Digital Transforming Consulting Market: Global Size, Share, Trends, Growth and Forecast 2022-2032
Digital Transforming Consulting Market: Overview and Definition
The global digital transforming consulting market is estimated to grow from USD 690.1 Billion in 2021 to USD 4890.5 Billion by 2032, at a CAGR of 7.5% between 2022-2032. Digital transformation consulting is a service that enables large and small & medium sized businesses to formulate the strategies for their digital transformation journey & improve the performance of business with the help of digital technologies. The consulting services are offered by companies that help the client organization transform into the digital realm, reduce the paperwork (invoices, bills, etc.) and enable the organization to mainly focus on their core businesses.
The digital transforming consulting market is a rapidly growing industry that helps businesses adapt to and leverage new technologies to improve their operations and drive growth. This market includes a range of consulting services such as digital strategy, technology implementation, data analytics, and cybersecurity. The market is being driven by factors such as increasing digitization across industries, a growing need for businesses to remain competitive in the digital age, and the emergence of new technologies such as AI and blockchain. Some of the top players in the digital transforming consulting market include Accenture, Deloitte, McKinsey & Company, and Boston Consulting Group.
Digital Transforming Consulting Market: Key Drivers
The digital transforming consulting market is being driven by several factors, including:
Increasing digitization: With the growing use of digital technologies across industries, businesses need to adapt to remain competitive. This has created a demand for consulting services to help businesses implement digital strategies and technologies.
Rapid technological advancements: New technologies such as artificial intelligence, blockchain, and the Internet of Things are constantly emerging. Businesses require consulting services to help them understand and adopt these technologies to improve their operations.
Need for innovation: In today's rapidly changing business landscape, innovation is essential for companies to stay ahead. Consulting services can help businesses identify new opportunities and develop innovative solutions.
Changing customer expectations: With the rise of digital channels, customers have come to expect a seamless digital experience from businesses. Consulting services can help businesses develop and implement customer-centric digital strategies.
Cost optimization: Digital technologies can help businesses optimize their operations and reduce costs. Consulting services can help businesses identify areas where technology can be used to improve efficiency and reduce costs.
The global digital transformation consulting market is driven by several factors such as surge in penetration of IoT and the growing adoption of cloud services; rising need to increase operational performance in the organizations to gain competitive benefits; and continuing trend of simplification of processes operating models in the companies. However, security and privacy concerns associated with the confidential data hampers the marker growth during the forecast period. On the contrary, proliferation of disruptive technologies, such as Big Data, AI, and ML is opportunistic for the market growth.
The global market is observing extensive consolidations, geographical expansions, new product launches, and acquisitions by the key market players. The market players embrace these strategies to enhance their product portfolio, expand the reach, and generate new revenue streams. For instance, in January 2021, Cognizant Technology Solutions Corp. acquired Servian, a privately-held enterprise transformation consultancy specializing in data analytics, digital services, experience design, artificial intelligence (AI), and cloud.
Digital Transforming Consulting Market: Challenges
The digital transforming consulting market also faces several challenges, including:
Resistance to change: Implementing digital transformation initiatives requires a significant change in business processes, which can be met with resistance from employees and stakeholders.
Cybersecurity risks: The increasing use of digital technologies also increases the risk of cybersecurity threats. Consulting services must include effective cybersecurity measures to protect businesses and their customers.
Skill gaps: Implementing digital strategies requires specialized skills and expertise, which may not be present in-house. Consulting services must fill these gaps and provide the necessary expertise.
Data privacy and regulation: Businesses must comply with various data privacy and regulatory requirements, which can be complex and time-consuming. Consulting services must ensure that businesses comply with these requirements while also leveraging data to improve their operations.
Integration issues: Digital transformation often requires integrating new technologies with existing systems, which can be challenging and time-consuming. Consulting services must provide effective integration strategies to ensure that new technologies are seamlessly integrated with existing systems.
