North America Digital Transformation Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.59 Trillion |
| Market Size (2029) | USD 1.52 Trillion |
| CAGR (2024 - 2029) | 20.91 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Digital Transformation Market Analysis
The North America Digital Transformation Market size is estimated at USD 0.59 trillion in 2024, and is expected to reach USD 1.52 trillion by 2029, growing at a CAGR of 20.91% during the forecast period (2024-2029).
- The manufacturing sector experienced a significant transformation with the advent of Industry 4.0. Many factories are adopting advanced digital technologies to enhance, automate, and modernize their operations. These technologies integral to Industry 4.0 include robotics, the internet of things (IoT), artificial intelligence (AI), and big data analytics. As a result, enterprises are experiencing increased efficiency, reduced operational costs, and improved product quality. Integrating these technologies has become standard practice in numerous enterprises, driving the sector towards a more connected and intelligent manufacturing environment.
- Furthermore, according to a survey by Flexera Software, Americas have witnessed 65% of heavy usage of cloud services. The region's high demand for cloud services is expected to bloster growth opportunities for digital transformation.
- Rapid digitalization is taking place across end-user industries across the region. Companies are investing in the region to strengthen North America's digital infrastructure. For instance, in February 2024, Finastra, a global provider of financial software applications and marketplaces, and Tesselate, a global digital transformation consultancy and integrator, unveiled a comprehensive pre-packaged service to accelerate trade finance digitalization. It will allow US banks to automate manual processes, quickly respond to evolving market demands, and achieve value faster.
- AI is becoming progressively prevalent in the US and is being used to automate various tasks, improve decision-making, and drive innovation across various industries. United States holds a leading position in the field of AI in the world, and AI engineers are in high demand in the US. Additionally, the region is witnessing constant investments in AI, with private companies and startups focusing on AI technology for better performance and efficiency, influencing the region's digital transformation market.
- Moreover, Canada's tech industry is currently experiencing a significant upswing. Toronto, Montreal, and Vancouver are emerging as frontrunners, mainly in artificial intelligence and clean technology sectors. Canada has proactively sought to draw in tech talent, responding to the escalating demand. Industries spanning banking, healthcare, and telecom, among others, are increasingly seeking skilled Data Scientists and AI specialists. The demand for these professionals far outstrips the current supply. Canada's digital transformation market is set for a substantial boost with a growing emphasis on advanced IT solutions, AI, and IoT.
- However, despite substantial investments in digital service delivery, numerous individuals still face delays and gaps. These include enduring long lineups for in-person government services, navigating complex websites, and dealing with cumbersome paper-based applications.
North America Digital Transformation Market Trends
The IoT Segment is Expected to Occupy the Largest Market Share
- The internet of things drives digital transformation by linking physical devices and sensors to the internet, forming smart, interconnected systems. This connectivity allows for real-time data gathering and analysis, enhancing operational efficiency, facilitating informed decision-making, fostering novel business models, and bolstering automation in diverse industries.
- Enterprises and service providers focus on IoT as a pivotal tool to drive digital transformation. IoT enables real-time data collection and analysis, empowering organizations to optimize processes and make informed decisions, thereby unlocking operational efficiencies.
- The manufacturing industry is witnessing a data deluge, propelled by the widespread adoption of connected devices and sensors, facilitating M2M communication. This influx of data encompasses a spectrum of information, from basic metrics like processing times to sophisticated analyses, such as assessing material stress in automotive applications.
- Smart city initiatives are poised to lead the growth of the IoT sector in the upcoming years. IoT devices and systems are set to surge, especially in transportation, utilities, and infrastructure. Government initiatives are further propelling this trend, driving up adoption rates.
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United States is Expected to be the Fastest Growing Market
- The digital transformation trend in the United States is rapidly evolving, driven by advancements in technology and the growing demand for digital solutions across various industries. Some of the key trends in the US digital transformation market include growth in cloud computing, connected devices, automation, among others.
- Cloud computing adoption is surging in the US, driven by organizations seeking enhanced flexibility, scalability, and cost-efficiency by migrating their IT infrastructure. The US stands as a pivotal hub for cloud computing, hosting headquarters of major players such as Google, Amazon, and Microsoft.
- According to IFR, in 2023, US manufacturing firms significantly ramped up their automation efforts, with industrial robot installations surging by 12% to a total of 44,303 units. Leading the charge was the automotive sector, closely trailed by the electrical and electronics industries.
- IoT is growing in popularity in the US, and is being used to improve operations, enhance the customer experience, and drive innovation across various industries. The US government is also providing sufficient funds and subsidies to drive IoT.
