Industry: IT and Telecommunication
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP34641
The global market for digital workplace was estimated at US$26.4 Bn in 2024 and is expected to be valued at US$135.1 Bn by 2031. It is expected to reach an increasing robust CAGR of 20.7% from 2023 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$26.4 Bn |
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Projected Market Value (2031F) |
US$135.1 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
20.7% |
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Historical Growth Rate (CAGR 2019 to 2023) |
18.4% |
The global digital workplace market has been experiencing significant growth in recent years. The market has grown continuously and is projected to reach US$82.7 Mn by the end of 2031, growing at a compound annual growth rate (CAGR) of 20.7% during the forecast period.
Digital transformation is a major trend driving the adoption of digital workforce solutions. Organizations are increasingly looking to digitize their operations and processes, with these solutions playing an essential role in this process.
The COVID-19 pandemic has accelerated the adoption of digital workforce solutions. With remote work becoming the norm, organizations digitization for collaboration among teams from remote locations.
Further, increasing demand from employees for greater flexibility in terms of work-life balance has become a trend fueling market expansion.
Small to medium-sized enterprises (SMEs) are adopting cloud-based technology and leveraging modern, cloud-oriented, and qualified insights, along with artificial intelligence, IoT, cloud computing, and other industrial automation mechanizations. This adoption is expected to fuel the market rapidly.
The digital workplace market has experienced significant growth over the years, driven by various factors such as technological advancements, changing work dynamics, and the need for enhanced productivity and collaboration. In 2019, the market was valued at US$9.40 Mn, and since then, it has witnessed steady growth.
The market size of the digital workforce sector was recorded at US$22.1 Mn and is projected to reach US$82.7 Mn by the end of 2031.
The adoption of digital workplace solutions has been fueled by the availability of new tools and technologies and the increasing demand for flexibility in work-life balance.
The COVID-19 pandemic has also significantly accelerated the adoption of digital workplace solutions. The development of advanced technologies such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) will continue to drive growth within the digital workforce sector.
Further, organizations prioritize user-friendly interfaces, personalization, and accessibility of digital workplace tools and platforms, which are expected to fuel market growth significantly in the upcoming years.
Growing Adoption of Cloud-Based Applications
The increasing adoption of cloud-based applications in various sectors is driving the growth of the digital workplace sector. Cloud-based technology offers flexibility, scalability, and accessibility, allowing employees to access data and services from anywhere at any time.
Employee Flexibility and Work-Life Balance
The higher flexibility of employees regarding work-life balance is another significant growth driver for the digital workplace market. Organizations are adopting digital workplace solutions to provide convenient services that enhance employee satisfaction and improve working efficiency.
Impact of COVID-19
The COVID-19 pandemic has expedited the adoption of digital workplace solutions as organizations adapt to the remote work environment. To facilitate effective collaboration and communication among dispersed teams, organizations have made significant investments in technologies. As a result, the digital workplace industry has experienced a notable increase in interest and adoption due to the pandemic's impact on work dynamics.
Lack of Thought Leadership and Clear ROI
The lack of thought leadership among organizations and the absence of a clear and defined Return on Investment (ROI) are factors that are expected to limit the growth of the digital workplace market.
Most small organizations hesitate to invest in digital workplace solutions if they are unsure about the potential benefits and returns on their investment. Further, the shortage of capital in organizations refrains them from investing in such advanced technologies.
Data Security Concerns
Data security concerns pose a significant challenge to the growth of the digital workplace market. As organizations increasingly rely on digital technologies and cloud-based solutions, the risk of data theft and breaches becomes a major concern.
Ensuring the security and privacy of sensitive information is crucial for organizations, and any perceived vulnerabilities in digital workplace solutions can hinder their adoption.
Skills Development and Training
As the digital workforce continues to evolve, there will be a growing need for employees to acquire and develop digital skills. Organizations can seize the opportunity to provide training programs and resources to upskill their workforce in areas such as digital literacy, data analytics, cybersecurity, and collaboration tools. Investing in skills development can enhance employee productivity and enable organizations to leverage the full potential of digital workplace solutions.
Enhanced Employee Experience
To thrive in the evolving digital workplace landscape, organizations must prioritize the creation of an exceptional employee experience. This entails a strategic focus on enhancing the user interface, personalization, and accessibility of digital workplace tools and platforms.
By incorporating intuitive interfaces, mobile compatibility, AI-powered virtual assistants, and seamless application and workflow integration, organizations can meet the demands of the modern workforce. This is expected to ultimately gain a competitive edge in the market.
Integration of Emerging Technologies
The digital workplace market presents opportunities for the integration of emerging technologies to further enhance productivity and collaboration.
Technologies such as AI, ML, AR, and VR can be leveraged to automate tasks, provide intelligent insights, enable immersive remote collaboration, and enhance decision-making processes. Organizations can explore the potential of these technologies to create innovative digital workforce solutions.
