Digital Transformation Market

Digital Transformation Market Analysis by Technology (Cloud Computing, Big Data and Analytics, Mobility/ Social Media, Cybersecurity), by Deployment (Cloud, On-premises), by Organization Size, by Vertical, by Region - Global Forecast 2022-2032

Analysis of Digital Transformation market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Digital Transformation Market Outlook (2022-2032)

The demand for digital transformation is expected to reach US$ 2.3 Trillion in 2032, exhibiting a growth rate of 14.2%. The Y-o-Y for 2021-2022 is estimated at 19.1%.

The industry is expected to exhibit a growth rate of 23.6% from 2015 to 2021. In the forecast period, the Internet of Things segment, by technology, is expected to lead the market, exhibiting a CAGR of 13.8% during the forecast period from 2022-2032.

Regionally, North America is likely to dominate the industry, with the U.S making the most significant contribution, garnering US$ 811.7 Billion by 2032. On the other hand, APAC is projected to be the fastest-growing region with China procuring US$ 134 Billion by 2032.

Report Attributes


Anticipated Base Year Value (2021)

USD 521.5 Bn

Expected Market Value (2022)

USD 621.1 Bn

Projected Forecast Value (2032)

USD 2.3 Tn

CAGR of the U.S Market (2022-2032)


Estimated Market Value of China (2032)

USD 134 Bn

Growth Rate of U.K (2022-2032)


Market Size of Japan (2032)

USD 118 Bn

Key Digital Transformation Market Players

  • Microsoft
  • IBM
  • SAP
  • Oracle
  • Google

Don't Need a Global Report?

save 40%! on Country & Region specific reports

Digital Transformation Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

According to the latest report published by Fact. MR, the digital transformation market recorded a CAGR of 23.6% during the timeframe of 2015-2021. With the rising inclination toward a new digitalized setup, various technically advanced products and services are expected to enter the market, thereby, expanding the market size.

Digital transformation has spurred the transformation, integration, and simplified daily business operations. It has assisted the organizations in saving time and effort and using resources in a sustainable manner. The benefits of digital transformation have motivated conventional business organizations with automation, thus reducing the chance of errors.

During the forecast period, 2022-2032, the industry is anticipated to exhibit a 14.2% CAGR. With the advent of blockchain, quantum computing, predictive analysis, AI, Machine Learning, and others, the market is expected to hold various remunerative opportunities in the coming years. Also, with workflow becoming more systematic for daily operations, organizations are likely to adopt the digital transformation at a rapid pace. From 2022-to 2032, the global digital transformation market is expected to flourish 3.7x.

Key Digital Transformation Market Drivers

Industry Robotics Adoption to Boost the Industry

Dynamic development of information technology and rapid change in market demands are expected to grow the digital transformation market in the forecast period. Industrial robots are likely to play an important role in digital transformation as robots handle various important operations in industries. Manufacturers are adopting various robots to perform repetitive actions, thus, expanding the market size. The International Federation of Robotics (IFR) revealed that approximately 2.1 million stand-alone industrial and automotive robots had been installed in 2017, with 381,000 robot units shipped globally.

The latest development in industry 4.0 has facilitated single-axis robots, SCARA robots, collaborative robots, and AI-powered robots. These advanced machines have helped the robotic industry evolve significantly and streamline various processes, lessen errors, and enhance efficiencies. Increased safety in the workplace and the growing manufacturing capacity have resulted in a massive rise in investment in robotic systems.

Established organizations in the market have launched various collaborative robots like ABB’s YuMi, and KUKA’s LBR iiwa, that increase workers’ safety. The plug-and-play collaborative robots have garnered massive traction over a few years. The rise in demand for plug-and-play robots can be credited to their ease of use.

Growing Adoption of Digital Technologies by Organizations to Propel the Market Growth

Various established firms have started adopting big data and analytics, AI, and other technologies to offer modern products and services and gain a competitive edge in the global industry. Also, the adoption of digital technologies offers several opportunities and allows enterprises to gain customer-centric business models. A maximum of organizations are following digital process, principally focused on to growing demand for technologies for digital transformation across various verticals.

With the ever-evolving regulatory environment, organizations are moving towards a new customer engagement era where digital technologies are offering a crucial role. Organizations are producing a massive amount of data that demands technological support like ML algorithms and strong analysis to develop insights, thus, strengthening the digital transformation market.

Enterprises are adopting modern technologies like cloud computing, AI, big data, and other technologies to drive organizational growth. Digital technologies have transformed traditional business models into advanced business strategies.

More Insights, Lesser Cost (-50% off)

Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR

Factors Hampering the Digital Transformation Market

Security Concerns Associated with Digital Transformation to Impede the Market Growth

As per the Trustwave Global Security Report 2020, the volume of cyberattacks and security breaches on the cloud account for 20%. With the rising number of IoT-based endpoints, privacy and security issues are expected to increase since these endpoints are more vulnerable to cyberattacks.

Security and privacy of enterprises’ data is a significant issue amongst enterprises. There is an urgent need for robust privacy as IoT and cloud technologies are gaining traction. Cybercriminals are leveraging digital transformation to attack systems and confidential data. Ransomware attacks have become a common method to gain access to confidential data. For instance, high-profile cases Irish Health Service and Colonial Pipeline became international news where attackers demanded a massive amount of money from these organizations.

As per a study, there were almost 300 organizations hacked by notorious ransomware gangs within the first 4 months of 2021 and demanded payments of at least USD 45 Mn for rapid recovery.

