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Digital Workplace Market Research Report—Global Forecast till 2027

Digital Workplace Market Comprehensive Study by Component (Solutions {Unified Communication and Collaboration, Unified Endpoint Management, Enterprise Mobility and Management}, Services {Professional Services, Managed Services}; by Deployment (Cloud, On-premises); by Organization Size (SMEs, Large Enterprises); by Vertical (BFSI, Telecommunication and ITes, Manufacturing, Healthcare and Pharmaceuticals, Government and Public Sector, Media and Entertainment, Retail & Consumer Goods, Others); By Region (North America, Europe, Asia Pacific...

ID: MRFR/ICT/9335-HCR | May 2022 | Region: Global | 100 pages

Digital Workplace Market Overview


The global digital workplace market was valued at USD 21.3 billion in 2020 and projected to reach USD 76.6 billion by 2027 with a CAGR of ~21.8%  during 2022-2027.


Global Digital Workplace Market, 2018–­2027 (USD Billion)
Global Digital Workplace Market, 2018–­2027 (USD Billion)
Source: MRFR Analysis


Technology has changed the way employees work. Organizations now operate through digital workplace platforms that can be accessed from anywhere, anytime as long as employees have a device (laptop, computer, etc.) and internet connectivity. A digital workplace is the fundamental set of digital tools employees use to get work done. It can be anything from virtual meeting tools to instant messaging, enterprise social media tools, and automated workflows, among others.


A digital workplace is a cloud or on-premise-based work platform that allows organizations to move work to the virtual space. A digital workplace platform comprises all the tools, applications, data, and collaboration features employees need to perform work within a reliable online interface that they can access from any time, anywhere, and on any device.


Furthermore, the digital workplace gives employees access to all the advanced tools that they need to handle their everyday job such as project management, collaboration, and process management, among several others. A digital workplace is a virtual replacement of physical offices. They integrate all the distinct business applications used within the organization to make it easier for employees to access the essential tools and business data through one single platform.


Digital Workplace Market Dynamics


Drivers



  • Demand for greater flexibility and improved employee experience


The demand for greater flexibility coupled with improved employee experience has increased significantly across the enterprises. This is because of unbalanced work-life and strict schedules associated with the traditional/physical workplace. Across the globe, business leaders plan on prioritizing employee experience over customer experience because research indicates organizations that provide an engaging employee experience provide a 50 percent better customer experience. Therefore, the rapid adoption of the digital workplace has been witnessed across major organizations to achieve improved customer experience. Digital workplace tools and technology have proved to be effective in offering both flexibility and employee experience in today's competitive world.


Furthermore, digital workplace platforms centralize all employee data in one singular location, making it easy to work and stay connected from anywhere, at any time. By implementing a digital workplace for flexible workers, organizations can align technology, employees, and business practices all in one spot. In an effective digital workplace, employees enjoy a rise in flexibility in both their work environment and work schedules. With tools, such as mobile intranet software, employees can connect from anywhere, focusing less on a strict schedule. This gives employees the flexibility to accomplish a work-life balance that fits more cohesively with their personal lives.



  • Rising demand for cost optimization and improved productivity


Amongst the organizations, cost optimization has always been a major strategy to increase revenue and profit. Productivity of employees is also a major pillar behind the success of any organization. Doing work in less time and reducing the time on repetitive tasks is also a major factor determining employees' productivity.  Digital workplace tools assist in achieving both the demands across the enterprises.  By opting for interactive chat boards and virtual meetings, an organization can eliminate or reduce in-person collaboration, which saves on travel and overhead costs like office space and furniture. Digital workplace platforms help collaborate in real-time to get projects done now, not later. These digital advances streamline processes and enable employees to get more work done in less time.


Opportunity



  • Increasing adoption of cloud and enterprise mobility services among organizations


The increasing populatrity and adoption of cloud and enterprise mobility services among the organization is expected to open lucrative opportunities for the market during the forecast period. This can be attributed to a surged demand for employees engagement in order to enable them to work collaboratively and securely. Especially, the small or midsize business (SMB) faces challenges such as high costs routinely, balancing security and usability, managing multiple devices and operating systems, and addressing privacy concerns, etc. To procure and manage mobile devices and applications can be costly and complicated. It can waste time, with employees waiting weeks or even months to get what they need. Even after they're finally up and running, the company still needs to handle ongoing issues like customer support, maintenance, security, and warranties. These challenges can be addressed by the mobility services and, importantly, in the budget, which is the major factor fuelling its adoption across the enterprises.



