The global digital transformation market attained a value of USD 2276.33 Billion in 2025 and is projected to expand at a CAGR of 18.00% through 2035. The market is further expected to achieve USD 11913.94 Billion by 2035. Enterprises accelerating legacy modernization to avoid operational bottlenecks is one major growth motivator of the market.
Since outdated systems cannot support AI workloads, companies are increasingly demanding intelligent, connected operations for their real-time decision pipelines. For example, in February 2025, Körber Supply Chain announced that the company is leveraging Siemens Insights Hub to transform warehouse automation, creating smarter and more efficient warehouses. By integrating low-code customization and multi-site visibility into one environment, Siemens positioned the platform as a bridge between legacy OT assets and enterprise-scale AI adoption, reshaping the digital transformation market trends and dynamics.
Leading firms are strengthening partnerships that merge cloud software, cybersecurity, and automation into unified transformation stacks. For example, in June 2025, Schneider Electric announced the launch of its next-generation Industrial Copilot, developed in collaboration with Microsoft that help energy and industrial clients reduce downtime using digital twins and AI-enabled fault detection, boosting the overall digital transformation market growth. In Latin America, several telecom operators introduced private 5G industrial deployments, giving manufacturers the bandwidth needed for robotics, AR maintenance guidance, and machine-level automation.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
18%
Value in USD Billion
2026-2035
*this image is indicative*
| Global Digital Transformation Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 2276.33 |
| Market Size 2035 | USD Billion | 11913.94 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 18.00% |
| CAGR 2026-2035 - Market by Region | North America | 19.2% |
| CAGR 2026-2035 - Market by Country | USA | 19.4% |
| CAGR 2026-2035 - Market by Country | China | 19.3% |
| CAGR 2026-2035 - Market by Deployment Type | Cloud | 19.7% |
| CAGR 2026-2035 - Market by Organisation Size | Small and Medium Sized Enterprises | 18.6% |
| Market Share by Country 2025 | UK | 3.4% |
Interoperable data fabrics and platform consolidation are driving faster digital transformation adoption. Siemens Insights Hub and major middleware vendors are helping enterprises unify OT and IT data streams into a single operational layer. Public programs such as Manufacturing USA and the EU GAIA-X initiative continue funding integration pilots and promoting shared data standards, accelerating the digital transformation market trends. In September 2025, Cisco announced the launch of Cisco Data Fabric, an architecture that is anticipated to empower organizations to harness the value of their machine data with AI. Companies now bundle low-code connectors and secure APIs, letting engineers focus on use cases rather than complex integrations.
Edge AI and distributed compute are transforming how manufacturers execute real-time decision makiing across production lines. Companies such as HPE, Schneider Electric, and NVIDIA are co-engineering validated edge stacks designed for predictive maintenance, vision inspection, and autonomous micro-adjustments on the line. National telecom regulators in Asia and Latin America continue offering private 5G rollouts, accelerating industrial edge adoption. For example, in December 2025, Fujitsu Limited announced the development of a multi-AI agent collaboration technology that enables secure collaboration and swift response to changing circumstances among AI agents from different companies and vendors within a supply chain. This trend in the digital transformation market helps teams shorten reaction times for anomalies and strengthens automation maturity.
Composable architectures and digital marketplaces are enabling firms to produce automation use cases faster. Microsoft, SAP, and other ecosystem players now publish certified connector packs and domain templates that help integrators deploy workflows with reduced engineering effort. In November 2025, Infosys announced the launch of Infosys Topaz Fabric. It is a stack of layered, composable, open and interoperable data infrastructure, models, agents, flows, and AI apps that help unify and accelerate IT service delivery across the enterprise landscape, thereby propelling the overall demand in the digital transformation market. This approach lowers time-to-value and enables targeted modular upgrades.
