Information & Communication Technologies 2017

  • Successful launches of new products and services which make current products obsolete
  • Frequent mergers & acquisitions weakening medium-sized companies 
  • The current phase of digitalization could increase the risk of an IT services bubble
  • Ongoing price pressures despite robust innovation 

Long-term growth sustained  by innovation  

The Information and Communication Technology sector (ICT), comprising a wide range of activities from electronic components to telecommunication services, will continue to enjoy dynamic growth in 2017. We expect revenues to increase by +4.0% after +3.6% in 2016.

At present, the services segment represents the main part of the sector with 65% of sales. While all segments are expanding in emerging economies (+4.8% expected in 2017), especially the hardware (+4.9%) segment, lower growth in advanced economies (+3.2% in 2017) is boosted by the telecom equipment (+3.7%) segment.

Being the bedrock of innovation and the source of a multitude of game-changing products, the sector’s influence goes far beyond its estimated 6% share of global GDP. 

Digital innovation revolutionizes the value chain and promotes new actors while the smart-cities trend offers opportunities for new services and operators. 

Despite its apparent maturity, the sector remains under constant pressures from: (i) declining prices; (ii) the need to constantly renew the goods and services offered; and (iii) relations between manufacturers and service providers.