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Digital Transformation Market Size, Share,& Analysis, By Technology (Cloud Computing, Big Data and Analytics, Cybersecurity, Artificial Intelligence (AI), Internet of Things (IoT)), By Enterprise Size (Large Enterprises, SMEs), By Deployment Model (On-Premises, Cloud), By Industry Vertical ( BFSI, Manufacturing, IT and Telecommunications, Retail and Consumer Goods, Healthcare), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI104878



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The global digital transformation market size was USD 737.88 billion in 2020 and is projected to reach USD 3,546.80 billion by 2028 exhibiting a CAGR of 22.1% during the forecast period.

Digital transformation refers to the integration of digital technologies into all business functional areas of an enterprise that fundamentally changes how businesses operate and deliver value to their customers. The global market growth is mainly due to the increased adoption of advanced technologies such as IoT, AI, robotics, and others among different industry verticals. Enterprises shifting from traditional business models to technologically advanced business models facilitate the growth of the digital platforms that would increase performance efficiency. Key players operating in the market are taking major initiatives to help customers adopt digital solutions, thus, contributing to the growth of the market. For instance:

  • In March 2020, Wipro Limited launched the Microsoft business unit to enable customers to adopt digital transformation solutions. Facilitated by Microsoft's enterprise cloud services, this newly launched initiative will accelerate the cloud adoption of digital transformation for customers in various industry verticals.

Such initiatives are expected to create new opportunities in the market and bolster market growth.

COVID-19 Impact

COVID-19 Pandemic to Have Mixed Impact on the Global Market

The outbreak of COVID-19 and the global lockdown regulations have impacted the financial and economic scenarios worldwide. The digital transformation industry saw a mixed impact in the first quarter of 2020, following a global economic slowdown driven by COVID-19. Due to lowdown laws globally, most businesses operating in manufacturing, automotive, and other sectors had to shut their production facilities. Thus, companies operating in the industry are expected to witness undesirable impacts of coronavirus. However, the adoption of technologies such as cloud, and industrial robots are expected to rise. In the long term, the global market is expected to regain its momentum and will have a profound impact globally.


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Emergence of Industrial Robotics Technology is a Key Trend in the Global Market

Business demands and the complex advancement of information technology are constantly evolving and would contribute greatly to the digital transformation. Industrial robotics is playing a vital role in industrial automation as robots control a vast range of core industrial processes. Manufacturers and production companies are increasingly adopting robotics to simplify replicated operations with the rising demand across economies. The expansion of the automotive industry is expected to largely cause massive growth in the implementation of industrial robotics. The International Federation of Robotics (IFR) stated that approximately 2.1 million stand-alone industrial and automotive robots were installed globally in 2017, with 381,000 robot units shipped worldwide.

The latest innovation in Industry 4.0 has powered the emerging developments, including collaborative robotics, single-axis robots, SCARA robots, and AI-powered robots. They have helped the robotic industry to streamline a variety of processes, improve efficiencies, and reduce errors. Increased safety at the workplace and rising manufacturing capability have led companies to invest more in robotic systems. Thus, industrial robotic technology will be a key trend in the digital transformation market.


Inclination of Organizations Toward Digital Technologies to Drive Growth

In the wake of rapid technological changes and an ever-evolving regulatory environment, enterprises and agencies are entering into a new customer engagement era where digital technologies are playing a crucial role. Enterprises are exploring advanced technologies such as big data, cloud computing, artificial intelligence, and others to stimulate organizational growth. Digital technologies have transformed the conventional business model approach to modern business strategies.

Various companies have started incorporating big data and analytics, artificial intelligence, and other technologies into their existing service models for creating new products and services and gaining a competitive edge. Additionally, the adoption of digital technologies offers numerous opportunities and enables enterprises to attain customer-centric business models. The majority of organizations follow digital practices, primarily focused on digital consumer experiences. This has contributed to the growing demand for technologies for digital transformation across different industry verticals.


