30+ Digital Transformation Statistics You Need to Know in 2025

The impact of digital transformation can be far-reaching and profound as it fundamentally changes how businesses operate and deliver value to customers. In the broadest sense, digital transformation refers to the process of integrating technology into different aspects of a company. It brings more agile solutions to everyday processes like data collection, mobile access, customer experience, marketing, and analytics. It's also a cultural change that requires organizations to challenge the status quo, experiment, and get comfortable with failure.

Global spending on digital transformation is expected to hit $3.4 trillion by 2026. What makes digital transformation appealing and integral to today's business landscape? The COVID-19 pandemic, coupled with the changing market conditions, bolstered the need for automation, remote work, and efficient workflow. Adopting digital transformation initiatives has proven to enhance the way a company operates and responds to market needs in a more agile way.

Essential Digital Transformation Stats

Digital transformation should be at the forefront of every organization's goal. If you have yet to digitize, digitalize, and reach a total transformation, here is a comprehensive rundown of stats to encourage every company to start. These should help illustrate how digital transformation can improve your reach, customer service, and, ultimately, the bottom line.

Digitization Statistics

Digitization is the first stage of the entire digital transformation process. It involves computerizing physical files or processes and relying on digital artifacts instead. Some examples include converting paper documents into digital ones, using electronics for manufacturing, and more. 

• The global digital transformation market is expected to grow to $1,009.8 billion by 2025 from $469.8 billion in 2020, at a CAGR of 16.5 percent during this period.
• 89 percent of all companies have already adopted a digital-first business strategy or are planning to do so
• By 2025, three out of every four business users can adapt to new markets and industries using digital platforms.
• Over half of CEOs (51 percent) believe digital improvements have increased revenue for their respective companies. (Gartner)

Digital Adoption Platform

Digital adoption is the next step to transformation - where companies figure out how to leverage abstracted or digitized data and processes. These innovations contribute to how documentation, production quality, time-to-market, monitoring, and production performance, among other things, can improve.

• 25 percent of organizations worldwide have adopted cloud-distributed technology on a large scale 

• Digital transformation is a top priority for 74 percent of organizations.

•  Digital transformation is now prioritized over cybersecurity (73 percent) and cloud implementation (65 percent).

• Almost twice as many CEOs (57 percent) choose to "reinternalize IT" or bring information technology back to the core of the business for competitive advantage. (Gartner)

• 97 percent of companies say the COVID-19 pandemic sped up their digital transformation initiatives 

• 70 percent of companies either have a digital transformation strategy in place or are working on one.

Digital Transformation General Stats

Digital transformation is an overall shift toward IT solutions and capabilities, where companies understand that new-era technology skills could gain their competitive advantage and generate growth for the business.   

• Companies that have successfully endured the COVID-19 impact note the role of technology. Around 67 percent mentioned they were ahead of their peers in adopting tech-related solutions before the crisis, and 56 percent said they adopted technology during the crisis. (McKinsey)
• 64 percent of organizations say they need to build new digital businesses to stay competitive in 2024 and beyond
• 69 percent of IT decision-makers primarily view digital transformation as a way to improve process efficiency.
• 29 percent of CEOs and executives reported a positive impact on growth when they pushed through with digital transformation, while 41 percent noted that their sales and marketing campaigns were positively affected by the change. (Deloitte)
• According to Gartner, 60 percent of mainstream companies will list becoming a composable business as a strategic objective. It will help them outpace their competitors by 80 percent in the speed of implementing new features.
  

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Digital Transformation Challenges

Digital transformation doesn't happen overnight. It takes considerable time, effort, and resources to shift and fully integrate it into everyday workflow successfully. Here are the biggest challenges that adopters have experienced:

• Organizations with 100 or fewer employees were 2.7 times more likely to succeed in DX than companies with 50,000 or more employees.
• A 2021 survey asked over 3,000 IT professionals about their organizations' challenges on the road to digital transformation. 54 percent said they lacked “IT skills or transformation expertise.”

• One major challenge for manufacturing brands is the complexity of implementation - about 76 percent rate digital transformation as somewhat challenging and highly challenging. 
• Upfront costs (75 percent), time allotment required for full transformation (75 percent), and the availability of qualified staff (75 percent) are all significant issues companies recognize when moving toward digital transformation.
• About one-third of CIOs anticipate difficulty hiring appropriate people or training existing data science and cybersecurity staff. 

• Employee pushback and lack of expertise to lead digitization initiatives are the top two barriers to digital transformation

Digital Adoption Statistics by Industry

CEOs and CIOs across many industries recognize that digital transformation boosts growth and profit. Moving away from brick-and-mortar management to an AI-powered hybrid or cloud improves efficiency and productivity and could potentially bring down operational costs. These stats highlight specific industries that have benefited from digital transformation efforts:

    Retail

• The global retail digital transformation market for retail reached $143.55 billion in 2020 and is expected to grow at 18.2% CAGR by 2026. The Asia Pacific has the highest growth rate in digital transformation for retail. (Mordor Intelligence)
• 63% of retailers are ready to spend more on data analytics, and 35% on AI technology to improve workflow. (Gartner)
• 71% recognize that digital transformation is an essential part of retail technology. (Fujitsu)
• About 75% of Internet users in the U.S. alone use it for online shopping due to the personalized and accessible experience. (Mordor Intelligence)

  Healthcare

• Digital healthcare is trending in developed countries like Germany, the U.S., China, and others. The global market for digital transformation in healthcare is projected to grow at a CAGR of over 14% up to 2031. (Future Market Insights)
• At least $250 billion of today's U.S. healthcare expenditure (20% of the total) is ready to be provided in virtual modes. (McKinsey)
• Telehealth and telemedicine efforts have increased from 11% to 76% following the pandemic. (McKinsey)
• By 2025, the projected revenue from AI healthcare delivery and technology will be around $34 billion. (BusinessWire)
• IBM survey found that healthcare organizations incur higher costs associated with data breaches three times more than other industries. These entail appropriate data security measures. (Future Market Insights)
• Despite overall growth rates falling in the wake of COVID-19, financial services and infrastructure are among the sectors that maintain double-digit growth rates, in part due to digital transformation.
• Forbes reports that Cornerstone Advisors' data shows that 75% of traditional banks and credit unions have initiated a digital transformation procedure within the organization, and another 15% are developing their strategy by 2022. (Forbes)
• By 2025, 25% of the insurance industry will shift to automated procedures via machine learning and AI-powered analytics. (McKinsey) 

  HR

• Job automation is forecasted to eliminate 29% of jobs but contribute to new job postings by 13%. (Forrester)
• A lack of key skills in digital transformation is what 55% of employers see as a concern when innovating. (PwC) 
• HR leaders use AI to assist workers in the company, and 58% note that AI in HR has improved overall productivity, while 16% use it to improve insights. (Statista)

How Kissflow Accelerates Digital Transformation Journey

Digital transformation has proven essential for all types of industries. It enables a more efficient approach, less downtime, and less likelihood of human errors, and ultimately broadens a company’s reach. 

Perhaps the biggest takeaway is that digital transformation is a long and arduous process. Any digital application or revision will not be immediately practical without proper onboarding, training, and support to employees as well as end users. Companies benefit from having reliable resources that can initiate or support ongoing procedures. 

Kissflow is among the industry's trusted work platforms that are effectively designed to empower you digitally, giving you the agility and flexibility to run your business operations hassle-free. 

Whether it is automating processes, digitizing your operations, managing requests, or building custom applications, with Kissflow, you can do it all within a unified platform without or with limited coding expertise. 

Get started with the Kissflow Platform and learn how to leverage its features to drive better results