The global digital transformation market size is expected to grow over the forecast period from USD 465.1 billion in 2020 to USD 1227.68 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 14.9%. Market's major growth drivers are increasing penetration of mobile devices and apps, and increasing cloud services adoption.
Driver: Digitalizing organizational business functions to serve changing customer preferences and enhance operational efficiency
Using advanced technologies such as cloud, IoT, big data and analytics, mobility, and social media has led to innovation and transformation, thus stimulating business ecosystem growth. Digital innovations have converted the company's old approach into a new approach. Remarkably, companies expect an immediate, reliable, and real-time response from analyzing big data to develop new products and services, improve existing ones, and devise radically new business models to gain a competitive advantage. Big data and business intelligence have begun to be incorporated by enterprises to obtain real-time information, gain actionable insights, understand customer requirements and facilitate growth in their overall productivity. Because the adoption of modern technology offers endless opportunities, clients frequently rate companies primarily in terms of digital customer experience. Most companies adopt digital transformation practices that focus primarily on digital customer interactions. This factor has resulted in increased demand for digital transformation solutions across various vertical lines of the industry.
Restraint: Concerns about sensitive data protection and privacy. Sensitive business data protection and privacy pose a major problem when implementing digital enablement technologies. As IoT expands, companies will eventually need more stringent protection and privacy to avoid breaches. The security problem puts digitization progress in jeopardy. The number of security and privacy concerns will also increase with the rising number of IoT-enabled devices, and any endpoint, gateway, sensor and smartphone will become a potential target for hackers. In addition, on-the-go organizational data can be easily accessed with the aid of BYOD devices, such as smartphones, tablets, phablets and laptops. The middleware application makes these machines portable so they are vulnerable to loss of physical control and breaches of network security. Using portable devices can increase the risk of data loss and data and device exposure through network-based attacks to and from any infrastructure to which the device is connected.
The software and technology industries are highly competitive, with many players having considerable market share. It is observed that industry players make significant investments in R&D activities with the goal of growing their market share and ensuring the organic growth of their companies. In addition, these players are actively engaged in new product creation to strengthen and extend their current portfolios of products and services, thereby giving these businesses a chance to attract new customers and validate the technology.
In addition, corporations emphasize mergers and acquisitions, as well as alliances to create technologically innovative goods to achieve a competitive advantage. For example, NTT Corporation and Microsoft Corp. announced a multi-year strategic partnership in December 2019 aiming to deliver safe and efficient solutions that help business customers accelerate their digital transformations. The partnership will put together NTT's best-in - class ICT infrastructure, managed services and experience in cybersecurity, with the trusted cloud platform and AI technologies from Microsoft.
Report : Digital Transformation Market - By Type (Solution, Service), By Deployment (Hosted, On-premise), By Enterprise Size (Small Enterprise, Medium & Large Enterprise), By End Use (BFSI, Government, Healthcare, IT & Telecom, Manufacturing, Retail, Others), And By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) - Industry Analysis, opportunity and Forecast 2020 To 2027