Data Privacy and Security Concerns Associated with Adoption of Digital Technologies May Hinder Digital Transformation Market Growth

The security and privacy of enterprise data is a major issue while adopting digital technologies. As IoT and cloud technologies are rapidly spreading, organizations will increasingly need better protection and privacy in order to deter cyber-attacks and security breaches. The issue of data privacy and security increases with the growing adoption of cloud and IoT-enabled services. According to the Trustwave Global Security report published in 2020, the volume of cyberattacks and security breaches on cloud services have doubled in 2019 and accounted for 20% of registered incidents. With the growing number of IoT-enabled endpoints, security and privacy issues are expected to increase as these endpoints are more vulnerable to threats and attacks. Additionally, the organizational data can be easily accessible with the help of portable devices. Thus, efficient cybersecurity measures are necessary for the proper implementation of digital technologies.


By Technology Analysis

IoT Technology is Expected to Dominate the Digital Transformation Market

Based on the technology, the market is segmented into cloud computing, big data and analytics, social media/mobility services, robotics, artificial intelligence (AI), the internet of things (IoT), and others. The Internet of things (IoT) segment accounted for the maximum digital transformation market share in 2020. The growth of this segment is mainly attributed to the rising adoption of the technology in several end-use verticals such as automotive, manufacturing, and healthcare among others. With traditional manufacturing going through digital transformation, manufacturing and automotive companies are constantly opting for IoT technology to improve functional efficiency and system error timings. Key players operating in the market are taking the opportunity of COVID-19 and introducing IoT solutions that would enable healthcare companies to measure patient temperature and gain access to connected health for constant monitoring and patient care.

The blockchain technology segment is expected to grow with the highest CAGR over the forecast period. This is attributed to the increased demand from the financial industry to carry out transactions. Additionally, surging investments in this technology in several countries such as the U.S., Singapore, and Argentina, Switzerland among others are expected to flourish the market growth.

Other segments such as artificial intelligence, cloud computing, and big data are expected to witness strong growth during the forecast period. The growth of these segments is owing to the expansion of the e-commerce industry in the U.S., China, and Japan, France, Germany, among others.

By Enterprise Size Analysis

Large Enterprises Segment to Lead Stoked by Need for Digitization

Based on the enterprise size, the market is bifurcated into large enterprises and small and medium sized enterprises (SMEs). The large enterprises segment is likely to lead the global market. It would occur on account of the increased need for digitization for easy implementation and cost-cutting purposes. The increasing benefits of digital technologies have encouraged large enterprises invest heavily in them and widen their product portfolios.

The small and medium sized enterprises segment captures a significant share and is expected to witness strong growth during the forecast period. Start-ups and SMEs have started realizing the importance of implementing digital technologies in their business models. The growing understanding of the advantages of digitalization has resulted in substantial investments by businesses to extend and maintain their current positions in this highly competitive industry. Small and medium sized companies are now able to embrace fast-evolving cloud technologies and introduce cutting-edge technologies such as artificial intelligence, machine learning, and the Internet of Things.

By Deployment Model Analysis

Cloud Deployment Segment will Grow with the Highest CAGR

Based on the deployment model, the market is categorized into on-premises and cloud.

The on-premises segment dominated the global market in 2020. Initially, enterprises opted for the on-premises deployment of digital solutions as it offered security and customization. Large enterprises heavily invested in on-premises deployment as it offered full control and data confidentiality.

The cloud deployment segment is expected to grow at the highest CAGR. The deployment of digital transformation solutions on cloud technology enables enterprises and start-ups to gain complete access to organizational data and easy accessibility and upgradability. Additionally, cost-efficient and ease of data transfer have further contributed to the growth of the segment.

