Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Digital Transformation Market size was USD 1.9 trillion in 2024 and is estimated to reach USD 4.9 trillion by the end of 2037, expanding at a CAGR of 7.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of digital transformations is assessed at USD 2 trillion.
The automation and smart infrastructure needs are significantly contributing to the digital transformation across the world. The analysis by the U.S. Census Bureau states that in 2023, the international trade of semiconductors, digital equipment, and computing hardware solutions witnessed a major pick-up. Furthermore, the U.S. International Trade Commission (USITC) adds that the imports of ICT goods are registering a boom owing to the propelling demand for innovative server infrastructure, edge computing technologies, and high-performance semiconductors. This reflects a growth in digital transformation and cloud adoption trends worldwide.
U.S. ICT Goods Imports & Exports 2022
|
Indicator |
Value (USD) |
Source |
|
U.S. ICT Goods Imports |
USD 492.5 billion |
U.S. International Trade Commission (USITC) |
|
U.S. ICT Goods Exports |
USD 230.7 billion |
U.S. International Trade Commission (USITC) |
|
Key Import Drivers |
Enhanced microprocessors, cloud servers, and edge computing devices |
U.S. Department of Commerce – Office of Technology Evaluation and BEA |
|
Trade Deficit in ICT Goods |
USD 261.9 billion |
U.S. Bureau of Economic Analysis (BEA) – International Economic Accounts |
In Asia Pacific, the supply chain of digital technology components is expected to be concentrated, whereas South Korea & Taiwan are set to lead the chip fabrication. China, Vietnam, and Mexico are estimated to maintain their dominance in the final assembly of digital technologies. The U.S. and the European Union are more focused on mitigating dependence on foreign suppliers. Furthermore, the U.S. Bureau of Labor Statistics study underscores that the Producer Price Index (PPI) for electronic computer manufacturing increased by 2.9% YoY in the fourth quarter of 2024. The favorable government policies are also backing the digital infrastructure growth. This can be understood from the allocation of around USD 166.3 billion to domestic semiconductor manufacturing and digital research under programs including the U.S. CHIPS Act in 2024.
Digital Transformation Sector: Growth Drivers and Restraints
Growth Drivers
- Cloud-first government policies driving sales growth: Governments across the world are mainly focusing on cloud-first strategies to boost their digital structures. The favorable cloud policies are fueling public-private investments to accelerate the growth of the digital transformation sector. Europe’s GAIA-X initiative and the U.S. Federal Cloud Computing strategy are some of the latest examples of this trend. In 2024, nearly 94.5% of the ministries of the Government of India shifted to the cloud through the Ministry of Electronics and Information Technology (MeitY) Cloud initiative. Public-cloud solutions’ increasing importance is likely to fuel the revenues of key market players in the year ahead.
- Smart manufacturing & Industry 4.0 adoption: The growing smart manufacturing trend and the rise in Industry 4.0 adoption are projected to drive the sales of next-gen digital technologies. The technologies, such as digital twins, IoT-enabled machinery, and industrial automation, are expected to exhibit a high demand in North America, Germany, and East Asia to enhance their manufacturing systems. The report by the U.S. National Institute of Standards and Technology (NIST) estimates that smart manufacturing is projected to contribute USD 530.5 billion to the U.S. economy each year. This highlights the importance of digital technologies in transforming the GDP of the country.
Technological Innovations in the Digital Transformation Market
The telecom, BFSI, and healthcare sectors are set to fuel the sales of digital technologies during the foreseeable period. The prime reason contributing to this trade is the efficiency, productivity, accuracy, and high speed of digital technologies. The table below highlights the industry-specific adoption and impact of digital solutions.
|
Technology |
Sector |
Adoption Rate / Impact |
Company Example |
Results |
|
AI |
Healthcare |
43.5% growth in AI adoption for diagnostics |
Mayo Clinic |
Patient processing time reduced by 25-30% |
|
Blockchain |
Finance |
58.9% of financial firms employ blockchain for fraud prevention |
JP Morgan Chase |
Saved around USD 147.5 M/year |
|
5G |
Telecom |
65.3% of operators worldwide deployed 5G by the end of 2024 |
Verizon |
Network latency reduced by 48% |
AI and ML Integration in the Digital Transformation Market
The founding pillar of digital technologies, artificial intelligence, and machine learning, is exhibiting high demand for several end use industries. The automation trend is mainly augmenting the adoption of AI and ML. The table below explains the development and operation of AI and ML.
