Digital Transformation solutions enabling companies to reach large masses will be major driving factor for growth in the Digital Transformation market between 2017 and 2025
The Digital Transformation Market is US$ 445.4 billion in 2017 and is estimated to reach US$ 2,279.4 billion by 2025. The digital transformation market has experienced high growth and adoption rate in the last few years and is also expected to experience a significant growth and adoption rate in years to come. One of the major reasons for high adoption of digital transformation is the fact that digital transformation solutions enable the companies to reach large masses.
With the adoption of digital solutions, organizations are being able to reach maximum number of end-users. This is due to rising adoption of smart devices including, tablets and smartphones globally, as well as increasing penetration of internet services. Over the past few years, there has been a significant growth in the number of smartphone and internet users, in the developing and emerging countries. This is attributed to the constantly decreasing prices of internet and smart devices as well as rising affordability of people in these countries.
Digital solutions has created a potential for companies to reach a huge mass of audience worldwide. For instance, Uber and Lyft, on-demand transportation companies, utilized digital platform and earned a huge success. These companies can be considered as a key illustration of how implementation of strategy and innovation, empowered by technology, can suddenly impact the development of the whole industry. Furthermore, in the fastest growing e-commerce market, more and more SMEs are now using online platform for providing their offerings to the customers. This has enabled them to extend their market reach, enhance external communication, augment sales, improve speed of processing, improve company image, as well as increase employee productivity.
However issues related to the security and privacy affecting the adoption of digital solutions could act as restraining factor in the Digital Transformation Market. Technologies including, big data analytics, IoT, mobile computing and blockchain are transforming the way companies administer their operations, right from decision making to customer service. The automation of almost all business practices and the growing digital connectivity of the entire value chain create agility, however they also considerably increase cyber security risks as well as threat levels. To attain organizational flexibility, companies choose cloud platform for running their IT systems particularly, organizations that are more established in their digital practices. Companies are gradually moving data as well as business functions between the on-premises legacy systems and cloud. As the businesses are remodeling their digital ecosystem, critical and personal data is becoming more broadly distributed and at risk to threats.
Cybercriminals are also taking benefit of the user trust and digital transformation. As reported, in 2017, approximately 40% of the organizations based in the U.S. and U.K. witnessed five or more major security incidents in the year 2016. Some of the major external threats includes, ransomware, malware, phishing, online scams, domain and brand abuse, rogue mobile apps as well as social impersonation. These are threats that occur outside a company’s perimeter defenses and are capable of affecting businesses, brand perceptions and customers. Any supply chain vulnerabilities have a destructive effect resulting in loss of millions of dollars. Owing to these factors, several organization are still reluctant to adopt digital solutions. Thus, cyber security and privacy concerns acts as one of the major hurdle in the growth of the Digital Transformation Market.
The end-users of Digital Transformation Market have been broadly categorized into following eight categories as BFSI, healthcare, education, retail, IT & Telecom, logistics & transportation, manufacturing, and others. Five major geographical regions considered within the scope of this market are North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM).
Some of the major players influencing digital transformation market are Google Inc., Microsoft Corporation, Oracle Corporation, and IBM. Also, Cognizant, Capgemini, Dell, and SAP SE are some of the other key companies in the digital transformation market. Many companies are investing in various initiatives such as merge and partnership as well as new product development to get the competitive advantage over their competitors and stay ahead in the market.