According to market estimations, the global digital transformation market is predicted to increase at a Compound Annual Growth Rate (CAGR) of 16.5 percent over the forecast period, from USD 469.8 billion in 2020 to USD 1009.8 billion in 2025. The increasing penetration of mobile devices and apps, as well as the increasing acceptance of cloud services, are major growth factors for the industry.
During the COVID pandemic and continuous lockdowns, the world is run by cloud and internet technologies where businesses across industries are operating remotely, and people are entirely reliant on online services and e-commerce applications and sites for their needs.
To follow this transformation, the requirement for robust cloud infrastructure and software systems is booming worldwide and businesses are digitalizing the business functions to serve changing customer preferences and enhance operational efficiency. Other factors as well are accelerating digital transformation including:
- The increasing adoption of digital technologies such as Artificial Intelligence (AI), Machine Learning (ML), Cloud Computing, Big Data, Robotic Process Automation (RPA), and Internet of Things (IoT)
- The increasing penetration of smartphones, mobile devices and apps, growing demand for industrial digitization
- The rising adoption of wireless communication which is expected to boost the global DX market
- The adoption of digital currencies and blockchain in some businesses that are helping on many levels such as:
- Providing secure financial operations
- Improvising information security
- Providing secure digital data record
- Enhancing document management
- Protecting intellectual property and digital rights
- Improving stocks and cryptocurrencies trades
- Protecting an IoT ecosystem
- Securing global trade
Businesses must shift their focus to implement sophisticated software applications to adapt to the change and meet customers’ needs. But fast adoption of digital technologies assists in the implementation of new and disruptive processes and business models that involve high risks and cyber risks. Gartner predicted that 60% of digital businesses would suffer major service failures by 2021 due to the inability of security teams to manage digital risk.
Looking up to the future, it is very important to embrace digital transformation strategies and take into consideration software solutions to stay innovative while balancing risks and cyber security.