Cybersecurity is shifting from perimeter-only defense to integrated operational resilience. Automation suppliers release secure-by-design controllers with hardware roots of trust, encrypted firmware, and attestation tools. Regulators in critical sectors adopt stricter OT security rules, prompting companies to merge IT and OT telemetry for unified threat detection, driving the digital transformation market value. In November 2025, Rockwell Automation, Inc announced the launch of SecureOT solution suite, a comprehensive industrial cybersecurity offering designed to help manufacturers and critical infrastructure protect operations and build secure environments. Continuous firmware attestation and automated vulnerability scoring are now embedded into CI pipelines, supporting insurance and auditor requirements.
Sustainability is becoming a core driving factor of digital transformation as enterprises adopt carbon-aware workloads. Cloud vendors and automation platforms now expose emission APIs that map energy use to specific applications. Governments incentivize digital-ESG programs through tax credits and procurement scoring. Manufacturers optimize batch scheduling, edge computing placement, and model inferencing to reduce energy intensity without affecting SLAs. In October 2025, Greenly announced the launch of EcoPilot, its new platform aimed at simplifying and accelerating carbon accounting for companies, based on AI and language models technology, expanding the digital transformation market scope. Architects use low-carbon windows for computing tasks and rely on edge caching to avoid high-emission peaks. These practices tie operational efficiency directly to ESG accountability.
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The EMR’s report titled “Global Digital Transformation Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Technology
Key Insight: Cloud computing supports universal scalability, while AI enables predictive and autonomous operations. Big data and analytics drive insight generation, allowing firms to act on high-volume structured and unstructured datasets. Mobility and social tools enhance employee reach and customer engagement, accelerating the digital transformation market penetration. Cybersecurity continues to be essential as enterprises guard hybrid infrastructures against increasingly complex threats. IoT builds connected ecosystems in factories, retail, logistics, and utilities by linking physical assets with digital controls.
Market Breakup by Deployment Type
Key Insight: On-premises deployments support legacy integration and strict compliance needs. Cloud deployment offers flexibility, rapid scaling, and lower maintenance overhead. Hybrid models combine the two, allowing organizations to modernize without replacing mission-critical systems. Companies adopt governance layers that unify monitoring across platforms and ensure controlled data flow. As per the digital transformation market report, deployment decisions usually depend on risk tolerance, regulatory pressure, and budget cycles.
Market Breakup by Organization Size
Key Insight: Large enterprises modernize through integrated programs covering cloud, analytics, cybersecurity, and automation. SMEs adopt transformation for agility, cost savings, and competitive positioning. Both categories rely on vendors that provide scalable technology stacks, training, and implementation support. Digital maturity depends on internal processes, leadership commitment, and system complexity, widening the scope for digital transformation market expansion. Companies of all sizes benefit from modular tools and subscription models that eliminate heavy upfront investment.
Market Breakup by Industry
Key Insight: BFSI prioritizes secure transactions and automated decision making, on the other hand, IT and telecom focus on network optimization, customer analytics, and scalable platforms. Manufacturing boasts digital transformation demand owing to predictive maintenance and digital supply chains. Education modernizes through online learning systems and administrative automation. Retail modernizes inventory forecasting and customer personalization. Media and entertainment adopt cloud workflows and audience analytics.
Market Breakup by Region
Key Insight: The digital transformation market in North America leads with advanced digital infrastructure. On the other hand, Europe emphasizes regulatory alignment and secure-by-design transformation projects. Asia Pacific expands through industrial automation, government-backed modernization, and mobile-first adoption. Latin America prioritizes operational efficiency and cloud migration. Middle East and Africa invest in smart cities, digital identity, and service automation.
By technology, cloud computing dominates the market due to enterprise need for scalable, flexible architectures
Cloud computing remains the dominant technology across the digital transformation market dynamics. This is because enterprises want adaptable environments that scale with operational complexity. Providers now offer integrated stacks combining automation, analytics, and compliance tools. This appeals to industries running multi-site operations that depend on reliable uptime and predictable cost modeling. Companies prefer cloud-native applications because they remove hardware constraints and allow teams to deploy features faster than before.
