Digital Workplace Market

Digital Workplace Market Outlook (2022-2032)

Digital workplace demand was valued at US$ 27.33 Billion in FY 2021, reaching US$ 33.41 Billion in 2022. During the forecast period ranging from 2022 to 2032, the market is poised to incline at a staggering 22.3% value CAGR, concluding at a valuation of US$ 250.2 Billion.

The Digital Workplace solutions deliver cost-effective support for technical queries and prevent downtime caused by implementing digital workplace solutions. Further, these solutions help organizations maintain a competitive edge in the market by providing several benefits, such as stable operating environments and reducing governance and compliance risks.

These factors are expected to accelerate the adoption of digital workplaces during the forecast period. The market for digital workplace has majorly increased, documenting a historical CAGR of 12.5% from 2017 to 2021.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 27.33 Billion
Expected Current Market Value (2022)	US$ 33.42 Billion
Projected Forecast Value (2032)	US$ 250.2 Billion
Global Growth Rate (2022-2032)	22.3% CAGR
Key Digital Workplace Providers	IBM Accenture plc. HCL Technologies Ltd. Capgemini SE Tata Consultancy Services Limited Fujitsu Ltd. Trianz Mphasis Cognizant Technology Solutions Corp. Atos SE International Business Machines Corporation Wipro Limited Infosys Ltd. DXC Technology Co. Tech Mahindra Limited

Easy-to-use digital workplace solutions in an organization, both inside and outside the firewall heighten the staff satisfaction and increase their productivity, along with enhancing the efficiency of operations in an organization. This is a major factor that is expected to augment the growth of the Digital Workplace Market in the near future.

2017-2021 Digital Workplace Demand Analysis vs. Forecast 2022-2032

According to market research and competitive intelligence provider Fact.MR- the market for digital workplace reflected a value CAGR worth 22.3% during the forecast period. Growing adoption of digital workplace solutions among organizations is one of the major factors that is expected to flourish the growth of the digital workplace market over the analysis period.

The concept of digital workplace deals with aligning technologies, employees, and business processes using digital transformation. It enables employees to access their apps and data on any device, from any location. The digital workplace solutions refer to enterprise mobility solutions for users to work across the physical, virtual, and connected environments seamlessly.

The main aim behind workplace digitization is to build a user-centric environment. Digital workplace solutions enable employees to choose devices that enhance their working experience, which in turn are expected to fuel the organization productivity.

Additionally, the increasing adoption of Bring Your Own Device (BYOD) and work from home concept among small and medium enterprises as well as large enterprises is one of the major factors responsible for the growth of the digital workplace market during the forecast period.

In addition, the organizations are adopting digital workplace solutions to enhance employee experience through a simpler and more flexible work style. Digital Workplace helps organizations to attract new employees and retain more experienced and expert workers. The service also improves security by providing a complete and comprehensive view of network traffic, which helps in identifying both internal and external threats.

Moreover, digital workspace makes it easier for organizations to embrace new technologies and the cloud without compromising user experience. The implementation of machine learning and artificial intelligence (AI) algorithms in digital workplace solutions helps in protecting the company’s data.

Thus, the adoption of digital workplace solutions is increasing among organizations that escalate the growth of the Digital Workplace Market in the forthcoming years.

Prominent Digital Workplace Market Drivers

Demand for Greater Flexibility and Improved Employee Experience

A digital workplace helps attract, retain, engage, and motivate employees. The digital workplace policies allow employees to choose their own devices and facilitate a variety of work styles. With the use of persona-based models, instead of single services, end users receive a fit-for-purpose workplace bundle customized to their requirements.

Employee content and data is securely embedded in collaboration tools, corporate drop boxes, and cloud storage so that employees can access data from any device, in any location and time as seamlessly, whether they are a physical office or working remotely.

Access to this data increases efficiency and drives the level of productivity and organizational agility. Digital workplace solutions offer employees the support they need to improve their communication, collaboration, and connections with each other.

Implemented efficiently and effectively, these solutions allow organizations to mitigate common risks, adhere to their regulatory compliances, and ultimately realize enhanced business value, thereby being able to provide a better experience to employees. Providing the right digital workplace tools for organizations will help increase the agility and flexibility of employees.