- Furthermore, the country is witnessing rising internet speed, which is enabling more businesses to expand their offerings to cloud, making digitization easy. According to OpenSignal, in the second quarter of 2023, the urban-rural gap in 5G mobile download speeds in the United States narrowed. Urban areas experienced a 3.4% speed boost, reaching an average of 145.7 Mbps, while rural speeds surged by 5.2% to hit 110.3 Mbps.
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North America Digital Transformation Industry Overview
The North America Digital Transformation Market is highly fragmented due to the presence of many players. Several key players in the digital transformation market are constantly making efforts to bring advancements. A few prominent companies enter collaborations and expand their footprints in developing regions to consolidate their positions. Accenture PLC, Google LLC (Alphabet Inc.), IBM Corporation, Microsoft Corporation, and others are the major players in the market.
- June 2024: Tata Consultancy Services, a prominent player in IT services and consulting, unveiled its 'Bringing Life to ThingsTM Lab' in Cincinnati, Ohio. This facility is tailored for swift prototyping, extensive experimentation, and the deployment of AI, GenAI, and IoT engineering solutions. Through this initiative, TCS aims to expedite and streamline the process of implementing advanced solutions for its clients.
- March 2024: Microsoft Corp. and NVIDIA have strengthened their partnership, introducing new integrations that utilize NVIDIA's latest generative AI and Omniverse technologies. These integrations span across Microsoft's Azure, Azure AI services, Microsoft Fabric, and Microsoft 365. Microsoft will be among the first to incorporate NVIDIA's technologies into Azure, including the Grace Blackwell GB200 and the Quantum-X800 InfiniBand networking. This will enable Microsoft to deploy trillion-parameter foundation models, enhancing natural language processing, computer vision, speech recognition, and more capabilities.
North America Digital Transformation Market Leaders
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Google LLC (Alphabet Inc.)
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IBM Corporation
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Microsoft Corporation
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Oracle Corporation
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Accenture PLC
*Disclaimer: Major Players sorted in no particular order
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North America Digital Transformation Market News
- May 2024: Microsoft announced an investment plan to establish Southeast Wisconsin as a center for AI-driven economic growth, innovation, and job creation. The initiative includes a USD 3.3 billion investment in cloud computing and AI infrastructure, the creation of the nation's first manufacturing-focused AI co-innovation lab, and an AI training program to equip over 100,000 Wisconsin residents with essential AI skills.
- March 2024: Eaton, an intelligent power management company, has introduced its modular data center solution in North America. This solution addresses organizations' increasing needs in edge computing, machine learning, and AI. Eaton's SmartRack modular data centers can be deployed in a few days. They suit various settings, including enterprise and colocation data centers, manufacturing facilities, and warehouses.
North America Digital Transformation Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. INDUSTRY ECOSYSTEM ANALYSIS (Detailed Coverage of Key Stakeholders in Digital Transformation Industry Product/Solution Providers, System Integrators/VARs, Connectivity Providers, Regulatory Bodies, End Users, Service Providers, etc.)
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increase in the Adoption of Big Data Analytics and Other Technologies in the Region
- 5.1.2 The Rapid proliferation of Mobile Devices and Apps
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5.2 Market Restraints
- 5.2.1 Concerns about the Privacy and Security of Information
6. CURRENT MARKET SCENARIO AND EVOLUTION OF DIGITAL TRANSFORMATION PRACTICES
7. KEY METRICS
- 7.1 Technology Spending Trends
- 7.2 Number of IoT Devices
- 7.3 Total Cyberattacks
- 7.4 Technology Staffing Trends
- 7.5 Internet Growth and Penetration in the Region
- 7.6 Digital Competitiveness Ranking
- 7.7 Fixed and Mobile Broadband Coverage
- 7.8 Cloud Adoption
- 7.9 AI Adoption
- 7.10 E-commerce Penetration
8. MARKET SEGMENTATION
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8.1 By Type
- 8.1.1 Artificial Intelligence and Machine Learning
- 8.1.1.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.1.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.1.3 Use Case Analysis
- 8.1.1.4 Market Outlook
- 8.1.2 Extended Reality (VR & AR)
- 8.1.2.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.2.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.2.3 Use Case Analysis
- 8.1.2.4 Market Outlook
- 8.1.3 IoT
- 8.1.3.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.3.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.3.3 Use Case Analysis
- 8.1.3.4 Market Outlook
- 8.1.4 Industrial Robotics
- 8.1.4.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.4.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.4.3 Use Case Analysis
- 8.1.4.4 Market Outlook
- 8.1.5 Blockchain
- 8.1.5.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.5.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.5.3 Market Outlook
- 8.1.6 Additive Manufacturing/3D Printing
- 8.1.6.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.6.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.6.3 Use Case Analysis
- 8.1.6.4 Market Outlook
- 8.1.7 Cybersecurity
- 8.1.7.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.7.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.7.3 Use Case Analysis
- 8.1.7.4 Market Outlook
- 8.1.8 Cloud Edge Computing
- 8.1.8.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.8.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.8.3 Use Case Analysis
- 8.1.8.4 Market Outlook
- 8.1.9 Others (digital twin, mobility and connectivity)
- 8.1.9.1 Current Market Scenario and Market Projections for the Forecast Period
- 8.1.9.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
- 8.1.9.3 Market Breakdown by Type (Digital Twin, Mobility and Connectivity)
- 8.1.9.4 Use Case Analysis
- 8.1.9.5 Market Outlook
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8.2 By End-user Industry
- 8.2.1 Manufacturing
- 8.2.2 Oil, Gas and Utilities
- 8.2.3 Retail and e-commerce
- 8.2.4 Transportation and Logistics
- 8.2.5 Healthcare
- 8.2.6 BFSI
- 8.2.7 Telecom and IT
- 8.2.8 Government and Public Sector
- 8.2.9 Others (Education, Media and Entertainment, Environment etc)
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8.3 By Country
- 8.3.1 United States
- 8.3.2 Canada
9. COMPETITIVE LANDSCAPE
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9.1 Company Profiles*
- 9.1.1 Accenture PLC
- 9.1.2 Google LLC (Alphabet Inc.)
