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Global ICT Spending to Jump to USD 5 tln by 2020 - Huawei |
| Source: |
telecompaper.com |
| Source Date: |
Monday, September 29, 2014 |
| Focus: |
ICT for MDGs
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| Created: |
Sep 29, 2014 |
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Mobile broadband, cloud computing, Big Data and the Internet of Things (IoT) are the four technological engines that enterprises focus on when completing ICT-enabled transformation. By 2020, global ICT spending will grow to nearly USD 5 trillion, according to Huawei’s Global Connectivity Index (GCI). By 2025, 100 billion connections are forecast to be generated globally, 90 percent of which will come from intelligent sensors. This increase will be attributed to enterprises becoming enabled by the internet.
The report also shows that the Kingdom of Saudi Arabia ranks 19th in terms of creating a competitive market, affordable services and excellent quality of service due to the country’s significant investment into ICT. According to IDC, Saudi Arabia is the biggest ICT market in the Middle East accounting for over USD 7 billion in predicted spending this year, with the public sector allocating USD 1.63 billion to upgrade government services, education, healthcare and transportation amongst others.
The study found that country connectivity correlates with GDP. The analysis of 16 indexes showed that for each GCI percentage point increase the GDP per capital increases 1.4–1.9 percent, relatively higher for emerging countries. Among the countries surveyed, Germany ranks first due to its strong commitment and ongoing investment in ICT development, resulting in a market with competitive vitality.
The research also indicates that developing countries have also started to accelerate growth by investing strategically in ICT capabilities. The GCI report showed developing countries such as Chile, Kenya and Egypt had the highest growth momentum.
The report allocates each industry to one of four quadrants, Transformers, Strategists, Tacticians and Stragglers. It identified that Transformers regard ICT as a core driving force for business transformation and continuously invest and proactively reshape their ICT business models. Industries such as finance, education, oil and gas and manufacturing demonstrate ICT enabled transformation. With 71 percent of finance enterprises indicating their ICT investment will increase by more than 5 percent over the next two years, it is the highest ranking industry for development. The report also found that 65 percent of enterprises plan to increase their ICT investment over the next two years.
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