The digital adoption market size has been growing steadily for several years now, and recent research suggests that this market will continue to grow in the 2020s.
Though exact figures vary depending on the source, analysts universally agree that the digital adoption market size will continue to grow for the foreseeable future.
According to Absolute Market Insights, for instance, the digital adoption platform (DAP) software market had a market value of $43.11 million in 2018.
By 2027, it will have increased to $162.84 million, growing at more than 15% annually.
While other reports have different estimates of the current and future market capitalization, they all agree that this industry will continue to grow for years.
Below, we’ll look at some of the key drivers behind this trend.
First, though, it pays to understand what digital adoption is and how it fits into the digital workplace.
Digital Adoption Platforms (DAPs): A Quick Primer
DAPs are UI layers that automate software training.
They do this through a few key features, such as:
- Contextualized, in-app guidance that helps users find answers to questions, without the need for human intervention
- Software walkthroughs that take users one step at a time through workflows
- Usage analytics that track how people use a platform and offer insight into training needs
These tools can also be used to automate certain workflows, freeing up users’ time for more productive activities.
DAPs can be used for a variety of purposes, including:
- Customer onboarding
- Customer care
- Employee onboarding
- Employee training
As we will see below, DAPs improve the employee experience, increase productivity, and more.
Digital Adoption Market Size: Top Trends Driving Growth
The digital adoption industry is relatively new, but as we have seen, it is growing at a rapid pace. This suggests that digital adoption platforms are adding real value in the marketplace.
Here are a few of the reasons why the digital adoption industry is set to grow for years to come:
Digital transformation has been cited as one of the key factors fueling the growth of the digital adoption market.
This makes sense, since digital transformation initiatives almost always involve the adoption of new technology.
In fact, the outcomes of those initiatives often directly depend on how well new tools are adopted.
- Smoother software onboarding helps to reduce software-related frustration, while also shortening learning curves
- Employees who can learn software more quickly will become more productive in less time
- When employees are more productive, software investments yield higher ROI
In today’s economy, more companies are investing in digital transformation than ever. As that trend continues to accelerate, it will fuel the continued growth of the digital adoption market.
The Digital Skills Gap
Today’s workplace is built upon a foundation of digital technology.
This means that employees need digital skills to stay productive.
Yet the complexity of the digital workplace presents a challenge. Employees must often use several different tools in their day-to-day workflows. At the same time, tools are continually evolving, which means that employees must be constantly learning.
For instance, employees must learn new skills every time:
- Software is updated
- New software and platforms are deployed in the workplace
- Business processes are redesigned
DAPs solve this issue through continual micro-training, which allows workers to learn digital skills on the job while staying productive.
Productivity and Performance
Another driver of DAP market growth is productivity, a fundamental business metric.
DAPs such as WalkMe, for instance, deliver major productivity gains and returns on investment.
When implemented as part of a well-structured digital adoption strategy, these platforms can deliver major bottom-line benefits to the organization.
As mentioned above, a DAP can:
- Boost employee skills, engagement, productivity, and performance
- Maximize software utilization and streamline digital workflows
- Increase the ROI of software investments and the turnaround time on those investments
In short, a DAP can improve organizational performance, and those performance benefits translate into more bottom-line profits.
The Remote Workplace
In 2020, companies around the world implemented telecommuting policies as a result of the coronavirus pandemic.
Among other things, this massive shift in the workplace meant that:
- Employers adopted and implemented remote working software and infrastructure
- Employees had to learn how to work and collaborate remotely
- Training could not be performed in person
Since DAPs can be used remotely, they are ideal training tools for the remote workforce.
DAPs clearly deliver a range of benefits to the digital workplace, as we have seen.
Those benefits, however, are probably not enough to explain the growth of this industry.
Instead, the real driver of the digital adoption market’s growth is perhaps the nature of the digital workplace itself.
Technology-driven innovation and the constant need for up-to-date digital skills are both becoming the norm.
In a digital workplace that is driven by change, DAPs appear to be the best option for closing the digital skills gap and maximizing software ROI.