The worldwide digital transformation market will grow from $US521.5B in 2021 to $1.2T by 2026, compounding at 19.1 per cent a year.
The figures are contained in a new study by MarketsandMarkets called "Digital Transformation Market by Technology."
The researchers include cloud computing, big data and analytics, mobility/social media, cybersecurity, AI, and IoT in their scope.
According to the study, factors such as increased spending on marketing and advertising activities by enterprises, and the changing landscape of customer intelligence will drive the market, while the proliferation of customer channels is also fuelling the expansion.
"The use of digital transformation across business and organisational activities, processes, competencies, and business models leverages the changes and opportunities of a mix of digital technologies and their impact on society. Digital transformation helps enterprises improve the customer experience, optimise the workforce, enhance the operational activities, and transform the products and services of the organisation."
Cloud computing technology will be the largest contributor to market size during the forecast period.
According to the authors, "Cloud computing offers enterprises several benefits, such as pay-as-use, faster time-to-market, and on-demand elastic infrastructure. Cloud computing helps enterprises use remote servers hosted on the internet to store, manage, and process critical data."
The study says the increasing volume of data generation in websites and mobile apps, the rising focus on delivering customer-centric applications for driving customer satisfaction, and the growing need to control and reduce Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) are some of the factors driving the growth of the emerging technologies.
But the need to ensure data security, provide for faster disaster recovery (DR), and to meet compliance requirements will also contribute to the growth of cloud computing services.
"The need to mitigate risks, achieve scalability and flexibility to move and store data, reduce storage and infrastructure complexities, and increase business efficiency are leading to the growth of the cloud computing market."
Banking, finance and insurance is predicted to be the biggest vertical market size during the forecast period. "The larger market size of the BFSI vertical can be attributed to the increasing usage of mobile devices to access banking services is driving the adoption of digital transformation solutions in the BFSI vertical."
"APAC is expected to grow at a good pace during the forecast period. The region will be booming, as it is experiencing a lot of new entrepreneur setups, which would be looking forward to acquiring new customers and gaining customer trust by involving new paradigms of advanced analytics to have a competitive advantage over the established players."
China, Japan, and India have displayed ample growth opportunities, according to the study.