North America Digital Transformation Market to 2025 - Regional Analysis and Forecasts by Components (Solution and Services); Deployment Type (Cloud and On-Premise); and End-User (BFSI, Healthcare, Education, Retail, IT & Telecom, Logistics & Transportation, Manufacturing, and Others)
The North America digital transformation market accounted for US$ 166.07 Bn in 2017 and is expected to grow at a CAGR of 22.1% over the forecast period 2018-2025, to account for US$ 757.63 Bn in 2025. Factors including increasing demand for reaching masses across various industries are driving the growth of digital transformation market. However, data privacy issues might slow down the growth of North America digital transformation market growth. With the increasing competition, business is ensuring their digital presence and are efficiently utilizing digital technology to sustain in the market. Organizations in the present era, regardless of their size, are exploiting digital technologies for effective functioning and cost reduction. Although digitalization is taking place on a vast scale, several SMEs currently are still skeptical about adopting it. Factors such as fear of risks, lack of true understanding, and expenditures incurred on new technologies among others may be responsible for the limited adoption. However, there are several open opportunities for SMEs prevailing in the digital world. They can help the SMEs to efficiently compete with larger enterprises as technology is significantly scalable and flexible.
Additionally, the adoption of the digital platform provides an opportunity of automating tasks by the adoption of technology. Highly skillful tasks can be automated through Machine Learning and Artificial Intelligence, thus, resulting in cost savings. Further, digitalization of processes helps in time-saving and reduction of errors, thereby improving the work quality. Owing to the mentioned advantages, adoption of digital solutions by SMEs is gaining pace, consequently, providing potential opportunities to the players the value chain of digital transformation market.
The North America digital transformation market is fragmented with the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the North America digital transformation market further. For instance, Cybersecurity is one of the primary concern and is particularly an area of growing regulatory focus. Even the government institutions are prone to the cyber-attacks stealing the personal data of the users on the website. Therefore, the government in the respective countries are making regulatory norms to protect private as well as public. Recently, due to the information leaking by renowned social networking site Facebook, the government has taken severe measures against the same. Many companies are focusing on reaching masses through a digital transformation, which is aiding the growth of digital transformation market. This factor is also creating opportunities for companies operating in the digital transformation market to gain a broader customer base. The increasing penetration of the internet and the growing popularity of social may also benefit companies in the US operating in digital transformation market.
The digital transformation market by deployment type is segmented into cloud and on premise deployment. Cloud or Hosted digital transformation is a type of deployment in which the processes of the business is done over the internet or on the cloud. The digital transition is essential for the organizations as the customers are demanding digital access to their data, exceedingly responsive applications and services, and customized experiences. To provide this functionality to the customers and reap their business benefits, the organizations are turning towards IoT, cloud, and web applications for collecting critical, real-time information, optimize internal workflows and accelerate data analysis. For reaping the full benefits of the digital transformation, the technologies that the company adopts have to offer four different capabilities such as virtualization, ubiquitous broadband (5G), IoT, and big data analytics.
The overall North America digital transformation market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the North America digital transformation market. It also provides an overview and forecast for the North America digital transformation market based on all the segmentation provided for the North America region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the North America digital transformation industry. Some of the players present in digital transformation market are IBM Corporation, Accenture, SAP SE, Microsoft Corporation, Oracle Corporation, Capgemini, Adobe Systems, Google, Inc., Dell, Inc., and Cognizant Technology Solutions Corporation among others.
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