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Digital change has accelerated and continues to do so at a very fast pace in the dynamic business environment. This is evident and supported by digital transformation statistics, which showcase how the value of businesses, revenue-wise as well, has been preserved or even heightened with digitization.
Think about it, can your company depend on finding enough digitally skilled employees to constantly keep a competitive and long term advantage within the fast-paced environment?
To give you an essence of how integral digital transformation is for businesses worldwide, here’s a list of digital transformation statistics and trends. These should enable you to gain a deeper insight into its importance and impact across industries.
General Digital Transformation Statistics and Trends
If you take into account the pre-covid era, digital transformation was a bonus in your business, it was good to have, but that was it. Now, however, with the way the pandemic had caused a major disruption in businesses on a global level, digital transformation became a thing of necessity.
Most consulting and research firms have emphasised the importance of digital transformation after the pandemic. So in the next few years, it is highly likely that businesses will allocate more investments in AI, AR/VR, IoT and other emerging technologies.
Market growth rate and adoption Digital Transformation Statistics, Trends and Forecast
- The global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020, at a CAGR of 16.5% during this period.
- According to IDC, the direct digital transformation investment is expected to reach $7 trillion with a CAGR of 18% from 2020 to 2023 since companies have been building on prevalent investments and strategies and becoming future enterprises that are digital at scale.
- According to Markets and Markets, the digital transformation market size is projected to grow at a compound annual growth rate of 19.1%, from $521.5 billion in 2021 to $127.5 billion in 2026.
- In 2022, Worldwide IT Spending to forecasted to grow by 5.1% according to Gartner.
- Gartner forecasted IT spending in India to climb up seven per cent from 2021 to a total of $101.8 billion in 2022.
- According to the World Economic Forum, $100 trillion is going to be added to the world economy through digital transformation by 2025. Moreover, by 2025, interactions driven by platforms are expected to enable roughly two-thirds of the $100 trillion value at stake from digitalization.
- Statista states that the global investment in digital transformation is expected to almost double between the years 2022 from 1.8 trillion U.S. dollars and 2025 to 2.8 trillion U.S. dollars.
- According to Prophet, the leading drivers of digital transformation are market pressures since 51% of the efforts arise out of growth opportunities and 41% out of increased competitive pressure. With high-profile data breach scandals in the everyday limelight, new regulatory standards like GDPR are also providing impetus for organizations to transform (38%).
- IDC asserts that AI technology will be inserted into the processes and products of at least 90% of new enterprise apps by 2025.
- According to Research and Markets, AR/VR technology is predicted to have the fastest growth until 2025 even though the Internet of Things (IoT) had the largest share of the overall digital transformation market in 2019.
- Digitally transformed organizations are expected to contribute to more than half of the GDP by 2023, accounting for $53.3 trillion.
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Digital Transformation Stats on Current Business Adoption
Businesses and companies in the current scenario acknowledge that success can be achieved with a powerful digital strategy despite a major portion of these companies just having started out the process of digital transformation. These digital transformation trends bear testimony to that.
Importance of Digitization and Digital Strategy
- According to Gartner, 91% of businesses are engaged in some form of digital initiative, and 87% of senior business leaders say digitalization is a priority.
- 89% of all companies have already adopted a digital-first business strategy or are planning to do so.
- According to a study by Statista, the two main agendas of CEOs to help their businesses sustain amid the COVID-19 pandemic are leading digital transformation projects at 37%; and 37% improving remote work experience.
- 70% of customer engagements will be driven by Intelligent systems by 2022, according to Gartner.
- There is an expectation of 65% of global GDP to be digitalized by 2022, according to IDC. This is estimated to drive more than 6.8 trillion dollars of direct digital transformation investments from 2020 to 2023.
- Prophet reports that 28% of digital transformation initiatives are often owned or sponsored by CIOs, with 23% of CEOs increasingly playing a leadership role.
- By 2025, three out of every four business executives will be able to adapt to new markets and industries using digital platforms.
- Cloud Spending Driven by Emerging Technologies Becoming Mainstream according to Gartner.
- According to Gartner, Global Cloud Revenue to Total $474 Billion in 2022, Up from $408 Billion in 2021.
- Businesswire showcased a Technavio study that found that the global cloud market in the healthcare industry is forecasted to grow by $25.54 billion by 2024.
- Companies have spent $58.3 billion on AI as of 2021 and according to Markets and Markets, this spending will increase up to $309.6 billion by 2026.
- According to Fortune Business Insights, the 2021-2028 period will make the global market for cloud storage worth more than $390 billion.
Digital Transformation facts on evolving Customer Experience
The increasingly competitive marketplace makes it a must for businesses to have an edge and a shot to gain momentum against their competitors, one such edge is enhancing the experiences of their customers. Digital transformation has customers at its core. This is proved by these categorized digital transformation statistics.
