Global information and communication technology (ICT) industry can be broadly segmented into IT equipment, software, IT & business services, telecommunication equipment, and carrier services. Widening business operations and rising demand for high-speed connectivity throughout the business value chain have led to vast integral applications of ICT. ICT finds application in every industry ranging from oil & gas, healthcare, banking, financial services and insurance (BFSI), to transportation & transit industries.
Rapid strides in the ICT industry have led to an unprecedented increase in sales of smartphones, which are supported by the robust IT infrastructure. This increase in global penetration of smartphones is fueling growth of the ICT industry. Ability of consumers to access anything from anywhere across the globe, with around 7 billion mobile users and 3 billion internet subscribers in 2016, as per the ICT Data and Statistics Division, is projected to present potential growth opportunity. Trends that include cloud, analytics, social media and mobility have led to development of agile enterprises through distinct value chains and business models that offer a better consumer experience.
Cloud and Analytics
Cloud technology has witnessed adoption in every industry and industrial operations. The technology scope is inclusive of huge scalable ICT related technologies that include networks, storage, servers, applications and services that are provided to consumers through virtualization.
Different types of cloud offerings include Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS). SaaS is the most preferred form of cloud computing. Hybrid cloud models are being increasingly adopted by enterprises and are contributing to the industry growth. Along with multiple benefits offered by these solutions, industry is expected to consistently face challenges such as data security threat, limited user control, and interoperability problems that may arise while migrating from a vendor to another.
Exponential increase in data due to global digitization is likely to make data analytics a crucial tool for effective optimization of data in providing workable insights. The growing need to take appropriate business decisions, enhancing business productivity and cost savings is scheduled to drive demand for cloud data analytics.
Demand for faster internet speeds owing to increasing connectivity in every industrial segment, has led to development of 3G and 4G connectivity. However, players operating in the telecommunication industry are planning to develop 5G connectivity featuring theoretical wireless download speeds of 10k Mbps, broader bandwidth and capability to run complex internet applications (e.g. VR/AR applications). Industry participants such as Nokia, Samsung, Qualcomm, BT and Ericsson have already made notable advancements in this area. For instance, in June 2017, Keysight Technologies collaborated with Qualcomm Technologies Inc. for the development of 5G test solutions.
Development of this technology will help IoT gain significant leverage through its lower latency, high ubiquity and increased consumer usability. However, high costs of the technology may act as a considerable growth barrier over the coming years.
Internet of Things
Connected mobility is expected to gain significant momentum over the forecast period owing to growing support from regional governments, specifically in the U.S., in addition to product developments by players operating in the market.
Industry players have made significant development in V2V and V2X communication systems. For instance, in March 2017, General Motors started the production of 2017 Cadillac CTS sedan featuring V2V communication. Moreover, the U.S. Department of Transportation is expected to introduce mandates by 2023, which is expected to facilitate growth of the market.
WannaCry Ransomware attack in May 2017 affected around 57,000 computers across 150 countries. Proliferating connectivity and cloud solutions can increase risk of malwares and cyber-attacks. Such concerns regarding information security are projected to present considerable challenge to the global ICT industry over the forecast period.
Differing government regulations in every country, as well as regulatory compliances for different ICT industry segments across the global stretch are projected to hamper the industry growth. For instance, legal obligations for processing of personal data differs across the U.S. and Europe. Under EU regulations, personal information can be collected only for a legitimate purpose under stringent conditions. Data Protection Directive 1995/46/EC is the main component of the EU data protection law. However, in the U.S., there is no all-inclusive law standardizing the processing and collection of personal information. Data protection in the country is regulated by state and federal rulings.
U.S. is the most mature market for the ICT industry. However, the industry in the country is expected to witness steady growth owing to presence of major multinational firms, continuous innovations and consumer demand for advanced technologies. Moreover, advent of V2V communication and 5G technologies in the country are expected to provide major scope for growth in the next few years. Cost saving through the advent of such technologies is among the major benefits.