By Industry Vertical Analysis

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BFSI Sector to Witness Strong Adoption of Digital Technologies Whereas Healthcare Segment to Show Exponential Growth

Based on the industry vertical, the market is categorized into banking, financial services and insurance (BFSI), manufacturing, IT and telecommunications, retail and consumer goods, healthcare, transportation and logistics, media and entertainment, government, and others.

The banking, financial services and insurance (BFSI) segment accounted for the largest digital transformation market share and is expected to maintain its dominance backed by the adoption of digital technologies. Enterprises operating in the BFSI industry are constantly adopting new customer-centric models and working feverishly to meet customer needs. Increased use of smart devices to carry out daily financial activities, surging demand for high end-user or customer experience, and improved connectivity are some of the major factors that are driving the need for digital type of transformation in the BFSI sector.

The healthcare segment is expected to grow at the highest CAGR during the forecast period. The rapidly rising consumer volume has contributed to the need for flexible business models for effective care of patients. These recently built frameworks will respond to cost-related risks and promote the introduction of new market strategies. In addition, they would lead to enhancing the patient experience by making better choices. It will be easier to make efficient use of money and time. Telemedicine, AI-driven medical devices and patient care robots, and electronic health records are some of the concrete examples of how digital transformation is reshaping the healthcare industry for better treatment plans and outcomes.


North America Digital Transformation Market Size, 2020 (USD Billion)

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By region, the market has been analyzed across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is expected to hold the largest share in the global market. The growth of the segment is mainly attributed to the increased penetration of the internet and the adoption of digital technologies among various industry verticals such as healthcare, retail, manufacturing, and others would propel growth in this region. Also, the rapidly changing face of industrialization in the region driven by market competition, digitization, and dynamic consumer demands is pressuring regional businesses to adopt new business models and implement digital technologies. Increasing development of technology transformation solutions in the region due to the indispensable requirements of businesses to convert their conventional practices into digital and the rapid penetration of smart devices, IoT, and cloud solutions would aid growth. 

Europe is expected to capture significant market share during the forecast period. Governments in countries such as 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 digitalization and the growth of many kinds of communications by the surging number of connected devices and data flows.

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Asia Pacific is expected to show remarkable growth and will exhibit the highest CAGR over the forecast period. Countries such as China, India, and Japan in this region are continually evolving in terms of relevant policies and strategies to facilitate domestic industrial modernization and upgrades for digital transformation. Being one of the leaders in the manufacturing industry, China has taken significant efforts to automate labor-intensive tasks with robotics, IoT, and other advanced technologies. According to GSMA Intelligence, the country is expected to account for one-third of the global Industrial Internet of Things (IIoT) market.

Similarly, the Middle East and Africa and South America are expected to witness significant growth in the global market. The adoption of artificial intelligence and industrial robotics in the automotive and manufacturing sectors is driving regional growth.


New Product Launches & Expansions to Create High Competition among Key Market Players

Key players such as Amazon Web Services, Oracle Corporation, and Microsoft Corporation among others are focused on offering new and innovative digital transformation solutions. These players are expanding their product portfolios as per the ever-growing consumer needs. They are entering into strategic partnerships and collaborations to expand their businesses across countries.

January 2021 – SAP SE launched ‘Rise with SAP’, a digital solution that would enable enterprises and customers to adopt digital transformation technologies. It is a set of subscription services that incorporates product offerings and a set of services.

October 2018 – Oracle Corporation, a leading digital solution provider, acquired DataFox Intelligence, Inc., an artificial intelligence company headquartered in California. With this acquisition, Oracle will empower enterprises with AI-based enterprise data management into cloud applications.


