LONDON, Sept. 30, 2015 /PRNewswire/ -- Information & Communications Technologies (ICT) investment across vertical markets will outpace Europe's average gross domestic product (GDP) growth in the forthcoming years. Compared to the Organisation for Economic Cooperation and Development's nominal GDP forecast of 2.2 percent for the 2014-2016 period, total ICT spending by industries in the region is expected to increase at a much faster average year-on-year growth rate of 3.3 percent between 2014 and 2019.
New analysis from Frost & Sullivan, ICT Opportunities Across European Vertical Markets (http://www.frost.com/mace), finds that the top five industries that offer strategic and tactical opportunities for ICT market participants are energy and utilities, healthcare, ICT, transportation and manufacturing, all of which lead the digitalisation drive to create a connected society.
The energy and utilities industry is keen to utilise ICT to complement its smart grid investments in projects such as substation upgrades. The sector recognises that maturing technology trends like connectivity, IT/operational technology convergence, cloud and big data analytics are key enablers for achieving strong operational outcomes. For example, the concept of the Internet of Things (IoT) has given rise to software and cloud-based solutions that allow utilities to connect sensors and thereby gain visibility into their operational assets' status for better demand side management.
"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," said Frost & Sullivan Information & Communication Technologies Senior Industry Analyst, Yiru Zhong. "To encourage continued ICT investments, however, it is critical for vendors to develop healthcare-specific value propositions."
In the transportation industry, operational security issues as well as the need to integrate diverse and often siloed systems are spurring ICT spending. The industry's interest lies in deploying next-generation networks, big data and analytics technologies, and M2M/IoT.
"Manufacturing or industrial automation is another industry ICT vendors should watch for opportunities," noted Zhong. "IT-based solutions will fuel overall ICT spending in the industry as it becomes smarter with real-time integration of operational and enterprise systems."
The challenge for players in the European ICT community is to establish themselves as credible vendor partners to customers across various industries. For this, the ICT community must adopt agile practices to handle its organisation, technology portfolio, and customer acquisition activities. Moreover, it should keep abreast of the strategies employed by market leaders in Germany, Poland and the United Kingdom, where above-average ICT spending growth rates and substantial industry-led initiatives for digital transformation have been observed.
Overall, the ICT industry is poised for a shake-up. New types of stakeholders will emerge and consolidation of traditional market leaders will intensify this year, leading to innovations in business models and the application of new technologies.
For more information on this study, please email Edyta Grabowska, Corporate Communications, at edyta.grabowska@frost.com.
ICT Opportunities Across European Vertical Markets is part of the Vertical Markets in ICT (http://www.ict.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: ICT Opportunities in the Global Smart Plants Market, ICT Opportunities in the Smart Water Metering Market, Game Changers—Technologies Poised to Disrupt Industries, and ICT Spending in Connected Industries in Europe. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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ICT Opportunities Across European Vertical Markets
MACE-67
Contact:
Edyta Grabowska
Corporate Communications – Europe
P: +48 22 481 62 03
E: edyta.grabowska@frost.com
LinkedIn: http://ow.ly/SMIm0
