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Digital Transformation Market Size, Share & Industry Analysis, By Technology (Cloud Computing, Big Data and Analytics, Cybersecurity, Artificial Intelligence, Internet of Things, Business Intelligence, and Blockchain), By Enterprise Type (Large Enterprises and Small & Medium Enterprises (SMEs)), By Deployment (On-Premise and Cloud), By Industry (Banking, Financial Services and Insurance (BFSI), Manufacturing, IT and Telecommunications, Retail and Consumer Goods, Healthcare, Transportation and Logistics, Government, and Others), and Regional Forecast, 2024-2032

Last Updated: July 08, 2024 | Format: PDF | Report ID: FBI104878



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The global digital transformation market size was valued at USD 2.27 trillion in 2023. The market is projected to grow from USD 2.71 trillion in 2024 to USD 12.35 trillion by 2032, exhibiting a CAGR of 20.9% during the forecast period.

In the scope, digital transformation players, such as Alphabet LLC, Oracle Corporation, SAP SE, Salesforce, Inc., and others, are considered. These players offer several solutions and services in the market, such as a wide range of technologies and software, such as AI, cloud computing, machine learning, the Internet of Things, and others. Digital transformation refers to the integration of advanced digital technologies, such as AI and cloud computing, into business processes that deliver value to their customers.

The rapid adoption of advanced technologies, such as AI, IoT, cloud computing, and others, is driving the global market growth. Enterprises are shifting from traditional businesses to adopt technologically advanced solutions that aid market growth. The leading digital transformation players are launching AI and IoT-based solutions for digitalization. For instance:

• In June 2022, Siemens launched Xcelerator digital transformation business platform for accelerating digital technology. The digital business platform helps to manage scalable business operations easily. Siemens Xcelerator consists of Internet of Things-based hardware, software, and digital technology services.

During Covid 19 pandemic, in order to manage the remote workforce, several IT enterprises planned to adopt software as a service and infrastructure as a service to manage their remote workforce.

In 2020, according to the Deloitte Survey in the U.S., 75% of IT organizations adopted more than one service to fulfil their remote working demand. These remote working employees were utilizing these system solutions to manage several tasks. It involves various advanced technologies, such as AI, cloud computing, Big Data tools, and capabilities that optimize business operations.

Digital Transformation Market Trends

Rising Adoption of Industrial Robots to Propel Market Growth

Industrial robots are expected to play an essential role in these systems as robots operate several critical functions in industries. Manufacturers are implementing various robots to execute repetitive actions, thus escalating the market size. For instance,

• The International Federation of Robotics (IFR) reported that there were approximately 553,052 industrial robot installations in factories globally in 2022, showing a 5% growth compared to the previous year. Asia accounted for 73% of the newly deployed robots, while Europe and the Americas had 15% and 10%, respectively. It is projected that the global annual installation of robots will reach 600,000 units by 2024.

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Digital Transformation Market Growth Factors

Rising Adoption and Investment in Cloud Infrastructure, IoT, and 5G to Drive Growth

The combination of 5G, cloud technologies, and IoT will improve many industries' functionality, capacity, and flexibility, especially for cloud businesses. Several companies are computing 5G with cloud services to provide low latency, faster speed, and more capacity. For instance, Ericsson has over 230 cloud infrastructure customers worldwide. Some of the leading service providers of the company include Telefonica, Swisscom, XL Axiata, Telkomse, Far EasTone, and others.

The company has its telco-grade cloud platform, Ericsson NFVI, with 5G and cloud functionality. It runs telecom, operations support systems, and many IT and IoT applications on cloud computing platforms such as PaaS, SaaS, and IaaS with fast 5G core deployment. Therefore, companies are investing in the adoption of 5G and cloud infrastructure development by making acquisitions, partnerships, and collaborations. For instance,

• In February 2022, In order to provide an IoT network for 70,000 smart street lights in Montevideo, Uruguay, National Narrowband Network Company (NNNCo), an Australian telecommunications service provider, partnered with Wellness Techgroup, a European technology company. This partnership was aimed to improve the community, road safety, and reduce carbon emissions, which serve 1.3 million people and covers 200 square kilometers. 


