Digital transformation (DX) is the process of using multiple technologies to update, renew or improve business processes in the organizations to meet changing market dynamics and customer demand. Digital transformation plays a critical role in staying competitive in a constantly changing business environment and technology landscape.
The global market size for digital transformation in manufacturing was valued at USD 220.90 billion in 2018 and is anticipated to rise up to USD 642.35 billion by 2025 with a CAGR of 14.3% during the forecast period. The strong competitive pressure in the manufacturing industry in addition to the highest emphasis on reducing cost on operations are proving to be a major driver for the digital transformation in manufacturing. Other key factors driving the market include the evolution of Industry 4.0 and the wide adoption of the Internet of Things (IoT).
Digital Transformation in Manufacturing Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2025||USD 642.35 billion|
|Growth Rate||CAGR of 14.3% during 2021-2028|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East & Africa|
|Key Players Profiled||Amazon Web Services, Microsoft Azure, IBM, Google, SAP, VMware, Inc., Citrix Systems, Inc., Oracle Corporation and others.|
Key Segments of the global digital transformation in the manufacturing market,
Regional Overview, 2015-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Southeast Asia
- Rest of APAC
- Middle East and Africa
- South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global digital transformation market in manufacturing.
- Be prepared for how digital transformation trends will affect manufacturing and the global digital transformation market will be impacted by socio-political and economic factors over the next few years.
- Ensure you remain competitive as new innovations and use cases are developed by digital transformation vendors
What does the report include?
- The study on the global digital transformation market includes qualitative factors such as drivers, restraints, and opportunities
- Additionally, the market has been evaluated using the Porters 5 Forces and Value Chain Analysis.
- The study covers the qualitative and quantitative analysis of the market segmented on the region & country. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
- The study includes the profiles of key players in the market with a significant Global and/or regional presence.
Who should buy this report?
This study is suitable for industry participants and stakeholders in the global digital transformation market. The report will benefit:
- Executives of digital transformation companies that provide digital transformation services
- Organizations in manufacturing focusing on understanding digital transformation
- Managers within financial institutions looking to publish recent and forecasted statistics pertaining to the global digital transformation market.
- Government organizations, regulatory authorities, policymakers and financial organizations looking for innovative global digital transformation solutions.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
Digital transformation in manufacturing will be the major market in the next five year. The immense competitive pressure, the importance of cost optimization and the critical need for improvement of the overall supply chain are the common factors driving the adoption of digital transformation in the manufacturing industry. The newly launched government initiatives which are especially directed towards digital manufacturing, especially in Europe and Asia-Pacific are increasing the digital transformation investments. The emergence and widespread adoption of the Industrial Internet of Things (IIoT) have significantly changed the manufacturing industry. Similarly, cloud, Big Data, Blockchain, Advanced Robotics, and many other technologies will be significantly impacting the ongoing digital transformation of the manufacturing industry.
Following are the common IT priorities of organizations in the manufacturing industry,
- Automating and digitize the business processes
- Updating or replacing the legacy systems and IT infrastructure modernization
- Leverage IoT and Cloud
- Embrace new IT delivery models such as SaaS, PaaS and agile
- Leverage Big Data and Artificial Intelligence for actionable insights
Apart from the above key IT priorities, the manufacturing companies are also keen on leveraging and investing in technologies such as AR, VR, and Blockchain to address business challenges.
On the geographical front, North America dominated the global digital transformation with almost 34.4% market share. The Asia-Pacific is the second-largest market not very far from North America and will be growing at the fastest growth rate of 15.0% during the forecast period. The manufacturing industry, especially in the United States is the early adopter of digital transformation. However, Asia-Pacific is expected to dominate the digital transformation market driven by heavy demand from manufacturing hubs such as China, Taiwan, and Japan. Also, developing manufacturing industry in economies such as India and Indonesia will be driving the adoption of digital transformation. The key digital transformation vendors for manufacturing sectors are Amazon Web Services, Microsoft Azure, IBM, Google, SAP, VMware, Inc., Citrix Systems, Inc., Oracle Corporation and others.