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ICT investment across vertical markets will outpace Europe’s average gross domestic product (GDP) growth in the next few years, according to a new report.
New analysis from consulting firm Frost & Sullivan looked at the Organisation for Economic Cooperation and Development’s nominal GDP forecast of 2.2 percent for the 2014-2016 period, and revealed that total ICT spending by industries in the region is expected to increase at an average year-on-year growth rate of 3.3 per cent between 2014 and 2019.
The data also found that the top five industries that offer strategic opportunities for the ICT market include energy and utilities, healthcare, ICT, transportation and manufacturing.
The energy and utilities industry recognises that tech trends such as connectivity, IT/operational technology convergence, cloud and big data analytics are essential when it comes to achieving strong operational outcomes.
For example, the Internet of Things (IoT) has led to a rise in software and cloud-based solutions, which allow utilities to connect sensors.
Yiru Zhong, senior analyst and Frost & Sullivan, said: “Similarly, the realisation that machine-to-machine (M2M) technologies, mobility, cloud and wearables can significantly transform the way services are delivered and consumed has been driving ICT spending in the healthcare industry.
“To encourage continued ICT investments, however, it is critical for vendors to develop healthcare-specific value propositions.”
In addition, within the transportation industry ICT spending is increasing due to operational security issues.
Zhong added: “Manufacturing or industrial automation is another industry ICT vendors should watch for opportunities.
“IT-based solutions will fuel overall ICT spending in the industry as it becomes smarter with real-time integration of operational and enterprise systems.”
However, Frost & Sullivan notes that the challenge for players in the ICT sector is to establish themselves as credible partners to customers across various industries.
For example, firms will need to take on new practices to handle their organisation, tech profile and customer activities.
All in all, the ICT industry looks like it is set to change soon, with new types of stakeholders emerging and consolidations on the horizon, so says Frost & Sullivan.
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