50+ Digital Transformation Statistics: Growth, Spending & Trends to Know
Is digital transformation just hype? Think again. With 81% of leaders calling it critical and the market set to triple by 2030, DX is reshaping business fast. Discover why most fail, who succeeds, and how your company can lead the charge.
Is digital transformation (DX) a passing fad?
You'd be wrong to think so.
According to our latest list of digital transformation statistics, organizations are doubling down on their digital strategies with unmatched urgency and commitment. As a matter of fact, 81% of business leaders now consider DX ‘critical’ or ‘absolutely necessary for success.’
Which side of this digital divide will your company end up on?
Find out whether you should invest, what pitfalls to avoid, and how to position your organization among the elite few who get digital transformation right.
Key takeaways
- Only 16% of organizations successfully improve their performance and maintain those changes after digital transformation.
- Small organizations with fewer than 100 employees are 2.7 times more likely to succeed at digital transformation than companies with over 50,000 employees.
- 75% of business leaders say investing in digital transformation is essential within the next year.
- The digital transformation market is expected to grow from $911.2 billion in 2024 to $3,289.4 billion by 2030.
- McKinsey research reveals only 30% of transformation efforts succeed overall, with digital transformations being even more challenging.
- 52% of US businesses put AI at the top of their digital transformation priorities.
General digital transformation statistics
Business leaders are putting their money behind digital transformation. 75% say investing in DX is essential within the next 12 months.
Nearly all senior leaders (94%) now have a digital transformation strategy. And they're backing it with cash. For instance, 58% of executives plan to increase their spending this year compared to 2024.
Why are they so confident?
Most leaders, about 91%, feel their companies are digitally prepared for what's ahead. Furthermore, 81% believe that a digital transformation investment is either “critical” or “absolutely necessary for success.”
The latest digital transformation statistics show that more leaders are now on board with DX. Companies with strong executive buy-in have tripled from just 10% last year to 32% now.
Where's the digital transformation budget going?
AI and machine learning are two of the most important technologies that businesses are pursuing in their digital transformation process.
- 52% of US businesses put AI at the top
- 45% are focused on robotics and automation
- 43% are betting on VR/AR and metaverse technologies
Key vendors in the digital transformation market
According to research by MarketsandMarkets, these 13 companies are the heavyweights in the digital transformation industry.
- Microsoft (US)
- IBM (US)
- SAP (Germany)
- Oracle (US)
- Google (US)
- Salesforce (US)
- HPE (US)
- Adobe (US)
- AWS (US)
- HCL Technologies (India)
- EY (UK)
- Cognizant (US)
- Accenture (Ireland)
The DX market is massive and growing fast. Analysts expect the digital transformation industry to grow from $911.2 billion in 2024 to $3,289.4 billion by 2030. Not bad for an industry that began to pick up only 30 years ago.
Top DX goals last year
Why are companies pouring money into digital transformation?
Customer experience is the biggest driver, with 49% of businesses seeing DX as a means of improving customer interactions better.
Nearly half of companies consider AI and machine learning central to their transformation efforts. Cloud upgrades are essential for 45% of leaders looking for more scalable systems, while 43% want to automate workflows and processes.
When TEKsystems asked businesses about their specific DX goals, here's what they found:
| Goal | Percentage |
|---|---|
| Improve customer experience and engagement | 35% |
| Replace or upgrade legacy IT systems | 34% |
| Reduce operational inefficiency | 31% |
| Enhance employee performance/productivity | 30% |
| Transform existing business processes | 29% |
| Increase/achieve innovation | 25% |
| Bolster Cybersecurity | 25% |
| Gain competitive advantage | 24% |
| Improve employee experience | 18% |
| Increase speed to market of existing products or services | 17% |
| Introduce new products or services | 17% |
| Introduce new business models/revenue streams | 16% |
Top reasons driving digital transformation in companies
Companies in the US are pursuing digital transformation for these #3 main reasons:
- 56% are doing so to meet regulatory requirements and security concerns
- 53% have chosen digital transformation in a bid to turn their prospects into customers
- And 48% are pursuing DX to boost employee productivity
Digital transformation statistics by industry
McKinsey and HBR ranked industries based on how digitally advanced they are by looking at factors like digital spending, automated business processes, digitalized work, digital customer interactions, etc.
