government, through the United States Agency for International Development (USAID), launched a digital transformation initiative for 200 micro, small, and medium-sized enterprises (MSMEs) operating in metalworking, manufacturing, and agribusiness sectors. This initiative aims to enable companies to explore new avenues in electronic commerce, digital marketing, and modernization of production and marketing processes. The project involves the selection of 100 MSMEs each from the metalworking and manufacturing sectors, along with 100 companies from the agribusiness sector. The intervention encompasses training and personalized technical assistance in digital innovation processes, implementation of new technological tools for the participating sectors, and sector-specific business roundtables. Additionally, in December 2021, the Finnish government initiated two transformation projects as part of its mission to pioneer a digital economy. The Real-Time Economy (RTE) project, spearheaded by the Ministry of Economic Affairs (MEA), is slated to run until 2024. This initiative seeks to solidify Finland's position at the forefront of global digitization and leverage IT to enhance the international competitiveness of domestic companies in the digital economy. Government initiatives, such as these, are poised to significantly contribute to the growth of the digital transformation market.

The integration of artificial intelligence (AI) capabilities stands out as a prominent trend gaining momentum within the digital transformation market. AI, encompassing advancements such as machine learning, natural language processing (NLP), data labeling platforms, and predictive analytics, plays a pivotal role in driving digital transformation initiatives. A notable illustration of this trend is evident in IBM's actions, a US-based technology company specializing in computer hardware, software, cloud computing, and data analytics. In May 2021, IBM launched hybrid cloud and AI capabilities aimed at expediting digital transformation processes. These innovations underscore IBM's commitment to assisting clients and partners in accelerating their digital transformations, fostering intelligent return-to-work strategies, and cultivating strategic ecosystems that contribute to enhanced business outcomes. The significance of incorporating AI into business operations became particularly pronounced during the pandemic, as highlighted by a recent IBM study on AI usage in the business landscape.

Prominent players in the market are strategically focusing on the introduction of new products to enhance their portfolio offerings. For instance, in April 2021, EY, a UK-based company offering assurance, tax, consulting, and advisory services, unveiled the IBM TechHub@EY. This initiative serves as a centralized point of contact for all IBM technology-related needs across the EY network, thereby expanding the capabilities and offerings of the existing EY-IBM Alliance. The technical support provided encompasses solution architecture evaluations, proof-of-concept assistance, and access to sandbox testing and development environments. Moreover, it extends to ideation, design, and the construction of solutions, including the enablement and certification of EY services practitioners. This strategic move by EY reflects a commitment to staying at the forefront of technological advancements and delivering comprehensive solutions to meet evolving client demands.

In October 2021, Accenture plc, an Ireland-based professional services company, acquired Umlaut Systems Gmbh for an undisclosed sum. This strategic move is geared towards bolstering Accenture's engineering capabilities in leveraging digital technologies such as cloud and artificial intelligence. The acquisition also brings on board top engineers and consultants from 17 countries worldwide, enriching Accenture's Industry X services. This development enhances Accenture's strengths in key industries such as automotive, aerospace and defense, energy, telecom, and utilities. Umlaut Systems Gmbh, headquartered in Germany, specializes in custom engineering solutions and contributes expertise in organizational culture, structure, and processes.

Major companies operating in the digital transformation market report are Google LLC, Microsoft Corporation, IBM Corporation, Accenture PLC, Adobe Systems Inc, Oracle Corporation, SAP SE, Capgemini, Salesforce.com, Dell EMC, Shanghai Electric Group Co., Ltd., Chongqing Changan Automobile Co., Ltd., Hakuna Matata, Midea Group's, Weichai Power Co., Ltd, Lianbao (Hefei) Electronic Technology Co., Ltd., Sany Heavy Industry Co., Ltd., CITIC Dicastal Co., Ltd., Space-O Technologies, Sophie Candau Communication, Xella, SQLI, Siemens AG, Deloitte, Nixu, Honeywell International Inc, 4iG Plc., Tibco Software Inc, ASG, CIOReview, Protiviti, Cognex Corporation, Cognizant, Apple Inc., Hewlett-Packard Company, Hisense Group Holdings Co., Ltd.

North America was the largest region in the digital transformation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital transformation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital transformation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary categories of digital transformation encompass cloud computing, big data and analytics, artificial intelligence (AI), the Internet of Things (IoT), and blockchain. Cloud computing is widely adopted by organizations leveraging digital technologies to create or adapt their services and business processes. Cloud service providers offer a pay-as-you-go cloud platform, allowing clients to store business databases and optimize their operations. Utilizing virtual technology, the cloud-based server hosts the client's applications off-premises, providing convenient access for business operations. Deployment options include both cloud and on-premises, catering to the needs of large enterprises and small to medium-sized enterprises (SMEs). Diverse end-user sectors, including BFSI, healthcare, telecom and IT, automotive, retail and consumer goods, manufacturing, government, and others, benefit from these digital transformation initiatives.

The digital transformation market research report is one of a series of new reports that provides digital transformation market statistics, including digital transformation industry global market size, regional shares, competitors with a digital transformation market share, detailed digital transformation market segments, market trends and opportunities, and any further data you may need to thrive in the digital transformation industry. This digital transformation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

The digital transformation market includes revenues earned by entities by reducing operation costs to improve efficiency and customer satisfaction, generating data-based insights, and reducing human errors. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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