How Has The Digital Transformation Market Size Evolved In Recent Years?
The digital transformation market has seen considerable growth due to a variety of factors.
• The size of the digital transformation market has been expanding rapidly in the last few years. It is predicted to rise from $1755.44 billion in 2024 to $2116.91 billion in 2025, reflecting a compound annual growth rate (CAGR) of 20.6%.
This historical growth can be connected to the robust economic expansion in developing markets, the rising utilization of digital transformation in the healthcare sector, amplified data volume generation, and the growing acceptance of 5G networks.
What Are The Predictions for The Digital Transformation Market Size In The Coming Years?
The digital transformation market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the digital transformation market is anticipated to witness explosive growth, with a projected size of $4416.39 billion by 2029, expanding at a 20.2% compound annual growth rate (CAGR).
This growth during the forecast period can be associated with several factors such as the rising availability of mobile devices, initiatives put in place by governments, increasing internet presence, greater enterprise spending on marketing and advertising activities, and a heightened demand for industrial automation. Key trends emerging throughout this projected growth period include the integration of artificial intelligence, the emergence of digital transformation series, the development of innovative networks, new product launches, the Internet of Things, the rise of startups in the big data and analytics sector, and an emphasis on strategic partnerships and collaborations.
What Are The Core Factors Supporting Growth In Digital Transformation Market?
The escalating utilization of machine learning and artificial intelligence is anticipated to propel the growth of the digital transformation market in the future. Digital transformation presents traditional businesses with crucial capabilities like cloud computing, big data & analytics, data management, and modern features such as artificial intelligence and machine learning. These advancements aid in the enhancement of business operations, minimizing operational efforts and elevating efficiency, leading to a surge in use across various sectors including healthcare, banking, transportation, and manufacturing, thereby magnifying the demand in the digital transformation market. For example, in May 2022, the International Business Machines Corporation (IBM), a technology firm based in the US, stated that the global usage of artificial intelligence (AI) in businesses rose to 35% in 2022, witnessing a growth of 4% from 2021. Furthermore, there was a rise of 13% in organizations adopting AI in 2022 as compared to 2021. Hence, the swelling adoption of machine learning and AI fuels the progression of the digital transformation market.
What Are The Core Segments Of The Globa Digital Transformation Market?
The digital transformation market covered in this report is segmented –
1) By Technology: Cloud Computing, Big Data And Analytics, Artificial intelligence (AI), Internet Of Things (IoT), Blockchain And Other Technologies
2) By Deployment: Cloud, On-Premises
3) By Organization: Large Enterprises, Small And Medium-sized Enterprises (SMEs)
4) By End Users: BFSI, Healthcare, Telecom and IT, Automotive, Retail And Consumer Goods, Manufacturing, Government, Others
Subsegments:
1) By Cloud Computing: Infrastructure As A Service (IaaS), Platform As A Service (PaaS), Software As A Service (SaaS)
2) By Big Data And Analytics: Data Management Solutions, Predictive Analytics, Business Intelligence Tools
3) By Artificial Intelligence (AI): Machine Learning, Natural Language Processing, Computer Vision
4) By Internet Of Things (IoT): Smart Devices, IoT Platforms, Industrial IoT Solutions
5) By Blockchain And Other Technologies: Supply Chain Solutions, Smart Contracts, Augmented Reality (AR) And Virtual Reality (VR), Robotic Process Automation (RPA), Cybersecurity Solutions
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Which Emerging Trends Are Reshaping The Digital Transformation Market?
A significant trend being observed in the digital transformation industry is the extensive use of artificial intelligence (AI) technology. This technology not only serves as a powerful catalyst for digital transformation but also drives innovations like machine learning, natural language processing (NLP), data labeling platforms, and predictive analytics. For instance, Innovation, Science and Economic Development Canada (ISED), a department of the Canadian Government, indicated in June 2024 that the AI market may reach $891 billion by 2028, with the potential to exceed $1 trillion by 2030. The Canadian AI market, valued at $6.5 billion in 2023, is forecasted to expand at a yearly growth rate of 33.9% from 2023 to 2028, amounting to $28.2 billion by 2028.
Who Are the Key Players in the Digital Transformation Market?
Major companies operating in the digital transformation market include:
• 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
What are the Regional Insights into the Digital Transformation Market?
North America was the largest region in the digital transformation market in 2024. 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.
