Digital Workspace Market Size, Share, Trends, and, Growth Statistics 2032

Digital Workspace Market Insights

According to Zion Market Research, the global Digital Workspace Market was worth USD 28.46 Billion in 2023. The market is forecast to reach USD 175.50 Billion by 2032, growing at a compound annual growth rate (CAGR) of 22.4% during the forecast period 2024-2032.

The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Digital Workspace Market industry over the next decade.

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Market Overview

The concept of the digital workplace involves firms using digital transformation to combine technology, personnel, and business processes in order to improve operational efficiency and achieve organizational goals. It is basically a set of digital tools or technologies that employees use to get work done in the workplace. These can be e-mails, enterprise social media tools, instant messaging, virtual meeting tools, and automated workflows. Laptops and computers, smartphones, mobile devices, collaborative apps, virtual assistant technology, and immersive workspaces all make up the digital workplace ecosystem.

The market is being driven by a changing work culture and a growing demand from employees for remote working capabilities in order to attain work-life balance. AI and chatbots are expected to become a major area of focus in this market. AI will help boost human productivity by taking on low-value, high-volume tasks that divert attention away from the strategic thinking that only humans are capable of. The concept of the digital office will continue to expand as mobile, remote, and bring-your-own-device (BYOD) tactics gain traction.

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Growth Factors

A demand for greater flexibility of work and enhanced employee experience is one of the primary factors driving the growth of the market. Factors such as the increased acceptance of cloud-based installations, the implementation of Industry 4.0, and the push toward digitalization across a variety of industries are driving the global market forward. In most firms today, the digital workplace has become an integral aspect of the work experience.

Employees can use digital workplace solutions to better their communication, cooperation, and interactions with one another. These solutions, when implemented efficiently and effectively, enable firms to mitigate common risks, comply with regulatory requirements, and ultimately achieve business goals. Furthermore, the increased usage of digital workspaces among small and medium-sized businesses, as well as significant investment in the construction of IT infrastructure, are also expected to bolster the market's expansion.

Component Segment Analysis Preview

The services segment held a share of around 27.8x% in 2020. This is attributable to the increase in digitization of organizations. Professional services enable firms in aligning their digital workplace activities with the digitalization requirements and help develop a competitive edge through reduced compliance risks, stable operating environments and other features. Such services include training support and maintenance, consulting services and others.

Organization Type Industry Segment Analysis Preview

SMEs segment will grow at a CAGR of over 19.9% from 2021 to 2028. This is attributable to the growing need for teamwork and communication tools, employee engagement, productivity and performance among SMEs. Additionally, with their main focus on being agile and customer-centric, small firms are perfectly suited to embrace this digital transition as they are not bound by the legacy systems and processes as of their larger rivals.

Regional Analysis Preview

The North American region held a share of around 31.2% in 2020. This is attributable to the presence of top companies such as Cognizant, IBM, and DXC Technology, among others. Moreover, this region is a hub for a large number of SMEs, startups and large enterprises that have a high adoption rate of digital workplaces. Moreover, the use of technologies like Artificial Intelligence (AI), Augmented Reality (AR), and Robotic Process Automation (RPA), as well as the rise of social collaboration outside of the enterprise, are expected to drive market expansion in the area.

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The Asia Pacific region is projected to grow at a CAGR of around 20.5% over the forecast period. This surge is due to the growing retail sector in China, India, and Japan, as well as the presence of the majority of IT businesses such as TCS, Wipro and NTT Data in the region. It is also due to a rising demand for digital solutions and increasing focus on remote working and higher customer experience in the region.

Digital Workspace Market: Report Scope

Key Market Players & Competitive Landscape

Some of key players in the automated sortation system market are

• Atos,
• Cognizant,
• IBM,
• Wipro,
• Infosys,
• Accenture,
• Fujitsu,
• HCL Technology,
• DXC Technology,
• NTT Data,
• Unisys,
• HPE,
• TCS and Capgemini among others. 

To strengthen their position in the market, key players have implemented several organic and inorganic growth strategies, such as new product launches, partnerships and agreements, business expansions, and mergers and acquisitions among others. For instance, DXC Technology expanded its strategic partnership with Microsoft with the launch of Microsoft Azure Digital Transformation Practice.

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The global digital workspace market is segmented as follows:

By Component

• Solutions
• Services

By Organization Size

• Large Enterprises
• SMEs

By End Use Industry

• BFSI
• IT & Telecommunication
• Retail
• Healthcare & Pharmaceuticals
• Manufacturing
• Others 

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa