The digital transformation wave continues to reshape industries, and as we venture into Q2 2023, it’s crucial to assess the trends and technologies that are steering this digital evolution. Here, we explore the latest updates and emerging phenomena that are shaping the landscape of digital transformation for the rest of this year and beyond.
1) Unstoppable Low-Code Revolution: Low-code application platforms (LCAPs) are on an upward trajectory, and their growth shows no signs of slowing down. By the end of 2023, this segment is expected to reach a staggering $10 billion, with a remarkable 25% growth rate. Gartner predicts a surge in citizen developers, surpassing the number of professional developers in major organizations. LCAPs are poised to become the linchpin of the low-code development ecosystem.
2) Robust Cloud Computing Growth: Cloud computing continues to thrive, offering businesses unmatched scalability and cost-efficiency. The public cloud computing expenditure is projected to reach an impressive $591.8 billion in 2023, as more organizations migrate their data and applications to the cloud. This shift is driven by the substantial time and cost savings it offers.
3) AI and ML’s Unceasing Rise: AI, ML, and other cutting-edge technologies are witnessing continued growth across various industrial sectors. Grand View Research estimates that the global AI market will soar to $733.7 billion by 2027, with a remarkable CAGR of 42.2% between 2020 and 2027. Investments in AI are set to surpass $500 billion globally in the current year. Gartner predicts that AI-enabled organizations will enjoy up to 25% higher customer satisfaction by the end of 2023.
4) Flourishing Intelligent Search: Intelligent search capabilities are becoming invaluable for extracting actionable insights from vast datasets. MarketsandMarkets forecasts a robust 19.2% CAGR, propelling this segment to $19.2 billion by 2025, compared to its $7.9 billion valuation in 2020.
5) Expanding Business Process Automation: Emphasizing the automation of mundane tasks in organizations is a top priority. Automation not only conserves resources but also enhances speed, efficiency, and agility in executing routine duties. Gartner’s research indicates that automation could reduce manual labor by a staggering 25,000 hours annually in finance departments, translating to potential annual savings of up to $880,000. This category is rapidly growing and is projected to reach $19.6 billion by 2026.
6) Blossoming Blockchain Markets: The spending on blockchain is expected to surge at an annual growth rate of 56% between 2023 and 2029, reaching $19 billion by 2024, as forecasted by Statista. The integration of blockchain with AI and social media platforms opens new avenues for technology and allied business ecosystems. This integration promises to enhance creativity and address issues such as content moderation, data security, and democratized access control.
7) Expanding Virtual Collaborations: Hybrid work environments, born out of the pandemic, are here to stay. Remote work has become an integral part of the global work culture. As organizations invest more in cloud computing, automation, and IoT, virtual collaboration will remain a dominant feature of the evolving work landscape.
8) Mushrooming Customer Data Platforms: Customer Data Platforms (CDPs) continue to play a pivotal role in shaping business strategies across various departments. These platforms effectively segment markets, target key customers, and elevate customer engagement by personalizing interactions. As we progress through 2023, CDPs are expected to maintain their supremacy.
9) Wider Adoption of Everything-as-a-Service (XaaS): XaaS is gaining rapid popularity, offering firms the flexibility to choose only the tools and services relevant to their operations. Unlike traditional models where customers pay for bundled products and services, XaaS brings cost savings and convenience by allowing businesses to pay only for the services they require. The XaaS market is poised to grow by 20.77% between 2023 and 2032, reaching significant valuations.
10) Burgeoning Robotic Process Automation (RPA): RPA is an integral component of digital transformation, and by 2029, it is projected to reach a market cap of $43.25 billion, as per Fortune Business Insights. While Forrester suggests that RPA’s growth might stabilize somewhat in 2024 due to the diversion of funds towards more user-centric AI applications, RPA is expected to continue its exponential growth and evolution.
By staying attuned to these trends in the digital transformation landscape in the second half of 2023, organizations can enhance operational efficiency, expand market share, and improve customer acquisition. Change and innovation are constants in today’s dynamic business environment, and leveraging both can accelerate the rate of digital transformation and its integration within organizations, ushering in a new era of growth and adaptability.
