Workplace Transformation Market by Service (Enterprise Mobility & Telecom Services, Unified Communication & Collaboration Services, Application Management Services, Workplace Automation Services, Workplace Upgradation & Migration Services, Desktop Virtualization, Asset Management Services, Field Services, Service Desk), by Organization Size (Large Enterprises, Small & Medium Enterprises) by Industry (Banking, Financial Services, & Insurance, Government, Healthcare & Life Sciences, Manufacturing & Automotive, Retail, Transportation & Logistics, Media & Entertainment, Telecom & Information Technology), by Geography (U.S., Canada, Russia, France, Germany, Japan, China, India, Brazil and Saudi Arabia) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Workplace Transformation Market Overview

The global workplace transformation market was valued at $9.2 billion in 2017 and is forecasted to witness a CAGR of 17.5% during 2018–2023. Transition in workforce demographics and increasing adoption of the bring-your-own-device (BYOD) policy, which helps enhance workforce productivity and reduce operational expenses, are the key factors driving the market growth.

 

GLOBAL WORKPLACE TRANSFORMATION MARKET, BY ORGANIZATION SIZE, $M (2013-2023)

On the basis of service, the workplace transformation market has been categorized into enterprise mobility and telecom services; unified communication and collaboration services; application management services; workplace automation services; workplace upgradation and migration services; desktop virtualization; asset management services; field services; service desk; and others, where “others” include data center transformation services and network management services. Among these, enterprise mobility and telecom services are expected to continue holding the largest share in the market in the coming years. These services are increasingly becoming part of organizations, as they look for ways of offering uninterrupted operations, irrespective of the location.

Unified communication and collaboration services and workplace automation services are also expected to drive the market growth in the coming years, owing to increasing collaborations among employees and rising need for regulating repetitive work.

Based on organization size, the workplace transformation market has been categorized into large enterprises, and small and medium enterprises (SMEs). Large enterprises held a larger share in the market in 2017. During the forecast period, the market for SMEs is expected to witness higher CAGR, due to the increasing need for flexibility at workplace in addition to the need for improving the overall productivity of employees.

On the basis of industry, the workplace transformation market has been categorized into banking, financial services, and insurance (BFSI); healthcare and life sciences; retail; manufacturing and automotive; government; telecom and information technology; transportation and logistics; media and entertainment; and others, where “others” include education, energy, and utilities. The BFSI industry contributed the largest revenue to the market in 2017. Also, the demand for these services in the healthcare and life sciences industry is increasing due to the rising need for maintaining electronic health records (EHRs) and security of vital information such as diagnostic results.

Globally, North America was the largest revenue contributor to the workplace transformation market in 2017, on the account of the growing organizational need for improving employee productivity and efficiency, in addition to saving operational costs. Companies in the region are increasingly adopting unified communication and collaboration services as well as enterprise mobility and telecom services to improve productivity and offer seamless collaboration across platforms, systems, and devices.

During the forecast period, the workplace transformation market is projected to witness the fastest growth in APAC. This can be attributed to the growing adoption of digital transformation services at workplaces across the region, particularly in India, Japan, and China, because of the ongoing “Industry 4.0” revolution and the increasing number of millennials joining the workforce in these countries.

Workplace Transformation Market Dynamics

Trends

In recent years, digital transformation services for workplace have gained traction because of the evolving technologies used in organizations and the transition in the workplace demographics. The increasing adoption of enterprise mobility and telecom services as well as unified communication and collaborative services, which are backed by technologies such as augmented reality, virtual reality, artificial intelligence (AI), cloud, and the Internet of Things (IoT), is a growing trend in the workplace transformation market.

Organizations are adopting these services to improve enterprise productivity and agility and cater to the changing workforce requirements in terms of making information or resources available on demand, for smoother operations. Unified communication helps establish a connected workplace, eliminating barriers hampering the uniform flow of information among various departments. A common IP network is designed that manages all the communication media from a single point and uses them with common devices.

Drivers

Increasing demand for enterprise mobility that enhances the overall efficiency and productivity of the organization is driving the workplace transformation market, globally. Enterprise mobility helps organizations develop strategies to enhance customer loyalty and retention, create new revenue models, and increase employee efficiency. Further the demand for BYOD policy is growing, as it enables employees to carry their own devices, such as laptops, smartphones, and tablets, to the workplace and use them with enterprise mobility applications to easily access corporate data. Besides, it helps employees maintain timely and effective communication with customers and co-workers.

Restraints

Employees’ lack of trust in technology and resistance to change are the key factors restraining the growth of the workplace transformation market. Deployment of new technologies in the workplace has a big impact on employees, as it re-engineers the way the business is carried out and often leads to a change in roles and responsibilities. Employees from older generation often fear or resist the digital transition process. Thus, separate training sessions are conducted to equip employees with new technologies, which is often an additional burden on the management.

Services such as enterprise mobility, and telecom and desktop virtualization deployed without adequate security systems can put confidential information at risk. This can act as a restraint to the growth of the workplace transformation market.

Opportunities

Increase in the adoption of cloud-based services and mobility solutions can be viewed as a growth opportunity for the players in the workplace transformation market. Technologies such as AI, IoT, and virtual reality are being integrated into services to improve efficiency, communication, and agility at the workplace. Moreover, SMEs are increasingly deploying cloud-based services, which are cost-effective. Cloud-based systems allow enterprises to access a large number of applications, without incurring heavy expenses. Implementation of these services is helping SMEs and start-ups eliminate huge infrastructure cost, ensure faster deployment, and increase business agility, in addition to improving employee efficiency.

Workplace Transformation Market Competitive Landscape

To stay ahead in the competition, players in the workplace transformation industry are developing transparent, flexible, user-centric cloud-based services for enterprises for enhanced user experience.

Some of the key players operating in the global workplace transformation market are Accenture plc, Tata Consultancy Services Limited, Infosys Limited, Citrix Systems Inc., HCL Technologies Limited, Intel Corporation, Cisco Systems Inc., IBM Corporation, Cognizant Corporation, and Unisys Corporation.