Market Size of India Digital Transformation Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 89.88 Billion |
| Market Size (2029) | USD 229.59 Billion |
| CAGR (2024 - 2029) | 20.63 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Digital Transformation Market Analysis
The India Digital Transformation Market size is estimated at USD 89.88 billion in 2024, and is expected to reach USD 229.59 billion by 2029, growing at a CAGR of 20.63% during the forecast period (2024-2029).
- Several factors, including increased investments, advancements in automation technology, a thriving E-commerce sector, and a rising demand for warehousing technologies like dark stores and micro-fulfillment centers, were poised to drive significant growth in India's digital transformation market. For instance, in February 2023, Prozo, a 'full-stack' supply chain company, introduced the Mini-Load Automated Storage and Retrieval System (mini-load ASRS). This move not only marked a significant technological leap for the company, making it the first 3PL company in India to integrate such advanced automation into its supply chain, but also brought it closer to achieving 100% warehouse automation.
- Moreover, as per IBEF, a surge in internet and smartphone usage has fueled most of the industry's expansion. The number of smartphone users in India is projected to reach 887.4 million by 2030.
- The adoption of packaged food is anticipated to drive the studied segment for the market. According to the Retailers Association of India, the market value of packaged food in India is estimated to increase from INR 4, 240 billion in 2022 to INR 5.798 billion in 2025.
- Government initiatives, like Digital India, and favorable FDI policies are instrumental in introducing new online modes of commerce, facilitating the growth of e-commerce in the country. Further, the proposition of the "National E-commerce Policy," which consolidates a lawful agenda regarding the data flow and the involvement of foreign government agencies, is expected to strengthen the e-commerce landscape in the country. Moreover, the Foreign Direct Investment policy has permitted 100% FDI in the e-commerce marketplace model under the automatic route.
- To support the digital transformation in India, several companies are launching innovative products. For instance, in February 2023, ABB launched its latest ABB Ability Symphony Plus distributed control system release to cater to the power generation and water industries. It delivers customers access to digital solutions like fleet asset management enabled by ABB Ability Genix Asset Performance Management. It also allows customers to access process and alarm data from mobile devices through the ABB Mobile Operations application, facilitating them to stay updated to react faster, save costs, and reduce downtime.
- However, developing economies like India have been representative of labor-intensive formats. With labor costs significantly low compared to other developed countries, high investment in industrial automation systems with additional staff training has restrained the adoption of automation systems, especially in the SMEs. The availability of cheap labor is likely to function as a restraining factor for the growth of the studied market during the forecast period.