|
Company |
Integration of AI & ML |
Outcome |
|
Siemens |
Employed AI-based generative design and simulation tools |
Reduced product development time by 30.3% |
|
Unilever |
Installed ML for product testing and R&D formulation |
Decreased R&D costs by 24.5% |
|
BMW Group |
Executed AI for automated visual inspection in assembly lines |
Enhanced product quality by 15.5% |
5G in the Market
The demand for robust wireless connectivity networks is gaining traction across the world. The 5G networks are expected to emerge as the game changers in the digital transformation process. Follow the table below for 5G’s application and outcome in the digital transformation business.
|
Company |
Use of 5G Technology |
Measurable Outcome |
|
Bosch |
5G-enabled IoT in smart factory floors |
Expanded production throughput by 25.5% (2023) |
|
Maersk |
5G-based digital twins in port logistics |
Minimized container turnaround time by 17.5% (2024) |
|
Verizon |
5G private networks for enterprise clients |
Growth in enterprise service revenue by 21.3% YoY (2024) |
Challenge
- Infrastructure readiness gaps: Many developing countries are witnessing a lack of proper digital infrastructure due to limited budgets. This gap limits the sales of digital technologies in the price-sensitive markets and hampers the producers' profit margin. However, the supportive government policies and initiatives aimed at digital transformation are projected to offer gainful returns to leading companies in the coming years.
- Strict data protection regulations: The strict data protection regulations are affecting the digital transformation growth across the world. The EU’s GDPR, India’s DPDP Act (2023), and China’s Cybersecurity Law, focusing on the protection of personal data of individuals, are limiting the flow of cross-border information. The strict compliance with this law slows the innovation process and delays new market entries, hampering the profits of global producers. Google Cloud delayed its expansion from 2022 to 2023 for six months in India, owing to the data localization requirements of the country's data protection bill.
Digital Transformation Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.9% |
|
Base Year Market Size (2024) |
USD 1.9 trillion |
|
Forecast Year Market Size (2037) |
USD 4.9 trillion |
|
Regional Scope |
|
Digital Transformation Segmentation
End use (BFSI, Healthcare, Retail & E-commerce, Manufacturing, Government & Public Sector, IT & Telecom)
The BFSI segment is estimated to capture 24.9% of the global digital transformation market share throughout the forecast period. The increasing cybersecurity concerns and data thefts are increasing the adoption of advanced protection module solutions. The study by the U.S. Federal Financial Institutions Examination Council (FFIEC) highlights that more than 81.5% of the financial firms in the country expanded their cybersecurity budgets in 2023. The increasing opening of digital bank accounts is also contributing to the overall market growth. More than 495.0 million digital banking accounts were generated in India in 2023, according to the MeitY.
Deployment Type (On-Premises, Cloud-Based, Hybrid)
The on-premise segment is projected to account for 38.9% of the global digital transformation market share through 2037. The on-premise solutions are most sought after in the BFSI, manufacturing, logistics, and healthcare sectors, owing to the high requirements for data residency and security. The companies that comply with GDPR and other regulatory frameworks widely prefer investing in on-premise technologies to avoid third-party cloud vulnerabilities. Thus, the more reliable and self-controlled features of on-premise digital solutions are contributing to their sales growth.
Our in-depth analysis of the global digital transformation market includes the following segments:
|
Solution Type |
|
|
Deployment Type |
|
|
End use |
|
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Customize this ReportDigital Transformation Industry - Regional Scope
North America Market Forecast
The North America digital transformation market is expected to hold 37.8% of the global revenue share by 2037. The growing need for advanced digital infrastructure, the boom in innovation ecosystems, and the progressive government programs are accelerating the production and commercialization of digital technologies. The Research Nester’s study estimates that more than 2.0 million homes in North America had digital access through government-backed broadband programs in 2023. The smart infrastructure investments by public and private entities are accelerating the sales of digital technologies.
