Digital transformation is generally defined as the integration of digital technology into all areas of the business to improve operational processes and deliver more value to customers. It involves optimizing processes to make workflows faster, easier, and more efficient so that customers can have a smoother experience, and employees can focus on other business activities.
These 99 stats reveal how businesses are embracing digital transformation to change the way they work and deliver value to customers.
Here is an overview of the key topics on which we provide updated insights & statistics related to digital transformation (DX):
- The growth and adoption
- Different industries and regions
- Key drivers
- In relation to technology
- Benefits and opportunities
- Customer experience
The Growth and Adoption of Digital Transformation (DX)1. The digital transformation market is expected to grow at a CAGR of 22.7% from 2019 to reach $3,294 billion by 2025 2. According to a 2018 survey, 70% of companies said they either had a digital transformation strategy in place or were working on one. 3. In 2020, 35 percent of companies say they already have a transformation program in place. 4. Back in 2018, 21% of firms thought they had completed the digital transformation. 5. In 2020, 10% of the companies say they have had a digital transformation program for two years or more. 6. The global spending on digital transformation technologies and services is projected to increase by 17.1% per year between 2019 and 2023. 7. The IDC estimated that 40% of all technology spending would go toward digital transformation in 2019. 8. In 2020, projections suggest that global spending on DX will reach $1.3 trillion, growing 10.4% year on year. 9. In 2023, companies will be spending $2.3 trillion on digital transformation technologies. 10. The DX share of total worldwide technology investment is forecast to hit 53% in 2023. 11. After COVID-19, the DX spending across different sectors will see compromised yet strong growth ranging from 8% to 13.8%. 12. 89% of the companies surveyed in 2018 had plans to adopt a digital-first business strategy, but only 44% said they had fully adopted this approach. 13. 38% of traditional companies have adopted a digital business strategy compared to 55% of startups. 14. 32% of IT decision-makers say their organizations have already achieved revenue growth as a result of digital transformation. 15. By 2022, two-thirds of all customer experience projects will involve the use of technology. 16. By 2020, 30% of all B2B companies will make use of artificial intelligence (AI) to improve at least one of their sales processes. 17. More than 40% of all data analytics projects will relate to any aspect of customer experience by 2020. 18. By 2020, 20% of large enterprises will evaluate and adopt AR, VR, and MR solutions as part of their digital transformation strategy.
Digital Transformation in Different Industries and Regions
19. According to estimates the US spent the most on digital transformation in 2019, accounting for 34.3% of the global market.
20. The largest DX spending amounts between 2019 and 2023 will come from discrete and process manufacturing, which will account for nearly 30% of the worldwide spending.
21. Out of the 219 DX use cases studied by the IDC, the fastest spending growth will come from virtualized labs (109.5% CAGR), digital visualization (49.9% CAGR), and mining operations assistance (41.6% CAGR).
22. Services (95%), financial services (93%), and healthcare (92%) are the top industries for digital-first business strategies.
23. In 2018, only 34% of banks and insurers were including marketing in their transformation efforts.
24. 81% of insurance executives agree that technology has become an inextricable part of the human experience.
25. There was a 15% increase in the use of digital tools for health support by consumers during the 2020 pandemic.
26. According to Futurum’s 2018 DX Index, HR, manufacturing, and legal are considered slow to adapt to technological change.
27. IT, Customer Care, and Marketing departments are considered better poised than other departments to adapt to technological change.
28. According to 39% of executives, the expected payback period for their DX initiatives is from 3 to 5 years.
29. 37% of consumers are very likely to use telehealth in the future.
30. Driven by the pandemic, retailers ramped up funding to e-commerce in Q2 of 2020.
31. So far in 2020, Europe has captured 25% of retail tech deals, its highest share in the last 5 years.
32. The top three digital disruptors in the real estate industry include construction technology, AI, and Big Data analytics.
33. Back in 2017, 57% of CEOs intended to build up in-house technology and digital capabilities compared to 29% that wanted to outsource it.
34. 47% of CEOs said they were being challenged by the board of directors to make progress in digital business.
35. According to a Gartner survey, 56% of CEOs said their digital improvements had already improved profits.
36. Internet of Things will play a critical role in digital business strategy for 60% of the executives surveyed.
37. 37% of executives think CEO or BOD is holding them back from digital transformation initiatives.
38. 76.6% of companies feel that they are adapting well to technology disruption.
39. 41.4% of companies report having a dedicated Digital Transformation team in place.
40. Only 23.4% of companies report they are struggling to adapt to change.
Digital Transformation Drivers
41. In 2020, 89% of CIOs say they are more involved in leading digital transformation initiatives compared to their business counterparts. 56% of their associates agree; up from 47% in 2019.
42. CIOs (28%) and CEOs (23%) are most often reported as owning or sponsoring digital transformation initiatives.
43. Growth opportunities trigger 51% of all digital transformation efforts.
44. Who is leading digital transformation initiatives in over 1,000 companies surveyed? Senior executives (56%), CEO or BoD (48.7%), and department heads (46%).
45. CIOs lead most of the digital transformation in 37% of firms while CMOs lead the transformation in only 12% of companies.
46. According to a Progress report, 72% considered IT as the more likely decision-makers and budget holders for digital initiatives versus 28% that thought it was marketing.
47. Two-thirds (67%) of CIOs say the creation of new revenue-generating initiatives is among their job responsibilities.
Digital Transformation and Technology
48. In 2018, 64.5% of companies said they felt positive about their ability to adapt to technological disruption in the next 3 years.
49. 80% of companies say they are able to deliver new value for smart, connected products by transforming PLM, integrating IoT, and using cloud services.
50. Out of the over 1,000 North American and Western European companies surveyed, 50.4% reported that they benefited from technological disruption, while 30.7% said they had a negative impact.
