Digital change has accelerated and continues to do so at a very fast pace in the dynamic business environment. This is evident and supported by digital transformation statistics, which showcase how the value of businesses, revenue-wise as well, has been preserved or even heightened with digitization.
Why are digital entrepreneurs on the rise?
We are living in a phase in which all businesses –whether small-scale or big-scale, need to make use of the innovative digital platform for gaining maximum success. For digital entrepreneurs, understanding the gaps in the market – whether you are looking at B2C or B2B opportunities, is the key to finding success in an overcrowded market.
Consumers are much more likely to latch onto an idea that revolutionizes a stagnant market segment. This is the reason why modern business owners are looking forward to becoming successful digital entrepreneurs. With the overall trend of the “Digital World” going on all around, business enterprises are quickly adopting the digital revolution to remain competitive in the modern era.
General Digital Transformation Trends
If you take into account the pre-covid era, digital transformation was a bonus in your business, it was good to have, but that was it. Now, however, with the way the pandemic had caused a major disruption in businesses on a global level, digital transformation became a thing of necessity.
Most consulting and research firms have emphasised the importance of digital transformation after the pandemic. So in the next few years, it is highly likely that businesses will allocate more investments in AI, AR/VR, IoT and other emerging technologies.
Market growth rate and adoption Digital Transformation Statistics, Trends and Forecast
- The global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020, at a CAGR of 16.5% during this period.
- According to IDC, the direct digital transformation investment is expected to reach $7 trillion with a CAGR of 18% from 2020 to 2023 since companies have been building on prevalent investments and strategies and becoming future enterprises that are digital at scale.
- According to Markets and Markets, the digital transformation market size is projected to grow at a compound annual growth rate of 19.1%, from $521.5 billion in 2021 to $127.5 billion in 2026.
- Gartner forecast IT spending in India to climb up seven per cent from 2021 to a total of $101.8 billion in 2022.
- According to the World Economic Forum, $100 trillion is going to be added to the world economy through digital transformation by 2025. Moreover, by 2025, interactions driven by platforms are expected to enable roughly two-thirds of the $100 trillion value at stake from digitalization.
- Statista states that the global investment in digital transformation is expected to almost double between the years 2022 from 1.8 trillion U.S. dollars and 2025 to 2.8 trillion U.S. dollars.
- According to Prophet, the leading drivers of digital transformation are market pressures since 51% of the efforts arise out of growth opportunities and 41% out of increased competitive pressure. With high-profile data breach scandals in the everyday limelight, new regulatory standards like GDPR are also providing impetus for organizations to transform (38%).
- IDC asserts that AI technology will be inserted into the processes and products of at least 90% of new enterprise apps by 2025.
- According to Research and Markets, AR/VR technology is predicted to have the fastest growth until 2025 even though the Internet of Things (IoT) had the largest share of the overall digital transformation market in 2019.
- Digitally transformed organizations are expected to contribute to more than half of the GDP by 2023, accounting for $53.3 trillion.
Digital Transformation – Benefits & Best Practices
Digital Transformation, especially in this day and age, aids in increasing efficiency, enhancing customer value, risk management and also constant and up to date navigation of opportunities for revenue generation.
With technological advancement being one of the most integral aspects of successful companies, digital transformation statistics can help provide you with supporting evidence to these benefits and understand them better.
It is integral to have an understanding of a roadmap to make digital transformation efforts worthwhile. The tips derived from these digital transformation facts may prove to be beneficial. Moreover, to avoid failures of pilot initiatives and overcome the challenges mentioned above, it is beneficial to learn the best practices.
- Gartner asserts that 56% of CEOs say digital improvements have led to increased revenue.
- 89% of all companies have already or plan to adopt a digital-first business strategy.
- According to Mckinsey, companies with an engaged Chief Digital Officer are 1.6 times more likely to report a successful digital transformation.
- New data from PwC finds that in 2022, 70% of business leaders believe COVID-19 will turn from a pandemic to an endemic.
- Adobe suggests that experience-led companies have 1.6 times higher customer satisfaction rates and 1.9 times higher average order value.
- Gartner predicts that 90% of corporate strategies will specifically reference information as a critical business asset and analytics as a critical competency by 2022.
- According to a survey by Alida, published under their previous brand Vision Critical, 39% of outperforming companies have a fully integrated digital-physical strategy.
Young Digital Entrepreneurship
Digital entrepreneurship is one of the most prolific and rapid-developing branches of entrepreneurship at the moment. Due to the fact that digital and information technology have become one of the most accessible tools for business, digital entrepreneurship is seen as a relatively available venture by most people, especially young people.
Given the fact that young people, by virtue of being young, possess less resources and experience, but are usually extremely well versed in digital and information technology, digital entrepreneurship is the perfect platform for them to create and take advantage of existing entrepreneurial opportunities.
The world in general has seen a rise in the numbers of young digital entrepreneurs as young people from all walks of life turned their attention to developing their own enterprises and ventures, as opposed to sitting idly by until an opportunity comes along.
Young people are taking stock of the knowledge and skills they already possess, taking advantage of digital tools to improve and then using all of that to step into the world of digital entrepreneurship.
Digital entrepreneurship reached its peak of popularity during the world-wide COVID-19 lockdown, when most people were confined to their homes, with limited ability to work. It was during this time that young people turned to:
- Video content creation
- Freelancing
- Blogging
- Online teaching
- Translating
- Making and selling music
- Coding
- Selling items online
- Transcribing
Sources:
https://www.statista.com/statistics/870924/worldwide-digital-transformation-market-size/
https://www.adobe.com/acrobat/resources/digital-entrepreneurship-starting-a-business-online.html
https://www.youngkreativ.eu/young-digital-entrepreneurs-on-the-rise/
https://www.globenewswire.com/news-release/2020/08/14/2078517/0/en/The-World-s-Digital-Transformation-Industry-2020-2025-Trends-Opportunities-and-Competitive-Landscape.html
https://www.idc.com/getdoc.jsp?containerId=US45569118
https://www.marketsandmarkets.com/Market-Reports/digital-transformation-market-43010479.html
https://www.business-standard.com/article/economy-policy/indian-it-spending-to-rise-7-to-reach-101-8-bln-in-2022-gartner-121120100730_1.html
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https://www.prophet.com/wp-content/uploads/2019/03/state-of-dt-report.pdf
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https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/unlocking-success-in-digital-transformations
https://venturebeat.com/enterprise/pandemic-forced-technology-improvements-including-better-internet-speed-nationwide/
https://www.gartner.com/smarterwithgartner/why-data-and-analytics-are-key-to-digital-transformation