Rising adoption of Digital Workplace by SMEs

Nowadays, SMEs are adopting digital workplace solutions gain a competitive advantage in the industry through increased productivity, cost savings, a more mobile and agile workforce, increased flexibility, and adaptability in the marketplace. It is crucial for Small and Medium-sized Enterprises (SMEs) to focus on their business operations and growth, and improve their strength in their domain of business.

As stated in an article by Kissflow, the SMEs familiarity with digital transformation has doubled over the years, with just 33% in 2017 to 57% in 2019. The article also states that by implementing a digital workplace, organizations have been able to see an increase of 43% in revenue, 53% in employee engagement, and 67% in productivity.

Additionally, the SMEs are under continuous pressure to adopt more robust and efficient IT infrastructures to take their products and services to the market as fast as their counterparts. However, they typically lack the internal skills to manage the IT infrastructure. To overcome these challenges, SMEs need managed services that are cost-effective and enable digital workplace transformation.

Thus, the SMEs across all industries adopt digital workplace services to sustain and remain competitive in the market, which in turn are expected to create lucrative opportunities for the growth of the Digital Workplace Market over the analysis period.

Key Challenges hindering Digital Workplace Software Adoption

Lack of Training and Education among the Workforce

Presently, it is becoming crucial for the organizations to train and educate their workforce to use Digital Workplace solutions efficiently and bring out the best of their performances, as the adoption of IT infrastructure supporting workplace transformation is also increasing.

Thus, organizations have to ensure that their employees have access to training that allows them to harness the digital workplace solutions to their advantage. In addition to technical training, employees need policy training on the type of information they should or should not share in the digital workplace.

For this, organizations are required to communicate about policies on how to handle personal and company’s devices and data in order to avoid security and compliance concerns. For instance, a team manager equipped with a new resource performance tracker should be provided with all the guidelines and training to use the solution.

Thus, training programs are ongoing processes that need to be implemented by organizations before adopting digital workplace solutions and services to improve and evolve with the workplace transformation strategy. This, in turn, is a restraining factor for the adoption of digital workplace transformation strategies, as they require ongoing training efforts from organizations’ end. These are the major factors that are restraining the growth of the Digital Workplace Market.

Dearth of Thought Leadership across Organizations

Digital transformation is prevalent everywhere. It is powering the growth of organizations, smart cities, and promoting advancements in healthcare. However, there are certain fundamental risks with people in the organizations, most notably, skills getting outdated faster than ever before.

This presents modern business leaders with a very acute set of challenges. To overcome these, organizations will need a new style of leadership and a new structure for their organizations, which would help them drive the right behavior in employees. As technology has continued to evolve, leaders have to continue adapting to it.

The big task for management is to create a culture and leadership style to support autonomy, empowerment, and active management. It is not enough to merely invest in innovative technologies to drive digital transformation. The “people first” motive is now more valid than ever before.

This means that a change in leadership style and organizational structures is required to enable more motivational and creative work environments. These factors are expected to impede the growth of the Digital Workplace Market during the forecast period.

Comparative View of Adjacent Digital Workplace Markets

Global Digital Workplace Market :

Attributes	Global Digital Workplace Market
CAGR (2022- to 2032)	22.3%
Market Value (2032)	US$ 250.2 Billion
Growth Factor	Growing adoption of digital workplace solutions among organizations is a major factor that will escalate the market growth in the near future.
Opportunities	The growing adoption of workplace transformation solutions among SMEs is creating lucrative opportunities for the growth of the digital workplace market during the forecast period.

Global eCommerce Market :

Attributes	Global eCommerce Market
CAGR (2022- to 2032)	14.7%
Market Value (2032)	US$ 54.06 Trillion
Growth Factor	Increasing penetration of the internet is bolstering the smartphone-using population across the world is one of the major factors that is expected to boost the market growth during the forecast period.
Opportunities	The growing importance of faster browsing has led to the development of connectivity, thus leading to the development of 4G and 5G technology. This factor is expected to create lucrative opportunities for the market growth.

Global Digital Education Market :

Attributes	Global Digital Education Market
CAGR (2022- to 2032)	32.3%
Market Value (2032)	US$ 250.42 Billion
Growth Factor	Rising demand for microlearning is one of the major factors that is expected to boost the growth of the Digital Education Market over the analysis period.
Opportunities	Reduced infrastructure cost and increased scalability using online learning is a major factor that is anticipated to create immense opportunities for the market growth.

