In 2016, the global technology market size rose by about 4.5 percent of the estimated value over the previous year, reaching a value of $2.9 trillion US dollars. Though this growth rate is down from the 5.6 percent growth rate in 2015, this market is still expected to see growth in the coming years.
Globally, businesses and governments spent about $2.9 trillion US dollars on global technology. The amount of spending is less than the previous year, which can be attributed to the weaker growth in China, the Middle East, Europe and Brazil.
It should be noted while the growth of this industry may have been lower in 2016 as compared to 2015, it is still a marked improvement compared to the growth in 2014, where the global technology market size only grew by 2.3 percent.
Factors Driving the Growth of the Global Technology Market
There are several factors that are driving the growth of the global technology market. The increased purchasing of computer and communications equipment, software and technology consulting, as well as outsourcing services, are all fueling the growth of this industry.
Furthermore, more focus on revenues will continue to drive investments by large corporations into this market on a global scale. Business technology is gaining a lot of attention in developed economies, particularly the United States, where businesses are showing increased confidence in their outlooks and are thus focused on boosting their revenues as opposed to decreasing their costs.
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Advances in the Global Technology Market
Several advances have been made in the global technology market. These advances are expected to further draw attention from major investors, this increasing the value of this market in the coming years.
Some of the latest and most profound technological advances in this market include:
- Wireless innovation. A big move to build out broadband wireless networks will allow for the development of the underlying infrastructure that is crucial for the innovation of technology, the Internet of Things, and autonomous vehicles.
Major wireless carriers, such as Verizon and AT&T are expected to deploy their 5G next-generation mobile broadband networks in the span of the next few years. In the meantime, mesh networks that allow for the connection of nearby devices to each other on local grids will make it possible for a new error of wireless innovation in highly populated cities and other areas.
- The Internet of Things. Faster and higher bandwidths offered by wireless networks in place, known as the Internet of Things, is currently in its earliest stages. However, in the upcoming years, it will become a much larger part of everyday life, playing a key role in virtually all facets of life, from business to communication between individuals, just to name a few. A $6 trillion investment in the Internet of Things is projected over the span of the next five years. Moreover, there will be an estimated 24 billion Internet of Things devices installed across the globe by the year 2020.
- Smarter Cities and Cars. There have already been big moves by major technology companies, city officials and other large groups to create smart cities. This involves the installation of wireless cameras on light poles, in street pavement, on exterior buildings, etc. These will serve as vital tools for the planning of urban areas, as well as for the management of cities. They will also be extremely important for the future of autonomous or self driving vehicles.
Within the next 10 years, the car industry will see a big shift with the creation of self-driving vehicles. Cities around the global will start putting sensors and cameras throughout their communities. These sensors and cameras will essentially “speak” to these self driving vehicles in order to improve their navigation abilities and avoid crashes within the limits of these cities. However, these infrastructure build-outs are going to take a while to develop and apply. They will also cost a significant amount of money and will demand a great deal of professionals, including engineers, in order to make these efforts become a reality.
- Data Centers. Data centers will also largely contribute to the growth of the global technology market. At the current time, virtually every company needs more people to staff their data centers, including data analysts and data engineers. The largest companies in the world are focusing on gathering terabytes or petabytes of virtually all types of data. This information will be analyzed and used to improve their ability to make products and services for consumers.
- Healthcare. The healthcare industry will also contribute to the growth of the global technology market. This will largely be due to the digitization of health data, which will lead to the development of new markets for devices that can be used for health-related purposes, such as fitness trackers. At all levels of the healthcare system, digital technology is expected to become a significant part of making diagnoses, managing the records of patients, and even the prevention of diseases.
- Virtual and augmented reality. There will also be large advances in virtual and augmented reality. These fields are expected to revolutionize consumers’ computing experience. It will also offer new ways for people to interact with technology, as well as with each other. These technologies are in their embryonic stages, but they will certainly grow, and with that growth, they will bring more investments, more research and development, and more jobs.
The Outlook of the Global Technology Market
Given the increased growth rate of the global technology market and the significant advances that are projected for the upcoming years, this industry is expected to experience even more growth in the foreseeable future. Major corporations are investing a tremendous amount of money in this market, which will fuel even more growth. Moreover, the increased need for further technological advances and the application of technology in a variety of fields will also fuel the growth of this industry.
The future of the global technology market surely looks to be bright.