The U.S. digital transformation market is estimated to cross USD 313.1 billion by the end of the forecast period. The trade of digital technologies in the country is mainly backed by the supportive federal funding programs. In 2023, over 97.5% of the companies employed at least one cloud-based solution, according to the Federal Communications Commission (FCC). The public-private partnership strategies, including the AI Research Resource Task Force, are also accelerating the installation of digital technologies in enterprises.
The Canada digital transformation market is poised to register a CAGR of 13.9% throughout the study period. Favorable investments, supportive regulations, and robust digitalization programs are contributing to the revenue growth of the key players. The Innovation, Science and Economic Development (ISED) reveals that in 2023, around USD 2.3 billion was allocated for digital initiatives such as AI, cleantech, and health IT. The Canadian Digital Adoption Program (CDAP) has assisted more than 19,500 SME to digitize their operations till now. The swift shift of small and medium-sized enterprises towards digitalization is also opening lucrative doors for digital technology producers.
APAC Market Statistics
The Asia Pacific digital transformation market is projected to increase at a CAGR of 17.9% between 2025 to 2037. The countries, including India, China, Japan, and South Korea, are at the forefront of digitalization. Several public-private investment strategies are fueling the trade of digital solutions in the region. The Ministry of Economy, Trade and Industry (METI), Japan, states that in 2024, around 22.7% of its technology budget was allocated to digital transformation (DX). The automation and Industry 4.0 trends are also backing the installation of digital technologies in several enterprises.
China is set to register high trade in digital technologies in the coming years, owing to its robust digitization efforts. The Ministry of Industry and Information Technology (MIIT) states that in 2023, more than 80.5% of industrial enterprises employed cloud-based solutions. The country’s 14th Five-Year Plan, aimed at enhancing its ICT sector, is also backing the production and commercialization of digital technologies. Furthermore, the increasing number of new companies in the digital technology business is expected to uplift China’s position in the global landscape.
The increasing importance of the digital ecosystem and swiftly expanding ICT infrastructure are generating lucrative opportunities for key players in India. The Ministry of Electronics and Information Technology (MeitY) underscores that from 2015 to 2023, the government's digital spending grew by 80.5% and crossed USD 1.9 trillion. The supportive government policies and investment strategies are set to drive the sales of digital solutions in the year ahead. The automotive, manufacturing, logistics, healthcare, and BFSI sectors are also expected to fuel the demand for digital technologies in the years ahead.
Companies Dominating the Digital Transformation Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The digital transformation market is mainly led by the giant players owing to their dominance in innovation. The leading companies are continuously investing in research and development activities to introduce innovative solutions. Many small and medium-sized companies are forming strategic collaborations with top players to increase their market reach and profits. New companies are also developing next-gen technologies to stand out in the crowd. The global market is mainly dominated by the EU and American companies. While Japan and South Korea-based companies are leading the Asia Pacific market.
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Microsoft Corporation |
USA |
12.1% |
|
Amazon Web Services (AWS) |
USA |
9.9% |
|
Alphabet Inc. (Google Cloud) |
USA |
7.7% |
|
IBM Corporation |
USA |
6.8% |
|
SAP SE |
Germany |
5.1% |
|
Oracle Corporation |
USA |
XX% |
|
Dell Technologies |
USA |
XX% |
|
Siemens AG |
Germany |
XX% |
|
Samsung SDS |
South Korea |
XX% |
|
Accenture PLC |
Ireland |
XX% |
|
Capgemini SE |
France |
XX% |
|
Tata Consultancy Services (TCS) |
India |
XX% |
|
Infosys Limited |
India |
XX% |
|
DXC Technology |
Australia/USA |
XX% |
|
Axiata Digital Services |
Malaysia |
XX% |
Below are the areas covered for each company in the digital transformation market:
In the News
- In April 2024, Tata Consultancy Services (TCS) introduced AI.WorkBench, a modular AI platform. In the first quarter of 2025, this innovation increases TCS’s digital services revenue by 3.3% YoY.
- In March 2024, IBM Corporation announced the launch of watsonx.governance, an AI governance platform. This introduction boosted the company’s AI-related revenues by 6.9% in the first quarter of 2024.
Author Credits: Abhishek Verma
- Report ID: 3624
- Published Date: May 13, 2025
- Report Format: PDF, PPT
