The digital transformation market is growing rapidly, with a market size expected to increase from about USD 1.11 trillion in 2025 to USD 1.86 trillion by 2031, at a CAGR of 9.1%. The market is rapidly evolving due to rising adoption of advanced technologies to meet growing customer expectations, the emergence of digital public infrastructure (DPI), and the need for better operational efficiency and cost savings. By combining digital and physical operations, organizations can streamline workflows, support data-driven decision-making, and deliver smooth experiences across customers, employees, and partners. These innovations improve process automation, resource use, and business agility, making digital transformation initiatives essential for growth and competitive advantage in today’s fast-changing business environment.
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In May 2025, Accenture and SAP expanded their partnership by launching ADVANCE, a preconfigured, AI-enabled SAP Business Suite cloud package designed for high-growth enterprises, enabling streamlined and secure finance, procurement, supply chain, and workforce modernization.
In January 2025, HCLTech and Microsoft expanded their strategic partnership to transform contact centers using generative AI and cloud-based Dynamics 365 Contact Center solutions, enabling migration from Nuance services, deploying a dedicated Migration Factory, and improving CX, efficiency, and AI-integrated agent support.
Some of the top players in the digital transformation market include Microsoft (US), IBM (US), AWS (US), Accenture (US), and Cisco (US). They lead the market through AI-driven process automation, cloud-based enterprise modernization, actionable data insights across operations and customer journeys, and scalable, secure digital infrastructure. These strengths allow organizations to streamline workflows, connect digital and physical operations, improve customer and employee experiences, and foster innovation and efficiency. As a result, these vendors are key influencers in the fast-changing digital transformation landscape.
MICROSOFT
Microsoft's strong brand reputation and wide range of products, such as Windows and Office software, along with cloud services provided by Azure, are key advantages for the company. This variety of options helps reduce risks associated with market changes and enhances customer retention. Microsoft has made significant investments in AI and ML, which enable it to perform advanced analytics and automation processes. The acquisition of Nuance Communications Inc. also strengthens its AI and healthcare capabilities, allowing it to capitalize on growing market opportunities.
IBM
IBM's digital transformation division is supported by IBM's cloud computing capabilities, cutting-edge AI solutions, and strategic acquisitions and partnerships. IBM Cloud offers comprehensive services, including hybrid clouds and multi-cloud environments vital for modern digital transformation projects. Regarding AI-driven insights and automation, the Watson AI platform from IBM remains a leader in enhancing operational efficiency and improving customer experiences. The acquisition of Turbonomic has further strengthened IBM’s AI-based application resource management, boosting efficiency and performance in cloud environments. Additionally, IBM acquired ReaQta to expand its cybersecurity portfolio, giving it a competitive edge in securing digital transformations.
MARKET RANKING
In 2025, the digital transformation market remained highly competitive, with Microsoft, IBM, AWS, Accenture, and Cisco collectively accounting for about 35–40% of the total market share. These leading vendors stood out by providing comprehensive, AI-powered solutions that help enterprises modernize operations, optimize workflows, and improve customer experiences. Microsoft expanded its cloud and AI capabilities through Dynamics 365, offering solutions for data analytics, process automation, and enterprise-wide digital integration. These innovations enable organizations to boost operational efficiency, adopt scalable business models, and enhance end-to-end customer engagement. IBM strengthened its portfolio with IBM Cloud Pak for Automation, giving enterprises insights for predictive decision-making, streamlined workflows, and secure, scalable infrastructure for digital projects. AWS continued improving its cloud and machine learning services through AWS Digital Transformation Solutions, helping organizations modernize IT systems, speed up application deployment, and utilize advanced analytics for business growth and innovation. Accenture focused on consulting-led digital transformation via myNav, combining technology integration with strategy and operations expertise to deliver AI-driven process improvements, cloud adoption, and enterprise-wide modernization efforts. Cisco advanced its networking, security, and collaboration solutions with Cisco DNA (Digital Network Architecture), assisting enterprises in ensuring seamless digital connectivity, secure data flow, and effective communication across global operations. Together, these vendors empower organizations to unify digital and physical operations, leverage data-driven insights, and optimize business workflows. Their combined strengths foster operational efficiency, innovation, and better customer and employee experiences, making them the most influential players in the digital transformation market.
Related Reports:
Digital Transformation Market by Solution (Customer Experience, Process Automation Platform), Services (Application and Infrastructure Modernization), Transformation Focus Area (Financial, Operational, Workforce Transformation) - Global Forecast to 2031
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