Digital Transformation Market

Digital Transformation Market Study by Cloud Computing, Big Data & Analytics, Mobility/Social Media, Cybersecurity, Artificial Intelligence, and Internet of Things from 2024 to 2034

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 (2024 to 2034)

The global digital transformation market has been calculated at US$ 791.4 billion for 2024. Expanding at a CAGR of 12.8%, revenue from digital transformation technologies is expected to reach US$ 2,639.4 billion by 2034.

With a rising inclination toward new digitalized setups, various technically advanced products and services are expected to enter the market, thereby, expanding the market size. Digital transformation is simplifying daily business operations. It assists organizations in saving time and effort and using resources in a sustainable manner. The benefits of digital transformation motivate conventional business organizations to automate, thus reducing the chance of errors.

With the advent of blockchain, quantum computing, predictive analysis, artificial intelligence (AI), machine learning (ML), and others, the market is expected to hold various remunerative opportunities in the coming 10 years. Also, with workflow becoming more systematic for daily operations, organizations are likely to adopt the digital transformation at a rapid pace.

IoT (Internet of Things) is also witnessing a significant demand in various industries including manufacturing, automotive, and healthcare. With the rising inclination of organizations towards modern business strategies, IoT is likely to gain significant traction in the coming decade.

  • North America is projected to hold 24.3% of the global digital transformation market share by 2034.
  • The East Asian digital transformation market size is estimated at US$ 177.3 billion for 2024.
Report Attributes Details
Digital Transformation Market Size (2024E) US$ 791.4 Billion
Forecasted Market Value (2034F) US$ 2,639.4 Billion
Global Market Growth Rate (2024 to 2034) 12.8% CAGR
South Korea Market Value (2034F) US$ 140.8 Billion
Key Companies Profiled
  • Kellton Tech Solutions Ltd.
  • Microsoft Corporation
  • Salesforce, Inc.
  • Accenture Plc.
  • Adobe Systems Inc.
  • IBM
  • Oracle
  • Hewlett Packard Enterprise Co.
  • International Business Machines Corporation
  • Dell EMC
  • Dempton Consulting Group
  • Google Inc.
  • Happiest Minds
  • Broadcom, Inc.
  • Cisco Systems, Inc.
  • SAP SE
  • TIBCO Software

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How is Digital Transformation Changing the Business World?

“Adoption of Robotics and Automation Move toward Digital Transformation”

Dynamic developments in the information technology sector are expected to boost the digital transformation market growth during the forecast period. Industrial robots are likely to play an important role in digital transformation as robots handle various important operations in industries. Several industries are adopting various robots to perform repetitive actions, thus contributing to digital transformation.

The latest development in industry 4.0 is facilitating single-axis robots, SCARA robots, collaborative robots, and AI-powered robots. These advanced machines are helping the robotics industry to evolve significantly, streamline various processes, lessen errors, and enhance efficiencies. Increasing safety in the workplace and the growing manufacturing capacity are resulting in a massive rise in investment in robotic systems.

Established organizations are launching various collaborative robots such as ABB’s YuMi, and KUKA’s LBR iiwa, that increase workers’ safety. Plug-and-play collaborative robots are garnering massive traction. The rise in demand for plug-and-play robots can be credited to their ease of use.

“Digital Technologies Transforming Traditional Business Models into Advanced Business Strategies”

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 majority of organizations are following digital process, principally focused on the 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 playing a crucial role. Organizations are producing a massive amount of data that demands technological support such as ML algorithms and strong analysis to develop insights, contributing to the importance of digital transformation. Enterprises are also adopting modern technologies, such as cloud computing, and edge computing to drive organizational growth.

What Can Hamper the Sales Growth of Smart Digital Technologies?

“Security Concerns Associated with Digital Transformation”

Volume of cyberattacks and security breaches is expected to gain momentum with the surge in digital transformation. 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. 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.

Start-up Ecosystem :

  • Croatian-based start-up Spotsie offers an IoT-based technology for real-time asset positioning in large indoor spaces and explosive environments. The company integrates battery-independent low-energy beacons, which gather location data, and cloud-based analytics to track the location of assets and generate insights.
  • AHX.ai, founded in 2022, is a United Kingdom-based start-up that provides a platform for predictive intelligence for product quality monitoring in manufacturing industry. The platform leverages AI for production optimization, asset maintenance, and dynamic scheduling.

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Country-wise Analysis

Increasing industrial activities and the growing automation in various sectors are contributing to sales of digital technologies in the United States. The United States is a big marketplace and the presence of several major organizations is driving the adoption of smart technologies.

Which Aspects are Boosting Adoption of Digital Technologies in the United States?