China, India, Japan, Malaysia, and Indonesia have witnessed major economic growth over the last few years. Low manufacturing and service costs and favorable trade regulations in these countries are expected to provide major traction to the venturing investors. Thus, the Asia Pacific ICT industry is expected to register major growth over the near future. However, factors such as low corruption perceptions index (CPI), high communication costs and lack of technology skills in emerging economies are expected to hamper the market growth in these economies. Moreover, poor IT infrastructure is likely to hinder the growth prospects in these regions.
IBM, Microsoft, SAP, Oracle, Cisco, Apple, Samsung, Google, HP, Accenture, TCS and Amazon are among the top industry participants. The industry growth is driven by collaborative undertaken by key players to develop innovative products and technologies. R&D and product launches are also expected to strengthen the position of companies in the global industry. Mergers and acquisitions by players with the goal of forward integration, and business expansions are also predicted to strengthen their presence in the industry. For instance, AT&T entered a definitive agreement for the acquisition of Time Warner that was worth over US$ 85 billion, in October 2016. This was to help the company gain a strong foothold in the media and communications market.
Global Online Hyperlocal Services Market - Insights Online hyperlocal services refer to online business models that cater to consumers in specifically defined geographic locations that are under the reach of ... Read more
Global Cloud API Market- Insights Cloud Application Programming Interface is a type of API that permits for the development of services and applications used for the provisioning of cloud platforms, software ... Read more
Market Overview A content delivery network or content distribution network is a geographically distributed network of proxy servers and their data centers. The primary objective of CDN is to provide high availabi... Read more
Global Virtual Reality Content Creation Market - Insights Virtual reality creates a digital environment to provide real lifelike experience to the user. Rampant growth of the gaming sector is a major factor f... Read more
Global On-demand Learning Management System Market - Insights Learning management system is a software application for the reporting, tracking, documentation, and administration by e-learning training and edu... Read more
Market Insight- Global Cyber Security Market Market Overview In computing sector, security refers to physical security and cybersecurity. Cybersecurity refers ... Read more
Global Augmented Reality/ Virtual reality Market - Insights Augmented reality is the integration of digital and real environment in real time, whereas virtual reality provides real life-like experience to the... Read more
Natural language processing is a branch of artificial intelligence, which is developed to make machine understand words or statements written and spoken in human language.The increasing adoption of natural language processing by various organization helps reduce custo... Read more
Global Cloud Backup Market Cloud backup, also known as online backup or remote backup, is an alternative to conventional backup. It offers several facilities such as creating, editing, managing, and restoring... Read more
Market Overview Cognitive systems are a type of technology that is used to facilitate the use, delivery, and collaboration of in formation in analysis and decision making. These systems use information, knowledge... Read more
Increasing number of airports and development of their infrastructure leading to high demand for aviation cyber security. Number of air travelers are increasing owing to rising disposable income and decrease in prices of flight tickets. For instance, according to the ... Read more
Market Overview SMS is a discreet and universal technique of reaching everyone with the help of basic feature phone without an additional access to data services. Application-to-person (A2P) SMS is a type an SMS s... Read more
Global Text Analytics Market Text analytic is a process which is used to extract the insights from unstructured text. This insights help organizations to measure the customer expectations, product description... Read more
Global Content Analytics Market The content analytics software is a tool, which provides insights on market trends, patterns, and product details to an organization with the integration of structured and un-s... Read more
Business Intelligence and Analytics Market: Insights and Analytic Information The Business Intelligence (BI) and Analytics software provides insights and analytic information which can help managers, executiv... Read more
Market Insights - Global VoIP Services Market Market Overview Voice over internet protocol (VoIP) is a group of technologies for the transfer of voice communic... Read more
Learning Management System (LMS) Market: Increasing adoption of LMS for corporate training A learning management system (LMS) is a software solution which is used for the reporting, tracking, documenta... Read more