  • Amazon Web Services (Washington, United States)

  • Oracle Corporation (California, United States)

  • Microsoft Corporation (Mexico, United States)

  • VMware, Inc. (California, United States)

  • SAP SE (Walldorf, Germany)

  • IBM Corporation (New York, United States)

  • Salesforce.com Inc. (California, United States)

  • HCL Technologies Limited (Noida, India)

  • Wipro Limited (Bengaluru, India)

  • Accenture plc (Dublin, Ireland)

  • Cisco Systems, Inc. (California, United States)

  • Teradata Corporation (California, United States)

  • Cloudera, Inc. (California, United States)

  • Tableau Software (Washington, United States)

  • Huawei Technologies Co., Ltd. (Shenzhen, China)

  • Apple Inc. (California, United States)

  • NVIDIA Corporation (California, United States)


  • October 2020 – Oracle Corporation launched a comprehensive suite of multi-cloud platforms that would help enterprises monitor mission-critical loads on on-premises and cloud deployment environments.

  • July 2018 – Google LLC, a leading digital solution provider, launched the Cloud Services platform. This newly launched cloud platform will enable enterprises to leverage their cloud infrastructure with full scalability.


An Infographic Representation of Digital Transformation Market

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The digital transformation market report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest digital transformation market trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the drivers and restraints, helping the reader to gain in-depth knowledge about the market.




Study Period


Base Year


Forecast Period


Historical Period



  Value (USD billion)


  Technology; Enterprise Size; Deployment Model; Industry Vertical; and Region

By Technology

  • Cloud Computing

  • Big Data and Analytics

  • Cybersecurity

  • Artificial Intelligence (AI)

  • Internet of Things (IoT)

  • Blockchain

By Enterprise Size

  • Large Enterprises

  • Small and Medium Sized Enterprises (SMEs)

By Deployment Model

  • On-Premises

  • Cloud

By Industry Vertical

  • Banking, Financial Services and Insurance (BFSI)

  • Manufacturing

  • IT and Telecommunications

  • Retail and Consumer Goods

  • Healthcare

  • Transportation and Logistics

  • Government

  • Others (Oil and gas, Media and Entertainment, Etc.)

By Region

  • (Technology; Enterprise Size, Deployment Model; Industry Vertical; and Country)  

  • North America (Technology; Enterprise Size, Deployment Model; Industry Vertical; and Country)

    • United States (By Technology)

    • Canada (By Technology)

    • Mexico (By Technology)

  • South America (Technology; Enterprise Size, Deployment Model; Industry Vertical; and Country)

    • Brazil (By Technology)

    • Argentina (By Technology)

    • Rest of South America

  • Europe (Technology; Enterprise Size, Deployment Model; Industry Vertical; and Country)

    • UK (By Technology)

    • Germany (By Technology)

    • France (By Technology)

    • Italy (By Technology)

    • Spain (By Technology)

    • Russia (By Technology)

    • Benelux (By Technology)

    • Nordics (By Technology)

    • Rest of Europe

  • The Middle East & Africa (Technology; Enterprise Size, Deployment Model; Industry Vertical; and Country)

    • Turkey (By Technology)

    • Israel (By Technology)

    • GCC (By Technology)

    • North Africa (By Technology)

    • South Africa (By Technology)

    • Rest of the Middle East & Africa

  • Asia Pacific (Technology; Enterprise Size, Deployment Model; Industry Vertical; and Country)

    • Japan (By Technology)

    • China (By Technology)

    • India (By Technology)

    • South Korea (By Technology)

    • ASEAN (By Technology)

    • Oceania (By Technology)

    • Rest of Asia Pacific

Frequently Asked Questions

According to Fortune Business Insights, the global market size is projected to reach USD 3,546.80 billion by 2028.

In 2020, the market value stood at USD 737.88 billion.

The market is projected to grow at a CAGR of 22.1% during the forecast period.

By technology, the Internet of Things (IoT) segment is expected to lead the market.

The increased adoption of advanced technology by enterprises is the key factor driving the market growth.

Amazon Web Services, Oracle Corporation, Microsoft Corporation, VMware, Inc., SAP SE, IBM Corporation, Salesforce.com Inc., HCL Technologies Limited, and Wipro Limited group are the top players in the market.

North America is expected to hold the highest market share.

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