Digital transformation market set to hit $1247 billion by 2026

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According a recent research report  on the state of the digital transformation market, including technologies such as cloud computing, big data, analytics, mobility/social media, cyber security, AI, and IoT, this size of this sector is predicted to grow from USD 521.5 billion in 2021 to USD 1247.5 billion by 2026, at an impressive CAGR of 19.1% during the forecast period.

Report authors from Marketsandmarkets suggest that various factors such as increasing spending on marketing and advertising activities by enterprises, the changing landscape of customer intelligence to drive the market, and proliferation of customer channels are expected to drive the adoption of digital transformation technologies and services.

Digital transformation is the outcome of changes that occur with the application of digital technologies. The use of digital transformation across business and organisational activities, processes, competencies, and business models leverages the changes and opportunities of a mix of digital technologies and their impact on society. Digital transformation helps enterprises improve the customer experience, optimise the workforce, enhance the operational activities, and transform the products and services of the organisation. The evolution of digital technologies, such as cloud computing, big data and analytics, mobility/social media, blockchain, Artificial Intelligence (AI), Internet of Things (IoT), robotics, and cyber security, has created the need for digitalisation across several industries. These technologies are used by enterprises to improve or add more features to their traditional business processes while also helping enhance customer relationships.

Cloud computing accounts for largest share

Cloud computing offers enterprises several benefits, such as pay-as-use, faster time-to-market, and on-demand elastic infrastructure. Cloud computing helps enterprises use remote servers hosted on the internet to store, manage, and process critical data. The increasing volume of data generation in websites and mobile apps, the rising focus on delivering customer-centric applications for driving customer satisfaction, and the growing need to control and reduce capital expenditure and operational expenditure are some of the factors driving the growth of the emerging technologies. Major factors such as data security, faster disaster recovery, and meeting compliance requirements are driving the growth of cloud computing services. The need to mitigate risks, achieve scalability and flexibility to move and store data, reduce storage and infrastructure complexities, and increase business efficiency are leading to the growth of the cloud computing market.

BFSI strongest vertical

Within the report, the digital transformation market by vertical has been categorised into banking, financial services, and insurance, retail and ecommerce, media and entertainment, IT and telecoms, healthcare and life sciences, government and defence, manufacturing, and education. The BFSI vertical is expected to have the largest market size during the forecast period, which the analysts put down to the increasing usage of mobile devices to access banking services.

APAC geographical stronghold

Geographically, the report splits the world into five major regions: North America, Europe, APAC, Latin America, and MEA; and it is the APAC region that is expected to grow at the best pace over the study period. According to the researchers, the region will be booming, as it is experiencing a lot of new entrepreneur setups, which would be looking forward to acquiring new customers and gaining customer trust by involving new paradigms of advanced analytics to have a competitive advantage over the established players. China, Japan, and India have displayed ample growth opportunities in the digital transformation market.

The major vendors in the global digital transformation market and covered in the report inlcude, Microsoft, IBM, SAP, Oracle, Google, Cognizant, HPE, Adobe, Accenture, HCL Technologies, Broadcom, Equinix, Dell, Tibco and Marlabs.


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