The market for shifting traditional business processes to the digital world will generate about $800 billion dollars annually by 2025. That’s according to a new study released by Grand View Research.
The phrase “digital transformation” has become quite the buzzword in the channel. The study concludes that the market will be worth $798 billion eight years from now as businesses demand more and more digital and IoT integration.
“Digital transformation allows organizations to tackle disruptive changes such as marketplace fluctuation and corporate restructuring, among others, occurring in their markets and customer base by designing new products, services, and business models leveraging digitalization,” the report says. “These newly designed solutions are generally a mix of digitally stored historical information about business activities and the customers.”
Another driver is the need to make an “end-to-end” experience for customers — an example of that being retail stores adopting digital platforms for customers to shop and give feedback. The study named hosted deployment as the segment with the highest predicted momentum — a growth rate of 22 percent over the next eight years. Health care is listed as the juiciest vertical with a 19.5 percent anticipated growth rate, a result of an increased focus on using technology to improve patient care.
North America was the largest market for digital transformation in 2016, with IBM, CA Technologies and Hewlett Packard Enterprise leading the way, according to the study. As we have often seen in other market studies, Asia Pacific is expected to be the fastest growing regional market.
The study listed SAP SE, Oracle, Google, Dell EMC, Microsoft, Adobe Systems, Accenture, Capgemini Group, Apple and Kellton Tech Solutions as other major industry players.
A recent survey by 451 Research and CenturyLink showed that only half of enterprises have an actual plan for digitally transforming their business operations.