In this article, we will be looking into the top 25 digital countries in the world. If you want to skip our detailed analysis of the digital transformation industry, you can directly go to the Top 5 Digital Countries in the World.
Digital Transformation: A Market Analysis
According to a report by Mordor Intelligence, the digital transformation market was valued at $1.69 trillion in 2023 and is expected to reach $4.46 trillion by 2030 with a compound annual growth rate of 21.32% for the forecasted period of 2023 to 2028. The incited growth can be attributed to the rising trend of businesses adopting modern technologies like artificial intelligence, Industry 4.0, IoT, business intelligence, cloud computing, and data analytics.
Industry 4.0 is leading towards the proliferation of digital technologies integrated with manufacturing operations, to optimize industrial processes. Collaborative robots are expected to experience increased application with an expected valuation of $12.3 billion by 2025.
The global digital transformation market is anticipated to be dominated by IoT. Its demand will be shifting more towards the industrial front. The integration of IoT and Industry 4.0 with modern technologies is set to pave the path for smoother industrial operations with reduced losses and downtime.
Asia Pacific is projected to be the fastest-growing market for the forecasted period of 2023 to 2028. China is anticipated to hold one-third of the global IoT market share by the year 2025. The growth is driven by China’s commitment to the adoption of modern technology and smart manufacturing initiatives.
Major Players in Industry
The digital transformation market is dominated by tech giants including Accenture Plc (NYSE:ACN), Microsoft Corporation (NASDAQ:MSFT), and Siemens Aktiengesellschaft (OTC:SIEGY).
Accenture Plc (NYSE:ACN) is one of the leading companies in the market. On October 2, the company announced the acquisition of Signal, a marketing firm in Japan. This acquisition will help the company to strengthen the marketing transformation for its clients in Japan. The acquisition has brought almost 100 experts from Signal on board to help Accenture Plc (NYSE:ACN) deliver a seamless customer experience to its clients in Japan across all marketing channels.
Microsoft Corporation (NASDAQ:MSFT) is among the tech giants dominating the market. On September 21, the company announced the launch of its AI companion, Microsoft Copilot. The Copilot will initially be available for Windows 11, Microsoft 365, Edge, and Bing. It will assist the users in their tasks by incorporating web intelligence and the context of the task. The AI Copilot will help its users to be more creative and productive while protecting their privacy. The Copilot will also be having additional features and updates later.
Siemens Aktiengesellschaft (OTC:SIEGY) is among the leading companies in the market. On September 19, Siemens Aktiengesellschaft (OTC:SIEGY) announced its collaborative venture with DMG Mori Co., Ltd. (OTC:MRSKF). Both industry leaders in automation and precision machine tools have partnered to introduce an industry-defining digital twin that will be assisting in machine tool processing on the Siemens Xcelerator Marketplace. It will provide a digital replica of the control system, the machine tool, and the workpiece, enabling significant improvements in sustainability, and flexibility areas. Talking about the partnership, President and CEO Siemens Aktiengesellschaft (OTC:SIEGY) said:
“DMG MORI is the first partner from the machine tool industry to join the Siemens Xcelerator Marketplace. Together, we’re shaping the future of an open ecosystem that seamlessly links domain expertise with cutting-edge technology. Siemens combines the real and digital worlds to enhance efficiency. This collaboration exemplifies our dedication to competitiveness, sustainability, and the industrial metaverse.”
Now that we have discussed some major players that are driving the digital transformation of businesses across the globe, let’s look at the top 25 digital countries in the world.
Top 25 Digital Countries in the World
Methodology
To rank the top 25 digital countries in the world, we obtained our data from the World Bank. The two metrics we considered for our ranking were the Digital Adoption Index (DAI) and internet penetration. The Digital Adoption Index measures a country’s adoption of digital technologies based on three sub-indices measuring digital adoption by people, businesses, and government. We used the most recent data available for both indicators. We then factored in the internet penetration in each country which is the percentage of the population using the internet. A country’s digital progress depends upon its ability to adopt digital technologies and its internet connectivity. The list is in ascending order of the digital adoption index, our primary metric, and we broke the tie between two countries based on internet penetration, our secondary metric.
Top 25 Digital Countries in the World
25. Chile
Digital Adoption Index (2016): 0.756
Individuals using the Internet (2021): 90.19%
Chile is ranked among the top 25 digital countries in the world. It has a high internet penetration with 90.19% of its population using the internet as of 2022. Chile’s digital transition accelerated due to the COVID-19 pandemic and the government initiatives for digital adoption. As of 2021, Chile’s IT market has a share of 2.7% of the country’s GDP.
Investors seeking exposure to the digital transformation market can invest in stocks including Accenture Plc (NYSE:ACN), Microsoft Corporation (NASDAQ:MSFT), and Siemens Aktiengesellschaft (OTC:SIEGY).
24. Uruguay
Digital Adoption Index (2016): 0.758
Individuals using the Internet (2021): 89.87%
Uruguay is one of the most digitally advanced countries in Latin America. It is ranked 24 on our list with a relatively high digital adoption rate. As of 2021, it has a high internet penetration with 89.97% of its population having access to the internet.
23. United Kingdom
Digital Adoption Index (2016): 0.764
Individuals using the Internet (2021): 96.68%
The United Kingdom ranks 23 on our list with a high digital adoption rate. The UK has one of the biggest digital transformation markets. It boasts a high internet penetration rate with 96.68% of its population connected to the internet.