Professional Services Pioneering the Components Segment
Based on components, professional services will dominate the market in 2021. These services enable organizations to maintain a competitive advantage in the market and offer benefits like accelerated time-to-market, stable operations, and reduced governance and compliance risks.
The key benefits encompass consulting, training, integration, and implementation services, providing cost-effective technical support and preventing downtime during digital workforce solution implementation.
Service providers specializing in training and maintenance focus on enhancing network performance, reducing CAPEX and OPEX, and delivering comprehensive, multi-vendor support for end-to-end service delivery.
Manufacturing Industry Captures the Substantial Market Share as Automation and Robotics Firm up
Based on end user, the manufacturing industry held the largest share in 2021. The digital workplace concept is a vital component of the Fourth Industrial Revolution (Industry 4.0), where automation and robotics are freeing up employees to focus on higher-value tasks.
Data-enabled approaches, particularly remote, collaborative, virtual, mobile, and augmented methods, will continue to shape the future of work.
Embracing a digital workforce powered by advanced technologies can empower manufacturers to overcome workplace challenges and thrive. Technology will drive transformation in manufacturing, enhancing processes, supply chain efficiency, and digital workplace environments.
Large Enterprises Rank Top in the Enterprise Size Segment
Based on Enterprise size, large enterprises held the lion's share in the digital workplace market. The digitalization trend is gaining momentum in large enterprises, driven by increased connectivity, mobility trends, and a substantial workforce.
Such enterprises possess expansive corporate networks, multiple revenue streams, and a strong inclination to invest in cutting-edge technologies for efficient operations.
With the growing demand for remote access to computing resources and applications, enterprises face challenges in data storage, data center management, and maintaining focus on core business operations.
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Regions |
Market Shares in 2021 |
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North America |
34.2% |
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Asia Pacific |
23.6% |
Pacing Adoption of Emerging Technologies Benefits North America
North America emerged as the dominant player in the digital workplace market in 2021, capturing a revenue share of 34.2%. This market dominance can be attributed to the increasing adoption of emerging technologies such as AI, BYOD, and enterprise mobility management solutions in the region.
Regional workplace transformation service providers are swiftly incorporating cloud technologies and Artificial Intelligence (AI) into their service offerings to meet the evolving demands of organizations.
IBM launched IBM Talent & Transformation in May 2020, leveraging AI to assist human resources in bridging the skills gap and enabling professionals in various areas to embrace digital technology. This adoption of technologies and high demand for software and robotics solutions are further driving the growth of the regional market.
Increasing Digitization in Asia Pacific Establishes Strong Ground
The Asia Pacific region is projected to experience significant growth, with a CAGR of 23.6% in 2021. This growth is driven by the rapid digitization across various industries and the increasing adoption of cloud platforms by enterprises.
Market players in the region are implementing strategies like product development, collaborations, and strategic partnerships to maintain a strong market position.
Tata Consultancy Services (TCS) launched the Digital Acceleration Center (DAC) in June 2020 with support from the Singapore Economic Development Board, aiming to aid Singapore businesses in their COVID-19 recovery.
The digital workplace market is rapidly growing, with the market report highlighting its vibrant nature. Industry players are launching new products and integrating innovative technologies to create fresh opportunities in the sector.
Digital workplace companies are adopting key business strategies to expand their portfolio, increase market shares across regions, invest in R&D, expand internationally, and maintain efficient supply chains to enhance their market value.
Recent Industry Developments
February 2024, HCLTech has launched FlexSpace 5G, a digital workplace service, in partnership with Verizon Business. The service aims to improve efficiency and security for businesses worldwide. It integrates Verizon's network infrastructure with HCLTech's IT services, offering a secure and seamless experience across various work scenarios. Key features include end-to-end device lifecycle management, extending mobility beyond Wi-Fi, and fast connectivity. The partnership builds on a $2.1 billion strategic partnership, allowing employees to work virtually anywhere they need to connect.
December 2023, Microsoft is transforming the digital workplace to empower employees to maximize their productivity, whether they are physically in the office or working from a remote location. The company's Digital Employee Experience (MDEE) collaborates closely with Global Workplace Services (GWS) to create an integrated experience that uses physical infrastructure, devices, and cloud services. The digital workplace is deeply integrated with Microsoft products and services, including Microsoft Azure IoT, Microsoft Dynamics 365, and Microsoft 365, to increase productivity, create efficiency, enable accessibility, and eliminate friction.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
Component
Organization size
End user
By Geographical Regions
To know more about delivery timeline for this report Contact Sales
The market is predicted to rise up to US$135.1 billion by the end of 2031.
Growing adoption of cloud-based applications, employee flexibility and work-life balance, and the impact of COVID-19 are propelling market growth.
Fujitsu, Citrix Systems, Atos SE, Fujitsu Limited, Inc., and IBM are some of the major industry players.
Lack of thought leadership and clear ROI, and data security concerns are restraining market expansion.
Integration of emerging technologies, enhanced employee experience, and skills development and training are the major factors creating opportunity in the market.