Artificial intelligence is emerging to be the fastest-growing technology as companies embed machine learning into operations, customer engagement, and cybersecurity. AI-driven automation is helping manufacturers reduce downtime, while service industries rely on predictive routing and intelligent case management. For example, in order to assist small and mid-sized manufacturers (SMEs) in modernizing customer management, automating sales processes, and enhancing sales-to-production coordination throughout Southeast Asia, Kuailu Tech announced a major upgrade to its Kuailu Cloud AI-CRM platform in December 2025.
On-premises deployment accounts for the dominant share of the market
On-premises solutions remain dominant in sectors that require full control over data, latency, and compliance. Highly regulated industries depend on self-managed infrastructure to satisfy audit, residency, and confidentiality requirements. Organizations with large legacy estates often maintain on-premise deployments because refactoring cost and operational downtime continue to be major barriers.
Cloud deployment is rapidly expanding its share in the digital transformation market revenue because companies want scalable environments without committing to heavy infrastructure spending. Enterprises are migrating workloads in phases using automated assessment tools and cloud-native application templates. Organizations rely on cloud for data lakes, AI model training, and global collaboration platforms that are difficult to implement on-premise. In August 2025, NTT DATA announced its NTT Data business unit for Microsoft Cloud to meet the rising demand for secure, AI-driven enterprise cloud transformation. The subscription model simplifies cost forecasting and aligns spending with project cycles.
By organization size, large enterprises significantly accelerate the digital transformation demand growth driven by complex workflows demanding integrated transformation stacks
Large enterprises propel digital transformation demand because they manage extensive supply chains, multi-region operations, and complex workflows requiring integrated platforms. Their modernization roadmaps typically include ERP upgrades, AI deployments, and cybersecurity restructuring. Vendors prioritize enterprise accounts with sector-specific templates, system integrator ecosystems, and managed services that reduce implementation risk. These organizations adopt large-scale data platforms for forecasting, asset planning, and customer analytics.
SMEs tend to be the fastest-growing adopters as cloud-native tools lower the barrier to sophisticated digital capabilities. Many of them shift from spreadsheets and manual workflows to integrated business apps, CRM, and automated accounting. Vendors design SME-friendly pricing tiers, onboarding kits, and low-code tools that simplify customization. SMEs use digital transformation to improve customer responsiveness, automate repetitive tasks, and build data visibility across small teams, driving considerable growth in the digital transformation market.
By industry, BFSI secures the largest share of the market revenue owing to regulatory pressure and real-time risk intelligence adoption
BFSI continues to lead digital transformation adoption due to stringent compliance needs and demand for real-time risk evaluation. Banks deploy AI-driven fraud detection, automated underwriting, and digital onboarding systems. Insurers use analytics to improve claims processing and customer engagement. In India, Karnataka Bank Limited partnered with IBM to revamp its digital banking setup using IBM Cloud Pak for Integration on Red Hat OpenShift in December 2025. Vendors offer sector-specific security controls, identity management tools, and workflow orchestration engines. Cloud-native data platforms support fast transaction processing and integrated reporting.
The manufacturing industry is considerably boosting the digital transformation market value as plants digitize machines, supply chains, and quality systems. IoT sensors monitor equipment health, while AI models optimize production scheduling and predictive maintenance. Digital twins help simulate output and reduce operational variability. Robotics and automated inspection systems improve output and consistency.
North America secures the leading position in the market with advanced digital infrastructure and high enterprise modernization
North America dominates the global digital transformation industry by a high margin, due to early cloud adoption, extensive digital infrastructure, and high enterprise readiness. Companies operate large data-center footprints that support advanced analytics, cybersecurity, and automation workloads. Regulatory frameworks encourage digital innovation while setting strong security baselines.
