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Digital transformation is a familiar buzz word. But what does it mean? Why are enterprises interested in it? And which sectors and countries are most committed to the concept? A recent report from GSMA reveals the answers.

Digital transformation is now a teenager. 

Many believe the term appeared first in a report published in 2011 by MIT and Capgemini Consulting titled Digital Transformation: A Roadmap for Billion-Dollar Organization. That makes digital transformation 14 years old.

The phrase certainly entered the mainstream in the 2010s, when many physical products and services – music, newspapers, tickets, bank cards – started to go digital.

So, is this digital transformation? Not really. It’s more like digitisation, which happens when a company launches a virtual version of an existing product. Digital transformation goes further. It happens when a company uses technology to re-think all of its existing processes and how it interacts with customers.

An example is Adobe. The company originally sold design software on CDs, which it shipped to retail stores. But following a post-2008 slump, it reinvented itself as a cloud company offering downloadable products via a software-as-a-service (SaaS) subscription model. The re-launch changed all aspects of Adobe’s operations: team collaboration, product development, distribution, business model, customer care and more.

Thirteen years after MIT/Cap Gemini’s report, every C-suite exec should be familiar with the digital transformation concept. So how do they feel about the topic? 

In a 2024 research project, the trade body for the mobile industry, GSMA, found out. It surveyed 4,200 enterprises across 21 countries and 10 vertical sectors. The result was a report: The Rise of Digital Industries: Navigating Enterprise Needs, Investments and Supplier Decisions. 
 

It paints a comprehensive picture of the state of digital transformation today, and answers key questions such as:

•    Why are enterprises interested?
•    How much are enterprises spending?
•    Which areas of digital transformation are attracting most interest?
•    Which verticals are investing?
•    Which countries are most committed?

Here is a summary of the key findings.

Why are enterprises interested in digital transformation?

Digital transformation is not an end in itself. It has to deliver something. So, what do enterprises hope to achieve? The top answer is to protect against cybersecurity threats. 63 percent of respondents said this was ‘extremely important’. 

However, around 57 to 60 percent are focused on more positive outcomes such as revenue growth (extremely important to 60 percent), customer experience (58 percent), competitive position (57 percent), business agility (57 percent) and cost-reduction (52 percent).

Digital transformation objectives

Extremely important %

Protect against cybersecurity threats  -  63
Increase revenues  -  60
Boost customer experien  -  58
Strengthen competitive position  -  57
Improve agility of operations  -  57
Meet compliance  -  53
Reduce costs  -  53
Support sustainability targets  -  52
Move into adjacent markets  -  43

            

How much are enterprises spending on digital transformation?

The survey concludes that spend on digital transformation will account for 9.2 percent of enterprise revenues during 2024 to 2026. It expects this to grow to 10.8 percent across 2027 to 2030. 

The biggest enterprises will spend the most. GSMA believes mega enterprises (with 10,000 or more employees) will assign 10.5 percent of revenue to digital transformation as they pursue large multi-country projects. 

Interestingly, the gap differs a lot by technology. At one extreme, there’s cloud – adopted nearly 20 percent more by mega enterprises than SMEs. At the other end is generative AI (genAI), where the gap is just five percent. 
 

Which areas of digital transformation are attracting most interest?

It’s 2025, and GenAI hype is at its peak. So, it’s not surprising to see AI at the top of the spend chart. The study says enterprises plan to assign 14 percent of their digital transformation budgets on AI between 2024 and 2030. 

Mobile connectivity places second at 13 percent – though when added to the 8 percent for fixed/wifi, it gives connectivity a 21 percent score. The other prominent areas include cloud/edge, IoT and cybersecurity (all 8 percent). Elsewhere, the metaverse scores just 3 percent.

Planned spend on digital transformation by technology (2024–2030)

AI technology  -  14%
Mobile connectivity and devices  -  13%
IoT and big data and analytics  -  8 %
Cloud and edge  -  8%
Fixed and Wi-Fi connectivity and devices  -  8%
Cybersecurity  -  8%
Private networks  -  6%
VR and AR  -  4%
Metaverse  -  3%
Network APIs  -  3%

 

What are the digital technology priorities of different verticals?

How will different industries assign their digital transformation spend? The answer varies significantly by activity. The GSMA report measured ‘likelihood that enterprises will invest’ and found manufacturing/industrial to be the most committed in cloud and cybersecurity. In AI and IoT, automotive/mobility came out on top. In the fifth category, edge, the healthcare sector is expected to spend most. The only vertical to appear among the top 5 spenders for all these areas is financial services.

Indeed, financial services was cited in the report as the overall most committed to digital transformation. The authors made this calculation by combining scores for three key areas: objectives, current use of tech, spend during 2024 to 2030. The complete list is as follows:

1.    Financial services 
2.    Media and entertainment
3.    Utilities and energy
4.    Manufacturing and industrial sectors 
5.    Transportation, logistics and warehousing 
6.    Healthcare 
7.    Automotive and mobility 
8.    Retail 
9.    Public sector 
10.  Agriculture, forestry and fishing.
 

Which countries are spending most on DT?

As with verticals (see above), the report analyses regional attitudes to digital technology by crunching together: objectives, current use of tech, spend during 2024 to 2030. The US leads. This is unsurprising, given that the US is home to most of the world’s largest AI firms, hyperscalers and connectivity specialists. However, the authors point out that there is only a modest difference between the countries in the top 10. The gap between US (#1) and France (#10) is just 8 percent.

Digital transformation ranking: developed countries

1.    US 
2.    South Korea 
3.    UK 
4.    Australia 
5.    Spain 
6.    Germany 
7.    Italy 
8.    China 
9.    Japan 
10.  France

Digital transformation ranking: developing countries

1.    Brazil 
2.    Indonesia 
3.    South Africa
4.    Egypt
5.    Saudi Arabia 
6.    India 
7.    Argentina 
8.    Mexico 
9.    Morocco 
10.  Türkiye 

Overall, the GSMA report paints a positive picture of attitudes to digital transformation. Enterprises in all regions are now actively investing in advanced technologies – especially connectivity and AI – to drive growth, boost security, and improve operational efficiency.