The global digital transformation market is expected to grow from USD 469.8 billion in 2020 to USD 1,009.8 billion by 2025, at a compound annual growth rate (CAGR) of 16.5%, according to Research and Markets’ study that covers the digital transformation market across different segments, such as component, deployment model, organization size, application, industry verticals, and region.
Although the digital transformation industry is mainly driven by increasing penetration of IoT and the adoption of cloud services, the expanding penetration of mobile devices and apps further contributes to the growth of the digital transformation market. Based on technology, the digital transformation market is segmented into cloud computing, AI, big data and analytics, mobility/social media, cybersecurity, IoT, and others.
The AI segment is expected to grow fastest, since it has greatly enhanced the level of customer satisfaction in the digital transformation market. AI technology is helping organizations in handling returning customers and follow-up sales. Increased productivity and improved customer satisfaction are the key factors driving the AI technology.
The digital transformation market by vertical has been segmented into banking, financial services, and insurance (BFSI), healthcare, IT and telecom, education, retail, media and entertainment, manufacturing, government, and others (transportation and logistics, and travel and hospitality). The rapid adoption of the internet and Bring Your Own Device (BYOD) trend in the education industry have led to the growth of the digital transformation market across the globe in this vertical.
Asia Pacific (APAC) is expected to grow at the highest CAGR of 20.7% due to ongoing digital transformation. In various industries, including retail, education, and transportation and logistics, the requirement for advanced technologies is growing enormously. Moreover, as mobile infrastructures are improving in the APAC region, the mobile workforce and BYOD trend are also gaining momentum.
These trends are expected to lead to the increased adoption of digital transformation solutions and will fuel the growth of the APAC digital transformation market. (Source: ResearchAndMarkets.com)