IDC: Global digital transformation investment will reach $1.8 trillion in 20222022-05-16
According to IDC's latest projections, global spending on digital transformation of business practices, products and organizations (DX) will reach $1.8 trillion in 2022, up 17.6% from 2021. Over the forecast period 2022-2026, global spending on digital transformation will maintain this growth rate at a five-year compound annual growth rate (CAGR) of 16.6% 100G QSFP28 SR4.阅读详情
"After a slight slowdown during the pandemic, IDC expects to see significant growth in digital transformation technology investments in 2022," said Craig Simpson, SENIOR research manager, IDC Customer Insights and Analytics. As companies accelerate the adoption of digital first strategies, they are channeling these investments into internal operations and direct external engagement. Investments in internal operations are focused on improving efficiency and restoring resilience, while customer experience transformation has become a digital transformation priority for many companies."100G QSFP28 SR4
IDC's digital Transformation spending guide contains 51 strategic priorities, of which operational investment stands out. Back office support and infrastructure, smart manufacturing and digital supply chain optimization will see the largest investments in 2022, with the three investment areas combined to spend more than $620 billion on digital transformation this year. Other operational priorities that will see significant investments in 2022 include connected assets, facilities management, and operational data and information. In 2022, digital transformation spending on customer Experience investments such as Omni-Experience Engagement and Omni-Channel Commerce will exceed $300 billion. The digital transformation strategy with the fastest spending growth in the five-year forecast focuses on narrow priorities such as frictionless insurance (27.4% CAGR) and legal (27.0% CAGR) and operational priorities such as enterprise and resource management (26.0% CAGR).100G QSFP28 SR4
From an industry perspective, discrete and process manufacturing will account for nearly 30% of global digital transformation spending this year, followed by professional services and retail. Utilities and banking will also spend more than $100 million on digital transformation this year. Meanwhile, the financial services sector will see the fastest growth in digital transformation spending over the forecast period 2022-2026, with securities and investment services, insurance and banking all set to grow at a five-year CAGR of 19% or more.
By region, the US will be the largest geographic market for digital transformation spending in 2022, accounting for nearly 35% of the global total. Western Europe will be the second largest region for spending on digital transformation, followed by China. China will also see the strongest growth in digital transformation spending, with a five-year cagR of 18.5 per cent. Latin America will be the second fastest growing region with a compound annual growth rate of 18.2 per cent.100G QSFP28 SR4
Angela Vacca, senior Research manager, Industry Solutions, Customer insights and analytics, IDC Europe, said: "Digital transformation spending in the Europe, Middle East and Africa (EMEA) region will reach nearly $469 billion in 2022, up 16.7% from 2021, highlighting the strong importance of digital transformation projects across European industries. The fastest growth will be in finance and manufacturing, with use cases related to big data and ARTIFICIAL intelligence dominating in financial institutions, while use cases related to the Internet of Things and robotics will grow very actively in manufacturing enterprises. In Central and Eastern Europe, the war in Russia and Ukraine will delay investment this year, affecting many sectors, especially resources. Supply chain disruptions will also affect some manufacturing and distribution sectors, while network and IT supply chain disruptions will lead to the postponement of some digital transformation projects in the telecom sector."100G QSFP28 SR4
IDC cuts forecast for global telecom services revenue growth in 2022 due to economic slowdown2022-05-12
According to IDC's semi-annual Tracking report on global telecom services, global spending on telecom services and pay TV services reached $1,566 billion in 2021, up 1.6 percent year on year. IDC expects global spending on telecoms and pay-TV services to grow 1.4% to $1,588 billion in 2022.阅读详情
In 2021, the global economy recovered rapidly from the downturn caused by the COVID-19 pandemic. This favourable environment has driven additional growth in telecommunications services spending, so that the total value of the global market has grown slightly faster than originally forecast. This trend was shared across all regions of the world: the European, Middle East and Africa (EMEA) market grew 0.2 percentage points faster than forecast in October 2021, asia-pacific grew 0.5 percentage points faster, and the Americas grew 1.0 percentage points faster. Growth was also higher than expected in all technology areas except pay-TV, which is logical because people were able to spend more time outdoors, so some canceled TV packages bought during the lockdown.