Customer Experience Systems
- According to Prophet, 54% of transformation efforts continue to focus on modernizing customer touchpoints and 45% go on enabling infrastructure, but 41% of companies have not done their due diligence when it comes to understanding their customers and made investments in digital transformation without the guidance of thorough customer research.
- In 2022, businesses are estimated to spend $641 billion on customer experience according to BusinessWire.
- According to PwC, nearly half of all companies say improving customer experience and customer satisfaction were the leading influences to starting a digital transformation.
- 64% of customer service and support leaders will focus on business growth in 2022, as shown by a Gartner survey.
- After one poor experience, 32% of customers would quit connecting with a brand they like.
Omnichannel is essentially the provision of a centralized experience for customers across all touchpoints and channels. It helps organizations retain customers thereby allowing maintenance and increase in revenue, and furthers the digitization of your business as made evident by these digital transformation figures.
- According to PwC, the amount of companies investing in omnichannel experience has increased to percentages of over 80% from 20%.
- 63% of retailers expect to spend more on data analytics/business intelligence, and 35% on artificial intelligence.
- According to Top Business Tech, retailers that have already evolved to digitally transform their businesses will reap the benefits of customer loyalty and boost revenue, while those who have not hopped on the bandwagon will struggle to compete and impress their customers.
Digital Transformation – Benefits & Best Practices
Digital Transformation, especially in this day and age, aids in increasing efficiency, enhancing customer value, risk management and also constant and up to date navigation of opportunities for revenue generation.
With technological advancement being one of the most integral aspects of successful companies, digital transformation statistics can help provide you with supporting evidence to these benefits and understand them better.
It is integral to have an understanding of a roadmap to make digital transformation efforts worthwhile. The tips derived from these digital transformation facts may prove to be beneficial. Moreover, to avoid failures of pilot initiatives and overcome the challenges mentioned above, it is beneficial to learn the best practices.
- Gartner asserts that 56% of CEOs say digital improvements have led to increased revenue.
- 89% of all companies have already or plan to adopt a digital-first business strategy.
- According to Mckinsey, companies with an engaged Chief Digital Officer are 1.6 times more likely to report a successful digital transformation.
- New data from PwC finds that in 2022, 70% of business leaders believe COVID-19 will turn from a pandemic to an endemic.
- Adobe suggests that experience-led companies have 1.6 times higher customer satisfaction rates and 1.9 times higher average order value.
- Gartner predicts that 90% of corporate strategies will specifically reference information as a critical business asset and analytics as a critical competency by 2022.
- According to a survey by Alida, published under their previous brand Vision Critical, 39% of outperforming companies have a fully integrated digital-physical strategy.
Digital Transformation – Failures
When digital strategies lack a well-structured mechanism for them to function, no matter how innovative or unconventional your tech solutions are, it will inevitably lead to the failure of digital transformation.
Think about it this way, the three legs of a camera tripod represent processes, people and technology, and the camera on it is its uniting force, its purpose giver, without which, the tripod has no use or point. In this case, the camera would represent culture. Now, even if you invest correctly in the right people, technology and processes, if the culture doesn’t facilitate change, your business’ value will inevitably reduce.
Companies should work on creating a well-structured, constantly rethought digital transformation strategy to avoid the downfalls showcased in these digital transformation statistics.
- 73% of companies declined to provide any business value from their digital transformation process according to an Everest Group study.
- Forbes showcased a study by Boston Consulting Group that found that a staggering 70% of digital transformation projects fall short of their goals despite leadership being aligned.
- According to a McKinsey study, a massive 70% of all digital transformations fail due to a number of reasons.
- According to Mckinsey, 70% of digital transformations fail, most often due to resistance from employees.
- Only 16% of employees believe their company’s digital reforms have enhanced productivity and are long-term sustainable.
Digital Transformation – Challenges
Companies face various challenges that lead to pitfalls in their digital transformation journies such as lack of compliance from a workforce that in turn slows initiatives down, finding the right and best-fitting skillset across the company, resistance to change or hassles in measuring the company’s ROI.
To avoid these pitfalls, companies should be well aware of these challenges, shown by these digital transformation figures. and overcome them.
- 28% of companies report that digital transformation is still often perceived as a cost center, and 29% data to prove ROI is hard to come by. Cultural issues also pose notable difficulty, with entrenched viewpoints, 26% is resistance to change, and 26% is legal and compliance concerns stymieing progress according to Prophet.
- According to Fujitsu‘s survey conducted among retailers, the biggest challenge overall is the complexity of the implementation, with more than three quarters, that is, 76% rating it as somewhat challenging or highly challenging. Other key challenges – 75% is the availability of talented staff, 75% are the upfront costs, 75% is the time necessary to achieve benefits, and 74% are security and privacy concerns.
- Over a third of CIOs anticipate difficulty in finding appropriate skillsets in the tech areas of cybersecurity and data science according to IDG.
Digital Transformation – Jobs
These digital transformation trends highlight the growing requirement for jobs in the current and future scenarios of the dynamic environment.
