Digital Transformation to Continue Strong Growth Path
Research firm MarketsandMarkets predicted recently that the digital transformation market will grow from $521.5 billion in 2021 to $1.25 trillion by 2026, at a compound annual growth rate (CAGR) of 19.1 percent.
Among the factors influencing this growth are increasing spending on marketing, the changing landscape of customer intelligence, the proliferation of customer channels, the rapidly growing amount of data, the advent of artificial intelligence, and the rapid proliferation of mobile devices.
The evolution of digital technologies, such as cloud computing, big data and analytics, mobility/social media, blockchain, artificial intelligence , Internet of Things (IoT), robotics, and cybersecurity, has created the need for digitalization, the report concluded.
The report also maintains that the market will struggle with changing regional data regulations that will force companies to restructure their predictive models, data security and provacy concerns, the ongoing integration of data from silos, and IT modernization issues.
Digital transformation, it said, is the outcome of changes that occur with the application of digital technologies. Digital transformation helps companies improve the customer experience, optimize the workforce, enhance operational activities, and transform their products and services.
The report says that the on-premises model will continue to be the largest during the forecast period, noting that on-premises solutions are typically deployed with a one-time license fee and annual service agreement, which includes free upgrades after a specified time, and are depreciable assets that are affordable for companies with the budget to make the initial investment.
The report also notes that small and mid-sized companies will register a higher CAGR during the forecast period, pointing out that they are early adopters of digital transformation solutions due to the troublesome task of effectively managing security.
Among the leading companies in digital transformation highlighted in the report are Accenture, Adobe, Aexonic Technologies, Alcor Solutions, Brillio, Broadcom, Cognizant, Dell, Emudhra, Equinix, Google, Happiest Minds, HCL Technologies, HPE, IBM, Interfacing, Kissflow, Marlabs, Microsoft, Oracle, Process Maker, Process Street, SAP, Scoro, Smartstream, Tibco Software, and Yash Technologies.