Digital Lifescapes

The automotive technology market will continue to evolve as cognitive computing enhances the transportation sector. Self-learning artificial intelligence (AI) in automobiles is the key to unlocking the capabilities of autonomous cars and enhancing value to end users through virtual assistance. This nascent technology offers original equipment manufacturers (OEMs) access to new revenue streams through licensing, partnerships and mobility services. Simultaneously, the use-case scenarios of self-learning AI in cars are drawing several IT vendors, Internet of Things (IoT) technology companies and mobile network service providers to the automotive industry. The combined technologies have also attracted attention and investments from governments, due to its potential to improve urban lifestyles and add national and local economic development value. Automotive AI Market Development Frost & Sullivan -- which already offers market insights into power-trains, car-sharing and smart mo...

Industries that have always embraced the adoption of new technologies are not immune to being digitally disrupted by savvy new market entrants. The global telecom service provider market had a long history of relative stability. Now, however, business model disruption is pervasive. The market is in a state of rapid evolution, with telecommunications companies now competing against more progressive web-scale companies. They can deploy a new service in a matter of hours, thereby delivering real-time experiences to their online subscribers. As more customers demand instant access for digital services, ABI Research predicts many Tier One telcos will transform into digital service providers (DSPs), in order to compete more effectively with over-the-top (OTT) players -- such as Google and Facebook. Digital Services Market Development "Digital transformation is the ultimate goal for telecom network operators. For instance, T-Mobile Un-Carrier digital offerings likely played a hug...

While some CEOs, and their executive leadership team, ponder potential plans for digital transformation projects in 2017, an increasing number of their competitors are moving forward with a progressive business technology agenda. A recent survey of IT buyers worldwide revealed that 71 percent of enterprises are already gathering data for Internet of Things (IoT) initiatives today. This is a three percentage point increase from a previous similar quarterly survey. One again, security is a concern, with 50 percent of respondents citing cyber threats as the top impediment to IoT deployments. This was followed closely by 41 percent who cited a lack of perceived ROI benefits. Regardless, many business leaders are pursuing and funding IoT initiatives. In fact, survey respondents with initiatives already underway expect their IoT-related spending to grow by ~33 percent during the next year. IoT Market Development Trends Current IoT deployments and usage are gaining momentum on trans...

Fintech is being driven by the Financial Services sector. That said, leaders within the Technology, Media and Telecommunications industries are also planning a significant technology investment in blockchain during 2017, according to the latest worldwide market study by Deloitte. However, understanding of this new technology is uneven, based upon the study findings. Many senior executives are still uninformed about the use cases, while others consider it among their company’s highest priorities. Besides, ongoing commitments to blockchain varies by industry. Blockchain Applications Market Development Thirty-nine percent of senior executives at large U.S. companies indicated they had little or no knowledge about blockchain technology. The majority (61 percent), though, claimed blockchain knowledge ranging from broad to expert. Furthermore, some of these blockchain-informed executives see the nascent technology as crucial for their organization’s forward-looking business strategy...

During 2015, CIOs and business technology managers joined the Line of Business leaders by moving more enterprise IT operations to cloud services. In 2016, it’s estimated that disaster recovery, IT helpdesk services, web content management and communication applications are all running in the cloud. That said, public cloud spending will accelerate rapidly, growing from $75 billion in 2015 to $522 billion by 2026 at a compound annual growth rate (CAGR) of 19 percent. The public cloud service segment CAGR rates are: SaaS (19 percent), PaaS (33 percent), and IaaS (18 percent). By 2026, it’s now estimated that cloud computing will account for nearly 50 percent of all spending for enterprise IT hardware, software and outsourcing services, according to the findings of a recent market study that was sponsored by North Bridge, a growth equity and venture capital firm. Based on the findings from the ‘2016 Future of Cloud Computing’ survey, while ~50 percent of all companies either have a c...

Integration removes complexity within IT infrastructure. Demand for pre-integrated, vendor-certified systems containing server hardware, disk storage, networking and basic element management software are growing across the globe. Solutions that provide all compute and storage functions are gaining market momentum. According to the latest market study by International Data Corporation (IDC), the worldwide converged systems market increased revenue 1.7 percent year over year to $2.6 billion during the third quarter of 2016 (3Q16). The market consumed 1.4 exabytes of new storage capacity during the quarter -- that's up by 12.5 percent, compared to the same period a year ago. "The converged systems ecosystem is itself converging at the supplier and product level," said Eric Sheppard, research director at IDC . "On the product side, we find the strongest growth coming from offerings that have robust data services, high levels of automation, and strong lifecycle manage...