In its October 2021 report, IDC predicted further recovery (i.e., higher growth rates) in 2022 and 2023. IDC's forecasts have changed, however, due to new developments such as accelerating inflation and a central bank hike in benchmark interest rates that will lead to slower growth in coming years. While the new forecast is still optimistic, IDC expects growth in the first half of this year to be lower than last year.
Inflation should have a nominally positive effect on the market: operators will raise rates, customers will pay more, and the total value of the market should grow faster than previously expected. However, inflation also reduces the purchasing power of consumers and businesses, leading to a decline in demand. It is worth noting that the impact of inflation on the telecom services market will expand in the coming years. This is because a large proportion of users have two-year contracts with carriers, which guarantee stable charges until the end of their contracts. But it also means that the impact of inflation is initially higher in markets with a higher proportion of pre-paying customers.
The war in Ukraine will have a negative impact on the communication services market in the EMEA region. It will mainly hit the Ukrainian market, which will suffer a sharp decline due to the destruction of network infrastructure and the mass exodus of people from the country. Local demand will come under pressure due to the recession caused by international sanctions and the Russian market will also decline. On the other hand, the war will have a positive impact on the markets of neighbouring countries (Poland, Slovakia and Romania) that host large numbers of Ukrainian refugees.
The COVID-19 pandemic is not over yet. The current lockdown in China and the possible emergence of new virus variants in other parts of the world could have an additional impact on the market, mainly in the commercial fixed data services segment. While previous waves of COVID-19 did not have a huge impact on the global telecom services market, related global supply chain disruptions have led to shortages of end users and network equipment, creating new concerns for supply-side players. This is all part of IDC's downward revision.
The telecom services industry has remained remarkably stable throughout the COVID-19 pandemic. More than that, it is the backbone of the global economy, allowing people to communicate, play and work from home. "The economic recovery in 2021 is driving growth and leading to higher than expected growth rates, but the same forces that are driving the market up could also be driving the market down," said Kresimir Alic, IDC's global telecom services research director. This market, like any other, is not immune to changing economic trends, and forces like inflation and recession can quickly change the shape of the curve. Inflation has occurred and the economy has started to slow -- so our view on the market remains cautiously positive."
LC: China pursues economic upgrading and 5G vision despite severe headwinds2022-05-11
Dell 'Oro report: 5G NR millimeter-wave revenue is expected to reach $2 billion by 20262022-05-09
In a recent blog post, Stefan Pongratz, vice president and analyst at Dell 'Oro Group, a market research firm, analyzed the evolution of the global MMW 5G NR market.阅读详情
Preliminary findings suggest that 5G NR millimeter-wave investment improved in the fourth quarter of 2021, but not enough to change the momentum for the full year, he wrote. After two years of exponential growth, MILLImeter-wave revenue grew by 15%-20% in 2021, pushing 5G NR millimeter-wave to account for 1%-2% of sub-6ghz and millimeter-wave RAN revenue.
While investment in MILLImeter-wave NR has largely surprised compared to what was expected three or four years ago, millimeter-wave RAN revenues have fallen short of Dell 'Oro Group's expectations at the start of the year. Still, Dell 'Oro Group is not worried about the slowdown and the impact on the long-term business case, but rather sees it more as a short-term calibration, reflecting the fact that the sub-6ghz spectrum still provides the most compelling RAN economics.
Other MILLImeter-wave technology highlights in this 4Q 2021 and quinquennial RAN Market Report include:
· Ericsson leads the millimeter-wave RAN market;
· The mismatch between capital expenditure and data consumption when comparing the sub-6ghz and MILLImeter-wave spectrum will evolve over time -- global 5G NR millimeter-wave revenues are expected to reach $1 billion to $2 billion by 2026.
· Mobile services remain the main focus; however, advances in gNB and repeater technology are expected to improve the FWA business case.
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