  • Upsurging adoption for the digital workplace from the emerging economies


Emerging economies are expected to be the major revenue-generating destinations for the digital workplace market players during the projected period. This can be attributed to an increasing digitalization across the workplaces. The countries such as China, India, and Brazil are adopting digital workplace platforms and services to offer employees improved experiences. Moreover, these countries are becoming major hubs for IT, telecom, manufacturing, BPO outsourcing, among other industries, further augmenting the market growth. Moreover, the technology adoption trend among these countries' employees is also high as they think the adoption of new digital technologies will create career opportunities and higher-paying jobs, which is also a factor contributing to the growth of digital workplace deployment.


Impact of COVID19



  • Impact on the digital workplace transformation


Many companies operated successfully before the COVID-19 pandemic; the outbreak caused even more organizations to promptly accelerate digital adoption and implement best practices that until now were "nice to have." Simply put, the COVID-19 pandemic ended the digital deferral period, serving as the lighter ignition for the digital revolution. Those companies that were not ready were forced to condense more than five years of digital adoption into six months.



  • Impact on the industry verticals


The pandemic forced lockdown situations across all the major economies and imposed numerous restrictions such as travel barriers, closure of the shops and markets, work from home, import-export ban, and others. The COVID-19 pandemic hit all the major industries such as manufacturing, trade, hospitality, leisure, oil and gas, tourism, automotive, and transportation. The industries adopted various strategies to cope with the pandemic situation in which digital workplace strategy has gained major prominence across the organizations.


Cumulative Growth Analysis



  • YOY Growth to Expand at a Strong Rate


According to MRFR, the digital workplace market is expected to witness 18% to 25% percent YOY growth every year during the projected period. The increasing IT spending, growing need for digitalization among the enterprises, rising demand for cost optimization, and improved productivity are expected to boost the market growth during the projected period.


Value Chain Analysis / Technology Analysis / Regulatory Implications


The global digital workplace market supply chain has evolved from a traditional approach to a set of highly efficient processes, including procurement, system integration, and distribution. The supply chain of the digital workplace market involves the designers & programmers, software/platform developers, system integrators, and end-users. 


Segment Overview


The global digital workplace has been segmented into component, deployment, organization size, and region/country.


Based on the component, the digital workplace market has been segmented into solutions and services. The services segment is expected to exhibit the fastest CAGR rate during the projected period. Furthermore, solutions are classified into Unified communication and collaboration, Unified endpoint management, and Enterprise mobility and management. Moreover, the services segment has been bifurcated into professional services and managed services.


Based on the deployment, the digital workplace market has been bifurcated into cloud and on-premises. The cloud segment is expected to exhibit the fastest CAGR rate during the projected period.


Based on the organization size, the digital workplace market has been segmented into SMEs and Large Enterprises. SMEs are expected to exhibit the fastest CAGR growth during the forecast period.


Based on the vertical, the digital workplace market has been classified into BFSI, telecommunication and ITes, manufacturing, healthcare and pharmaceuticals, government and public sector, media and entertainment, retail & consumer goods, and others. BFSI, telecommunication and ITes, and manufacturing sector contribute a significant share within the digital workplace industry.


Regional Analysis


The global digital workplace market is expected to gain significant revenue from the various continents during the projected period. The geographic analysis of the global digital workplace market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America is further classified into the US, Canada, and Mexico. Europe is further classified into the UK, Germany, France, and the Rest of Europe. Asia-Pacific is further segmented into China, Japan, India, and the rest of Asia-Pacific.


North America holds the largest share in the global digital workplace market


North America holds the leading share within the market; this can be attributed to the early adoption of advanced technologies across enterprises. The US and Canada are the major growth engines of the market. The US and Canada are mature markets in the digital workplace space as major enterprises have embraced the tools and services early. Moreover, the swift adoption of technologies such as Artificial Intelligence (AI), Augmented Reality (AR), and Robotic Process Automation (RPA) is also augmenting the market growth. Social media collaboration outside the enterprise has considerably propelled the market growth in the region, especially in the US. The presence of the leading digital workplace vendors in the region is also a major factor behind this growth.


The APAC region is expected to be the fastest growing region


Asia Pacific region is expected to grow with the fastest CAGR rate during the forecast period. Asia Pacific region has witnessed rapid growth in the market owing to the increased adoption of digital workplace approaches among small and medium-sized enterprises. The companies have come to know the importance of employee engagement to offer a better customer experience and in turn more profit. Thereby, SMEs are expected to embrace digital workplace solutions to achieve cost optimization. The countries such as China, Japan, India, South Korea, and Australia are the major growth engines of the APAC region's digital workplace market growth.  Besides, Southeast Asian countries are also emerged as the major market for the digital workplace in recent years. They are expected to open new avenues for the digital workplace market during the projected period.


Competitive Analysis


The global digital workplace market is highly competitive with the presence of several leading vendors. However, some of these players have created goodwill within the market by offering advanced solutions and services. International Business Machines Corporation (US), Cognizant Technology Solutions Corporation (US), Atos (France), Capgemini SE (France), Accenture plc (Ireland), The Hewlett Packard Enterprise Company (US) are the prominent players within the digital workplace industry which have captured the largest client base across the globe. Some of these prominent players have adopted some organic and inorganic strategies such as mergers, acquisitions, partnerships, strategic alliances, and product launches, among others, to gain a competitive advantage.


