Global Digital Transformation Market Set to Approach $2 Trillion by 2031

The worldwide market for digital transformation is on track to reach nearly USD 1.86 trillion by 2031, according to new research by MarketsandMarkets. This represents a steep rise from the projected USD 1.11 trillion for 2025, reflecting a compound annual growth rate of 9.1%. Industry analysts highlight that the market’s rapid acceleration is fueled by advances in generative AI, omnichannel commerce, and cutting-edge technologies designed to meet evolving customer demands. A growing emphasis on digital public infrastructure (DPI) is enabling organisations to scale services more effectively while optimising operational efficiency and reducing costs.

By bridging online and offline interactions, companies are creating highly personalised journeys that not only streamline operations but also strengthen loyalty and conversion rates. This makes digitalisation an essential enabler of today’s experience-driven economy.

The AI and analytics segment currently dominates the digital transformation space, as enterprises increasingly rely on these tools for predictive insights, automation, and strategic decision-making. Their adoption is helping firms innovate faster, enhance productivity, and better anticipate customer needs. Meanwhile, customer-centric initiatives are emerging as the fastest-growing area of transformation.

With the use of advanced analytics, artificial intelligence, and integrated platforms, businesses are tailoring experiences that deepen engagement and accelerate digital adoption across industries.

North America continues to lead the global market, benefiting from robust IT infrastructure, early technological adoption, and heavy investment in cloud computing and AI solutions. The region’s innovation ecosystem and favorable regulatory environment further strengthen its position as a driver of digital advancement.

Key players identified in the research include Microsoft, IBM, SAP, Oracle, Google, Salesforce, Hewlett Packard Enterprise, Adobe, Amazon Web Services, HCLTech, Cognizant, Accenture, and Broadcom. Together, these companies are shaping the competitive landscape and setting the pace for global digital transformation.