Data Privacy and Security Concerns Associated with Digital Technologies Hinder Market Growth

Security concerns for enterprise data are a major concern during the adoption of digital technologies. IoT, cloud, AI, and blockchain technologies are spreading at a rapid pace, which requires better protection and privacy to minimize cyber-attacks and data breaches. According to the Trustwave Global Security Report in 2022, the Common Vulnerabilities and Exposures (CVEs) were only 36% of 2021 CVEs, registering a 5% increase in critical vulnerabilities as compared to 13% in 2021.

According to the Forbes Report in 2021, cybersecurity venture capital firms spending exceeded USD 1 trillion between 2017 and 2021. Further, the total cost of cybercrimes globally increased to USD 6 trillion on an annual basis by 2021. Rising concerns regarding data security, data breaches, and cyber-attacks on advanced technologies hamper the global market growth.

Digital Transformation Market Segmentation Analysis

By Technology Analysis

Increasing Number of IoT Device Connections to Expand the Global Market Share

The market is segmented into cloud computing, big data and analytics, cybersecurity, Artificial Intelligence (AI), Internet of Things (IoT), business intelligence, and blockchain based on technology.

Rising adoption of IoT devices and a surge in data volume generation are expected to drive the cloud-based digital transformation market growth. IoT devices generate huge amounts of data, which requires additional space for storage. According to the International Energy Agency (IEA), the number of installed IoT devices, sensors, and actuators in 2022 was 42.62 billion. A significant rise from the 2021 and 2020 figures—35.82 billion and 30.73 billion, respectively, is expected to reach 75.44 billion by 2025.

The blockchain and business intelligence segments are expected to grow with the highest CAGR during the forecast period. This is primarily attributed to the rising demand from banking and finance to carry out transactions. Additionally, surging investments in these technologies in several countries, such as the U.S., Singapore, Argentina, Switzerland, and others, is expected to flourish the market growth.

By Enterprise Type Analysis

Large Enterprises Segment to Lead Stoked by Need for Digitization

Based on enterprise type, the market is bifurcated into large enterprises and Small & Medium Enterprises (SMEs).

The large enterprises segment is expected to have the largest share of the global market. This is primarily owing to rising digitization and implementation of advanced technologies such as cloud computing, AI, and IoT by large-scale enterprises. According to the European Communication Organization, 43% of enterprises have adopted cloud computing services by digitizing their business. Large organizations have the capability to invest in advanced technologies.

The SMEs segment is growing with a moderate CAGR during the forecast period. Several SMEs and start-ups began to realize the importance of implementation of digital technologies in their business. The rapid pace of digitization is driving the adoption of digital transformation solutions in SMEs, increased company scalability, and improved customer experience. Moreover, there is a rising demand for cloud-based solutions as they are more accessible and affordable. These factors are expected to contribute to the growth of the market in the coming years.

By Deployment Analysis

Rising Adoption of Cloud Services among Businesses Globally Drives the Market Growth

The market is divided into on-premise and cloud based on deployment.

The on-premise segment dominated the global market in 2021. Initially, enterprises around the globe opted for on-premise deployment as digital solutions, owing to its security and customization facilities.

The cloud segment is projected to grow with the highest CAGR during the forecast period. This growth can be attributed to the increasing use of mobile devices and advancements in information-sharing technologies. Cloud-based digital transformation solutions allow end-use industries effective and efficient ways to adapt to evolving markets. Rising cloud infrastructure investment with the rapid shifting of business workloads from on-premises to the cloud drives market growth. For instance,

• In October 2022, Amazon.com Inc.’s cloud computing group invested around USD 5 billion for strengthening cloud infrastructure development in Thailand. The company planned to invest and build data centers and cloud infrastructure in Bangkok to help its customers securely store data.

By Industry Analysis

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BFSI Witnesses Strong Adoption of Digital Technologies, which Drives the Market Growth

Based on industry, the market is categorized into IT and telecommunications, BFSI, retail and consumer goods, transportation and logistics, government, healthcare, and others (oil and gas, media and entertainment).