The digital transformation market in Asia Pacific grows at a rapid pace due to surging industrialization, strong mobile adoption, and digital initiatives across the nations. Governments promote smart manufacturing, e-governance, and cloud migration through incentive programs. Enterprises adopt AI-enabled automation to handle scale, workforce shortages, and cost pressures. Telecom operators deploy private 5G networks that support industrial IoT.
| CAGR 2026-2035 - Market by | Country |
| USA | 19.4% |
| China | 19.3% |
| UK | 19.1% |
| France | 18.4% |
| Brazil | 18.1% |
| Canada | XX% |
| Germany | XX% |
| Italy | XX% |
| Japan | XX% |
| India | XX% |
| Australia | 17.2% |
| Saudi Arabia | XX% |
| Mexico | XX% |
Digital transformation market players are focusing on platform convergence, industry-specific AI, and secure edge deployments that deliver measurable ROI. Vendors are bundling observability, governance, and low-code automation to reduce integration friction for large enterprises. Strategic partnerships between cloud providers and system integrators are shortening deployment cycles and enabling standardized industry templates.
Infrastructure vendors are offering carbon-aware workload tools while automation suppliers package certified industrial templates for quick rollout. Opportunities can be found in managed transformation services, retrofit tools for brownfield sites, and AIops for continuous optimization. Digital transformation companies that combine domain IP, edge orchestration, and demonstrable cost savings are securing long-term contracts.
Microsoft Corporation, established in 1975 and headquartered in the United States, offers industry cloud platforms that combine Azure, Power Platform low-code, and sector AI. The company is targeting regulated industries with compliance accelerators, confidential computing, and carbon-aware scheduling to reduce cloud emissions.
Dell Inc., established in 1984 and headquartered in Texas, United States, supplies integrated edge-to-cloud infrastructure, validated systems for AI training, and private cloud appliances. Dell focuses on shrink-wrapped solutions that reduce deployment risk for transformation programs by combining storage, servers, and edge gateways. The company is adding containerized stacks and AI inference accelerators into industrial kits.
Adobe Inc., established in 1982 and headquartered in California, United States, is expanding digital experience platforms that integrate content supply chains, real-time personalization, and experience analytics. Adobe is targeting B2B marketers and commerce teams by combining Creative Cloud assets with customer data platforms to accelerate campaign velocity.
Accenture PLC, established in the year 1989 and headquartered in Dublin, Ireland, delivers end-to-end transformation services that combine strategy, systems integration, and operations. The firm’s focus on modular, cross-industry solution patterns also supports faster modernization for clients navigating complex, multi-vendor technology estates.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market include Genpact, among others.
Unlock the latest insights with our digital transformation market trends 2026 report. Discover regional growth patterns, consumer preferences, and key industry players. Stay ahead of competition with trusted data and expert analysis. Download your free sample report today and drive informed decisions in the market.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 2276.33 Billion.
The market is projected to grow at a CAGR of 18.00% between 2026 and 2035.
Enterprises are building composable stacks, adopting edge AI platforms, standardizing data contracts, embedding security-by-design, and partnering with SIs to industrialize transformation at scale across geographies rapidly.
Technological advancements, the rapid adoption of cloud computing, the increasing demand for automation in various end-use sectors, and the rise of the Internet of Behaviour (IoB) are the key trends guiding the market demand.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major technologies considered in the market report are cloud computing, artificial intelligence, big data and analytics, mobility/social media, cybersecurity, and internet of things.
The significant deployment types in the market are on-premises and cloud.
The different organisation sizes considered in the market report are small and medium sized enterprises and large enterprises.
The significant industries included in the market report are banking, financial services and insurance, IT and telecom, manufacturing, education, retail, media and entertainment, and government.
The key players in the market include Microsoft Corporation, Dell Inc., Adobe Inc., Accenture PLC, and Genpact, among others.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach USD 11913.94 Billion by 2035.
Legacy system fragmentation, skills shortages, data privacy compliance, budget constraints, and integrating AI responsibly are constraining rollout speed and increasing implementation risk and complicating vendor selection.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Technology |
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| Breakup by Deployment Type |
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| Breakup by Organisation Size |
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| Breakup by Industry |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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