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.
An intelligent or smart flow meter is an electronic instrument that is used to measure the volumetric flow of liquid in the pipes. Intelligent flow meters are also used to measure the velocity of a fluid with ultrasound or other techniques to calculate liquid flow acc... Read more
Market Overview A web content filter refers to a cybersecurity solution that is intended to regulate the content of the websites when a user visits the internet. Business organizations face numerous challenges re... Read more
Market Overview Human-machine interface is the component of a machine that controls and monitors human-machine interaction. It is a group of screens, graphic displays, membrane switches, screens, keyboards, and o... Read more
Market Overview Metrology is a field that is concerned with the establishment of units of measurement. Metrology finds applications across different industry verticals and is witnessing dynamics shift. Various metr... Read more
Market Overview Broadcast switcher refers to a digital device typically adopted in the production of a video or film. It is used for switching or selecting different audio or video signals coming in from differen... Read more
Submarine networks erase geographic boundaries and distance by allowing humans, and machines, to communicate with each other. The increasing demand for power generated from offshore plants using renewable energy sources and the rising need to interconnecting lands hav... Read more
Deep learning or deep neural learning is a family of machine learning based on artificial intelligence (AI) neural network with representation learning. Neuron network is a set of algorithms that help to recognize the relationship between the data through the process ... Read more
Data monetization is a process of sharing data between companies. It is the process of using data to generate revenue or create revenue-generating streams. There are two types of data monetization i.e. direct and indirect monetization. Direct monetization is the proce... Read more
An automated guided vehicle or an autonomous guided vehicle (AGV) is a material handling system that travels throughout a warehouse, manufacturing unit or distribution center without any human intervention. It is used to transport various materials such as rubber, pla... Read more
A capacitive sensor is a non-contact device that is used to detect virtually the presence or absence of an object. They are less expensive and non-directional sensors used for non-contact detection of metallic and non-metallic objects. Capacitive sensor technology is ... Read more
Digital rights management (DRM) is the technology that is used to protect data and limit the usage of copyright content. DRM has become an important tool for securing large amounts of digital content. The use of access control technologies and technological control me... Read more
Loyalty management or loyalty program is a marketing strategy that offers rewards to customers for their purchases. Loyalty programs main objective is to retain customer and increase customer base by providing multiple loyalty offers and benefits. Loyalty management i... Read more
Gamification is the process of adding game-like mechanics in different environments such as company websites, businesses, workplaces, online communities, and others. The main objective of the gamification software is to engage employees, customers, players, and ... Read more
The term eSIM means embedded SIM card. In other words, eSIM is form of programmable SIM card that is embedded directly into a device. eSIM is a small chip that is used to authenticate user identity with his or her carrier. eSIM provides many advantages such as support... Read more
Gesture is non-verbal way of communicating a specific message. Gesture recognition is a commuting user interface that allows computers to capture and interpret human commands and gestures. It refers to the ability of a computer to understand human gestures and execute... Read more
Blockchain is a record keeping technology. It is widely used in cryptocurrency to store the information and in security labels to protect packaged products from counterfeiting. Security labels enable smart tractability of the product in the supply chain, ensure ... Read more
Market Overview Natural language generation (NLG) is a subfield of artificial intelligence, which automatically transforms data into plain English content. It can be used to produce long-form content for organiza... Read more
Market Overview Next generation data storage technology is comprised of advanced data storage products and solutions, in order to deal with increasing file size and a vast amount of unstructured data. Next genera... Read more