Technology is key to any business. Despite the global information technology industry’s setback in 2020 (with the IDC’s initial estimated revenue of US$5.2 trillion decreasing to US$4.8 trillion), the IDC estimates the industry to reach US$5 trillion next year. This 4.2% growth would indicate a return to the days before the pandemic, and the IDC predicts a consistent increase at a 5% compound annual growth rate through 2024.
The United States dominates the tech market at 33% (US$1.6 trillion) for 2021, and its effects has a significant impact on other sectors such as retail, construction and transportation. However, 67% of technology spending occurs outside of the US, with western Europe and China being significant contributors, so any player in the tech market should be open to global opportunities.
Some key trends are emerging with the increasing opportunities in the tech market. What should you watch out for?
Cloud-based Systems: Forrester Research has projected a growth in the global cloud market by 35% to US$120 billion in 2021. This is an increase from their previous estimation which predicted a 28% growth. As remote work continues with the ongoing pandemic and some businesses move permanently online, the need for an organised and easily accessible data system has become paramount.
Cybersecurity: As technology evolves and becomes an integral part of business operations, the risk to information systems increases. From 2021-2028, the CAGR of the global cyber security market is estimated to increase by 10.34%. ‘Don’t trust anyone, verify everything’ is the Zero Trust model’s mantra – this has gained the attention of corporate executives worldwide. IBM reports the average data breach cost to have been at US$3.86 million this year, a US$137,000 increase due to the move to remote workforces.
AI in the Healthcare Market: Despite Covid-19, many companies have continued to invest in AI technology and plan to invest 8.3% a year over the next three years. But the area with the most potential is evidently in the healthcare sector. The global market size is expected to grow from US$4.9 billion in 2020 to US$45.2 billion by 2026, growing at a CAGR of 44.9%. During the forecast period, the software sector holds the largest share while machine learning, medical imaging, and the diagnostics sectors are projected to grow at the highest CAGRs.
Next year’s trends in technology will be driven by this year’s pandemic. Watch out for any gaps in the market that could provide the perfect business opportunity for you. Bubu & Friends can provide expert guidance on these growing markets; if you are in the tech industry, contact us here for a free consultation.