Digital Workplace Market

Digital Workplace Market Outlook (2024 to 2034)

The global digital workplace market has been projected to reach US$ 48.7 billion in 2024 and climb to US$ 341.5 billion by the end of 2034. As per the latest study by Fact.MR, worldwide revenue from digital workplace services is expected to increase rapidly at a CAGR of 21.5% from 2024 to 2034.

Growing requirements for desktop-as-a-service and increasing digitalization are contributing to the adoption of digital workplace solutions. In recent years, employees have been looking for flexibility in work-life balance, which is estimated to create opportunities for service providers. Increased adoption of advanced technologies, including enterprise mobility and BYOD (Bring Your Own Device) by numerous enterprises is contributing to the expansion of the digital workplace market size.

Growing preference for advanced technologies helps increase mobility and flexibility while reducing time spent on software and hardware licensing. It is estimated to alter the workplace nature and minimize operational expenditure of businesses.

• The BFSI sector is anticipated to account for a 21% share of the global market by the end of 2034.
• East Asia is projected to hold 23.1% of the global digital workplace market share by 2034.
• Demand for digital workplace services in South Korea is expected to accelerate at a CAGR of 22.4% from 2024 to 2034.

With the assistance of virtual reality (VR), the Internet of Things (IoT), and artificial intelligence (AI), workplaces are forecasted to implement more flexibility-enhancing and cloud-based accessibility solutions. These advancements and advantages are set to contribute to the rising demand for digital workplace services.

Automation and AI technological proliferation are projected to play a pivotal role in the automation of manual processes, thus helping organizations streamline the process and improve productivity. More organizations are offering instant access to enterprise applications and business-critical data on multiple devices with the use of cloud services.

Report Attributes	Details
Digital Workplace Market Size (2024E)	US$ 48.7 Billion
Forecasted Market Value (2034F)	US$ 341.5 Billion
Global Market Growth Rate (2024 to 2034)	21.5% CAGR
Japan Market Growth Rate (2024 to 2034)	22.1% CAGR
North America Market Share (2034F)	24.3%
Small & Medium Enterprises (SMEs) Segment Growth Rate (2024 to 2034)	25%
Key Companies Profiled	IBM Tech Mahindra Limited Accenture plc. HCL Technologies Ltd. DXC Technology Co. Capgemini SE Infosys Ltd. Cognizant Technology Solutions Corp. Tata Consultancy Services Limited Wipro Limited Fujitsu Ltd. International Business Machines Corporation Trianz Atos SE Mphasis

What is Responsible for High Digital Workplace Market Growth?

“High Focus on Improved Employee Experience and Greater Flexibility”

Digital workplaces help attract, engage, motivate, and retain employees. Various digital workplace policies enable employees to opt for their respective devices and facilitate various work styles. Growing preference for persona-based models and end users fit-for-purpose workplace bundles, which are customized according to their needs is estimated to contribute to digital workplace market growth.

Employee data and content are embedded securely in collaboration tools, cloud storage, and corporate drop boxes to provide easy access to data to respective employees irrespective of time and location. It enables employees to work seamlessly at remote locations or physical offices. Access to the data increases productivity levels and organizational agility. Digital workplace services offer employees the support they require to improve collaboration, communication, and connections with one another.

“Growing Adoption of Digital Workplace Solutions by Small & Medium Enterprises”

Small & medium enterprises (SMEs) are adopting multiple types of digital workplace solutions to gain a competitive advantage through cost savings, increased flexibility, adaptability, and increased productivity. It is pivotal for SMEs to concentrate on their respective business operations and improve their strength in the domain of business.

SMEs are under constant pressure to adopt more effective and robust IT infrastructures to take their respective services and products to the markets more effectively and rapidly than their counterparts. Therefore, arises the demand for managed services, which enable digital workplace transformation and are cost-effective.

What are the Hindrances That Digital Workplace Service Providers Face?

“Lack of Education and Training Among Workforce”

At present, it is pivotal for organizations to educate and train their workforce to use digital workplace services effectively and bring out the best of their caliber. A lack of proper education among the workforce is anticipated to lead to compliance and security concerns.

Which Digital Workplace Market Trends are Startups Leveraging?

“Rising Requirements for Customized Solutions”

Startups are anticipated to invest more in offering customized solutions according to the requirements of end users. They are expected to increase their expenditure on R&D activities for a thorough analysis of consumer behavior and requirements, which help in the development of more efficient services.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, states in its recently updated research analysis that North America is calculated to hold 24.3% share of the global market by 2034. The rising adoption of multiple emerging technologies, including BYOD, enterprise mobility management solutions, and AI is widening the scope for market players in the region.