The BFSI segment accounted for the largest market share due to increased adoption of smart devices by BFSI. For instance, in January 2022, Bank of America launched AI and Machine Learning (ML) technology-based CashPro forecasting software to accurately predict the future cash positions of its clients. The AI-based solution developed in collaboration with fintech firm Cashpro Online that specializes in AI and ML technology.

The healthcare segment is projected to grow with the highest CAGR during the forecast period. Increase in adoption of digital technology platforms and government initiatives for digitalization amid the COVID-19 pandemic have slightly increased the natural language processing demand. For instance,

• In April 2022, the Ministry of Commerce, Government of India launched its online open platform, Open Network for Digital Commerce (ONDC) for small and medium scale businesses. ONDC is an open source platform that helps local businesses across various segments such as grocery, mobility, booking and travel, food order and delivery, and hotel, among others. The platform aims to curb digital monopolies, create new opportunities, and support micro, small and medium enterprises to help them get online.


The global market scope is classified across five regions, North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America Digital Transformation Market Size, 2023 (USD Trillion)

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North America is expected to dominate the global digital transformation market share, owing to increasing government initiatives and investments in digital technologies such as cloud computing, IoT, AI, and others. In 2021, the Canadian government launched digital government strategies, which aimed at coordinating the adoption of digital technologies such as AI and cloud computing for modernizing IT systems. For instance,

• In June 2023, the U.S. federal government planned an investment of nearly USD 42 billion in new federal aid to expand high-speed internet to American households.

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Europe is expected to capture a significant market share during the forecast period. Governments in the U.K. and France are taking key initiatives to adopt digital technologies and bolster regional growth. Societies and economies of this region have undergone a radical digital transition, driven by digital transformation and the growth of many kinds of communications by the surging number of connected devices and data flows.

Asia Pacific is expected to grow with the highest CAGR during the forecast period, owing to rising foreign direct investment for digital transformation and growing government investment for the adoption of advanced technologies. China's digital transformation is expected to gain momentum with the implementation of smart manufacturing and government initiatives in the region. By 2025, China aims to achieve significant industry transformation through the development of its smart manufacturing system, as outlined in the 13th Five-Year Plan. The country has already made significant progress in the electric vehicle market, with 3.4 million registered electric vehicles representing over half of the global market share. Additionally, China has set its sights on becoming a global leader in robotics by 2025, as reported by CGTN.

Similarly, the Middle East & African countries, such as the UAE and Saudi Arabia, are growing with moderate CAGR with rising digitalization and government initiatives. For instance, in February 2022, Saudi Arabia’s government planned to invest over USD 6.4 billion in future technologies to accelerate digital transformation and boost its digital economy.

The South American market is likely to register a modest CAGR over the forecast period. This is primarily owing to the rising development of digital investments in cloud infrastructure. For instance, in July 2022, Amazon.com Inc.’s Amazon Web Services (AWS) planned to invest in Chile and Argentina for data center infrastructure developments.

List of Key Companies in Digital Transformation Market

Rising New Product Launches & Expansions for Digital Technology Adoption Aid the Market Growth

Key digital transformation players, such as Amazon.com, Inc., Alphabet LLC, Hewlett Packard Enterprise Development LP, Oracle Corporation, Microsoft Corporation, and others, are focused on offering innovative digital technology based solutions. These players plan to expand their product portfolios, owing to rising consumer demands. Major players in the market are adopting several business strategies, such as partnerships, mergers, and collaborations, for expanding their businesses across the globe. For instance,

  • June 2022: Kore.ai, an enterprise conversational AI software platform and solutions provider company, and Tanla, a CPaaS provider, announced the partnership in five countries, including the UAE, India, Vietnam, Philippines, and Indonesia. This partnership is an important step for offering conversational (AI-based Natural Language Processing (NLP) systems to various enterprises and brands.

List of Key Companies Profiled:


  • January 2024 – Google LLC joined forces with Worldline to accelerate its digital transformation efforts and streamline its operations. Worldline plans to leverage Google's cloud-based technologies to enhance its digital payment services for customers throughout Europe.

