Digital Workplace Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Digital Workplace Market size was estimated at USD 24.7 billion in 2023 and is projected to reach USD 70.2 billion in 2030 at a CAGR of 22.8% during the forecast period 2024-2030.

The concept of a digital workplace revolves around leveraging digital transformation to align employees, technologies, and business processes. It enables employees to access data and applications from anywhere and on any device, fostering flexibility and productivity. Solutions like enterprise mobility facilitate seamless work across physical, virtual, and connected environments, collectively known as "digital workplace solutions." The primary objective of digitizing workplaces is to create user-centric environments that enhance employee experience and operational efficiency. 

The market for digital workplaces is expanding rapidly as organizations, both large enterprises and small to medium-sized businesses, embrace trends like Bring Your Own Device (BYOD) and remote work. These trends not only increase flexibility and mobility but also reduce hardware and software management costs associated with business-owned devices. This transformation is reshaping workplaces and processes, supported by organizational restructuring aimed at optimizing operational expenditure.

Technological advancements such as Artificial Intelligence (AI), Internet of Things (IoT), and Virtual Reality (VR) are pivotal in driving cloud-based accessibility solutions and enhancing workplace flexibility. These technologies empower businesses to streamline operations, automate manual processes, and improve overall productivity. For instance, partnerships like the one between Wipro and Scania highlight how AI and automation can enhance employee support and customer experience within a digital workplace environment.

The adoption of cloud services, including Infrastructure as a Service (IaaS), Backend as a Service (BaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), is integral to supporting business needs in modern digital workplaces. Cloud services facilitate instant access to critical data and enterprise applications across various devices while maintaining stringent security measures.

The COVID-19 pandemic accelerated the shift towards digital workplaces, compelling businesses worldwide to adopt remote working technologies for business continuity. This period saw widespread adoption of video conferencing and collaboration tools, fostering new communication methods and team bonding practices. Many organizations made enduring investments in digital workplace transformations to support hybrid work models, emphasizing secure remote access through cloud-based solutions.

Looking ahead, the digital workplace market is poised for continued growth driven by ongoing digitalization efforts, increasing demand for desktop-as-a-service solutions, and evolving workforce expectations for work-life balance flexibility. The market dynamics are shaped by technological innovation, strategic partnerships, and a global shift towards remote and hybrid work environments, making it a pivotal area for investment and development in the coming years.

Delvens Industry Expert's Standpoint

The Digital Workplace Market is currently experiencing significant growth driven by its ability to attract, retain, engage, and motivate employees through flexible work options and enhanced productivity tools. Mature digital workplace policies empower employees to choose their devices and work styles, supported by persona-based models that tailor workplace solutions to individual needs. Data security is ensured through embedded collaboration tools and cloud storage, enabling seamless access across locations and devices, whether in physical offices or remote settings. This accessibility boosts efficiency, productivity, and organizational agility.

Looking forward, the adoption of digital workplace solutions is expected to accelerate as organizations prioritize agility and employee satisfaction. FlexJobs' annual survey highlights that flexible work options, improving work-life balance, and reducing commute stress are key considerations for job seekers, underscoring the demand for digital workplace tools. Small and Medium-sized Enterprises (SMEs) are particularly poised to benefit, gaining competitive advantages like increased productivity, cost savings, and enhanced workforce mobility. As SMEs increasingly recognize the benefits of digital transformation, the market is forecasted to see continued expansion.

Future trends indicate a deeper integration of AI, automation, and advanced analytics within digital workplaces, further enhancing operational efficiencies and employee experiences. Cloud-based solutions will continue to play a crucial role in supporting remote work capabilities and ensuring data security. Overall, the Digital Workplace Market is set to evolve with technological advancements and changing workforce dynamics, driving innovation and business growth across industries.

Market Portfolio

Key Findings

• On the basis of Component, In the Digital Workspace market, segmentation based on Component includes Solutions and Services. The Solutions segment currently dominates in terms of revenue, encompassing categories like Unified Communication and Collaboration, Unified Endpoint Management, Enterprise Mobility and Management, among others. End-users are increasingly adopting workplace solutions such as social and collaborative tools, cloud storage, and content management systems to enhance resource utilization and boost productivity, thereby driving growth within this category.

• On the basis of Organization, The large enterprise segment commands the highest market share and is expected to show robust growth throughout the forecast period. Large businesses dominate the digital workplace market, comprising 61% of the market share, driven by their substantial investments in advanced digital technologies to enhance operational efficiency. Compared to SMEs, these enterprises manage complex IT infrastructures and prioritize cutting-edge digital workplace solutions to support their expansive workforce and diverse operations. They face challenges in data storage, data center management, and maintaining focus on core business operations amidst increasing demands for mobile access to computing resources and applications.

• On the basis of End-use, The IT and telecom segment holds the largest market share and is expected to grow significantly during the forecast period. This industry benefits from enhanced employee productivity, reduced physical footprint costs, lower employee turnover, access to a broader talent pool, and other advantages, positioning it as a pivotal driver in the digital workplace sector. Many IT and telecom businesses, including startups, had already adopted digital workplace tools such as Slack and Microsoft Office 365 pre-pandemic. These businesses cater to diverse customer needs and must continually innovate their digital workplace strategies to maintain competitiveness, ensure customer satisfaction, and manage complex data securely.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America held the largest Digital Workplace Market share driven by the growing adoption of digital workplaces across small, medium, and large enterprises in the region during the forecast period.

Regional Analysis

North America to Dominate the Market

• North America dominates the Digital Workplace Market as the most promising region across major verticals such as telecommunications, IT services, BFSI, and manufacturing. Known for its maturity in adopting digital workplace solutions and services, North America benefits from a robust ecosystem of enterprises ranging from small startups to large corporations. The region's extensive technical expertise supports advanced IT infrastructures, driving adoption of technologies like IoT gateway security, Artificial Intelligence (AI), Augmented Reality (AR), and Robotic Process Automation (RPA). These factors position North America at the forefront of market growth, facilitated by increasing social collaboration beyond traditional enterprise boundaries.

Competitive Landscape

• Atos Group
• Wipro Limited
• HCL Technologies Ltd. (HCL Enterprises)
• IBM Corporation
• DXC Technology Company
• NTT Data Corporation
• Citrix Systems, Inc.
• Unisys Corporation
• Accenture PLC
• Cognizant Technology Solutions Corporation
• Capgemini
• Infosys Limited
• Tata Consultancy Services Limited
• Tech Mahindra Limited
• Mphasis

Recent Developments

• In July 2022, Accenture announced the acquisition of Imaginea, a leading provider of cloud-native platforms. This acquisition will enhance Accenture's offerings in cloud-based services for digital solutions and services.

• In January 2021, Atos launched Workplace as a Service | Google Edition, a component of its Atos Digital Workplace solutions. This offering aims to enhance the employee workplace experience by providing greater user choice and productivity enhancements for enterprise customers. In collaboration with Google Cloud, Atos delivers an integrated and secure package that includes Chromebooks equipped with Atos' Circuit software, along with Google's G Suite. Atos also offers comprehensive services for setup, migration, and management, ensuring seamless support for their digital workplace solution.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Digital Workplace Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope