The global digital transformation market was valued at USD 998. 99 billion in 2020 and is expected to reach a value of USD 2744. 68 billion by 2026, at a CAGR of 17. 42% during the forecast period of 2021-2026.
New York, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Digital Transformation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06184948/?utm_source=GNW
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), are 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.
The merging of Big Data with new technology has made processing large data sets easier than ever, and from mining Big Data to predictive analytics, manufacturing organizations are increasingly relying on these new, intelligent tools to help them succeed. The German Machinery and Plant Manufacturing Association indicates that, in 2020, big data-based business models are expected to contribute at least 7% more revenue to German manufacturing companies that they currently provide.
Among all the enabling technologies, Artificial Intelligence is poised to play a significant role over the forecast period. AI is also used to increase safety by providing preventive maintenance, yet there have been growing incidences of accidents. In such regard, intelligent cameras based on AI are being used to access the risk area and lessen the extent of potential damage.
In addition, the Oil and Gas Authority (OGA) is making use of AI in parallel ways, owing to the United Kingdom’s first oil and gas National Data Repository (NDR). It uses AI to interpret data, which, according to the OGA anticipations, is likely to assist in discovering new oil and gas forecasts and permit more production from existing infrastructures.
The COVID-19 outbreak and the lockdown restriction imposed across the globe have affected capital investments and industrial activities across the world. Most enterprises operating in the end-user industries (majorly manufacturing, automotive) had shuttered down their production sites due to lockdown restrictions.
Key Market Trends
Industrial Robotics Adoption is Expected to Grow Significantly
Industry 4.0, the newest industrial revolution, has fueled new technologies, like collaborative robots, SCARA robots, single-axis, AI-enabled robots, and the newly developed exoskeletons, which have enabled industries to use robots to streamline many processes, increase efficiency, and eliminate errors. Increased workplace safety and improved production capabilities have further driven industries to invest in robotic systems.
Expeditiously changing market demands and the dynamic development of information technologies are significantly contributing to digital transformation. Currently, industrial robots play a crucial role in industrial automation, as robots manage many core operations in industries. With increased demand across economies, product manufacturers are adopting robots to automate repetitive processes. The automotive sector’s growth largely drives the tremendous growth in the deployment of industrial robotics.
The key market players in the market have rolled out collaborative robots that enhance worker safety, like ABB’s YuMi and KUKA’s LBR iiwa. The plug-and-play collaborative robots have attracted huge traction in recent times, owing to their ease-of-use. Industrial robots are predominantly used for mass manufacturing and production-based assembly applications, followed by spot welding, among other stages of manufacturing in the automotive, electronics, and other industries.
The pharmaceutical industry has experienced some significant impacts over the past year. Since the COVID-19 global pandemic outbreak, the industry has had to rapidly alter its processes to respond to emerging and changing health situations. Thus, automation has been one of the major ways that companies in this industry have been able to keep up with the required production and maintain social distancing guidelines. As a result of these changes, the life sciences, and pharmaceutical industry has seen the highest growth in robotics in the past year. There has been a 69% year-on-year growth in new robot orders.
In 2020, a rising theme in global manufacturing was the concept of the factory of the future or a fully connected factory. The growth of AI-integrated robotics and other data-driven processes will push robotics adoption, providing a broader use case for purchase. But initially, the COVID-19 pandemic hindered the progress and production of robots, which negatively affected the market in early 2020. The pandemic also halted automotive production and disrupted the supply chain. However, the market regained some traction when robotics was being used in plants to fill the gap between socially distanced workers.
Asia Pacific is Expected to Hold a Significant Market Share
The use of advanced technologies, such as cloud computing, AI, big data and analytics, mobility/social media, cybersecurity, IoT, among others, led to innovation and transformation, thereby stimulating growth in the business ecosystem of Asia Pacific. Digital technologies have transformed the legacy approach to business into a modern approach. Besides, the region is becoming a new hotspot in the digital transformation market due to rising investments in the process of digitalization across potential economies.
The digital transformation market is witnessing strong growth in the country owing to government initiatives, vendor investments, among others. In September 2021, the Japanese government launched the Digital Agency to drive Japan’s digital transformation as part of the administrative reform agenda. The government’s move pushed the digitalization of the public sector.
The rising efforts by the governments for tying up with the major technology companies across the world for a digitalization push in the region. For instance, in February 2021, Cisco collaborated with the government of Japan on a digitization project which included various industry verticals, including government, education, healthcare, and business.
The Ministry of Science and ICT of South Korea, in July 2021, announced the launch of the Korean New Deal Comprehensive Plan to transition into a prominent economy by putting digital capabilities at the forefront of all industrial fields, helping advance digital innovation centered around artificial intelligence (AI) and data. The Digital New Deal is a strategic and preparatory investment toward the global digital economy by developing Korea’s digital capabilities. Such deals, collaborations, and partnerships are expected to drive the growth of the market studied further.
The Digital Transformation Market is moderately fragmented. The players have adopted various growth strategies such as partnerships, agreements, and collaborations, and new product launches and product enhancements to further expand their presence in the market and broaden their customer base.
October 2021 - Siemens Smart Infrastructure acquired Wattsense, French hardware and software firm that provides a plug-and-play IoT management system for small and mid-size buildings, bringing Siemens’ building product line to a new level. Wattsense was founded in 2017 and is based in Dardilly, France, near Lyon.
August 2021 - Kubota Corporation formed a strategic partnership with Accenture to accelerate its ongoing digital transformation by evolving its business model to further contribute to food, water, and environmental sustainability solutions. The partnership will enable the creation of a platform for Kubota both locally and globally by incorporating services that combine Accenture’s digital technologies, including artificial intelligence and the internet of things.
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