Asia-Pacific Digital Transformation Market: Current Analysis and Forecast (2021-2027)

Report Description

Asia-Pacific Digital Transformation Market was valued at US$ 558.4 billion in 2020 and is anticipated to reach US$ 1,334.3 billion by 2027 displaying a CAGR of 13.53% over the forecast period (2021-2027). Digital transformation is incorporation of digital technologies into all areas of a business, fundamentally changing how organizations operate and deliver value to customers. It affects all sectors of society. Companies are now being provided with an opportunity to radically change their business models by new digital technologies such as social media, smartphones, big data, the Internet of things, and others including AI and blockchain. Digital transformation is imperative in all businesses, whether small or big. The integration of digital technologies is reshaping every industry, several companies are doing large-scale change efforts in order to capture the benefits of the ongoing digital transformation trend or simply to keep up with their competitors. For instance, as per the 2020 TechTarget/Computer Weekly IT Priorities survey, 43% of all 600 respondents in Asia-Pacific mentioned digital transformation as their top priority, followed by cloud infrastructure deployment (38%) and artificial intelligence (37%).

Another factor driving the growth of the digital transformation market in the Asia-Pacific region is rapid proliferation of smartphone and mobile applications. For instance, In 2019, across the Asia-Pacific region, China has the highest number of smartphone users with 687.7 million users followed by India with 640.5 million smartphone users. Furthermore, the increasing usage of disruptive technologies such as IoT, AI, or machine learning coupled with rising IoT penetration and adoption of cloud services across the region is further augmenting the growth of the market. For instance, according to an IT brief survey, in Asia-Pacific region, 45% of companies are using public & private cloud services.

Current & Projected Smart Phone User, Asia-Pacific (2019-2027), (in million)

IBM Corporation, Cognizant, SAP SE, Dell Corporation, Microsoft Corporation, Adobe Systems Incorporated, Accenture PLC, Capgemini, Oracle Corporation, and Google Inc are some of the prominent players operating in the Asia-Pacific digital transformation market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.

Insights Presented in the Report

“Amongst component, Solution segment holds the major share.”

Based on the component, the Asia-pacific digital transformation market is bifurcated into Solutions and Services. The solution sub-segment is further divided into cloud computing, big data and analytics, mobility, disruptive technology, and social media. Moreover, the Service segment is divided into professional services and system integration. The solution segment dominated the market and generated revenue of US$ 435.4 billion in 2020. However, the Service segment is expected to witness the highest CAGR growth of 16.59% during the forecast period (2021-2027) owing to the continuously increasing investments in hardware & services across the region.

“Amongst deployment type, cloud dominated the market in 2020.”

Based on Deployment type the market is segmented into On-premises and cloud deployment. the cloud deployment model dominated the market and generated revenue of US$ 366.1 billion in 2020 and is expected to reach US$ 939.7 billion by 2027 due to the growing adoption of cloud services. For instance, 40% of enterprises do run some of their IT infrastructures on cloud, with 70% plan to so in the upcoming years in Singapore.

“Amongst End-user, large enterprises are expected to dominate the market during the analyzed period.”

Based on end-users the Asia-Pacific digital transformation market is bifurcated into large enterprises and SME’s. Owing to the high cost of digital technology deployment large enterprises invested most in digital technologies and are rapidly deploying disruptive technologies in their operations. Thus, the large enterprise segment is expected to grow with a CAGR of 12.65% to reach a market valuation of US$ 836.4 billion by 2027.

“Amongst industry verticals, Banking Financial Services & Insurance dominated the market in 2020.”

Based on industry vertical, the market is fragmented into BFSI, healthcare, telecom & IT, automotive, education, retail & consumer goods, media & entertainment, manufacturing, government, and others. BFSI segment generated the highest revenue of US$133.4 billion in 2020 and is expected to maintain its dominance during the projected timeframe. For instance, according to Asia-Pacific Fintech and Digital Banking 2025 Report published by an industry technology leader, 60% of the APAC banks will leverage AI/ML technologies for data-driven decisions.

“China represents as the largest markets in the Asia-Pacific Digital Transformation market.”

For better understanding of the market penetration of digital transformation, the report provides a detailed analysis of major countries including China, India, Japan, South Korea, Australia, Singapore and the rest of the APAC. China dominated the Asia-Pacific digital transformation market by generating a revenue of US$ 138.9 billion in 2020 and is further expected to grow at a CAGR of 11.44% during the forecast period owing to the large size of internet platforms in China that has ensured its leadership in the transactional technologies market globally.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive country-level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Asia-Pacific Digital Transformation adoption were the three major steps undertaken to create and analyze the adoption of Digital Transformation across various industry verticals in major Asia-Pacific countries. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the digital transformation sector. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Digital Transformation through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Digital Transformation market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as component, deployment type, end-user, and industry verticals. Further country-level analyses were conducted to evaluate the overall adoption of the Digital Transformation in the Asia-Pacific region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Digital Transformation. Further, we conducted factor analysis using dependent and independent variables such as growth of penetration of digital technologies across different industry, digitalizing business functions and growing prolification of smartphone and mobile apps. A thorough analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, and product launches in the Digital Transformation industry.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Asia-Pacific Digital Transformation market, and market shares of the segments. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major countries in the Asia-Pacific region. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Digital Transformation across the major markets
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Digital Transformation market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Asia-Pacific Digital Transformation market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of component, deployment type, end-user, and industry verticals.

The main objective of the Digital Transformation Market Study

The current & future market trends of Digital Transformation were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Digital Transformation in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of component, deployment type, end-user, and industry verticals
• Defined analysis of the regulatory framework for the Asia-Pacific Digital Transformation industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Digital Transformation for the major countries
• Major countries studied in the report include China, Japan, Australia, India, South Korea, Singapore and Rest of Asia-Pacific
• Company profiles of the Digital Transformation market players and the growth strategies adopted by them to sustain in the fast-growing market
• Deep dive country level analysis of the industry