Enjoy complimentary customisation on priority with our Enterprise License!
The digital transformation services market is estimated to increase by USD 737.27 billion and grow at a CAGR of 21.55% between 2022 and 2027. The market size is forecasted to expand significantly. Its growth relies on several key factors, notably the increasing demand for cloud-based systems. This trend is driven by businesses' growing need to enhance efficiency and streamline operations. Additionally, the market is propelled by the increasing penetration of the Internet of Things (IoT), which is revolutionizing how businesses operate and interact with their environments. These factors underscore the market's evolution towards more advanced and interconnected systems, offering businesses innovative solutions to improve their operations and drive growth.
To learn more about this report, Download Report Sample
This report extensively covers market segmentation by end-user (IT and telecom, retail and eCommerce, BFSI, healthcare, and others), type (large enterprise, small and medium enterprise), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the IT and telecom segment will be significant during the forecast period. The telecom and IT segment includes IT and telecommunications companies. The adoption of digital transformation services by telecommunications companies is majorly attributed to the growing use of smartphones, evolving business models, and the need to adhere to regulatory requirements. The telecommunications industry is witnessing significant growth in the volumes of its business data due to the rise in the adoption of cloud computing and the increased use of smartphones. The consolidation of the telecommunications industry has resulted in the convergence of products and service offerings by telecommunications companies.
Get a glance at the market contribution of various segments Request a PDF Sample
The IT and telecom segment was valued at USD 48.02 billion in 2017 and continue to grow by 2021. Telecom service providers integrate their back-office and front-office systems to automate operations such as invoices, accounts, and order management. With advances in ICT, telecom operators are seeking to integrate multiple systems on a single platform. Telecom operators get substantial benefits from SaaS-based solutions due to the lower upfront investments in software and hardware. Business process operations managed through on-premises software solutions are gradually being moved to cloud-based infrastructure. Disruptive technologies in the telecom and IT industry, such as the cloud and virtualization, will change the structure of ICT infrastructure and drive the demand. This, in turn, will drive the growth of the digital transformation market focus during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 35% to the growth of the global digital transformation market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US and Canada are the major revenue contributors to the market in North America. Future investments by end-users in the services in this region will be driven by their need to integrate system platforms with advanced technologies such as blockchain, AI, and Internet of Things (IoT)-enabled applications and data analytics. Vendors offering in-built application programming interfaces (APIs) services for these advanced technologies will have the opportunity to generate additional revenues through product upgrades and maintenance fees during the forecast period.
The market is witnessing exponential growth driven by the evolving landscape of modern life and constant connectivity. Organizations are embracing digitization and leveraging technologies such as Artificial Intelligence, Cloud computing, Machine learning, and the Internet of Things to optimize resource utilization and enhance operational efficiency.
Robotic automation and intelligent robots are reshaping production workflows, while networked devices and deep learning algorithms enable seamless integration and data-driven decision-making. Tech giants and IT enterprises like Siemens are at the forefront, offering system solutions and Big Data tools to facilitate digital transformation initiatives.
However, security concerns and data privacy remain paramount, highlighting the importance of robust cyber security measures. As the Industry 4.0 era unfolds, AI technicians and remote workers play crucial roles in driving innovation and shaping the future of digital services. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
The market is witnessing significant growth, driven by the increasing demand for cloud-based systems. Cloud-based solutions offer lower initial costs, faster implementation times, and eliminate the need for dedicated IT support teams and infrastructure maintenance. This trend is fueled by the need for optimal resource utilization and the proliferation of mobile devices and apps in modern life, fostering constant connectivity and digital services. Moreover, the rise of robotization and intelligent robots is reshaping production workflows, while deep learning and networked devices empower AI technicians and remote workers. Industry leaders like Siemens and tech giants are leveraging technologies such as AI, machine learning, and the Internet of Things to drive Industry 4.0 initiatives. However, security concerns persist, highlighting the importance of cybersecurity measures in the era of digitization.
Significant Market Trend
Rapid implementation of big data and analytics integration services is the primary trend in the global market growth. Big data and analytical tools support critical corporate decision-making processes. By integrating big data and analytical tools with IT systems, companies can gain real-time insight into business processes and be informed about critical business decisions. Integrating big data and analytics services with IT systems provides valuable information gathered from sources external and internal to an organization to help predict consumer behavior in the digital transformation market.
Data integration services enable organizations to reduce data redundancy and increase visibility in the operational process. System integration services for big data and analytics enhance business efficiencies, reduce cycle time, and streamline routine business processes. Firms are rapidly adopting big data and analytics technology, which need to be integrated with the existing IT infrastructure. Such benefits are expected to propel the growth of the digital transformation market in focus during the forecast period.
Major Market Challenge
The implementation challenges are a major challenge to the global market growth. Digital transformation is important because it has a significant impact on a company's production efficiency. Enterprises need to implement digital platforms into standard corporate IT infrastructure. Challenges related to integration include system architecture, system age, and the need to integrate new applications.
The implementation is performed in a standardized, step-by-step procedure by designing the process and aligning functional modules to the company's applications and requirements, which mostly results in a longer time than the stipulated timeline. The architecture pattern can be a challenge while integrating software with the rest of the systems, which, in turn, will hinder the growth of the digital transformation market in focus during the forecast period.
Key Market Customer Landscape
The report includes the adoption lifecycle of the digital transformation market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the digital transformation market.
Accenture Plc- The company offers digital transformation services such as cloud, AI software solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts digital transformation market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing rapid growth, fueled by advancements in technologies and software like Artificial Intelligence (AI), Machine Learning, and Cybersecurity. Companies like Siemens are leading the charge, with IT enterprises embracing Big Data tools and Industrial Robots to optimize resource utilization. With the rollout of 5G and increased IoT device connections, industries across retail, transportation, logistics, and government are undergoing digital transformation initiatives. However, security concerns loom large, with data breaches and unauthorized access posing risks to sensitive information. To address these challenges, businesses are investing in automation, cloud-based technologies, and modernizing legacy systems. The result is improved operational efficiency, cost savings, and agility, paving the way for a smarter, more connected future. The market is witnessing unprecedented growth driven by the need for cyber security and data privacy in today's digital landscape. Businesses, both large enterprises and Small and Medium Enterprises (SMEs), are embracing digitization to optimize resource utilization and enhance customer experiences.
Moreover, in sectors like retail, transportation, and logistics, the Open Network for Digital Commerce is revolutionizing operations, enabling seamless collaboration and real-time data access. However, challenges such as outdated technologies and cybersecurity risks persist, necessitating significant investments in modernizing systems and ensuring regulatory compliance. Automation tools, including robotics and AI, are reshaping workflows and enhancing productivity, while technologies like edge computing and smart mobility are driving agility and efficiency in the manufacturing and automotive sectors. With the rise of IoT and M2M communication, businesses are leveraging data points for valuable insights, paving the way for a smarter, interconnected future.
Digital Transformation Services Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.55% |
Market growth 2023-2027 |
USD 737.27 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.45 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Amazon.com Inc., Atos SE, Capgemini Service SAS, CGI Inc., Cisco Systems Inc., Citrix Systems Inc., Cognizant Technology Solutions Corp., Dell Technologies Inc., Fujitsu Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., Mahindra and Mahindra Ltd., Microsoft Corp., Oracle Corp., Salesforce.com Inc., SAP SE, Tata Consultancy Services Ltd., and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.