The global digital transformation market size is expected to reach $4,617-trillion by 2030, registering a CAGR of 26,7% from 2023 to 2030, according to a new report by Grand View Research.

Digital transformation assists companies in improving their brand reputation, customer experience, and customer retention ratios.

These solutions also help end-user companies in education and training their employees to improve their productivity and speed up the organisation’s journey to achieve business objectives.

Furthermore, with the implementation of digital transformation solutions, organizations can meet the evolving market needs and improve their business profitability. The market growth is mainly driven by rising companies’ investments in big data, mobility, and cloud technologies to develop advanced digital experience platforms (DXPs).

The growing use of mobile devices and their applications has transformed the various aspects of modern life. Globally, organisations and enterprises are shifting from traditional brick-and-mortar operations to digital operations, driving the growth of the market.

In addition, the emergence of novel technologies such as the Internet of Things (IoT), robotic process automation (RPA), machine learning (ML), and artificial intelligence (AI), has increased the importance of mobile applications.

The way businesses operate has changed significantly in recent years, therefore, having an attractive and innovative mobile application improves the way target clients interact and engage with services that the company offers.

Plus, owing to the increasing smartphone adoption, consumers currently have access to various apps that are provided under digital transformation solutions, which is also helping to create a positive outlook for the growth of the market.

The Covid-19 pandemic has forced various businesses to opt for cloud technology for remote working. This has resulted in growing demand for cloud services which in turn has created a favorable environment for market growth. This has resulted in the increased adoption of cloud services to ensure business continuity.

Businesses are renewing their contracts with cloud service providers while anticipating an increase in cloud migrations, and in some cases, an acceleration in cloud transformation from their customers.

The widespread adoption of numerous digital-first payment methods highlights the paradigmatic shift led by the pandemic.

The Buy Now Pay Later (BNPL) trend has witnessed increased popularity in 2020 & 2021. During the pandemic, fintech innovation has not only helped meet the changing needs of consumers but also ensured that financial services were made easily available to those who needed them the most, creating robust opportunities for market growth.

Highlights from the Digital Transformation Market Report include:

* In terms of solution, the social media segment is projected to experience the fastest CAGR of 28,7% over the forecast period. A growing number of users of social media platforms, the shifting focus of end-user companies on improving their brand identity through creative advertisements on social media platforms, and advancements in social media tools are driving the segment growth.

* In terms of service, the professional services segment is anticipated to grow at the fastest CAGR of 28,3% over the forecast period as these services help organisations digitise their business operations. The professional services help end-user organisations select proper digital transformation solutions, manage the operations of cloud-based digital transformation solutions, address client issues, and effective resource utilisation, among other assistance.

* In terms of deployment, the hosted segment is anticipated to register the fastest CAGR of 29,9% over the forecast period. The proliferation of cloud-based digital transformation solutions, cloud technology’s various benefits such as minimum hardware requirement, low operating costs, easy accessibility, and rising public & private investment in cloud platforms are driving the segment growth.

* In terms of enterprise size, the small & medium-sized enterprises (SMEs) segment is anticipated to register the fastest CAGR of 28.3% over the forecast period. The increasing importance of digital technologies and the availability of low-cost digital transformation solutions are driving the growth of the market among SMEs.

* In terms of end-use, the healthcare segment is anticipated to register the fastest CAGR of 28,6% from 2023 to 2030. Digital transformation is anticipated to improve the quality of patient care. The Covid-19 pandemic propelled the adoption of advanced medical technologies such as remote patient monitoring, telemedicine, virtual reality, and neurotechnology, supporting the segment’s growth.

* In terms of region, the market in the Asia Pacific region is expected to grow at a remarkable CAGR of 29,4% over the forecast period, owing to the expansion of the e-commerce industry, government investments in digital infrastructure, and the growing use of process automation tools powered by the latest technologies, such as AI, ML, Blockchain, and cloud computing.