The Government of India implemented the ‘Digital India’ program to transform the country into a digitally empowered society by improving ease of doing business. Additionally, the central government also introduced the ‘Make in India’ initiative in 2014 to encourage domestic production and increase the contribution of the industrial sector to the gross domestic product of the country. With the implementation of these two central-level programs, the manufacturing industry, especially for manufacturing automobiles, electronics systems, renewable energy products, pharmaceuticals, roads and highways equipment, and food processing products, is increasingly adopting digital manufacturing tools.
Thus, the improving and growing manufacturing sector is expected to drive the Indian digital transformation market at an exceptional CAGR of 74.7% during the forecast period. The market was valued at $24.5 billion in 2018 and it is projected to generate $710.0 billion revenue by 2024. In recent years, the deployment of internet of things (IoT) technology and enterprise resource planning (ERP) systems in the manufacturing sector has become a prominent market trend.
In the preceding years, large enterprises of India were the largest user of digital solutions, such as artificial intelligence (AI), augmented reality (AR)/virtual reality (VR), big data, blockchain, cloud, chatbots, cybersecurity, eSignature, IoT, mobility, machine learning (ML), and social media, and digital services, such as professional services and training and support, due to their strong financial position. Owing to the availability of extensive capital, the large enterprises are increasingly implementing digital strategies across operation channels to improve their position. In addition to large-sized enterprises, medium and small businesses are also focusing on digital transformation to improve their operations.
The vertical segment of the Indian digital transformation market is classified into banking, financial services, and insurance (BFSI), energy and utilities, healthcare, manufacturing, oil and gas, retail, telecom and IT, transportation and logistics, and others, such as construction, hospitality, and tourism. Under this segment, the BFSI category generates the highest revenue and exhibits the fastest growth due to the surging focus of financial institutes on customer satisfaction and digital operating models. The BFSI sector needs to incorporate advanced technologies in its operational channels to cater to customer needs and increase its productivity.
In contemporary times, digital transformation in India can be credited to Wipro Limited, Clarion Technologies Inc., Dell Technologies Inc., Tata Consultancy Services Limited, HCL Technologies Limited, Kellton Tech Solutions Ltd., Datamatics Global Services Limited, Cisco Systems Inc., Infosys Limited, Sasken Technologies Ltd., Mindtree Limited, Cognizant Technology Solutions Corporation, Accenture plc, and Tech Mahindra Limited. These IT companies are currently focusing on content customization and differentiation to reach out to a greater number of customers.
According to P&S Intelligence, the southern region accounts for the largest share in the Indian digital transformation market, and it demonstrates the fastest growth in the market. This can be ascribed to the presence of prominent IT companies in Mysuru, Bengaluru, Mangalore, Chennai, Trivandrum, and Kochi, and the successful implementation of numerous industrial and technologies initiatives, on account of rapid economic growth and existence of a conducive business environment in the region. IT giants such as Infosys, Accenture, Wipro, and International Business Machines (IBM) Corporation have prominent branches in Bangalore.
Thus, the booming manufacturing sector will accelerate the adoption of digital solutions and services in India in the foreseeable future.