Digital Transforming Consulting Market : Report Scope
Base Year Market Size
Forecast Year Market Size
Digital Transforming Consulting Market: Segmentation
Type of Service Insights:
On the basis of type of service, the market is categorized into professional services and managed or outsourced services. As per the estimation, professional services segment observed the biggest portion, regarding income in 2019 and may rule the innovation field, as far as size, by 2025. This is attributed to the professional services providers' ongoing development strategies such as Ernst & Young, Deloitte LLP, KPMG International, and PricewaterhouseCoopers LLP. For instance, in July 2020, Ernst & Young (EY) partnered with IBM to help organizations accelerate digital transformation and improve client outcomes. Together, EY and IBM professionals will focus on assisting clients to transform as well as modernize their businesses.
On the contrary, managed or outsourced services segment is projected to observe impressive development and rule the market (regarding development rates) over the conjecture time frame.
Consolidations and acquisitions, to generate new revenue streams and to expand the geographical presence have advanced as a significant piece of the current digital transformation consulting industry. For example, in November 2020, GlobalLogic Inc, one of the leaders in Digital Product Engineering, acquired ECS Group, a leading digital transformation and DevOps consultancy.
Industry Vertical Insights
On the basis of industry vertical, the market is divided into manufacturing, oil & gas, IT & telecom, BFSI, automotive, healthcare & pharmaceutical, logistics & transportation, etc. The manufacturing industry vertical is estimated to hold largest share of the global digital transformation consulting market in 2019. This is attributed to the surge in spending on digital transformation of connectivity services, applications, and enterprise hardware in the manufacturing sector worldwide.
The oil & gas portions may witness highest growth rate during the forecast period. This may be due to the emerging trend of digital transformation in the oil & gas industry to make faster & better decisions and increase employee efficiency & productivity and cost savings.
Digital Transforming Consulting Market: Regional Synopsis
North America region is estimated to possess the largest market share global digital transformation consulting. This is attributed to the significant presence of key market players and the increasing investments in digitalization across potential economies. On the other hand, the rapid adoption of IoT solutions, mobile devices, and cloud technology has pushed the upsurge in demand for digital transformation solutions in this region, further fueling the digital transformation consulting market's growth.
On the other hand, Asia-Pacific region is expected to observe highest growth rate in the forecast period. This region offers lucrative growth opportunities due to the growing industrialization and upsurge in adoption of advanced technologies.
In addition, the Asia-pacific region is observing rising adoption of smart devices such as, smartphones and tablets, along with the growing penetration of internet services. This factor is further creating lucrative growth opportunities for the market.
Digital Transforming Consulting Market: Key Players
- SAS Institute Inc
- Computer Sciences Corporation
- Capgemini Services
- Bain & Company, Inc
- Deloitte LLP
- Dell EMC
- Globant S.A
- IBM Corporation
- KPMG International
- Ernst & Young
- Hewlett Packard Enterprise
- Accenture plc
Digital Transforming Consulting Market: Recent Developments
The digital transforming consulting market has seen several recent developments, including:
COVID-19 Impact: The COVID-19 pandemic has accelerated the pace of digital transformation across industries, as businesses rapidly adopted digital technologies to adapt to remote work and changing customer needs.
Cloud Computing: Cloud computing has become a critical technology for businesses, as it enables remote work, data storage and processing, and collaboration. Consulting services are increasingly focused on helping businesses adopt cloud computing solutions.
Artificial Intelligence: Artificial intelligence (AI) has continued to gain momentum in the digital transforming consulting market. Consulting services are helping businesses leverage AI to automate processes, gain insights from data, and enhance customer experiences.
Data Analytics: Data analytics has become an essential component of digital transformation, as businesses seek to leverage data to improve their operations and decision-making. Consulting services are providing businesses with advanced data analytics solutions and insights.
Sustainability: There is a growing focus on sustainability in the digital transforming consulting market, with consulting services helping businesses adopt sustainable practices and technologies to reduce their environmental impact.