On the basis of geographical analysis, the global digital transformation market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of the upsurge in usage of cloud technologies among various industries, and growing number of small and medium sized organizations in the region. According to the SME Finance Forum, in the Asia and Pacific region SMEs comprise more than 98 percent of the total enterprises, and contribute about 17 percent to the national GDP in low-income countries, and about 40 to 50 percent in higher income countries.
Rapid growth in the use of mobile devices and social media analytics is also projected to fuel the progress of the market in the coming years. Moreover, the market in North America is expected to acquire the most significant share during the forecast period in view of the largescale usage of variety of online payment methods in the retail sector, high penetration of internet services, and strong presence of prominent market players in the region.
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The global digital transformation market is further classified on the basis of region as follows:
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Our in-depth analysis of the global digital transformation market includes the following segments:
September 2021- Britannia Industries Ltd. collaborated with Accenture to accelerate its digital transformation by accelerating innovation, capturing value, and improving the customer and supplier experience.
November 2020- ANSR partnered with Google Cloud to accelerate digital transformation for global capability centers and enable enterprises to build at-scale digital transformation capabilities.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The major factors driving market growth are advent of industry 4.0 in manufacturing sector and increasing integration of several digital transformation technologies.
Ans: The market is anticipated to attain a CAGR of ~17% over the forecast period, i.e., 2022 – 2030.
Ans: Security concerns regarding confidential data are estimated to hamper the market growth.
Ans: Asia Pacific will provide more business opportunities for market growth owing to the upsurge in usage of cloud technologies among various industries, and growing number of small and medium sized organizations in the region.
Ans: The major players in the market are Google LLC, Accenture PLC, IBM Corporation, Microsoft Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by technology, deployment, vertical, and by region.
Ans: The BFSI segment is anticipated to hold largest market size and is estimated to grow at a steady CAGR over the forecast period and display significant growth opportunities.