From artificial intelligence to the Internet of Things (IoT), innovations are unfolding in virtually every technology sector around the globe, spurring the next generation of economic growth, according to an end-of-year study by IHS Markit . Surveyed analysts provided insights on industry segments such as advertising, automotive, connected networks, consumer devices, entertainment, displays, media, semiconductors and telecommunications. The analysts provided their informed predictions for the evolving worldwide market in 2017. Per their guidance, the key leading technology trends are as follows: Smart Manufacturing Accelerates Companies use IoT to transform how products are made, how supply chains are managed and how customers can influence design. Look for tech firms to release their own Platforms-as-a Service (PaaS) offering in the cloud, as they compete to offer IoT projects for the industrial market. Artificial Intelligence Gets Serious Already, personified AI assis...

Smart machine technologies learn on their own and can produce unanticipated results. That said, by working together, smart machines and people can make each other smarter -- and protect each other from their inherent weaknesses. Smart machines will enter mainstream adoption by 2021, with 30 percent adoption by large companies, according to the latest worldwide market study by Gartner. New and evolving technologies such as cognitive computing, artificial intelligence (AI), intelligent automation, machine learning and deep learning are all considered to be part of the smart machines ecosystem. Smart Machine Market Development "The use of smart machines by enterprises can be transformative and disruptive. Smart machines will profoundly change the way work is done and how value is created. From dynamic pricing models and fraud detection, to predictive policing and robotics, smart machines have broad applicability in all industries," said Susan Tan, research vice president...

As more sensors become connected to the internet, they're provided a unique digital identity. As the complex relationship between these M2M connected units evolve, space and time should be considered as key factors when analyzing data. The number of connected Internet of Things (IoT) devices, sensors and actuators will reach over 46 billion in 2021, according to the latest worldwide market study by Juniper Research. This 200 percent increase in growth from 2016 will likely be driven by a reduction in the unit costs of hardware. Juniper says that costs will average close to the $1 sensor device objective throughout the forecast period. IoT Applications Market Development Their latest global study found that industrial and public services will post the highest IoT device growth over the forecast period, averaging over 24 percent annually. However, the analyst's assessment cautioned that both service providers and end-users will face tremendous challenges when considerin...

It's been a busy year for those telecom service providers who are active in the Internet of Things (IoT) market. Currently, IoT accounts for less than 1 percent of most network operator's total revenue, according to the latest study by Analysys Mason . It will take until 2025 for IoT to exceed 5 percent of service provider total revenue, even starting from 1 percent and growing by 20 percent per year (assuming flat top-line revenues), which is roughly in line with current growth rates for their IoT businesses. Meanwhile, telcos may explore acquisitions or investments. Verizon was one of the few operators to make a move in 2016, investing over $3 billion on its acquisitions of Fleetmatics, Telogis and other smaller firms. More network operators may follow Verizon's lead in 2017. Service Provider Outlook for IoT in 2017 Almost all presentations on 5G mention IoT, but few presentations on IoT mention 5G. IoT vendors are already developing solutions. Massive M2M connect...

Telecommunication service providers are exploring new business models, and some have already experienced growth. Mobile network operator revenues from the Internet of Things (IoT) has reached €11 billion in 2016, according to the latest worldwide market study by Berg Insight. During the course of 2016, a few leading telecom service providers have reported impressive IoT revenues on a regular basis. In the third quarter (Q3) of 2016, Vodafone and Verizon generated around €200 million each in direct sales from IoT connectivity and other associated services. Next year, Berg Insight predicts that a handful of established network operators could generate more than €1 billion each from the Internet of Things related products and services. Service Provider IoT Market Deveopment "Until recently, the principal financial metrics for IoT has been projected, not actual, revenues. Now the market has entered a new phase in which hard business facts take precedent over lofty projections,...

Retailers across the globe continue to invest in new payment technologies, as the growing use of mobile devices, associated software applications and cloud-based financial services enter the mainstream marketplace. ABI Research forecasts the point of sale (POS) hardware market will increase to more than $4.5 billion in 2021, with revenues generated from a combination of traditional POS and mPOS -- which employs a smartphone or media tablet as the cash register. Merchants looking to enhance convenience and foster new experiences and transaction choices at the point of sale will propel POS hardware development over the next five years. POS Technology Market Development "Arguably, despite hype, mPOS did not yet eat into the traditional POS market as many industry experts initially hoped," said Phil Sealy, senior analyst at ABI Research . This is reinforced by the vendor emphasis on competitive pricing strategies on hardware devices, used in a bid to gain market share a...

Enterprise-wide implementations of audience engagement software and services for advertising, marketing, sales and services continue to increase by 5 to 6 percent every six months, reaching nearly 20 percent according to the latest market study by Technology Business Research (TBR). Over 50 percent of enterprises are either in proof of concept or scaling up their digital technology deployments. According to the TBR assessment, digital technology is mainstream and it's already changing the way that businesses interact with their online stakeholders. Digital Media Market Development Traditional media continues the move to digital formats, driving a significant shift in spending. Digital native service providers -- such as Google -- are capturing billions in advertising spend as organizations pivot from traditional print and television formats into more effective online engagement. Newspapers everywhere have suffered greatly from the shift to the digital economy. Meanwhile, T...

