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.
Market Insights - Global Digital Signature Software Market Market Overview Digital signature is a technology that assures the contents of the message have not ... Read more
Market Insight- Global Distributed Acoustic Sensing (DAS) Market Market Overview Distributed acoustic sensing is a technology that facilitates real-time monit... Read more
Market Insight-Global Consumer Network Attached Storage (NAS) Market Market Overview Network-attached storage (NAS) is computer data storage connected to a com... Read more
Automated Fare Collection System Market Market Overview An automated fare collection (AFC) system is basic station equipment, consisting of automated gate mach... Read more
Market Insight- Global 4G (LTE) Devices Market Market Overview In telecommunication, long-term evolution or LTE is a standard for wireless broadband communicat... Read more
Market Insight- Global Total Carbon Analyzer Market Market Overview Total organic carbon is the amount of carbon found in an organic compound. It finds applica... Read more
Market Insight-Global Vapor Recovery Services Market 2017-2027 Market Overview Vapor recovery unit is a set-up designed to remove undesirable vapors present in d... Read more
Market Overview Strobe beacon is a signaling device or a flashing electric lamp that has application in several industries such as oil and gas, food and beverages, energy and power, mining, and others, either to wa... Read more
Market Overview Multi-channel communication can be defined as communications with customers through multiple channels such as print, SMS, e-mail, web portals, and mobile applications. Multi-channel communication in... Read more
Embedded security is a strategic approach to protecting software running in embedded systems from attack. Embedded security for devices and networks that are connected through internet of things is provided with the help of hardware and software such as controller chi... Read more
Market Insight- Australia Conveyor Maintenance Market 2017-2027 Market Overview A conveyor system is a common piece of mechanical handling device that moves mate... Read more
Market Overview Web real-time communication is a free and open-source project that offers browser-based applications, voice communications, video calls, file sharing, and eliminating need for software plug-ins for ... Read more
Car rental is a platform that offers renting vehicles/automobiles for specific periods, ranging from hours to a few weeks. This service is served by car rental agencies to the people who require a vehicle for the temporary and do not want to own a car. Car rental... Read more
An event data recorder or EDR us a device installed in vehicles to record information related to vehicle accidents or crashes. Video event data recorder (VEDR) is an updated version of EDR, which adds video recording of the immediate surroundings of the vehicle. These... Read more
Market Overview Digital transformation in healthcare is the incorporation of digital technology into all aspects of healthcare industry related to patients, healthcare providers, and regulators. It includes a numb... Read more
Distributed fiber optic sensing systems uses fiber optic cables and interrogator unit. The interrogator units transmit a pulse of light into the fiber optic. This pulse of light travels into the fiber optic, and the strain events within the fiber optic are determined ... Read more
Market Insights- India Content Delivery Network (CDN) Market 2017-2027 Market Overview Content delivery network is a geographically distributed group of proxy se... Read more
Market Overview Aerial Work Platform (AWP) is a specialized machine that is used to provide access to difficult and inaccessible areas. The main features of aerial work platforms are high operational efficiency, ac... Read more