Digital transformation market to reach $1,759.4 billion by 2028
The global digital transformation market size is estimated to reach $1,759.4 billion by 2028, registering a CAGR of 23.6% over the forecast period, according to Grand View Research.
The increasing adoption of advanced technologies, such as the Internet of Things (IoT) and machine learning, across several industries/sectors, is encouraging businesses to implement connected, analytical, and data-rich solutions via digital transformation. These solutions are capable of encapsulating intelligence into business operations to facilitate improved and more effective customer engagements. Moreover, the growing usage of mobile devices, smartphones, and applications across business functions is increasingly promoting digitization.
Key insights and findings
- The solution segment is expected to capture the largest share by 2028 due to the exponential rise in the use of mobile technology across several industries, and the subsequent shift in the way content is consumed via social media platforms.
- The rising implementation of digital transformation solutions across industries and verticals is driving the demand for support and maintenance services. This is expected to boost the demand for professional services over the forecast period.
- The hosted deployment segment is expected to gain momentum over the forecast period owing to advantages, such as lower cost, convenience, flexibility, and improved security.
- Large enterprise is expected to be the largest enterprise size segment due to the increased focus of large-scale firms on improving productivity and efficiency of workforces by using digital transformation solutions.
- In terms of end-use, the healthcare segment is projected to register the fastest CAGR of more than 24% from 2021 to 2028.
- The growing implementation of digital processes and technologies, such as telemedicine, blockchain, Electronic Health Records (EHRs), and AI-enabled medical devices, is allowing healthcare providers to improve patient care.
- Asia Pacific is anticipated to be the fastest-growing regional market from 2021 to 2028 due to the increasing penetration of advanced technologies.
Digital transformation market growth and trends
Digital transformation enables organizations to mitigate business risks and manage disruptions, such as corporate restructuring, marketplace fluctuations, unforeseen pandemics, and unpredictable geopolitical environments, more efficiently. It enables organizations to address a range of process optimization.
Moreover, it enables businesses to target a larger customer base by designing new business models, products, and services leveraging digitization. Furthermore, it helps facilitate the transformation of business activities, traditional processes, and business models to benefit from upcoming changes and opportunities pertaining to futuristic technologies.
The rapid urbanization and digitization across the globe are enabling organizations to embrace digital transformation using technology-driven solutions. The growing usage of cloud technology by various small & medium enterprises (SMEs) helps them adopt modern digital experience platforms (DXP) at reasonable costs without constant upgradation or replacement of systems.
This is estimated to drive the market during the forecast period. Moreover, benefits, such as improvements in operational flexibility and overall customer experience, are encouraging digital transformation initiatives across SMEs, driving the market.