In 2022, spending on digital transformation (DX) is projected to reach US$1.8 trillion. By 2025, global digital transformation spending is expected to reach US$2.8 trillion. By deployment mode, the digital transformation market has been segmented into on-premises and cloud. The CAGR of the on-premises deployment model is estimated to be the largest during the forecast period. On-premises solutions are deployed with a one-time license fee and an annual service agreement, which includes free upgrades after a specified time. On-premises software solutions are depreciable assets and are affordable for companies that have the budget to make the initial investment.
COVID–19 has globally changed the dynamics of business operations. Though the COVID–19 outbreak has thrown light on weaknesses in business models across verticals, it has offered several opportunities to digitize and expand their business across regions as the adoption and integration of technologies such as cloud, AI, analytics, IoT, and blockchain has increased in the lockdown period. The retail and manufacturing sectors faced a significant dip in business performance during the first and second quarters of 2020. However, with the availability of vaccines and considerable control achieved over the pandemic, these sectors are expected to witness rising investments throughout the forecast period as digital transformation solutions grow in prominence across different business functions.
With the advent of industry 4.0 in the manufacturing industry, various plants are adopting digital technologies to enhance, automate, and modernize the whole process. The integration of different digital transformation technologies, such as the internet of things (IoT), is significantly becoming prevalent, as it provides exceptional benefits. Also, Digital transformation helps organizations in improving their brand's reputation, customer experience, and customer retention ratios through the implementation of the software. Digitally transformed organizations can adapt to the evolving technological landscape and can tackle sudden shifts in the industry.
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