The drivers of fintech adoption in the developed world are different to those of the developing world. The last financial crisis resulted in a mistrust of legacy financial institutions, which has fueled the growing consumer appetite for products and services from innovative new providers. Fintech platform revenues derived from supporting the insurance industry (Insurtech) will reach almost $235 billion globally by 2021, that's up by 34 percent y-o-y from an estimated $175 billion this year, according to the latest market study by Juniper Research. Growth will be driven by a combination of factors, including: Machine Learning investments enabling insurance providers to personalise products; Insurers deploying mobile apps to improve their customer experience; Investments in blockchain technologies to underpin smart contracts. Fintech Market Development Trends The new worldwide market study uncovered that the value chain within the insurance market is transforming r...

Chief Information Security Officers (CISOs) have updated their IT security plans for 2017, due to ongoing concerns about new threats. Worldwide, IT organizations currently spend an average of 5.6 percent of their IT budget on IT security, according to the latest market study by Gartner. However, the study uncovered that security spending can range from 1 to 13 percent of an organization's overall IT budget. "Clients want to know if what they are spending on information security is equivalent to others in their industry, geography and size of business in order to evaluate whether they are practicing due diligence in security and related programs," said Rob McMillan, research director at Gartner . That said, Gartner analysts believe that comparisons with industry averages are of limited value. CISOs could be spending at the same level as the peer group, yet be spending on the wrong things and are therefore vulnerable. IT Security Market Development According to th...

Offloading to Wi-Fi can help to transfer cellular mobile traffic by using complementary network technologies for the delivery of data. It enables mobile network operators to reduce the congestion in the cellular networks, while for the end-user it provides cost savings on data services and higher bandwidth availability. It's now forecast that annual cellular data traffic -- generated by smartphones, media tablets, connected cars, and other M2M modules -- will reach 129,000 Petabytes (PB) by 2018 -- that's equivalent to approximately 14 billion hours of 4K ultra high-definition video streaming. Mobile Data Market Development According to the latest worldwide market study by Juniper Research, as 4K video content becomes more widely available, the average data usage will increase leading to almost threefold rise in cellular network traffic to exceed 318,000 PB by 2021. This will put a significant pressure on mobile network providers who will see greater usage. Meanwhile, t...

Growing safety concerns about driving and traffic accidents, plus the recognition by national governments of the apparent advantages of driverless vehicles, will accelerate the deployment of new services that are assisted by the Internet of Things (IoT) infrastructure. ABI Research anticipates that semi-autonomous systems will lead the market over the next decade, with SAE level 2 and 3 systems accounting for 86 percent of autonomous vehicles shipping in 2026. Higher levels of autonomy will gain traction quickly, representing just under one-third of autonomous vehicles shipping in 2030. Autonomous Vehicle Market Development "Driverless cars will transform the way mobility is consumed, bringing environmental, societal and convenience advantages to the end user," says James Hodgson, analyst at ABI Research . "It also represents a fundamental disruption to the business model that dominated the automotive market for almost one century." ABI now believes that OEM...

Personal computer (PC) vendors will remember 2016 as yet another year where their hopes for a market growth recovery failed to materialize. Worldwide PC shipments are forecast to decline by 6.4 percent in 2016, according to the latest worldwide market study by International Data Corporation (IDC). Ironically, this is considered an improvement over an earlier projection for a decline of 7.2 percent in 2016. While the current IDC outlook (subject to change) for 2017 is at -2.1 percent year-over-year decline, the absolute volumes are likely to be slightly higher based on stronger 2016 shipments. PC Market Development Trends The third quarter of 2016 (3Q16) saw a year-over-year decline in shipments of 4.6 percent, more than 2 percentage points ahead of expectations. The 3Q16 market gains were due in part to momentum in the United States, Western Europe, and Japan, and are driven by channel build up in anticipation of component shortages. This inventory accumulation is expected to s...

Worldwide smartphone shipments will reach 1.45 billion units, with a year-over-year growth rate of just 0.6 percent in 2016, according to the latest market study by International Data Corporation (IDC). Although growth remains positive, it is down significantly from the 10.4 percent growth rate in 2015. However, 4G smartphones will reach 21.3 percent year-over-year growth globally for 2016, at 1.17 billion units -- that's up from 967 million in 2015. Once again, emerging markets are driving most growth, where only 61 percent of 2015 smartphone shipments were 4G-enabled, compared to the 77 percent in 2016. That being said, mature markets  -- such as USA, Canada, Japan, and Western Europe -- are further along the 4G adoption curve with 85 percent in 2015 and a projected 94 percent in 2016, respectively. Smartphone Market Development Trends "It's been a long slog for 4G uptake in many emerging markets as 4G data tariffs have been very expensive compared to 3G, while 4...