Author Article by Sameer Danave, Senior Director Marketing, MSys Technologies
With Q1 of the FY 2023-24 behind us, it’s time to take a relook at the digital transformation journeys of organizations so far. The juncture is also essential to analyze the emerging trends and their potential impact on firms’ functional procedures and operational mechanisms. If you’ve missed what is making headlines in the digital world globally, then here’s a complete lowdown of things that remained in focus and are likely to dominate digital transformations of firms in the future:
- Low-code Platforms: Year 2023 will prove crucial for the widespread adoption of low-code philosophy. According to Gartner, the number of citizen developers will be four times the number of professional developers working in major firms across the globe. Further, the low-code application platforms (LCAPs) will grow by 25% to reach $10Bn in valuation by the end of the year. The rising push for digital transformations complemented by a supportive policy framework will ensure that the growth story of low-code platforms will scale new heights in 2023 and beyond.
- Cloud Computing: Owing to its multiple benefits including cost-savings and faster operations, Cloud computing is likely to remain the preferred choice of organizations worldwide. High flexibility, easy scalability, and better security are other essential characteristics that keep cloud platforms’ growth story intact. Regarding numbers, Gartner predicts the cloud will reach $591.8Bn in valuation, with global expenditure on platforms expected to grow by 20.7% in 2023.
- AI, ML, and Intelligent Search: The ongoing growth in adopting AI and ML will continue for the rest of 2023. Research from various data and consulting organizations predict that the global AI market will reach $733.7 Bn by 2027 with an estimated CAGR of 42.2% between 2020 and 2027. This year alone, the investment in AI solutions will exceed $500 Bn, and this can be partly attributed to the immense potential that AI and ML offer to streamline businesses across the globe. The role of intelligent search in efficient data collection and analysis is gaining significance with each passing day. Leading revenue impact and advisory company, MarketsandMarkets estimates intelligent search will grow at a CAGR of 19.2% to reach $19.2 Bn by 2025. This high growth comes against the backdrop of firms’ increasing focus on dealing with only relevant data as it offers insightful information on essential decision-making parameters.
- Business and Robotic Process Automation: Business Process Automation (BPA) is growing exponentially and is expected to reach $19.6 Bn in market cap by 2026, up from $9.8 Bn in 2020. Automation has impressive capabilities to speed up menial jobs or repetitive tasks, with studies revealing that it can reduce the person-hours in the finance department by up to 25,000 hours/annually, translating into an annual savings of $880,000. The segment of AI-based automation has also gained traction alongside robotic process automation (RPA), which is likely to reach $43.52 Bn by 2029, as per Fortune Business Insights.
- Thriving Blockchain Developments: Amidst the ever-increasing use of data, keeping the information safe and secure couldn’t be overemphasized. This growing awareness is driving the demand for the blockchain across industrial segments. Statista predicts that the open ledger category will grow by 56% annually; in the year 2024 alone, the spending in the segment will reach $19 Bn. Blockchain forecasts also suggest that social media will integrate the technology among rising concerns about guarding information, protecting data, and securing controls on these platforms. Further, the use of AI on blockchain platforms will grow and offer users more reliable, intelligent, and profound data protection.
- Maturing Virtual Collaborations and Customer Data Platforms (CDPs): In Q2 of FY 2023, the already popular remote/hybrid working methods are likely to get more mature and efficient. This will be made possible with enhanced technology, distributed platforms, cloud computing, and other allied tools. The increasing adoption of CDPs will also deliver significant results as these are tailor-made to provide superior experiences owing to their personalized approach to collecting, segmenting, and classifying customer data.
- Expanding Everything-as-a-Service (XaaS) Solutions: Leaving behind the past trends, the world in 2023 is fast moving towards XaaS solutions. With a CAGR pegged at 20.77%, the market of XaaS will grow and reach millions of dollars in valuation by 2029. Cost-effectiveness, personalized solutions, and high operational efficiency are vital benefits that XaaS bring to the table and will drive the next level of growth for the category.
With digital transformations becoming the mainstay of technology integration, these solutions are changing how organizations create, communicate, and deliver their value propositions to the target market. The trends in the digital technology category are undergoing rapid transformations, and it is absolutely mandatory for firms to keep experimenting and innovating to make the most of these platforms.