Country-wise Analysis

How will the U.S perform in the Global Market for Digital Workplace?

Adoption of Advanced Technologies such as AI and BYOD to boost adoption

As per Fact.MR’s analysis, the U.S is expected to dominate the market in 2022 accounting for a revenue share of 15.2%. The growth of the industry for digital workplace in the US can be attributed to the increasing adoption of emerging technologies such as AI, BYOD, and enterprise mobility management solutions, among others. Several workplace transformation service providers in the country are rapidly incorporating cloud technologies and Artificial Intelligence (AI) into their service offerings.

For instance, in May 2020, IBM launched IBM Talent & Transformation, a business solution that uses AI to help human resources to widen their skills gap. The solution enables business professionals in several areas, such as HR, legal, finance, and marketing to adopt digital technology.

Additionally, due to the country's high manufacturing, retail, and automotive activity, there is a high demand for software and robotics solutions. This ultimately drives the development of the Digital Workplace Market in the US.

Will India be the Kingpin of the Digital Workplace Landscape across Asia?

Rise in Adoption of Cloud Platforms and Rapid Digitization of Workplace driving demand

The digital workplace market in India is expected to hold a market share of 10.5% in 2022, and the trend is expected to continue, attributed to the rapid adoption of digitization by various industry sectors and the growing adoption of cloud platforms among enterprises in the country. In addition, market players in the country are adopting several strategies, such as product development, collaborations, and strategic partnerships, among others to sustain a strong position in the market.

For instance, in June 2020, Tata Consultancy Services (TCS) Limited launched Digital Acceleration Center (DAC) with the support of the Singapore Economic Development Board, to assist Singapore businesses in the COVID-19 recovery.

Moreover, TCS will provide opportunities for university graduates of Singapore through Workforce Singapore's SGUnited Traineeships Programme, which include digital workplace, Internet of things (IoT), and AR, among others. These initiatives in technologies have provided new opportunities for regional market players to expand their digital workplace portfolio.

Category-wise Analysis

By Component, which Category of Digital Workplace will dominate?

Increasing Preference for Digital Workplace Solutions

The solution segment will account for a market share of 67.6% in 2022. The segment growth can be attributed to the adoption of workplace solutions, such as social and collaborative tools, cloud storage tools, and content management systems among end-users to enhance resource usage and productivity.

For instance, Trianz PULSE, a next-generation digital workplace solution, is designed for clients, vendors, and partners to collaborate and communicate through a single centralized environment and simplify remote workforce management.

It enables a workplace social network, fosters collaborations and team building across the organization, and provides access to social media for posting corporate messages. Furthermore, it enhances productivity and efficiency with self-service capabilities for the IT departments in the organization. These benefits provided by digital workplace solutions will supplement the growth of the segment during the forecast period.

Which Enterprise is expected to make maximum use of Digital Workplaces?

Digital Workplace to be deployed mostly across Small and Medium Enterprises

The Small & Medium Enterprises (SMEs) segment is expected to grow at a CAGR of 24.3% over the forecast period. SMEs are swiftly deploying digital workplace services despite their limited organizational infrastructure. It offers several advantages to SMEs, such as increased workforce productivity and business efficiency, mobilized desk-based operations, a shorter time to market, lower costs, and a better customer experience.

Furthermore, SMEs are increasingly embracing cloud enterprise size due to lower costs, no need for manpower for hardware maintenance, and scalability, which results in lower operating and capital expenditures. These factors are propelling the growth of the digital workplace industry in SMEs during the forecast period.

By End-Use, which Category of Digital Workplace will dominate?

IT & Telecom mostly benefited by Digital Workplace

The IT & telecom segment is expected to account for a revenue share of 22.8% in 2022. The growing trends of remote working, increasing adoption of Software as a Service (SaaS) service, and BYOD in countries, such as the U.S., Canada, India, China, and Australia have led to an increase in the adoption of digital workplaces solutions in IT & telecom industry. Several IT and telecom companies. As economies around the world become more digital, the pandemic has increased the need for workforce flexibility and resilience. Organizations are aggressively investing in digital solutions, to run their businesses and establish resilience to unprecedented lockdowns.

