Digital Platforms for the future

The Digital Engineering market spend stood at USD 404 Bn in 2019 and is expected to grow at 19% CAGR and reach USD 1141 Bn by 2025. This spend is largely driven by investments focused on building digital infrastructure and development/re-engineering of products and services.

The digital platform market is one of the fastest growing market. Digital platform helps businesses to enhance user experience in order to attract new customers. The evolution of advanced technologies such as IoT, AI (artificial intelligence), cloud, and analytics are playing a crucial role in driving the growth of digital platform market.

Most of the enterprises are adopting digital platform for smart consumptions of digital assets in order to maximize operational excellence, implement intelligent processes, monetize internal resources, and enhance the customer experience, due to this, the digital platforms market is growing at a rapid pace.

The new normal has made companies to work on adoption of collaborative digitized engineering processes to accelerate platform development, secure the digital and physical world, and automate the process across product development life cycle and operations.

The rise of the digital platforms is transforming the principles of economic growth, how businesses compete, and organizations are formed; essentially reshaping the world we live, work, and play in.

Service Providers (SPs) are building and ramping up digital engineering capabilities.

From leveraging SPs for both “build the new” (Digital Engineering-led initiatives) as well as “renew the old” (legacy and end of life product workstreams) initiatives, customers are relying on SPs to accelerate their go-to-market, enable faster development, and reduce time-to-market. In fact, SPs have also increased their spending on building capabilities across new-age areas such as AI/ML, Internet of Things (IoT), 5G, etc., to target high-growth areas and win more deals.

 

The digital experience platform industry can be divided based on segments like components, deployment types, and applications.

The industry can be divided based on components as:

·  Platform 

·  Services
    
    o   Professional Services
    
    o   Managed Services
    
The industry can be divided based on its deployment type as:

· On-Premises 

· Cloud

The industry can be broadly categorized based on its application sectors into:

· IT and Telecom 

· BFSI 

· Retail 

· Healthcare 

· Manufacturing 

· Travel and Hospitality 

·  Media and Entertainment 

·  Public Sector 

·  Others

 

In future the major revenue will be from digital platforms as professional services & managed services revenue. The service providers should help customers to accelerate time to market and time to profit, enable faster development