- 9.1.3 IBM Corporation
- 9.1.4 Microsoft Corporation
- 9.1.5 Cognex Corporation
- 9.1.6 Hewlett Packard Enterprise
- 9.1.7 SAP SE
- 9.1.8 EMC Corporation (Dell EMC)
- 9.1.9 Oracle Corporation
- 9.1.10 Adobe Inc.
- 9.1.11 Siemens AG
10. KEY TRANSFORMATIVE TECHNOLOGIES
- 10.1 Quantum Computing
- 10.2 Manufacturing as a Service (MaaS)
- 10.3 Cognitive Process Automation
- 10.4 Nanotechnology
**Subject to Availability
North America Digital Transformation Industry Segmentation
Digital transformation is the method of incorporating digital technologies like artificial intelligence and machine learning, extended reality (VR & AR) for industrial applications, IoT, industrial robotics, blockchain, digital twin, 3D printing/ additive manufacturing, industrial cyber security, wireless connectivity, edge computing, smart mobility, and other technologies across various end-user industry.
The North American digital transformation market is segmented by type (analytics, artificial intelligence and machine learning, extended reality (XR), IoT, industrial robotics, blockchain, additive manufacturing/3D printing, cyber security, cloud edge computing, and others (digital twin, mobility and connectivity)), and by country (United States, Canada). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Type | Artificial Intelligence and Machine Learning | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | Extended Reality (VR & AR) | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | IoT | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | Industrial Robotics | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | Blockchain | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Market Outlook | ||
| By Type | Additive Manufacturing/3D Printing | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | Cybersecurity | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | Cloud Edge Computing | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By Type | Others (digital twin, mobility and connectivity) | Current Market Scenario and Market Projections for the Forecast Period |
| Key Growth Influencers (Drivers, Challenges, and Opportunities) | ||
| Market Breakdown by Type (Digital Twin, Mobility and Connectivity) | ||
| Use Case Analysis | ||
| Market Outlook | ||
| By End-user Industry | Manufacturing | |
| Oil, Gas and Utilities | ||
| Retail and e-commerce | ||
| Transportation and Logistics | ||
| Healthcare | ||
| BFSI | ||
| Telecom and IT | ||
| Government and Public Sector | ||
| Others (Education, Media and Entertainment, Environment etc) | ||
| By Country | United States | |
| Canada |
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North America Digital Transformation Market Research FAQs
How big is the North America Digital Transformation Market?
The North America Digital Transformation Market size is expected to reach USD 0.59 trillion in 2024 and grow at a CAGR of 20.91% to reach USD 1.52 trillion by 2029.
What is the current North America Digital Transformation Market size?
In 2024, the North America Digital Transformation Market size is expected to reach USD 0.59 trillion.
Who are the key players in North America Digital Transformation Market?
Google LLC (Alphabet Inc.), IBM Corporation, Microsoft Corporation, Oracle Corporation and Accenture PLC are the major companies operating in the North America Digital Transformation Market.
What years does this North America Digital Transformation Market cover, and what was the market size in 2023?
In 2023, the North America Digital Transformation Market size was estimated at USD 0.47 trillion. The report covers the North America Digital Transformation Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Digital Transformation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Digital Transformation Industry Report
Statistics for the 2024 North America Digital Transformation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Digital Transformation analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
North America Digital Transformation Market Report Snapshots
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