For instance, Infosys, an information technology company that provides business consulting and outsourcing services launched four digital platforms for their internal workplace, which include Launchpad (for employee onboarding), InfyMe (for employee services and experience platform), LEX (for digital learning), and Meridian (for collaboration and virtual events). This enabled Infosys to quickly adapt remote working and hybrid work models during the pandemic. These developments will further boost the adoption of digital workplace solutions in the IT & telecom industry during the forecast period.

The Start-Up Ecosystem: How key Players are opening Frontiers for Future Growth?

Digital Workplace Providers such as Wallit, Happeo, Capslock, VergeSense, Quixy, WorkGrid, Fertifa, Advaisor, FinFlx, Parable, myAccessHub, and Cultivate, among others are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to identify the interest of potential buyers and create a larger customer base. For instance,

• In November 2021, VergeSense, a San Francisco, California-based company developing technologies to track physical office usage, announced that it raised $60 million in a series C round led by Scale Venture Partners. According to CEO Dan Ryan, the proceeds will be used to help support R&D and growth as VergeSense looks to expand its international customer base.
• In April 2021, Happeo and AODocs had joined forces to create a rich integration, offering Google Workspace’s better alternative to Microsoft SharePoint. The companies empower employees to use the Google Apps they’re familiar with, while allowing organizations to automate repetitive tasks and to enhance collaboration across departments and regions. Whether it’s approval workflows for newly-created documents, status-updates on deliverable files or notifications when a document is ready – it’s an all-in-one place to collaborate effectively together.

Competitive Landscape

The market for digital workplace appears to be majorly consolidated, characterized by the presence of a few prominent service providers. To cement their geographical presence, these players are relying on a multitude of growth strategies- ranging from collaborations with government entities to rebranding of existing portfolios and penetrating new markets. Some prominent developments are as follows:

• In December 2021, Trianz, a digital transformation technology and service company announced a partnership with Workgrid Software, an intelligent digital workspace solutions provider, to deliver a modern workplace with a digital assistant that collaborates with enterprise applications and delivers personalized, contextual information, and content to workforces. With the help of this partnership, Trianz would be able to deliver a modern workplace powered by predictive analytics, intelligent automation, and enterprise social platforms, to enable collaborations, productivity, and career orientations.
• In February 2020, BlackBerry Limited launched BlackBerry Digital Workplace, a secure robust workspace solution, to provide users with simple and secure online and offline access to corporate on-premise or cloud content including Microsoft Office 365 resources.
• In February 2020, LumApps SAS partnered with Microsoft Corporation to develop a fully integrated Office 365 Digital Workplace solution. This partnership helps the LumApps to integrate its solutions with Microsoft tools which accelerates its growth in the digital workplace market.

Report Scope

Report Attribute	Details
Growth Rate	CAGR of 22.3% from 2022 to 2032
Market Value in 2021	US$ 27.33 Billion
Market Value in 2022	US$ 33.41 Billion
Market Value in 2032	US$ 250.2 Billion
Base Year for Estimation	2021
Historical Data	2017-2021
Forecast Period	2022-2032
Quantitative Units	US$ Billion for Value
Report Coverage	Revenue Forecast Company Ranking Competitive Landscape Growth Factors Trends Pricing Analysis
Segments Covered	Component Enterprise Size End Use Region
Regions Covered	North America Europe Asia Pacific Latin America Middle East & Africa
Key Countries Profiled	U.S Canada Mexico Brazil Germany France Italy U.K China Japan South Korea Malaysia Singapore Australia New Zealand GCC South Africa Israel
Key Companies Profiled	IBM Accenture plc. HCL Technologies Ltd. Capgemini SE Tata Consultancy Services Limited Fujitsu Ltd. Trianz Mphasis Cognizant Technology Solutions Corp. Atos SE Wipro Limited Infosys Ltd. DXC Technology Co. Tech Mahindra Limited
Report Customization & Pricing	Available upon Request

Key Segments Covered in the Digital Workplace Market Report

• By Component :

  • Digital Workplace Solutions
  • Digital Workplace Services

• By Enterprise Size :

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises

• By End Use :

  • BFSI
  • IT & Telecommunication
  • Retail & Consumer Goods
  • Healthcare & Pharmaceuticals
  • Manufacturing
  • Government
  • Other End Uses (Media & Entertainment, Transportation & Logistics, and Energies & Utilities)

• By Region :

  • North America 
  • Latin America 
  • Europe Digital 
  • Asia Pacific 
  • Middle East & Africa