Why are Providers of Digital Workplace Services Investing in the United States?

“Incorporation of Advanced Technologies for Effective Operation Process”

Attribute	United States
Market Value (2024E)	US$ 5.2 Billion
Growth Rate (2024 to 2034)	22% CAGR
Projected Value (2034F)	US$ 37.8 Billion

The United States is poised to account for 45.6% share of the North American market by the end of 2034. Various workplace transformation service providers are incorporating artificial intelligence (AI) and cloud technologies into their offerings.

For instance :

• IBM, in May 2020, launched IBM Talent & Transformation. This solution uses AI to assist human resources in effective functioning and is estimated to enable business professionals in various areas, including finance, marketing, legal, and HR to adopt digital technologies.

An increased demand for robotics and software solutions is encountered in the United States with high manufacturing, automotive, and retail activity, which is subsequently driving digital workplace market share.

Why is Demand for Digital Workplace Solutions High in China?

“Rapid Digitization and Preference for Cloud Platforms among Enterprises”

Attribute	China
Market Value (2024E)	US$ 5.3 Billion
Growth Rate (2024 to 2034)	21.5% CAGR
Projected Value (2034F)	US$ 37.5 Billion

China is forecast to contribute 47.5% of the market share in East Asia by the end of the assessment period in 2034. Growing adoption of digitization by multiple sectors along with rising preference for cloud platforms among numerous enterprises in the country is widening opportunities for market players.

Category-wise Insights

As per Fact.MR report, digital workplace solutions are adopted more by end users instead of services to enhance productivity and resource use. Several cloud storage tools, content management systems, and collaborative and social tools are adopted more across end-use industries.

Which Enterprises are Set to Increase Their Share of the Global Market?

“Growing Contribution of Large Enterprises to Global Market Revenue”

Attribute	Large Enterprises
Segment Value (2024E)	US$ 34.1 Billion
Growth Rate (2024 to 2034)	19.6% CAGR
Projected Value (2034F)	US$ 204.9 Billion

Large enterprises are calculated to enjoy a share of 60% of global market revenue by 2034-end. Numerous large enterprises are embracing innovative technologies and cloud technology, which are comparatively easy to use. They are powered by artificial intelligence and related automation software and technologies. These solutions enable real-time dashboards to equip users with various future technologies, including VR, AR, and cognitive automation.

Which End-Use Sector Will Generate Higher Revenue Streams for Market Players?

“Increasing Application of Different Types of Digital Workplace Solutions in BFSI Sector”

Attribute	BFSI
Segment Value (2024E)	US$ 10.7 Billion
Growth Rate (2024 to 2034)	20.9% CAGR
Projected Value (2034F)	US$ 71.7 Billion

The BFSI sector is anticipated to account for 21% share of global market revenue by the end of 2034. Growing preference for digital workplace solutions and services in the BFSI sector is generating opportunities for market players. mass deployment of these digital workstations is estimated to help minimize office expenses and related functional expenditures. In addition, digital workplace solutions improve operative capability and certify administrative regulations in the industry.

Competitive Landscape

Leading providers of digital workplaces are concentrating on offering quality services to end users and investing more in new product development. They are incorporating organic or inorganic strategies, such as collaborations, partnerships, etc. to get a competitive edge.

For instance :

• Trianz is a digital transformation service and technology company. In December 2021, it partnered with Workgrid Software, which is a provider of intelligent digital workspace solutions. This partnership will help Trianz deliver a modern workplace powered by intelligent automation, predictive analysis, and enterprise social platforms to enable career orientations, productivity, and collaboration.

Key players in the digital workplace industry include IBM, Tech Mahindra Limited, Accenture plc., HCL Technologies Ltd., DXC Technology Co., Capgemini SE, Infosys Ltd., Cognizant Technology Solutions Corp., Tata Consultancy Services Limited, Wipro Limited, Fujitsu Ltd., International Business Machines Corporation, Trianz, Atos SE, and Mphasis.

Segmentation of Digital Workplace Market Research

• By Component :

  • Solutions
  • Services

• By Enterprise Size :

  • Small & Medium Enterprises (SMEs)
  • Large Enterprises

• By End Use :

  • BFSI
  • IT & Telecommunication
  • Retail & Consumer Goods
  • Healthcare & Pharmaceuticals
  • Manufacturing
  • Government

• By Application :

  • Quality Control & Inspection
  • Reverse Engineering
  • Virtual Simulation

• By Region :

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