Education is important for sustainable development and drives innovation within national innovation systems. As developed economies move to matured stages of the fourth industrial revolution, the quality of education needs to keep up with the required technological changes brought about by the digital transformation created by these technologies. However, studies on the impact of the digital transformation of the higher education system and its effect on sustainability are few. This study bridged this gap by providing empirical evidence on the subject matter through a synergy of extant studies. The methodology used herein involves a combination of a systematic literature review and a bibliometric analysis. The results of this study show that the digital transformation of the higher education sector is leading to the development of sustainable curriculums, digitalization of the higher education, enhancement of innovation, and an improvement in the performance of students. It also shows that the future of the digital transformation of the higher education sector will include—the advancement of the concept of ‘Education 4.0’, an increase in gamification within the sector, a rise in the use of datafication in decision making, and the integration of artificial intelligence/augmented intelligence to reform higher education.