TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Industry Announcements

Tracker

Road to 2025: Digital economy to hit $4.8trillion during second digital revolution, analysts predict

Via Ovum Media center

Oct 5, 2015

Digital economy to hit $4.8trillion during second digital revolution, analysts predict

  • Enterprise technology spending to double to more than £1trillion by 2025
  • Traditional communications and broadband connectivity spend to decline
  • Digital advertising spend will rise to £254billion

A fresh wave of digital transformation is coming, with industries across the board impacted by the ‘Second Digital Revolution’, according to a new report published by analysts at Ovum looking at the digital economy and its key players over the next decade.

The core scenario

All industries will be affected by this revolution. More verticals and processes will be impacted and automated by digitalisation, and these effects will be felt across value chains, supply chains, consumption and monetisation.

Ovum predicts that this equates to a $4.8trillion global opportunity in 2025 – up 29% from today- for technology companies. These are the Digital Enablers – such as IT vendors like IBM and SAP and Communication Service Providers like AT&T , Orange & Deutsche Telekom , as well as the likes of Google, Apple and Microsoft -who will supply the technology and connectivity making this organisational transformation possible. But it’s Enterprise Technology that will take the largest slice of the pie. (Please see diagram below).

SMART players dominate

There will inevitably be winners and losers, in this transformational shift. Ovum forecasts that it will be the Digital Enablers who become SMART players, who will benefit the most from the evolution of the digital economy.

SMART players are those enabling S ervices, device and service M anagement, A pplications, customer R elationship, and the underlying T echnology platforms through which customers and third parties access and distribute applications and content. Embedded in many digital enablement segments and with significant breadth of reach, they’ll be able to capture a significant proportion of the total value. Today’s internet platform providers (such as Apple , Google , Facebook , Amazon , Microsoft ) are most likely to assume these roles, but new challengers are likely to evolve from the internet or media segments.

Steven Hartley, Practice Leader, Service Provider and Markets at Ovum, says:

“ Driven by cost-effective connectivity, greater computing capacity and improvements in technology such as analytics and artificial intelligence, the second wave of the digital revolution is on its way and its impact will be felt across all industries.

“The first digital revolution (1995-2015) impacted key processes and consumer-facing sectors such as media and retail. However, the second will impact a far greater range of processes and industries across the enterprise space, thereby expanding the opportunity to support their transformation – albeit with less direct consumer impact than before.

“Those players providing technology, connectivity and services to the Digital Economy will have a huge opportunity to facilitate this transformation.”

Challenges remain

Success for Digital Enablers, defined either by growth into new opportunities or even simply survival, will depend on several capabilities. Chief among these will be prioritising customers and continuous innovation.

Those organisations that win out will be those who work differently:

  • Collaborating with competitors, partners, suppliers and any combination of the above
  • Putting the consumer at the heart of their decision making process
  • Consistently innovating
  • Building scale and reach

As Steven Hartley explains:

“Increased competition, attracted by revenue growth and facilitated by more open ecosystems, will mean that organisations must place the needs of customers at the heart of their decisions and processes. Innovation, partnerships, scale, agility and service bundling will all be vital to support this new outlook on the market.”

If you would like to see the report in full, and Ovum’s recommendations for Digital Enablers, please do not hesitate to contact me.

Diagram I: Total spending on digital enablement technology ($bn)

gh

Source: Ovum

  • Enterprise technology spending will claim 32% of the total digital enablement market in 2025, almost doubling to more than $1.5trillion by 2025. Consequently, competition in this space is set to intensify as CSPs, Internet platform providers, and network enablers move in.
  • Communications and broadband connectivity will account for a sizable 28% share too, albeit with spending declining by 8% overall by 2025.
  • Digital advertising will grow fastest, growing from $166billion in 2015 to $385billion by 2025, but will account for just 8% of total spending in 2025.
Related Topics
  • Access Evolution,
  • Broadband,
  • Enterprise,
  • Europe,
  • News,
  • Ovum,
  • Research and Trials,
  • Tracker,
  • Transformation

More Like This

Digital Platforms and Services

AR/VR headset shipments slow in Q1 2023 as the market awaits wide availability of next-gen headsets, according to IDC

Jun 2, 2023

Private Networks

Samsung Electronics and NAVER Cloud to provide private 5G network services for Hoban Construction

Jun 2, 2023

The Green Network

Telenor purchases green energy from a brand-new solar park in Denmark

Jun 2, 2023

Security

InterDigital’s Alec Brusilovsky elected vice chair of the ETSI industry specification group on securing AI

Jun 2, 2023

Access Evolution

DNS:NET and ZTE achieve highest FTTH bandwidth in Berlin metropolis

Jun 2, 2023

This content extract was originally sourced from an external website (Ovum Media center) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

Email Newsletters

Sign up to receive TelecomTV's top news and videos, plus exclusive subscriber-only content direct to your inbox.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

1:17:33

From telco to techco: The impact of next-gen operations on skills, talent acquisition and retention

1:14:31

Achieving maximum operational efficiency: How service providers can best operate at speed and scale

1:14:20

Why data and APIs are key to implementing the vision of the digital services provider

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us

  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).