Tech companies predictably are the DX leaders, while agriculture and construction are the laggers.
| Sector | Digitalization Score |
|---|---|
| IT Technology | Highest |
| Media | 5 |
| Professional Services | 4.625 |
| Finance & Insurance | 4.5 |
| Advanced Manufacturing | 3.75 |
| Energy & Utilities | 3.5 |
| Pharma | 3.125 |
| Retail | 3.125 |
| Logistics, Shipping & Transportation | 2.875 |
| Oil & Gas | 2.875 |
| Transportation | 2.875 |
| Government & Public Sector | 2.5 |
| Higher Education | 2.375 |
| K-12 Education | 2.375 |
| Healthcare | 1.875 |
| Hospitality | 1.875 |
| Construction | 1.375 |
| Agriculture & Hunting | 1 |
Beyond the overall scores, each industry has its own digital transformation story. Here's what's happening across major sectors:
| Sector | Key Digital Transformation Insights |
|---|---|
| Banking | Only 30% of banks have successfully implemented digital strategies The digital banking market will grow from $8.2B (2021) to $13.9B (2026) |
| Construction | It employs 7% of the global workforce, and digitalization can boost productivity by 15% and reduce costs by 6%. |
| Engineering & Architecture | Only 13% of firms see expected ROI on IT |
| Fashion | Digital investment reached 3.5% of revenue in 2022 (up from 1.7% in 2021). The online fashion market is projected to grow from $498.7M (2021) to $4.8B (2031). |
| Financial Services & Wealth Management | IT spending exceeded $500B in 2021 56% saw cost reduction, 51% saw revenue growth, and 42% saw profit growth from next-gen tech. |
| Government & Public Sector | 91% of leaders saw modernization success in 2022, but 71% said more work is needed. 46% of CIOs are working on legacy system improvements. |
| Healthcare | 96% of hospitals adopted EHRs by 2021 (up from 28% in 2021). 92% of institutions aim for better patient experience through digital transformation. |
| Higher Education | 69% of leaders cite digital transformation as their biggest challenge. 89% say institutions need to be more digital. |
| Hospitality | Only 7% of operators have fully integrated tech, 80% lack a digital budget, and 63% feel under-resourced. |
| Insurance | 96% of CEOs accelerated digital efforts post-COVID. 75% of C-suite leaders report positive ROI on digital investments. |
| Law Firms & Legal | Over half of the top firms increased IT spending in 2022, yet all top 100 firms are considered digital laggards. Only 3% offer personalized content online. |
| Logistics, Shipping, & Transportation | 72% of leaders say there is ignorance of digitalization and a lack of a roadmap. 75% still use analog/manual processes. |
| Manufacturing | 80% of CEOs increased digital investments in 2023. 89% have adopted or plan to adopt a digital-first model. |
| Media & Entertainment | 40% of businesses are 70% through their media transformation; 73% say performance improvement is the top goal. |
Digital transformation spending
Money talks, and right now, it's saying digital transformation is booming. Global spending will hit nearly $3.9 trillion by 2027, growing 16.1% annually.
Who's spending this money?
The US is the market leader, with a 35.8% stake in the global digital transformation investment.
Asia/Pacific regions (including Japan and China) are the 2nd biggest spenders in this industry, with a 33.5% contribution.
Europe, the Middle East, and Africa account for 26.8% of worldwide digital transformation spending.
Digital transformation success rate
Digital transformation looks great on paper, but the reality can be sobering. McKinsey research reveals only 30% of transformation efforts succeed.
Digital transformations are even more challenging, and only 16% of organizations have improved their performance and maintained those changes after DX. Another 7% saw improvements, but these improvements did not last.
Surprisingly, even tech-savvy industries struggle a lot with a successful digital transformation. High-tech, media, and telecom companies achieve DX success rates of only 26% at best.
Traditional industries face even steeper challenges. Oil and gas, automotive, infrastructure, and pharmaceuticals see dismal 4% and 11% success rates.
Size matters, too. Smaller organizations with fewer than 100 employees are 2.7 times more likely to succeed than brands with over 50,000 employees.
In another survey of 400 US tech executives, researchers found that 51% of businesses had not seen improved performance or profitability from their digital transformation investments.
