U.K. Digital Transformation Market Likely To Touch At 5.69 Billion By 2030: Grand View Research Inc.

Posted by Mrudula Anil Karmarkar on January 15th, 2025

San Francisco, 15 January 2030: The Report U.K. Digital Transformation Market Size, Share & Trends Analysis Report By Solution, By Service, By Deployment, By Enterprise Size, By End-use, And Segment Forecasts, 2023 - 2030

The U.K. digital transformation market size is expected to reach USD 235.69 billion by 2030, growing at a CAGR of 27.7% from 2023 to 2030, according to a new study by Grand View Research, Inc. The adoption of linked devices as well as data-rich and analytics solutions across businesses and enterprises is encouraged by the increased demand for cutting-edge technologies like Artificial Intelligence (AI), the Internet of Things (IoT), and cloud computing. These solutions make it possible to incorporate intelligence capabilities into business processes and procedures to enhance and effectively engage with customers while promoting operational optimization.

Additionally, fostering digitization, the widespread usage of mobile devices, smartphones, and applications across business processes and departments is anticipated to fuel market expansion over the coming years. The rapid transition from conventional to digitalized business models is enabling the introduction of more cutting-edge technical goods and services across industries and sectors, and it is projected that this will further propel the growth of the U.K. market for digital transformation.

The world economy has faced a major difficulty because of the COVID-19 pandemic. Businesses can overcome the problems of lockdown, working from home, social isolation, and other mandates by undergoing digital transformation. Some organizations struggled because companies lacked a digital strategy, infrastructure, or remote working technologies. The COVID-19 pandemic negatively impacted people's personal, professional, and community lives, but it has also opened up new commercial prospects. Solutions for digital transformation are anticipated to foster team collaboration and enable firms to run efficiently without employees. This situation is anticipated to fuel market growth for digital transformation in the UK.

The outbreak of the COVID-19 pandemic positively impacted the market. The COVID-19 pandemic encouraged U.K. government departments to accelerate digital transformation and implement a policy within weeks instead of months or years. The pandemic has impelled businesses to adopt cloud technology for remote working. This has resulted in the increased adoption of cloud services to ensure business continuity. The Government Digital Service (GDS), a Government of the U.K.'s Cabinet Office unit, has built services and a central hub of coronavirus information on GOV.UK to help vulnerable people.

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Digital transformation helps organizations enhance their customer retention ratios, customer experience, and brand reputation through the implementation of software. This software also helps organizations in educating and training their internal teams on numerous aspects of their organizations. Furthermore, digitally transformed businesses can become accustomed to the surging technological landscape and confront sudden industry shifts. More importantly, a substantial part of the market growth is expected to be driven by companies investing in cloud platforms, mobility, and big data technologies to build Digital Experience Platforms (DXP).

Advanced technologies such as cloud, big data, IoT, and analytics, mobility, and social media have sparked innovation and transformation in the business environment, resulting in increased revenue. Digital transformation is the adoption of digital technologies across business processes to transform the way technology and resources are used to deliver improved value to customers. In the U.K., companies have accelerated their digital transformation through cloud migrations, IoT, and by modernizing older IT infrastructure, among others. For instance, key cloud providers such as Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) have invested Billions of dollars in upgrading their cloud infrastructure, from improving redundancy and security to expanding capabilities.

U.K. Digital Transformation Market Report Highlights

• In terms of solutions, the social media segment is anticipated to register considerable growth of 29.5% over the forecast period. Social media is increasingly being employed to build and enhance the customer experience of a brand. This medium is utilized for maintaining public relations, promoting sales, and marketing the available products and services
• In terms of service, the professional service segment is anticipated to register a CAGR of 29.5% over the forecast period. These services assist businesses in resolving problems brought on by the process of going digital. The problems might pertain to anything from vendor selection to cultural shifts. Additionally, businesses are required to choose professional services owing to a staff with a specific skill set needed for the digital transformation of an operation
• In terms of deployment, the hosted segment is anticipated to grow at the highest CAGR of 31.3% over the forecast period. Hosted solutions expand the customization potential and enable the use of analytical tools across various business channels by enabling businesses to access data across linked devices at any time
• In terms of enterprise size, the small and medium enterprise segment is anticipated to witness a CAGR of 29.2% over the forecast period. The growth can be attributed to the rising adoption of digital platforms in SME business models. Moreover, the growing understanding of the advantages of digitalization has resulted in substantial investments by businesses to extend and maintain their current position in the market
• The retail segment is expected to observe a CAGR of 27.8% during the forecast period. The development of digital technology for information collecting storage, analysis, and distribution has given rise to new dynamics in the retail market's digital transformation. Additionally, digitalization can be used to enhance the in-store experience by utilizing kiosks and interactive displays to assist clients in browsing the full range of products
• Key market players have an extended operating history, a large customer base, and significant competitive strengths. In addition to the inorganic growth strategies, vendors emphasize improving after-sale service offerings to ensure periodic maintenance of installed products

The widespread use of mobile devices and apps has transformed many facets of modern life. Owing to the staggering rise in the customer base of smartphone and tablet users, opportunities for employing mobile technologies have significantly increased in the U.K. in recent years. Advancements in the U.K. market include the increasing adoption of healthcare bio-sensing wearables, such as glucose sensors and digital blood pressure monitors, and patient and provider access to real-time healthcare data and information. Consumers now have access to different types of applications apps provided under digital transformation solutions due to increasing smartphone adoption.

U.K. Digital Transformation Market Report Scope

While implementing digital technologies, the security and privacy of critical business data is a major concern, which is compounded further when businesses invest in new technologies. As IoT becomes more pervasive, organizations are demanding more robust security and privacy to prevent breaches. Challenges faced in managing digital security and privacy risks are expected to hinder the adoption of digital transformation efforts across several businesses. Security issues, including cybersecurity risks, rigid technical infrastructure and legal environments, risk management, and/or compliance problems, can jeopardize the digitization plans of a business.