- According to CompTIA, four in 10 companies hired IT or other technical staff during the COVID-19 pandemic, and two-thirds expect to hire more IT or tech roles in 2021.
- CompTIA suggests that 41% of organizations will have a new emphasis on communication and emerging technology skills for remote work and 42% expect new efforts to upskill and reskill current employees.
- Over three quarters 79% of organizations are pursuing initiatives to address gaps amid a tightening market for IT labour according to CIO Dive.
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Industry-Specific Digital Transformation Statistics and Predictions
Here’s a list of digital transformation figures that allow you to gain deeper insights into the current scenario across different and varying industries.
Digital Transformation Statistics for Retail
- 71%, that is, more than two-thirds of respondents agree that digital transformation is an essential part of retail technology according to Fujitsu.
- According to Fujitsu, only one in ten, that is, 9.5% of retailers say they are very early adopters, with another quarter, specifically 27%, saying they are somewhat early and 37% say they do not fall into either category, that is, they are neither late adopters nor early adopters.
- Key drivers of digital transformation in retail are strengthened competitiveness with 70% reporting high or very high importance, 69% improved efficiency and reduced cost, 69% strengthened customer relationships and 67% increased revenue according to Fujitsu.
- According to Gartner, 63% of retailers expect to spend more on business intelligence/data analytics, and 35% on artificial intelligence.
Digital Transformation Statistics for Healthcare
- IDG suggests that the top industries for digital-first business strategies are 95% in services, 93% in financial services, and 92% in healthcare.
- There was a 15 percentage point rise in the use of digital tools for health support by consumers during the pandemic. According to McKinsey, 37% of consumers are highly likely to use telehealth in the future.
- Mckinsey suggests that up to $250 billion of current US healthcare expenditure (20% of total expenditure) is available for virtualization.
- The use of telehealth has increased from 11% to 76% after the pandemic according to Mckinsey.
- By 2025, the healthcare AI market will have a total revenue opportunity of more than $34 billion according to BusinessWire.
- By 2025, the global digital health market is expected to increase to more than 500 billion U.S. dollars according to Statista.
- There is an expectation for the global virtual and augmented reality in the healthcare market to reach $5.1 billion by 2025 according to Grand View Research.
- The global wearable medical device market is expected to reach $27.2B by 2023 at a CAGR of 23% from 2018 to 2023. according to 360 Market Updates.
- The global healthcare chatbots market is projected to reach $314.3 million by 2023 from $122 million in 2018 according to MarketsandMarkets.
Digital Transformation Statistics for Banking and Insurance
- Since the insurance sector is full of bottlenecks and manual procedures, 25% of the insurance industry will be automated in 2025 thanks to AI and machine learning techniques, according to Mckinsey.
- Three-quarters of banks and credit unions have launched a digital transformation initiative with another 15% plan to develop a digital transformation strategy in 2022 according to Cornerstone Advisors’ 2022 What’s Going On in Banking study.
- Among those banks that launched their strategy in 2020, almost half, specifically 46%. are at least halfway done with their strategy according to Forbes.
Digital Transformation Statistics for Manufacturing
- In the manufacturing market, in 2020, digital transformation was valued at $263 billion. It is expected to reach $767 billion by 2026 and work at a growth rate of 19.48% over the forecast period 2021-2026 according to Mordor Intelligence.
- According to ITIC, 86% of manufacturing firms state that a single hour of downtime in their systems, networks, applications or other hardware can cost at least $300,000.
Digital Transformation Statistics for HR and L&D
- According to Forrester, by 2030, analysts expect automation to eliminate 29% of jobs while contributing 13% to job creation.
- Digital skills are important in today’s workplace. The World Economic Forum suggests that 54% of all employees will need significant reskilling by 2022.
- PwC suggests that 55% of employers most worried about digital skills say innovation is hampered by a lack of key skills.
- Business and HR leaders worldwide, according to data gathered by Statista, use AI to assist workers in their organization, 58% of them claimed that the main use of AI in this context was to improve consistency and quality and a further 26% stated that AI is used to assist workers through improving productivity, with the remaining 16% using it to improve insights.
Digital Transformation Statistics for Other Industries
- Due to the consequences of the COVID-19 pandemic, worldwide digital transformation spending in logistics is expected to reach $84.6 billion by 2027.
- By 2023, global spending on services and technologies that will allow digital transformation is estimated to amount to $2.3 trillion.
- To address environmental sustainability, the majority of businesses are turning to digital technologies.
- In the next 5 to 10 years, jobs including insurance underwriting, warehouse and manufacturing, and customer service are expected to be automated.
So basically, if you still have not engaged in the digital transformation of your business, you are definitely missing out on an edge that your competitors probably already have because the truth is that the future of work involves technological disruption and advancement.
We hope these digital transformation facts have provided you with a deeper insight into how vital it has become to digitize your business to keep up and have a competitive standing in the culture of the fast-paced environment.
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