According to a new market research report “Digital Workplace Market by Component (Solutions [Unified Communication and Collaboration, Unified Endpoint Management, Enterprise Mobility and Management] and Services), Deployment, Organization Size, Vertical, and Region – Global Forecast to 2026” published by MarketsandMarkets, the digital workplace market size expected to grow from USD 22.7 billion in 2020 to USD 72.2 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.3% during the forecast period.
Key factors that are expected to drive the growth of the market are the cost optimization and improved productivity and availability of new technology and tools. However, lack of thought leadership among organization and clear and defined Return on Investment (ROI) are expected to limit the market growth. Apart from drivers and restraints, there are a few lucrative opportunities for digital workplace providers in the market. Increasing adoption of cloud and enterprise mobility services among enterprises and increasing adoption of workplace transformation services among SMEs are some of the opportunities for vendors in the digital workplace market. These opportunities are expected to present new market growth prospects for digital workplace vendors.
Enterprise mobility and management segment to hold a larger market size during the forecast period
Enterprise Mobility Management (EMM) is a set of services and technologies designed to secure corporate data on employees’ mobile devices. While it can manifest itself in various ways, it generally consists of a suite of mobile management systems and services that protect intellectual property; specific processes that ensure the security of data; and systems that must integrate with a wide range of enterprise IT systems to meet a range of corporate concerns. The EMM emerged in large part due to the rise of Bring-Your-Own-Device (BYOD) programs. As more organizations embraced flexible policies, they turned to EMM to overcome the pitfalls of enabling personally-owned devices to access corporate data. EMM is the beneficiary strategy for organizations and their people to significantly reduce the workloads, empower IT teams to troubleshoot rapidly, improve productivity and security, and reduce costs.
SMEs segment to grow at the highest CAGR during the forecast period
SMEs are defined as organizations with an employee strength ranging from 1 to 1,000. SMEs have a low marketing budget and often lack the resources and capabilities for effective marketing orchestration. The majority of SMEs are prone to cyberattacks as compared to large enterprises due to the lack of security infrastructure. According to a survey, nearly 43% of cyberattacks occur in small enterprises. Hence, SMEs need robust infrastructure to fight against cyberattacks and avoid data loss and downtime. In comparison with the large enterprises segment, the SMEs segment is facing various challenges in terms of resources. SMEs focus on reducing the overall cost and adopt enhanced infrastructures. They require a flexible payment model for better cost optimization of their business processes.
Telecommunication and ITeS vertical to grow at the highest CAGR during the forecast period
The telecommunication and ITes vertical is one of the fastest-growing verticals with respect to the adoption of advanced technologies, such as cloud computing, big data analytics, DevOps, digital stores, and social networks. The telecom companies have to manage a huge customer base; fulfill continuously changing customer demands; and offer a variety of mobile services, TV, and phone and wireless services through various devices. Handling such complex and confidential data makes it important for this vertical to adopt digital workplace practices, enhance customer satisfaction, adopt digitalization, and maintain its competitive position. The rapid advancements in cloud computing and the Internet of Things (IoT) technologies have led telecom companies to leverage their existing infrastructures to accommodate these technologies. The software systems needed in the telecommunication and ITeS vertical have to be highly robust and reliable, as their failure can lead to huge revenue losses.
North America to account for the highest market share during the forecast period
North America is estimated to hold the largest market size in the global Digital workplace market in 2020, and the trend is expected to continue during the forecast period. Presence of huge number of enterprises and the abundant technical expertise are the major growth factors for increasing adoption of digital workplace solutions and services across region. The US is estimated to hold a larger market share in 2020 in the North American digital workplace market, and the trend is expected to continue until 2026. It is a technologically advanced country, due to the high level of technology awareness, presence of many technologically advanced players, and high IT infrastructure budgets of companies in the region. CT Bureau