Digital transformation market to reach $3,144.9 bn by 2030: Industry report

The future of the Digital Transformation Market will be shaped by significant technological breakthroughs, hyper-personalization, seamless integration of physical and digital realms, and an unwavering emphasis on data protection and security.

The industry landscape will be influenced by cloud computing, collaborative ecosystems, and environmental initiatives. Moreover, the adoption of AI-driven automation and a dedication to upskilling the workforce will be pivotal for businesses to achieve success in this dynamic and evolving market.

The global Digital Transformation Market size is to grow from USD 695.5 billion in 2023 to USD 3,144.9 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 24.1% during the forecast period, according to a new report by MarketsandMarkets™.

As per verticals, the healthcare, life sciences & pharmaceuticals segment is to grow at the highest CAGR during the forecast period.

During the forecast period, the healthcare, life sciences, and pharmaceuticals vertical is projected to experience the highest Compound Annual Growth Rate (CAGR). This segment encompasses the integration and application of digital technologies and solutions in the healthcare and life science industries, aiming to enhance patient care, improve operational efficiency, and drive innovation. The approach involves adopting diverse digital tools, platforms, and strategies to digitize processes, analyze data, foster collaboration, and deliver personalized care.

By Solutions, Cloud Segment to grow at the largest market size during the forecast period.

By solutions, the Digital Transformation Market has been segmented into cloud and on-premises.  The cloud offers cost optimization opportunities by reducing the need for on-premises infrastructure and providing pay-as-you-go models that align with business needs. Overall, these drivers have fueled the widespread adoption of digital transformation and cloud technologies, enabling organizations to streamline processes, drive innovation, and achieve strategic objectives in an increasingly digital world. During the forecast period, the cloud segment is anticipated to grow at the highest CAGR for the Digital Transformation Market.

By Business Function, the Human resource segment is to grow at the highest CAGR during the forecast period.

By business function, the Digital Transformation Market has been segmented into accounting and finance, marketing and sales, HR, IT, and operation. HR is the growing need for organizations to adapt and thrive in an increasingly digital and competitive landscape. This transformation is fueled by several trends, including the integration of advanced technologies such as artificial intelligence, machine learning, and automation to streamline HR processes, enhance data-driven decision-making, and improve the overall employee experience. During the forecast period, the human resource segment is anticipated to grow at the highest CAGR for the Digital Transformation Market.

Top Key Companies in Digital Transformation Market:

Some major players in the Digital Transformation Market include Microsoft (US), SAP (Germany), Baidu (China), Adobe Systems (US), Alibaba (China), IBM (US), Google (US), Marlabs (US), Salesforce (US), Broadcom (US), Equinix (US), Oracle (US), Hewlett Packard Enterprise (US), HCL Technologies (India), EY (UK), Cognizant (US), Accenture (Ireland ), Tibco Software (US), Alcor Solutions (US), Smartstream (US), Yash Technologies (US), Interfacing (US), Kissflow (India), eMudhra (India), ProcessMaker (US), Process Street (US), Happiest Minds (India), Scoro (UK), Dempton Consulting Group (Canada), Brillio (US), Aexonic Technologies (India),  CloudAngles (US), Magnetar IT (England), Scitara (US), Intrinsic (US), and Soundful (US).

Recent Developments:

• In May 2023, SAP collaborated with IBM and announced that IBM Watson technology would be embedded into SAP solutions to offer new AI-driven insights and automation. It also helps to fuel innovation and create more efficient and effective user experiences across the SAP solution portfolio.
• In April 2023, Epic announced expanding its strategic collaboration with Microsoft to incorporate generative AI into healthcare. This collaboration will leverage the capabilities of Azure OpenAI Service and Epic’s renowned electronic health record (EHR) software to bring the benefits of AI to the healthcare sector.
• In April 2023, the Norwegian Institute of Bioeconomy Research collaborated with Oracle and selected its Autonomous Database and AI functionalities on the Oracle Cloud Infrastructure (OCI) to gain deeper insights into the forest value chain and enhance long-term sustainability practices.
• In April 2023, Google announced the launch of a new AI that enables claims Acceleration Suite to streamline health insurance prior authorization and claims processing. By utilizing the newly developed Claims Data Activator, this solution aims to alleviate administrative burdens and reduce costs for health plans and providers.
• In March 2023, SAP announced the SAP Datasphere solution, the next generation of its data management portfolio to provide customers with quick access to data that is ready for business use across the data landscape.

Digital Transformation Market Advantages:

• Businesses may acquire and analyse real-time data from multiple sources thanks to digital transformation. This data-driven strategy supports better decision-making by providing organisations with insights into market trends, customer behavior, and operational performance.
• Implementing digital solutions can help to minimise operational costs in the long run. Automation can replace labor-intensive operations, while cloud computing can reduce hardware and infrastructure costs. Furthermore, digital communication and collaboration solutions might help to cut travel and communication expenditures.
• Adopting digital technologies can provide organisations with a competitive advantage in the market. Companies that are quick to adapt and develop utilising digital tools can respond to market shifts, client needs, and emerging trends more effectively.
• Employees, teams, and departments may communicate and collaborate more effectively thanks to digital transformation, regardless of their physical location. Cloud-based collaboration tools, project management software, and virtual meeting platforms make it easier to work together and share knowledge.
• Scalability is generally provided through digital solutions, allowing firms to easily adapt their resources and infrastructure to shifting demands. Cloud services, for example, allow businesses to scale up and down their processing power and storage as needed.
• Digital transformation enables firms to be more agile and adaptable in a fast-paced and rapidly shifting business environment. They can react swiftly to market developments, implement adjustments, and stay ahead of the competition.
• Enhancing cybersecurity safeguards to secure sensitive data and information is frequently part of digital transformation. It also assists firms in adhering to applicable legislation and standards, lowering the risk of data breaches and related legal concerns.

Report Objectives for the digital transformation market

• To determine and forecast the Digital Transformation Market by offering, business function, technology, vertical, and region, and analyze the various macroeconomic and microeconomic factors that affect market growth.
• To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
• To provide detailed information about the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market
• To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
• To profile the key market players and provide a comparative analysis on the basis of their business overviews, regional presence, product offerings, business strategies, and key financials, and illustrate the competitive landscape of the market
• To track and analyze competitive developments, such as acquisitions; expansions; new product launches and product enhancements; agreements, collaborations, and partnerships; and R&D activities in the market.