22. Italy
Digital Adoption Index (2016): 0.765
Individuals using the Internet (2021): 74.86%
Italy’s digital transformation and innovation sector contributes significantly to its economy making it one of the top digital countries in the world. It ranks 22 on our list with a relatively high digital adoption rate.
21. Spain
Digital Adoption Index (2016): 0.765
Individuals using the Internet (2022): 94.48%
Spain ranks 21 on our list with a rapidly developing digital sector. It is one of the most digitally advanced countries in Europe with its digital sector significantly contributing to its economy. It has widespread internet usage with 94.48% of its population using the internet.
20. Belgium
Digital Adoption Index (2016): 0.780
Individuals using the Internet (2022): 94.00%
Belgium is one of the digitally thriving countries and is constantly working towards deploying modern technologies. It is ranked 20 on our list of the top 25 digital countries in the world. It boasts a high internet penetration with 94% of its population using the internet.
19. Portugal
Digital Adoption Index (2016): 0.785
Individuals using the Internet (2021): 84.49%
Portugal’s digital sector is growing rapidly and contributing to the country’s economy significantly. It has a high digital adoption rate and is one of the top digital countries in the world. It has an internet penetration of 84.49% as of 2021.
18. Bahrain
Digital Adoption Index (2016): 0.786
Individuals using the Internet (2021): 100
Bahrain ranks 18 on our list of the top 25 digital countries in the world. Its digital sector is evolving with the rising popularity of modern technology including AI, e-commerce, and FinTech. Bahrain has the highest internet penetration as of 2021.
17. Israel
Digital Adoption Index (2016): 0.787
Individuals using the Internet (2021): 90.29%
Israel’s digital landscape makes it one of the top digital powerhouses in the world. With a high internet adoption of 90.29% of its total population, it is ranked 17 on our list of top 25 digital countries in the world.
16. Denmark
Digital Adoption Index (2016): 0.791
Individuals using the Internet (2022): 97.86%
Denmark makes it to the top 25 digital countries in the world with a relatively high digital adoption rate. Its digital sector is one of the most advanced digital sectors in the world. As of 2022, it reports a high internet penetration of 97.86%.
15. Lithuania
Digital Adoption Index (2016): 0.793
Individuals using the Internet (2022): 87.72
Ranked 15 on our list, Lithuania is a digitally acclaimed country with high internet penetration. As of 2022, 87.72% of its population is using the Internet. Its high rate of digital adoption makes it one of the top digital countries.
14. Norway
Digital Adoption Index (2016): 0.804
Individuals using the Internet (2022): 98.99%
Norway ranks 14 on our list with a high digital adoption rate. It is among the top countries with high internet penetration. As of 2022, 98.99% of the total population use the internet in Norway.
13. Finland
Digital Adoption Index (2016): 0.806
Individuals using the Internet (2022): 92.98%
Finland ranks 13 on our list of the top 25 digital countries in the world. It has a high digital adoption rate and is among the most internet-connected countries in the world. As of 2022, 92.98% of its population is using the internet.
12. Switzerland
Digital Adoption Index (2016): 0.822
Individuals using the Internet (2021): 91.75%
Ranked 12 on our list, Switzerland is one of the top digital countries with its digital sector significantly contributing to its economy. As of 2022, the internet penetration in Switzerland is high with 91.75% of its population using the internet.
11. United Arab Emirates
Digital Adoption Index (2016): 0.823
Individuals using the Internet (2021): 100%
The United Arab Emirates is one of the top digital countries in the world. It is ranked 11 on our list due to its high digital adoption rate. UAE is home to one of the most thriving digital sectors in the world.
10. Sweden
Digital Adoption Index (2016): 0.831
Individuals using the Internet (2022): 95.00%
Sweden ranks 10 on our list. The country has a high digital adoption rate. It is one of the leading hubs for digital and technological innovation. As of 2022, 95% of Sweden’s total population is using the internet.
9. Estonia
Digital Adoption Index (2016): 0.833
Individuals using the Internet (2022): 91.02%
Estonia is among the top digital countries in the world with a highly developed digital sector. It has a high internet penetration with 91% of its population having access to the internet. It is ranked 9 on our list.
8. Japan
Digital Adoption Index (2016): 0.834
Individuals using the Internet (2021): 82.91%
Japan has been promoting digital adaptation since the last decade and is poised to become one of the digital powerhouses in the world. It boasts a high digital adoption index as of 2016. It is one of the most internet-connected countries with 82.91% of its population using the internet.
7. Netherlands
Digital Adoption Index (2016): 0.838
Individuals using the Internet (2022): 92.51%
The Netherlands houses a strong digital economy with a focus on adopting modern technologies at a higher rate. As of 2022, 92.5% of the Netherlands population has access to the internet making it one of the top digital countries.
6. Germany
Digital Adoption Index (2016): 0.839
Individuals using the Internet (2022):91.62%
Germany ranks 6 on our list. It is one of the most digitally acclaimed countries in the world with a high digital adoption rate. Germany’s steady growth is allowing it to become one of the strongest digital economies in Europe. It is also among the top leaders, adopting modern technologies such as Industry 4.0, IoT, and AI. It has a high internet penetration with 91.62% of its population using the internet.
Some of the top companies leading the digital transformation race include Accenture Plc (NYSE:ACN), Microsoft Corporation (NASDAQ:MSFT), and Siemens Aktiengesellschaft (OTC:SIEGY).
Click to continue reading and see the Top 5 Digital Countries in the World.
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Disclosure. None. Top 25 Digital Countries in the World is originally published on Insider Monkey.