The global digital transformation market size is expected to grow from USD 430.52 billion in 2020 to USD 1,192.00 billion by 2026 at a CAGR of 18.5%.
Various factors such as increased business spending on sales and marketing activities, changing customer intelligence to keep the market going, and the expansion of customer channels are expected to further the adoption of digital transformation technologies and services.
Impact of COVID-19 on the Global Digital Transformation Market
COVID-19 has revolutionized the world of business operations. While the emergence of COVID-19 has highlighted weaknesses in business models across all verticals, it has provided fewer opportunities to make their business digital and expand their business across multiple regions as adoption and integration of technologies such as cloud, AI, math, IoT, and -blockchain increase during closing. The retail and manufacturing industry experienced a sharp decline in business performance in the first and second quarters of 2020. However, with the availability of vaccines and greater control gained over the epidemic, these sectors are expected to see a growing investment during the forecast period as digital. transformation solutions grow prominently across all different business functions.
Driver: Growing Number of Digital Initiatives
While digital airlines may produce good results, industries need to send programs across the board for maximum impact. The upgrade will require the construction of new wider business processes. Because regular channels, such as face-to-face contact, will continue to be important, businesses will need to deal with potential conflicts as their online presence increases. The hardest part of any digital marketing project is usually the acceptance and rating phase. Industrial firms must constantly evaluate their priorities for domains, value levers, solutions, and apply conditions to their success. AI-driven automation has been shown to be useful in a variety of industries across industries, including aerospace, medicine, agriculture, energy, and commodity markets. AI is not only used to perform tasks automatically but also to diagnose mechanical malfunctions or discover complex product features. For example, within the aviation industry, AI and ML can be used to predict advanced flight times, assist with passenger entry, and perform routine maintenance tasks.
Restraint: Data Security Concerns
The backbone of digital transformation solutions, i.e. data, remains an important part of many organizations that find it difficult to manage. Failure to manage exabytes and petabytes of data increased the risk of security breaches and data loss. In today's competitive market, marketing teams need real-time and secure data to deliver outstanding customer information. Organizations collect data at multiple touchpoint and measure it physically. Such data is used for backup and communication and may include various types of data. These types of data include public information, big data, and small data collected from customers. As IoT spreads more widely, organizations will need stronger security and privacy to prevent breaches. The issue of security threatens digital success. With the growing number of IoT-enabled programs, the number of security and privacy issues will also increase, and all storage areas, gateways, sensors, and smartphones will be targeted at hackers. Organizational data can be easily accessed while traveling with the help of BYOD devices, such as smartphones, tablets, phablets, and laptops. The middleware application makes these devices portable, thus putting them at risk of losing physical control and violating network security. Using portable devices can increase the risk of data loss and exposure to data and devices through network-based attacks on and from any system.
This data may include permissions, personal preferences, and updated contact information for products, services, and social media platforms. Therefore, marketers need to ensure high data security in order to maintain customer trust. In more recent times, cybercriminals have gained access to a wide range of tools to obtain anything from passwords to secret questions and passwords generated by tokens. In such cases, marketing and IT teams need to work simultaneously, providing details of when data is collected, how, processed, and used in operation.
Such widespread attacks continue to undermine the widespread acceptance of digital transformation across all industries that require data. However, this situation is expected to change gradually over the forecast period as the benefits of adoption of technology continue to outweigh related risks and overall improvements in data security.
Opportunity:Need for Personalized Digital Transformation
Each business faces different business growth challenges, such as sales performance, business collaboration, and digital customer base. Digital transformation solutions effectively address the challenges facing the business sector and the industry sector. For example, the same digital transformation solution that works for a textile company will not work for a car parts manufacturer. Therefore, market vendors offer highly customized digital conversion solutions to address the challenges of business growth of their customers. This level of impersonation can occur with business data. Businesses have an increasing amount of business data, which is growing exponentially. Most of these are often unplanned, which is where advanced technologies, such as AI, big data, ML, and data analysis, produce tangible business information and can make a huge difference in revenue generation. Therefore, market vendors focus on building digital conversion solutions that meet the specific needs of different industries and businesses.
Challenge: Data Integration from data silos
Extracting value from data has become a key requirement for companies to effectively reduce risk, target key customers, and monitor business performance. Monetizing these data assets requires the availability of a sufficient amount of data. However, the integration of data from different data sources to useful information can present a variety of new challenges for organizations, especially medium-sized businesses. The data exchange and data ecosystem brings data collection tools to a central location to help extract and evaluate key business components. Improvements in data transactions and the data ecosystem vary based on the assumptions made on the data value of each segment of customers. Various digital conversion providers offer integrated data integration and data analysis platforms that help users to effectively integrate and analyze data from different data sources. Data exchange is a major problem in industries, such as BFSI and healthcare, which deal with personal data. As the demand for data exchange grows, we need balance and risk reduction capabilities. As companies adopt digital conversion software integrated with data security capabilities, data exchange is not expected to be a major problem in the near future.
North America is expected to hold the largest market share during the forecast period
North America is expected to have the largest market share in the digital transformation market. Key factors that favor the growth of the digital transformation market in North America include the technological advancement in the region. The growing number of digital transition players in all regions is expected to drive market growth.
The major players operating in the global digital transformation market are Google (US), Microsoft (US), IBM (US), Oracle (US), SAP (Germany), Cognizant (US), Adobe (US), Accenture (Ireland), HCL Technologies (India), HPE (US), Broadcom (US), Equinix (US), Dell (US), Tibco (US) and Marlabs (US).