The New Phase of Accelerated Digital Transformation and Cloud-First Strategy of Global Enterprises by Late 2025
Editor
A New Paradigm in Corporate Digital Transformation
As of late 2025, the global digital transformation market is experiencing unprecedented growth. According to the latest report by Gartner, global spending on digital transformation is expected to reach $3.4 trillion in 2025, marking a 16.8% increase from the previous year. The Asia-Pacific region, in particular, is showing the highest growth rate at 21.2%, with South Korea playing a leading role within the region. South Korea’s digital transformation investment is estimated to be around 124 trillion won in 2025, accounting for a significant 5.8% of its GDP.
The increase in investment is driven by a shift in strategic thinking beyond mere technology adoption. Companies no longer view digital transformation as optional but as an essential element for survival. With the rapid advancement of generative AI, companies are striving to secure a competitive edge through data-driven decision-making and automated processes. According to McKinsey’s research, companies that have successfully implemented digital transformation show an average of 23% higher profitability compared to those that have not, while operational costs are reduced by 19%.
Microsoft, headquartered in Redmond, Washington, is at the forefront of this change, leading the market with its Azure cloud platform and Copilot AI services. In its Q3 2025 earnings announcement, Microsoft reported a 35% year-over-year increase in Azure revenue, with AI-related services accounting for 12% of total cloud revenue. This is double the 6% from the same period in 2024, indicating the high interest companies have in AI-integrated services.
Meanwhile, Amazon, based in Seattle, Washington, is taking a different approach through Amazon Web Services (AWS). AWS reported a 280% year-over-year increase in the utilization of its generative AI service, Bedrock, in 2025, with a focus on expanding tailored solutions to support AI adoption among small and medium-sized enterprises. AWS’s Q3 2025 revenue reached $27 billion, a 19% increase from the same period last year, with AI-related services estimated to account for about 15% of that revenue.
Unique Patterns of Digital Transformation in the Asian Market
Digital transformation in the Asian market, particularly in South Korea, exhibits unique patterns. South Korean conglomerates, traditionally strong in manufacturing, are focusing on Industry 4.0 and smart factory development, a differentiated approach from the service-centric digital transformation of Western companies. For instance, Samsung Electronics, headquartered in Suwon, Gyeonggi Province, invested 18 trillion won in digital transformation in the first half of 2025 alone, with 60% of that directed towards AI optimization in semiconductor manufacturing processes and smart factory development.
Samsung Electronics’ digital transformation strategy is particularly noteworthy. The company has built a system that analyzes and optimizes data from manufacturing processes in real-time through its self-developed AI platform, ‘Samsung AI.’ This has resulted in an average 3.7% improvement in semiconductor manufacturing yield and a 12% reduction in energy consumption. Additionally, Samsung Electronics has adopted blockchain technology for supply chain management to enhance transparency and has established a digital collaboration platform with partners to improve overall production efficiency.
This manufacturing-centric digital transformation is similarly observed in Japan and China. Manufacturers like Toyota in Japan and BYD in China are making significant investments in full automation of production lines and AI-based quality management systems. In China, in particular, the government’s ‘Digital China 2030’ policy is driving a surge in digital transformation investments by manufacturers, with the market size for manufacturing digital transformation in China expected to reach approximately $850 billion by 2025.
In contrast, the service sector shows different trends. Alphabet, based in Mountain View, California, is supporting digital transformation in the financial services and retail sectors in the Asian market through Google Cloud. Google Cloud’s Asia-Pacific revenue reached $8.9 billion in Q3 2025, a 42% year-over-year increase, with the South Korean market estimated to account for about 18% of that revenue. Notably, South Korean financial institutions are actively adopting Google Cloud’s AI-based risk management solutions and customer service automation tools.
The digital transformation in the financial sector is showing particularly remarkable results. Major South Korean banks have seen digital banking service usage rates exceed an average of 87% in 2025, with transactions via mobile apps accounting for 73% of all transactions. This is a significant increase from 45% in 2020, indicating the continued acceleration of digital transformation post-pandemic. Additionally, the introduction of AI-based personalized financial product recommendation services has improved customer satisfaction by an average of 28%, while reducing operational costs by 15%.
With the spread of cloud-first strategies, companies are trending towards building hybrid and multi-cloud environments. Oracle, based in Austin, California, is meeting the complex cloud requirements of enterprises through Oracle Cloud Infrastructure (OCI). Oracle’s cloud revenue in 2025 increased by 25% year-over-year to $16.4 billion, with strengths in database management and enterprise applications. In the South Korean market, Oracle is leading legacy system modernization projects for large enterprises, with long-term projects averaging 3-5 years.
