Digital Transformation Market - Forecast(2024 - 2030)

The Market for Digital Transformation Market size is forecast to reach $1.3 trillion by 2027, growing at a CAGR of 16.4% from 2022 to 2027. Digitalization comprises different types of technologies such as big data and analytics, cloud computing, artificial intelligence, Radio Frequency Identification (RFID) and GPS tracking, augmented reality, autonomous robots, simulation, internet of things, cyber security and various others. These technologies are integrated over either new or existing data collection infrastructure to assimilate and analyze the data to derive actionable insights using computer 3d visualization. The Digital Transformation Market is estimated to witness substantial growth over the forecast period primarily due to advancements in healthcare systems and improvements in healthcare infrastructure and government initiatives and an increase in per capita healthcare is driving the market growth. Digital transformation is the integration of digital technology into all aspects of how healthcare business interacts with patients, healthcare providers, and regulators. The rise in telemedicine has improved doctor visits across multiple channels digitally and remote patient monitoring uses digital technologies to monitor and capture medical and other health data from patients electronically. Digital transformation is set to improve electronic health records that get generated during any clinical encounter.

The report: “Digital Transformation Industry Outlook (2022-2027)”, by Industry ARC covers an in-depth analysis of the following segments of the Digital Transformation Market. 

By Technology – Artificial Intelligence, Cloud Computing, Big Data Analytics and Internet of Things, Cybersecurity, AR/VR, Blockchain, Robotics, Mobility and Others.

By Offering – Software (Cloud, On-Premises, Hybrid) Services (Professional, Managed).

By Organization Size - SME, Large Enterprises.

By End User – Healthcare and Pharmaceutical, Energy and Power, BFSI, Retail, Manufacturing, Media and Entertainment, Government and Defense, Education, IT and Telecom.

By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC(China, Japan India, SK, Australia, Indonesia and Others), South America(Brazil, Argentina, Chile, Colombia and others) and RoW (the Middle East and Africa).

The market segment by technology into Artificial Intelligence, Cloud Computing, Big Data Analytics and the Internet of Things. The artificial Intelligence segment is expected to grow at a higher CAGR of 19.9% during the forecast period 2022-2027. This is due to Artificial Intelligence offering an array of advantages over clinical decision-making techniques. Implementation of AI in healthcare can enable physicians, doctors and patients with more precise and accurate data, which allows them to gain unprecedented insights into diagnostics, care processes, treatment variability and patient outcomes. Big data analytics helps with the massive volume of data like financial, clinical, administration and operational data available in healthcare which empowers meaningful actions to improve the overall operational efficiency of the industry.

The market is majorly dominated by the power sector, primarily oil/gas-fired plants and this segment is estimated to surpass 21.3% share by 2027. The coal-fired plants acquired a significant share of the power segment in 2021 owing to the large-scale adoption of digitalization in the fossil-based power generation sector to reduce emissions through optimizing processes and asset usage. The water sector held a significant growth rate owing to the increasing emphasis on promoting efficient water usage and optimization of power usage. The water industry is progressing towards a new level due to digitalization which has led to the use of connected and intelligent systems resulting in efficient energy usage, reducing water losses, and resource optimization to a much higher extent.

The Digital Transformation Market by geography has been segmented into North America, Europe, APAC, South America and RoW. North America is expected to dominate the Digital Transformation Market size with a CAGR of 20.5% in the forecast period 2022-2027. The demand is majorly driven by the growing demand for the healthcare sector in the region, specifically in the United States. It is owing to the emerging technologies involved in digitalization which include IoT, virtual reality, AI and Others. As per the National Institute on Aging, the population aged 65 and over in the United States is anticipated to nearly double in the next three decades which drives the Digital Transformation industry outlook in this region.

An increase in per capita healthcare and initiatives by governments are the two factors fueling the demand for enhanced healthcare services. Various government and healthcare organizations such as hospitals, clinics and pharmaceutical companies are increasing investments in their IT infrastructure in order to better improve customer needs. Governments of countries such as Canada, and the United States are planning to introduce digital initiatives to promote innovation and digitalization in the healthcare sector. This is primarily to encourage hospitals and clinics to adopt enhanced diagnostic tools and digital healthcare services to serve patients efficiently. This in turn is likely to increase the demand for Digital Transformation in the near future. Health spending per person in the U.S. was $11,945 in 2020, which was over $4,000 more expensive than any other high-income nation and a 9% increase from 2019.

Aging plants deviate from functioning at optimum efficiency and this can lead to an increase in power usage along with frequent asset and components breakdown which at times result in severe loss of money and operator’s life as well. To ensure efficient process flow and safety, utilities are adopting digital solutions for continuous monitoring of plant assets to optimize their usage, maintenance schedule and so on. The utility companies need to invest significantly to modernize their aging plants. Companies such as EDF (France) are planning to invest around $100 billion by 2030 to modernize and maintain their entire fleet.

The current period has been observing a gradual decline in the profitability of many European gas-fired power plants. Numerous utilities have decided to either decommission or temporarily shut down a number of gas-fired plants. The major utility companies operating in the European region as well as public utilities are shifting their dependency on renewable power generation in sync with the EU directives toward the reduction of carbon emissions. Some of the key initiatives include The French government planning to shut down around 14 reactors by 2035 as well as per the national energy strategy, Italy is planning to phase out coal-fired plants by 2025. This is set to limit market growth in the Power sector

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Digital Transformation Market. The top 10 companies in the Digital Transformation industry include: