San Francisco, 28 May 2024: The Report Digital Transformation Market Size, Share, Growth & Trends Analysis Report By Solution, By Deployment, By Service, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2024 - 2030

The global digital transformation market size is anticipated to reach USD 4,617.78 billion by 2030 and it is projected to grow at a CAGR of 27.6% from 2024 to 2030, according to new report by Grand View Research, Inc.Digital transformation assists companies in improving their brand reputation, customer experience, and customer retention ratios. These solutions also help end-user companies in education and training their employees to improve their productivity and speed up the organization’s journey to achieve business objectives. Furthermore, with the implementation of digital transformation solutions, organizations can meet the evolving market needs and improve their business profitability. Further, the market growth is particularly driven by rising companies’ investments in big data, mobility, and cloud technologies to develop advanced Digital Experience Platforms (DXPs).

The growing use of mobile devices and their applications has transformed the various aspects of modern life. Across the globe, organizations and enterprises are shifting from traditional brick-and-mortar operations to digital operations, driving the market growth. Furthermore, the emergence of novel technologies such as the Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (ML), and Artificial Intelligence (AI), has increased the importance of mobile applications. The way businesses operate has changed dramatically in recent years, which is why having an attractive and innovative mobile application improves the way target clients interact and engage with services that the company offers. Further, consumers now have access to different types of apps and are provided under digital transformation solutions due to increasing smartphone adoption, creating positive outlook for the market.

The COVID-19 pandemic has forced various businesses to opt for cloud technology for remote working. This has resulted in growing demand for cloud services creating a favorable environment for market growth. This has resulted in the increased adoption of cloud services to ensure business continuity. Businesses are renewing their contracts with cloud service providers while anticipating an increase in cloud migrations and, in some cases, an acceleration in cloud transformation from their customers. The widespread adoption of a number of digital-first payment methods highlights the paradigmatic shift led by the pandemic. The Buy Now, Pay Later (BNPL) trend has witnessed increased popularity in 2020 & 2021. During the pandemic, Fintech innovation has not only helped meet the changing needs of consumers but also ensured that financial services were made easily available to those who needed them the most, creating robust opportunities for market growth.

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The market growth can be attributed to the growing adoption of cutting-edge technologies such as cyber security, Artificial Intelligence (AI), big data analytics, Business Intelligence (BI), and cloud, which sparked transformation and innovation in the business environment, resulting in increased revenue. In addition, more businesses are being conducted using email and collaboration & digital tools.

Digital Transformation Market Report Highlights

• Based on solution, the social media segment is expected to grow at a fastest CAGR of 29.5% over the forecast period. The growing number of users of social media platforms, the shifting focus of end-user companies on improving their brand identity through creative advertisements on social media platforms, and advancements in social media tools are driving the segment growth
• Based on service, the professional services segment is expected to grow at a fastest CAGR of 29.2% over the forecast period as these services help organizations in digitizing their business operations. The professional services help end-user organizations select proper digital transformation solutions, manage the operations of cloud-based digital transformation solutions, address client issues, and effective resource utilization, among other assistance
• Based on deployment, the hosted segment is expected to grow at a CAGR of 30.8% over the forecast period. The proliferation of cloud-based digital transformation solutions, cloud technology’s various benefits such as minimum hardware requirement, low operating costs, & easy accessibility, and rising public & private investment in cloud platforms are driving the segment growth
• Based on enterprise, the small & medium-sized enterprises (SMEs) segment is expected to grow at a fastest CAGR of 29.2% over the forecast period. The increasing importance of digital technologies and the availability of low-cost digital transformation solutions are driving the market growth among SMEs
• Based on end-use, the healthcare segment is expected to grow with a fastest CAGR of 29.4% during the forecast period. Digital transformation is anticipated to improve the quality of patient care. The COVID-19 pandemic propelled the adoption of advanced medical technologies such as remote patient monitoring, telemedicine, virtual reality, and neurotechnology, supporting the segment's growth
• The Asia Pacific market is expected to grow at a remarkable CAGR of 30.3% during the forecast period, owing to the expansion of the e-commerce industry, government investments in digital infrastructure, and the growing use of process automation tools powered by the latest technologies, such as AI, ML, Blockchain, and cloud computing.

Digital transformation assists organizations in coping with various risks and handling disruptions such as geopolitical conditions, marketplace fluctuation, and rebuilding corporate. Businesses are increasingly utilizing AI, big data, and BI to collect real-time information, get actionable insights, better understand client needs, and boost overall efficiency. The market players emphasize on mergers and acquisitions to help expand their product portfolio and increase market share driving the market growth. For instance, in September 2023, SAP SE announced that they had signed a definitive agreement for the acquisition of LeanIX GmbH. This acquisition will help the company expand their business transformation portfolio and help businesses with AI-enabled process optimization.

Increasing the use of digital experience platforms (DXPs) to enhance the customer experience and brand loyalty is creating a positive outlook for the market. End-use companies from industries/sectors such as BFSI, retail, IT & telecom, and healthcare are implementing DXPs in their business operations to improve customer engagement and accelerate the product’s time to market. End-use companies are partnering with industry players to implement DXPs in their business models. For instance, in August 2021, CoStrategix announced a collaboration agreement with Optimizely to enable its clients to create customer-first digital experiences. CoStrategix simultaneously integrated the Optimizely DXP platform into their current cloud platform to enable data-driven decision-making that is effective and to promote the expansion of the market.

Digital technologies are leading to the rapid shift from legacy systems to modern and efficient systems. For some businesses, digital transformation will be an IT initiative aimed at gaining a competitive advantage. Others will see it as addressing expanding client needs as part of their strategy to stay relevant. Organizations demand an immediate, precise, and real-time feedback with the help of big data analysis to develop new products and services or improve existing ones, to gain a competitive advantage. Further, with the shifting focus of end-user companies on remote working & digital workplaces, AI technological proliferation and automation are playing an important role in creating opportunities for organizations to streamline the process and improve productivity, supporting the market growth.

Digital Transformation Market Report Scope 

Digital transformation solutions are designed to enhance the consumer buying experience in both Business-to-Business (B2B) and Business-to-Customer (B2C) scenarios. The evolution of custom development has quickly become a part of the principal methods used by companies to bring customers closer to the company and its brand. Customized development is the creation of a personalized user experience for a brand. Apps are the main customer development sources, and their prevalence reflects their demand. Thus, the demand for customized digitally accessible apps and services that are developing personalized user experience are increasing.

List of Players in Digital Transformation Market

• Accenture plc
• Adobe Systems Inc.
• Broadcom, Inc.
• Cisco Systems, Inc.
• Dell EMC
• Dempton Consulting Group
• Google Inc.
• Happiest Minds
• Hewlett Packard Enterprise Co.
• International Business Machines Corporation
• Kellton Tech Solutions Ltd.
• Microsoft Corporation
• Salesforce, Inc.
• SAP SE
• TIBCO Software