51. Great technology partners (51.6%), company culture (49.8%), support from managers (49.5%), and knowledgeable employees (48.2%) are the top contributing factors to the success of a DX program.
52. In 2019, the Internet of Things (IoT) claimed the largest share of the overall digital transformation market.
53. AR/VR technology is forecast to record the fastest growth from 2019 to 2025.
54. 50.4% of companies report that technology disruption has had a positive impact on their business
55. Companies using a highly unified technology stack were 131% more likely to exceed their top 2018 business goal.
56. The top 5 technologies already being used for digital transformation include big data analytics (58%), mobile technology (59%), and API/embedded tech (40%).
57. As of 2019, 31% of enterprises were seen adopting AI as a part of their digital transformation initiatives.
58. Speaking about their relationship with technology, 76.6% of businesses say it’s generally average or above average.
59. 30% of companies still express concern about their CEOs’ practical understanding of new technologies.
Digital Transformation Benefits and Opportunities
60. According to a survey held in 2019, 67% of respondents said creating a better customer experience was a key objective for an organization’s digital business strategy.
61. According to executives the top benefits of digital transformation include improved operational efficiency (40%), faster time to market (36%), and the ability to meet customer expectations (35%).
62. 52% of companies surveyed said becoming a digital business means enabling worker productivity through tools such as mobile, data access, and AI-assisted processes.
63. 49% of companies see digital transformation as the ability to better manage business performance through data availability and visibility.
64. According to Accenture, 76% of executives agree that organizations need to dramatically reengineer the experiences that bring together technology and people in a more human-focused way.
65. According to Adobe’s 2019 Digital Trends report, digital-first companies were 64% more likely than other companies to have exceeded their top 2018 business goal.
66. According to a multi-sector international survey held in 2018, executives say digital transformation’s top benefits include improvement of operational efficiency (40%), faster time to market (36%), and meeting customer expectations (35%).
67. The top benefits driving digital transformation are paper reduction (68%), online training (54%), and using data analytics for risk management and sales prediction (39%).
68. 85% of enterprise decision-makers believe they would fall behind the competition and take a hit on their bottom line if they don’t make serious progress on digitally transforming their businesses in the next 24 months.
69. Digitally mature companies are 26% more profitable and achieve 12% higher market valuation than their peers.
DX and Customer Experience
70. More than half (52%) of consumers say technology plays a prominent role or is ingrained into almost all aspects of their day-to-day lives.
71. 19% of consumers report that technology is interwoven with all aspects of their day-to-day lives to an extent that they view it as an extension of themselves.
72. Out of 700 digital decision-makers surveyed, 59% think customer experiences and engagement are critical whereas 40% think they’re important.
73. High-tech B2B companies have reported a 10% to 20% cost reduction and 10% to 15% revenue growth from transforming their customer experience processes.
74. 20% of B2B and 19% of B2C companies consider optimizing customer experience as their most exciting opportunity.
75. 24% of organizations with annual revenue exceeding €150 million think their most exciting DX opportunity is data-driven marketing that focuses on individuals.
76. More than half (55%) of marketers think a better use of data for more effective audience segmentation and targeting will jump further up the marketing-related priority list in their organizations.
77. Large organizations (€150m+ revenues) consider customer journey management (33%), targeting and personalization (28%), and customer data management (21%) as their top three priorities.
78. Companies with $1B in annual revenues earn an additional $700 million over a three years period by transforming the customer experience.
79. Customer experience and engagement, improving efficiency, and achieving organizational excellence are the top drivers for digital transformation efforts.
80. In a global survey of more than 700 IT decision-makers, 61% of the respondents saw improving customer experience as the top priority for organizations.
Digital Transformation Challenges
81. In 2020, 39% of CIOs think it would be most difficult to find skill-sets in cybersecurity, followed by data science and analytics (35%) and AI/ML/RPA (31%).
82. Only 16% of executives say their company’s digital transformation efforts are succeeding.
83. As of 2019, just 7% of companies had fully implemented their digital-first approach and were in the maintenance phase.
84. In a recent survey of IT decision-makers, 44% of respondents claimed legacy systems hold back or delay almost every project.
85. 90% of decision-makers indicate legacy systems are preventing them from adopting digital technologies.
86. Gartner’s research has found that 67% of companies have missed expectations of profit growth from digital.
87. Security is a major concern in digital transformation, yet only 31% of companies were worried about data breaches in 2018.
88. According to a latest report 25 percent of companies say they still have no plans to run a digital transformation program.
89. High reliance on IT teams to create a strategy (58%), lack of digital skills to execute strategy (58%), and lack of digital leadership to define a strategy (56%) were identified as the key barriers to deliver improved customer experience through digital transformation.
90. 87% of senior business leaders say digitization is a company priority, yet only 40% of companies have brought digital initiatives to scale.
91. Gartner reports that 91% of organizations are engaged in some form of digital initiative.
92. CEO or BOD (36.7%), senior executive team (32.1%), and department heads (25.6%) were the biggest human obstacles to DX, as identified by executives.
93. Inadequate budget allocation is the biggest institutional hurdle identified by 39.3% of executives.
94. In Europe, 44% of workers aged between 16 and 74 lack basic digital skills.
95. Line employees drive digital transformation in only 10.9% of companies.
96. 90% of all jobs in the future will require digital skills.
97. Over a quarter (28%) of marketers think it’s a laborious challenge to personalize customer experiences without violating consumer privacy.
98. The percentage of large organizations stating they already use AI increased from 24% to 36% between 2018 and 2019.
99. Only 10% of companies see themselves as very advanced with respect to customer experience in 2019, just a 2% improvement since 2015.