Insights from BCC Research

Industry Trends in the IT Market

IT Market Industry TrendsIn 2018, a lot happened in the information technology industry, especially as it pertains to Internet of Things (IoT) and cloud computing technology, which are helping to connect technical devices and other smart objects to the internet and to each other.

With the latest developments in the field of IoT, and cloud and datacenters, industries are capable of revamping the entire business processes, from product design to system delivery to selling at point of sales (POS).

Additionally, artificial intelligence (AI) is still on the horizon. This level of processing will increase the requirements on network performance as well as storage of organizations’ intellectual or business data. Thus, the benefits of cloud and data center networks are starting to justify new investments, as legacy networks and storage technologies lack in capacity to deal with today’s environment.

In our full report, “2018 Information Technology Research Review,” we explain in depth what’s happening in several digital markets within the IT industry, including:

  • Cloud and data center network technologies
  • IoT in global retail markets
  • Smart home technologies

If you’re looking for quick insight into the trends occurring in each of the above markets, you’ll find today’s blog helpful.

Cloud and Data Center Network Technologies Global Markets

Fueled by the enhanced network processors and software-defined networks, cloud and data center networks are estimated to provide performance, reliability and cost-efficient breakthroughs over the next five years.

These capabilities answer the need for programmable networks that leverage denser chip sets and distributed infrastructure that operate in converged architectures and software-defined data centers.

  • The global cloud and data center network market was worth $17 billion in 2017, and is estimated to reach $34 billion in 2022, growing almost 15% annually.
  • Regionally, while North America leads the market, Asia-Pacific is forecast to be the fastest growing market, growing 18.1% by 2022. Coinciding with the adoption of software-defined technologies, cloud and data center networks in Asia-Pacific are advancing ahead of Europe.
  • By technology, software is the fastest growing component of the market and is estimated to obtain 37% market share by 2022. This category was worth $6.3 billion in 2017, and is expected to reach $13.6 billion in 2022, increasing by 16.7% annually. While hardware is vital for the supply of physical elements, software is needed to implement automation.

IoT in Global Retail Markets

For retailers, IoT represents the further embedding of digital technology and virtual customer interactions into the retail value chain. For brick-and-mortar stores, IoT can be an equalizer, allowing them to compete with e-commerce providers with their own technology deployed within the buyers’ physical experience.

Specifically, retailers are investing in radio frequency identification (RFID) inventory tracking chips, traditional in-store infrared foot-traffic counters, cellular and Wi-Fi tracking systems, digital signage and kiosks, as well as applications for customers’ mobile devices.

  • The market for IoT in retail is estimated to grow 18% annually through 2023.
  • Walmart (U.S.), Tesco (U.K.) and Carrefour (France), are the biggest spenders on IoT, generating $7.3 billion in revenue in 2017, and projected to generate $20.3 billion in 2023, growing 18.6% annually.
  • Retailers spent nearly $8.1 billion on 2018 on IoT applications designed specifically to improve customer experience, and are estimated to spend $18.8 billion in 2023.

Smart Home Technologies Global Markets

The global smart home market, with an impending demand for a universal solution, is driven by the intense focus of industry participants on pushing solutions across the mainstream. Driven by shifts in consumer behavior and technological developments, the market has been shifting from a luxury market into a mainstream market, and many new players are entering the market as a result.

However, consumers are faced with the challenges of integrating these complex platforms into a single home technology system. As such, smart home technology is still at the nascent stage because it is adopted by such a small percentage of the population.

  • The smart home market is expected to grow 7.7% annually through 2022 and reach a market value of $55 billion.
  • Smart home technology is largely used in safety and security applications for securing homes from intrusion or theft. This application holds the largest share of the market with a projected revenue of $11.4 billion in 2022, increasing by 5.6% annually.
  • By component, hardware holds the largest share of the smart home technology market, and it is expected to retain its position through 2022. This segment was valued at $17.6 billion in 2016, and it is expected to reach $27.9 billion in 2022, growing 7.9% annually.

Learn More About the Global IT Industry

To learn more about the global IT industry and other digital markets, download a complimentary chapter of our recent reports, “2018 Information Technology Research Review.”

DOWNLOAD FREE REPORT OVERVIEW

 

Written by Sarah Greenberg on Jul 1, 2019 11:00:00 AM

Sarah Greenberg is the Senior Content Strategist at BCC Research. She creates our blog, social media and email content.

Topics: Information Technology