However, 56% reported ROI exceeding expectations in these specific areas:
- Efficiency and cost reduction
- Employee productivity
- Customer engagement
Despite these challenges, business leaders remain optimistic. When asked about confidence in their digital transformation ROI, these were the results:
| Confidence Level | Percentage |
|---|---|
| Extremely confident | 10% |
| Very confident | 30% |
| Confident | 45% |
| Somewhat confident | 11% |
| Not at all confident | 4% |
Digital transformation failure statistics
Despite all the investment, only 35% of companies achieve their digital transformation goals. That's a lot of wasted time and money.
What's getting in the way?
The biggest challenge in attaining digital transformation is collaboration breakdown, which currently affects 47% of transformation efforts. Teams are simply not working together effectively.
Skills gaps is yet another issue that affected about 41% of digital initiatives.
Finally, risk-averse cultures slow down 40% of transformation projects. Many organizations talk about innovation but punish the failures that come with trying new approaches.
Communication between tech teams and leadership is another major hurdle. About 61% of US businesses report their tech teams struggle to explain new technology's potential to the board.
How big is the skill gap?
It’s big, and cuts across all the technologies companies try to adopt in their digital transformation efforts. Here’s a breakdown of how it looks like down to each individual skill:
| Skill | % of companies facing a talent shortage |
|---|---|
| Artificial intelligence/machine learning | 47% |
| Blockchain | 41% |
| Software development/engineering | 41% |
| Cybersecurity | 41% |
| DevOps | 39% |
| Virtualization | 38% |
| Mobile applications | 36% |
| Business analysis | 36% |
| Quality assurance | 36% |
| Internet of Things | 35% |
| Cloud computing | 34% |
| Automation | 34% |
| Big data | 31% |
| Project management | 29% |
| Data analytics/data science | 29% |
| UI/UX design | 27% |
| Networking and wireless | 27% |
FAQs
What are the 4 main areas of digital transformation?
Digital transformation usually happens in 4 ways:
- Process Transformation: Businesses use technology to make their operations faster, easier, and less expensive.
- Domain Transformation: Companies use digital tools to enter new markets beyond their usual industry.
- Business Model Transformation: Businesses change how they serve customers.
- Cultural and Organizational Transformation: Companies adjust their mindset, structure, and working methods to be more flexible and innovative.
What is the success rate of digital transformation?
Only 35% of companies achieve their digital transformation goals. More specifically, only 16% of organizations say they improved performance and maintained those changes after digital transformation.
What is the failure rate of digital transformation?
The failure rate for digital transformation is approximately 70%. About 7% of companies see initial improvements that don't last, while the remainder see little to no improvement at all.
What are the biggest challenges for digital transformation?
Companies list the following as the biggest challenges for digital transformation:
- Collaboration breakdowns (47%)
- Skills gaps (41%)
- Risk-averse cultures (40%)
- Poor communication between tech teams and leadership (61%)
What's next?
While digital transformation is challenging, with most efforts falling short of expectations, the cost of doing nothing is even higher.
Your competitors are already investing in building new capabilities and reimagining their businesses.
These digital transformation statistics show that most money goes into AI, automation, and customer experience. It also shows you what traps to avoid when undertaking DX, the most important being poor collaboration, skill shortages, and resistance to change.
The question now isn't whether to invest in digital transformation or not but how to be among the 16% who get it right.
Sources
- Valtech. Digital Transformation: Leading Through Tech Anxiety
- KPMG. US Tech Survey Report Findings
- Valtech. Leadership Priorities in Tech
- MarketsandMarkets. Digital Transformation Market Report
- Whatfix. Digital Transformation by Sector
- IDC. Digital Transformation Spending Forecast
- McKinsey. Unlocking Success in Digital Transformations
- BCG. Performance and Innovation in Digital Transformation
Damaris is a Digital Marketing Specialist who writes about digital marketing and performance marketing. At Cropink, she creates data-driven content to help businesses run better ad campaigns for better performance and ROI.
Leszek is the Digital Growth Manager at Feedink & Cropink, specializing in organic growth for eCommerce and SaaS companies. His background includes roles at Poland's largest accommodation portal and FT1000 companies, with his work featured in Forbes, Inc., Business Insider, Fast Company, Entrepreneur, BBC, and TechRepublic.
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