  • January 2024 – Microsoft and Vodafone announced a 10-year partnership to improve customer experience services using Microsoft's generative AI technologies. Together, they will create financial and digital services specifically designed for small and medium-sized enterprises (SMEs) in Africa and Europe. 

  • January 2023 – Apple Inc. launched the second-generation HomePod, a powerful smart speaker with an iconic design. The HomePod comprises Apple innovations and Siri intelligence. It also supports advanced computational audio and immersive spatial audio tracks for a great listening experience.

  • February 2023 – Cisco launched simplified dashboards to converge OT and IT operations, flexible network intelligence to view and protect all industrial assets, and new cloud management tools for industrial IoT applications. OpenTelemetry is the industry standard and open-source framework that partners, customers, and service providers rely on to collect, generate, process, and export distributed and cloud-native telemetry data. Cisco ThousandEyes is compatible with OpenTelemetry.

  • August 2023 – HCLTech entered into a partnership with TIBCO Solutions. As part of this agreement, HCL will globally upgrade, implement, and offer services for TIBCO products. This collaboration will enhance HCL's professional services portfolio.


An Infographic Representation of Digital Transformation Market

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The research report provides a comprehensive analysis of the market. It focuses on key aspects such as prominent companies and leading applications of the product. Besides this, the report highlights key industry developments and offers insights into the market trends. In addition to the above-mentioned factors, the report includes several factors that have contributed to the growth of the market in recent years.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 20.9% from 2024 to 2032


Value (USD trillion)


By Technology

  • Cloud Computing

  • Big Data and Analytics

  • Cybersecurity

  • Artificial Intelligence (AI)

  • Internet of Things (IoT)

  • Business Intelligence

  • Blockchain

By Enterprise Type

  • Large Enterprises

  • Small & Medium Enterprises (SMEs)

By Deployment

  • On-Premise

  • Cloud

By Industry

  • Banking, Financial Services and Insurance (BFSI)

  • Manufacturing

  • IT and Telecommunication

  • Retail and Consumer Goods

  • Healthcare

  • Transportation and Logistics

  • Government

  • Others (Oil & Gas, Media & Entertainment, and Others)

By Region

  • North America (By Technology, By Enterprise Type, By Deployment, By Industry, By Country)

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)

  • South America (By Technology, By Enterprise Type, By Deployment, By Industry, By Country)

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America

  • Europe (By Technology, By Enterprise Type, By Deployment, By Industry, By Country)

    • U.K. (By Industry )

    • Germany (By Industry )

    • France (By Industry )

    • Italy (By Industry )

    • Spain (By Industry)

    • Russia (By Industry)

    • Benelux (By Industry)

    • Nordics (By Industry)

    • Rest of Europe

  • Middle East & Africa (By Technology, By Enterprise Type, By Deployment, By Industry, By Country)

    • Turkey (By Industry)

    • Israel (By Industry)

    • GCC (By Industry)

    • North Africa (By Industry)

    • South Africa (By Industry)

    • Rest of the Middle East & Africa

  • Asia Pacific (By Technology, By Enterprise Type, By Deployment, By Industry, By Country)

    • China (By Industry)

    • India (By Industry)

    • Japan (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of Asia Pacific

Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 2.27 trillion in 2023.

Fortune Business Insights says that the market is expected to reach USD 12.35 trillion by 2032.

Growth of 20.9% CAGR will be observed in the market during the forecast period (2024-2032)

The Internet of Things (IoT) segment is expected to lead during the forecast period among technology.

Rising adoption and penetration of connected smart devices with the surge in digitalization aids market growth.

Some of the top players in the market are Alphabet Inc., Amazon.com, Inc., Hewlett Packard Enterprise Development LP, Microsoft Corporation, IBM Corporation, and Apple Inc.

By industry, the BFSI segment leads the market, owing to rising adoption of advanced AI-based software for optimizing business processes.

Data security issues associated with technologies are restraining market growth.

North America dominated the global market with a share of 44.50% in 2022. Owing to increasing government initiatives and investments in digital technologies such as cloud computing, IoT, AI, and others.

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