Market Size of Digital Transformation Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.38 Trillion |
| Market Size (2029) | USD 3.62 Trillion |
| CAGR (2024 - 2029) | 21.32 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Digital Transformation Market Analysis
The Digital Transformation Market size is estimated at USD 1.38 trillion in 2024, and is expected to reach USD 3.62 trillion by 2029, growing at a CAGR of 21.32% during the forecast period (2024-2029).
- With the introduction of Industry 4.0 in the manufacturing sector, numerous factories are embracing digital technology to improve, automate, and upgrade the whole process. Industry 4.0 technology, such as robotization, is already commonplace in many enterprises. For example, Vepa, a project and office furniture maker, employs robotization in its warehouse to help it increase its turnover. Collaborative robots are projected to see a growing application in production.
- According to IFR, the industry for collaborative robots is anticipated to reach USD 12.3 billion by 2025. Intelligent robots work alongside humans and can be trained by most production workers to execute the most common, time-consuming jobs and deliver them properly.
- Furthermore, the increasing use of IoT devices in companies is predicted to accelerate digital transformation in various industries. According to Cisco's Annual Internet Report, there will be about 30 billion network-connected gadgets and services by 2023. IoT devices will account for 50% (14.7 billion) of all networked devices by 2023.
- As AI and deep learning applications expand globally, from tech giants to small and medium-sized businesses, there has been a shortage of expert AI technicians. Without talent, these increased investments in artificial intelligence and machine learning could be wasted, leading to financial losses and unrealized opportunities.
- Remote workers used system solutions to manage various activities. It incorporates various sophisticated technologies, such as artificial intelligence (AI), cloud computing, products, big data tools, and capabilities, to maximize company operations. Following the pandemic, some firms intend to invest in modern technology to address the increasing need for digitalization. For instance, in January 2022, Google, an Alphabet LLC company, committed around USD 1 billion in collaboration with Airtel. The collaboration aimed to provide companies with cheaper smartphone access while also increasing their use of cloud-based computing. The investment aided in the digitization of India's small enterprises by allowing them to use digital technologies. Such initiatives are projected to boost the demand for digital transformation and help the market grow post-COVID-19.