“Surge in Industrial Activities Pushing Demand for Advanced Digital Systems”

Attribute United States
Market Value (2024E) US$ 84.2 Billion
Growth Rate (2024 to 2034) 13.3% CAGR
Projected Value (2034F) US$ 292.5 Billion

Increasing penetration of IoT amongst various industries such as manufacturing, retail, healthcare, and others is likely to play a key role in strengthening the United States market growth. Also, rising industrial activities are encouraging United States organizations to implement digital technologies. Digital transformation demands robust IT support, which is easily available in the country. The country is witnessing dominance in advanced programming and software solutions credited to modern automotive operations and manufacturing.

What is the Demand Outlook for Digital Technologies in South Korea?

“Favorable Government Policies Increasing Adoption of Digital Workplace Technologies”

Attribute South Korea
Market Value (2024E) US$ 39.4 Billion
Growth Rate (2024 to 2034) 13.6% CAGR
Projected Value (2034F) US$ 140.8 Billion

South Korea is witnessing major growth in terms of digital transformation. South Korea 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.

  • 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 on AI and data. Owing to such initiatives, the digital technologies are gaining significant traction in South Korea.

How is Swift Digital Transformation Benefitting Market Players in Germany?

“Profitable Market for Digital Technology Suppliers”

Germans are well-known as early adopters. The country is at the forefront of innovations. The growing adoption of Industry 4.0 technologies in various sectors is expected to boost the adoption of digital technologies in Germany. The government in Germany is focused on utilizing the full potential of Industry 4.0 to strengthen their manufacturing sector. Smart digital technologies are finding extensive application in numerous German industries.

Category-wise Analysis

Large enterprises are prime adopters of digital technologies and are estimated to hold 58% of the global market share in 2024.

Which Organizations are Key Consumers of Digital Technologies?

“Large Enterprises Widely Adopting Digital Technologies to Stay Ahead In Competition”

Attribute Large Enterprises
Segment Value (2024E) US$ 459 Billion
Growth Rate (2024 to 2034) 12% CAGR
Projected Value (2034F) US$ 1425.3 Billion

Digital technologies are widely adopted by large enterprises. This can be attributed to the increasing need for digitization, ease of implementation, and reducing additional expenses. The numerous benefits digital technologies provide encourage large enterprises to make heavy investments to expand their product portfolios.

Why are Cloud Computing Technologies So Popular?

“Crucial Combination of Generative AI and Cloud Computing”

Attribute Cloud Computing
Segment Value (2024E) US$ 237.4 Billion
Growth Rate (2024 to 2034) 12% CAGR
Projected Value (2034F) US$ 739 Billion

Cloud computing is one of the emerging digital transformation market trend. Since COVID-19 pandemic cloud computing has witnessing an increasing demand and is widely adopted by several organizations. Cloud-based solutions help to store and secure data effectively. Cloud computing also aligns with sustainable practices being a paperless technology.

Know thy Competitors

Competitive landscape highlights only certain players
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Competitive Landscape

Key players in the digital transformation industry are taking various initiatives to transform their business. As the competition is rising, companies are collaborating, partnering, and launching new products to gain a competitive edge.

Some of the recent developments in the industry are :

  • 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 of Digital Transformation Market Research

  • By Technology :

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

    • Cloud
    • On-premise
  • By Organization Size :

    • Small & Medium-Sized Enterprises
    • Large Enterprises
  • By Vertical :

    • BFSI
    • Retail & e-Commerce
    • IT & Telecom
    • Media & Entertainment
    • Manufacturing
    • Healthcare & Life Sciences
    • Education
    • Government & Defense
    • Others
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

What is the current digital transformation market size?

The global digital transformation market is calculated at US$ 791.4 billion for 2034.

What are the future projections for digital technologies?

The market for digital transformation is projected to register a CAGR of 12.8% through 2034.

What is the forecasted market value for 2034?

Sales of digital transformation technologies are projected to reach US$ 2,639.4 billion by 2034.

What is the digital transformation market size in South Korea?

The South Korea market is estimated at US$ 39.4 billion in 2024.

What are the main 5 areas of digital transformation?

Process automation & optimization, employee empowerment & engagement, business model transformation, digital product & service innovation, & customer experience.

How fast is the demand for cloud computing increasing?

Demand for cloud computing is foreseen to rise at a CAGR of 12% during the next 10 years.

- Also of Interest -

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Blockchain Technology Market

Blockchain Technology Market Study by Solutions, Infrastructure & Protocols, and Middleware for Digital Identity, Exchanges, Payments, Smart Contracts, and Supply Chain Management from 2024 to 2034

Cloud Computing Market

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Internet of Things (IoT) Market

Internet of Things (IoT) Market Study by IoT Platforms, IoT Data Transport, IoT Security, IoT Analytics, and and IoT Sensors from 2024 to 2034

Digital Transformation Market

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