In the enterprise software sector, ServiceNow, based in Santa Clara, California, occupies a unique position. The company’s IT Service Management (ITSM) and digital workflow solutions have shown particularly high growth in the South Korean market in 2025. ServiceNow’s Asia-Pacific revenue reached $1.8 billion in Q3 2025, a 38% year-over-year increase, with a 45% increase in the number of customers in South Korea. Notably, South Korean public institutions and large enterprises are adopting ServiceNow’s AI-based automation solutions to improve internal processes.
Meanwhile, Salesforce, based in San Francisco, California, is significantly enhancing AI capabilities in the customer relationship management (CRM) field, expanding its market share. The utilization of Salesforce’s Einstein AI platform increased by 156% year-over-year in 2025, showing high performance in predictive analytics and personalized marketing campaigns. In the South Korean market, Salesforce is supporting the digital marketing transformation of mid-sized enterprises, with the number of customers in South Korea increasing by 32% in the first half of 2025 compared to the previous year.
One of the successful cases of digital transformation is South Korea’s Lotte Group. Through its large-scale digital transformation project ‘Digital Lotte 2030,’ which began in 2023, Lotte is integrating IT infrastructure across all affiliates and promoting customer service innovation using AI and big data. The project is expected to invest a total of 2.5 trillion won, with a current progress rate of about 40%. Lotte Mart, for instance, has improved inventory turnover by 23% with the introduction of an AI-based inventory management system, while Lotte Hotel has achieved an 18% improvement in customer satisfaction through personalized customer service.
Future Outlook and Investment Opportunities
As we approach 2026, the future outlook for the digital transformation market is very promising. According to the latest forecast by the International Data Corporation (IDC), global digital transformation investment is expected to reach $4.2 trillion by 2026, with a compound annual growth rate (CAGR) of 15.1%. Investments related to generative AI are expected to account for 25% of total digital transformation investments, more than doubling from 12% in 2025.
In the South Korean market, accelerated growth is anticipated with the synergy of the government’s ‘K-Digital Platform Government Realization Plan’ and active private sector investments. The South Korean government announced plans to invest 45 trillion won in public sector digital transformation by 2026, along with expanding tax benefits and financial support to encourage digital transformation in the private sector. With such policy support, South Korea’s digital transformation market is projected to grow to approximately 165 trillion won by 2026.
From an investment perspective, the stock prices of companies related to digital transformation have risen by an average of 28% in 2025, with cloud services and AI solution providers showing particularly strong performance. Microsoft’s stock rose by 35% from the beginning of the year, while Amazon’s increased by 29%, driven by the strength of its cloud division. Among South Korean companies, Samsung Electronics showed a 22% increase due to growth in AI semiconductors and smart factory solutions.
However, along with this growth, there are several risks to be aware of. First, the increase in cybersecurity threats. As digital transformation accelerates, the digital assets of companies are expanding, making them more attractive targets for hackers. In the first half of 2025 alone, digital transformation-related cyberattacks increased by 67% year-over-year globally, with estimated damages reaching approximately $890 billion. Second, the issue of talent shortage. The demand for skilled professionals capable of leading digital transformation significantly exceeds supply, leading to project delays and increased costs. According to McKinsey’s research, there is a global shortage of about 2.3 million digital transformation-related professionals, expected to expand to 3.2 million by 2026.
Third, the increase in technical complexity. As companies simultaneously adopt various cloud services and AI solutions, the complexity of system integration is increasing exponentially. This can lead to longer-than-expected implementation periods and higher operational costs, with some companies halting or scaling back digital transformation projects. According to Gartner’s survey, about 34% of digital transformation projects initiated in 2025 are delayed by more than six months, and 15% exceed their budgets by over 50%.
Despite these challenges, digital transformation has become a necessity rather than an option for companies. Successful digital transformation requires not only technology adoption but also changes in organizational culture, talent development, and a long-term strategic perspective. For South Korean companies, it is important to leverage their strengths in manufacturing by focusing on Industry 4.0 and smart factory development while simultaneously pursuing digital innovation in the service sector with a balanced approach. As we move towards 2026, digital transformation will become a core driver of business model innovation and new value creation, with investments and interest expected to continue to rise.
*This analysis is intended for general informational purposes only, and the responsibility for investment decisions lies with the investor. Thorough review and consultation with experts are recommended before making investment decisions.*
