The digital economy will reach $4.8 trillion by 2025, during what is shaping up as a “second digital revolution” that will affect all industries, according to a new report from Ovum.
That represents a 29% increase from the market size today. Enterprise technology spending, which is the largest portion of the market, will double to $1.5 trillion while traditional communications and broadband connectivity spending will decline, Ovum says.
The impact of digitalization will be felt across value chains, supply chains, consumption and monetization, the report says.
Ovum says those organizations that enable and support digital services, device and service management, applications, customer relationships and the underlying technology platforms through which customers and third parties access and distribute applications and content will be the most successful in the transformational shift.
“Driven by cost-effective connectivity, greater computing capacity and improvements in technology such as analytics and artificial intelligence, the second wave of the digital revolution is on its way and its impact will be felt across all industries,” Steven Hartley, practice leader, Service Provider and Markets at Ovum, said in a statement.
The first digital revolution from 1995 to 2015 impacted key processes and consumer-facing sectors such as media and retail, Ovum says. But the second will impact a far greater range of processes and industries across the enterprise space.
“Increased competition, attracted by revenue growth and facilitated by more open ecosystems, will mean that organizations must place the needs of customers at the heart of their decisions and processes,” Hartley said. “Innovation, partnerships, scale, agility and service bundling will all be vital to support this new outlook on the market.”
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