List of Key Companies Covered in this Report:-



  • International Business Machines Corporation (US)

  • Cognizant Technology Solutions Corporation (US)

  • Zensar Technologies (India)

  • Wipro Limited (India)

  • HCL Technologies (India)

  • Atos (France)

  • Capgemini SE (France)

  • NTT Data Corporation (Japan)

  • Infosys Limited (India)

  • DXC Technology (US)

  • Accenture plc (Ireland)

  • Fujitsu Limited (Japan)

  • Unisys Corporation (US)

  • The Hewlett Packard Enterprise Company (US)

  • Tata Consultancy Services (India)

  • CompuCom Systems Inc. (US)


Key Developments in Global Digital Workplace Market:


On 3 June 2021, Unisys Corporation, a global IT solutions company, announced that it has entered into an agreement to acquire Unify Square, the leading experience management provider for secure collaboration and communications platforms, for USD 152.5 million on a cash-free, debt-free basis. Unisys is funding the transaction with cash on hand.


On 4 Feb 2021, HCL Technologies (HCL), a leading global technology company, announced a five-year Digital Workplace Services Agreement with Airbus. HCL will establish a modernized digital workplace to enhance the user experience and service quality for the majority of Airbus employees globally. HCL was selected as Airbus' preferred partner as it was able to offer the broadest combination of standard functionality and innovation capabilities to generate greater efficiency and improved time to market. HCL's Fluid Workplace Model will enable Airbus to deploy the latest digital technologies and rapidly simplify Airbus's existing IT processes and optimization of delivery costs, using unique end-to-end management services to cover the information and operational technology landscape.


On 19 May 2020, Zensar announced the launch of the Humané, its Digital Employee Experience Transformation solution. Humané is an enterprise-grade solution designed to create an impact on the overall employee experience across multiple functional areas. The solution augments a company's current HR systems and process framework with a native digital platform encompassing end-to-end employee lifecycle experience. The solution offers customized offerings with a consulting-led approach and implementation.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the global digital workplace market has based on component, deployment, organization sizes, vertical, and region/country.


Based on Component


  • Solutions

    • Unified communication and collaboration

    • Unified endpoint management

    • Enterprise mobility and management



  • Services

    • Professional services

    • Managed services




Based on Deployment


  • Cloud

  • On-premises


Based on Organization Size


  • SMEs

  • Large Enterprises

  • Based on Vertical

  • BFSI

  • Telecommunication and ITes

  • Manufacturing

  • Healthcare and pharmaceuticals

  • Government and public sector

  • Media and entertainment

  • Retail & Consumer Goods

  • Others


Based on Region


  • North America

  • Europe

  • Asia Pacific

  • South America

  • Middle East & Africa


Intended Audience



  • Digital Workplace Software Companies

  • Resellers & Managed Service Providers

  • Potential Investors

  • Regulatory & Government Bodies

  • Research & Consulting Firms

  • Upstream & Downstream Vendors

  • End Users

  • Others



Report Scope:
Report Attribute/Metric Details
  Market Size   2021 2027- USD 76.6 billion
  CAGR   ~21.8%
  Base Year   
  Forecast Period   2022–2027
  Historical Data   2019 and 2020
  Forecast Units   
  Report Coverage   
  Segments Covered   â€¢ By Component {Solutions (Unified communication and collaboration, Unified endpoint management, Enterprise mobility, and management), Services {Professional services, Managed services}) • By Deployment (Cloud, On-premises) • By Organization Size (SMEs, Large Enterprises) • By Vertical (BFSI, Telecommunication and ITes, Manufacturing, Healthcare and pharmaceuticals, Government and public sector, Media and entertainment, Retail & Consumer Goods, Others)
  Geographies Covered   â€¢ North America (US, Canada, and Mexico) • Europe (UK, Germany, France, Rest of Europe) • Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific) • Middle East & Africa • South America
  Key Vendors   â€¢ International Business Machines Corporation (US) • Cognizant Technology Solutions Corporation (US) • Zensar Technologies (India) • Wipro Limited (India) • HCL Technologies (India) • Atos (France) • Capgemini SE (France) • NTT Data Corporation (Japan) • Infosys Limited (India) • DXC Technology (US) • Accenture plc (Ireland) • Fujitsu Limited (Japan) • Unisys Corporation (US) • The Hewlett Packard Enterprise Company (US) • Tata Consultancy Services (India)
  Key Market Opportunities   Increasing adoption of cloud and enterprise mobility services among organizations
  Key Market Drivers   Demand for greater flexibility and improved employee experience


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