Digital Transformation Market forecast analysis by Fact.MR

Country-Wise Analysis

What are the Prevailing Opportunities in the U.S Digital Transformation Market?

Rapid Adoption of Advanced Technology to Boost the Market in the Region

Increased penetration of IoT amongst various industries like manufacturing, retail, healthcare, and others are likely to play a key role in strengthening the regional market in the forecast period. Also, rapid industrialization in the region is encouraging North American organizations to implement digital technologies.

Digital transformation demands robust IT support, which is easily available in the region. The presence of developed nations in the region is likely to play important role in driving the regional market. The region has dominance in advanced programming and software solutions credited to modern automotive operations and manufacturing in Canada and the U.S.

According to the analysis, the U.S is projected to dominate the market in the forecast period. The country is expected to garner US$ 811.7 Billion during the forecast period from 2022-to 2032. The country is likely to exhibit a growth rate of 14.1% from 2022 to 2032, as compared to 23.3% from 2015 to 2021.

What are the Prospects of Market Growth in the Asia Pacific?

Favorable Government Policies to Support Market Growth in Japan and Other Developing Countries of the Region

APAC is expected to become the future hotspot for digital transformation owing to the rising investments in the process and implementation of various favorable policies by the government. The presence of developing countries like China, Japan, and South Korea is projected to favor the market growth in the coming time. As per the analysis, the market size of China, Japan, and South Korea is estimated at USD$ 134 Billion, US$ 118 Billion, and US$ 84.2 Billion respectively. China is projected at a growth rate of 13.9%, Japan at 13.3%, and South Korea at 13% during the forecast period.

Japan is witnessing significant growth in terms of digital transformation. Expansion of the regional market can be attributed to favorable government initiatives. For instance, in September 2021, the Japanese government rolled out the Digital Agency to strengthen Japan’s digital transformation. The initiative has propelled the digitization of the public sector. In another instance, in February 2021, Cisco announced a strategic collaboration with the Japanese government which comprised the digitization of various verticals such as; health, education, and businesses.

In July 2021, the Ministry of Science and ICT of South Korea launched the Korean New Deal Comprehensive Plan to aid its advanced digital innovation centered around AI and data. Owing to such initiatives, the market in the region is anticipated to garner significant traction in the forecast period.

Country-Wise Forecast CAGRs for the Digital Transformation Market 2022-2032


Estimated CAGR









South Korea


Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Category-Wise Insights

Based on Organization Size, What is the Contribution of Large Enterprises in Driving the Market?

According to the analysis, the large enterprise segment is anticipated to lead the market during the forecast period. The segment is expected to exhibit a CAGR of 14.1% during the forecast period from 2022-to 2032.

The growth of the segment can be attributed to the increasing need for digitization for ease of implementation and to reduce additional expenses. The rising number of benefits of digital technologies have encouraged large enterprises to make heavy investments to expand their product portfolios.

Based on Technology, What is the Role of IoT in Developing the Market?

As per the analysis, based on technology, the IoT segment is expected to dominate the market in the forecast period. The segment is anticipated to exhibit a CAGR of 13.8% during the forecast period from 2022-to 2032.

IoT is witnessing a significant demand in various industries like manufacturing, automotive, and healthcare. With the rising inclination of organizations towards modern business strategies, IoT is likely to gain significant traction in the coming years.

Competitive Landscape

Organizations in the global digital transformation market are taking various initiatives to digitally transform their business. As the competition is rising, players are collaborating, partnering, and launching new products to gain a competitive edge. Some of the recent developments in the industry are as follows:

  • In October 2021, Siemens Smart Infrastructure acquired Wattsense, French hardware, and software firm that offers IoT management systems for small mid-sized buildings, bringing Siemens’ building product line to a new stage.
  • In August 2021, Kubota Corporation announced a strategic partnership with Accenture to enhance its digital transformation by transforming its business model to contribute to food, environmental, and water solutions. The partnership is likely to offer a platform for Kubota locally and globally by incorporating services that combine the digital technologies of Accenture, comprising AI and the IoT.

Key Segments Covered in the Global Digital Transformation Market Study

  • By Technology

    • Cloud Computing
    • Big Data and Analytics
    • Mobility/ Social Media
    • Cybersecurity
    • Artificial Intelligence
    • Internet of Things
    • Others
  • By Deployment

    • Cloud
    • On-premises
  • By Organization Size

    • SMEs
    • Large Enterprises
  • By Vertical

    • BFSI
    • Retail and E-Commerce
    • IT and Telecom
    • Media and Entertainment
    • Manufacturing
    • Healthcare and Life Sciences
    • Education
    • Government and Defense
    • Others
  • By Region

    • North America
    • Europe
    • APAC
    • Latin America

- FAQs -

The global digital transformation market is estimated at USD 2.3 Trillion by 2032

The global digital transformation market is anticipated at 14.2% from 2022-to 2032

IoT is likely to exhibit a 13.8% CAGR from 2022-to 2032

U.S is estimated at US$ 811.7 Billion during the forecast period

U.K is projected at a CAGR of 13.7% during the assessment period

The large enterprises’ segment is projected to record a CAGR of 14.1% during the forecast period

The U.K is projected at US$ 114.7 Billion by 2032

Japan is observed at USD 118.0 Billion from 2022-2032

Digital Transformation Market

Schedule a Call

We value your privacy

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic.

By clicking "Accept All", you consent to our use of cookies. Privacy Policy