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Global Internet and Communication Industry Analysis: IP Traffic and Number of Networked Devices to Show Healthy Growth

 Published Date: 2019-06-06   |   Views: 86   |  Internet & Communication  

Growing need for long-distance communication, high demand for connectivity, and surge in internet usage are expected to positively impact the global internet and communication industry. Market analysts have provided a bright outlook for the internet content industry. Factors such as rising automation of application development process and availability of a wide range of cloud-based and mobile offerings are anticipated to bolster the internet content industry. Communication companies are forecast to increase the adoption of digital strategies, and cloud communications could be a vital part of them. Adoption of cloud communications is foreseen to improve due to the use of third-party APIs.

Companies to Focus on Network Expansion and Extension of Consumer Base

Verizon Communications, a US-based telecommunications company, is one of the important players of the global internet and communication industry. In May 2019, it announced coast-to-coast availability of its Narrowband IoT Network that covers over 92% of the American population. Chinese state-owned telecommunication corporation, China Mobile is also one of the popular companies in the industry. It faced troubles in the US market as the American Federal Communications Commission barred it from operating in the country, citing national security concerns.

US-based multinational telecommunications conglomerate, Vodafone Group is one of the leading companies operating in the global internet and communication industry. As of 2018, it took the fourth position among other companies in terms of number of mobile customers. Comcast, an American telecommunications company, announced the acquisition of Deep Blue Communications, a US-based leader in managing, installing, and engineering commercial Wi-Fi networks, in May 2019.

AT&T, an American telecommunications company, announced in June 2019 that the International Association of Fire Fighters formed an alliance with the company to educate paramedics and firefighters on FirstNet mobile broadband services.

Increasing Use of Smart Devices to Boost Demand for Big Data Tools

The global internet and communication industry includes top sectors such as cloud computing, AI, big data, VR and AR, IoT, cybersecurity, and payments. The global big data market is foreseen to exhibit growth on the back of the rise in the already massive amounts of data generated across different industries. Growing penetration of smart devices is anticipated to further push the growth of the global big data market. Cloud computing could be largely adopted in high-growth industries such as consumer goods and retail because of the need to use innovative and sophisticated technologies.

Demand for digital payments is predicted to see a rise as a result of the increase in new payment tools and options, platforms, and providers. Growing need for payment security and high internet usage could be other factors strengthening the global digital payments market. Increasing incidence of cybercrimes is one of the main reasons that analysts are expecting the demand for cybersecurity to grow tremendously in the future.

Internet Traffic and Other Forecasts for 2022

According to the Cisco Visual Networking Index: Forecast and Trends, 2017-2022 white paper, the global annual IP traffic is expected to touch 4.8 ZB per year in 2022. By the same year, the global monthly IP traffic is projected to reach 50 GB per capita. The future will see smartphone traffic surpassing PC traffic due to increasing use of portable and mobile devices. Of the total IP traffic, smartphones are forecast to secure a 44% share in 2022.

If the global connectivity and network access trends are considered, the white paper mentions that mobile and Wi-Fi devices are projected to collect a 71% share of the total IP traffic in 2022. The remaining 29% could be secured by wired devices. In 2022, global mobile data traffic is anticipated to touch 77.5 EB per month. In the coming years, it is expected to increase two times the fixed IP traffic. Of the total IP traffic, it is anticipated to account for a 20% share in 2022.

Regionally, the Middle East and Africa is projected to show the fastest growth in IP traffic, followed by Asia Pacific. However, its IP traffic is expected to reach 20.9 EB per month in 2022, which is lower than Asia Pacific’s 172.7 EB per month. North America is forecast to touch IP traffic of 108.4 EB per month, which is higher than Western Europe’s 49.9 EB per month. IP traffic in Latin America could be the lowest, reaching 18.8 EB per month.

Top 5 Trends of Communication Industry in 2019

  Communication service providers (CSPs) are expected to use technology platforms to create agile environments so that they could stay relevant as industry transformation and digitalization take over

     Emergence of 5G is anticipated to introduce new service categories such as ultra-reliable low latency services, IoT applications, and enhanced broadband. CSPs may experience fundamental shifts in their operations due to the requirement of strong network densification to provide 5G services

   Established CSPs are foreseen to show more competitiveness in the industry with increasing number of new providers, new technologies and products, and growing number of mergers

     CSPs are foreseen to focus on flexibility and personalized services to meet the growing expectations of their customers. Demand for customer-centric, real-time, and lightning-fast speeds is anticipated to increase even more in the coming years

      Communication companies are prophesied to continue to make real-time customer engagement and interaction a priority

Most market watchers anticipate 5G technology to create revenue opportunities for CSPs. Nevertheless, there are also other segments expected to fuel the demand in the communications industry. For instance, mobile payments and mobile health are predicted to become key revenue-generating segments of the industry. Adoption of healthcare-centric wearables is foretold to see an increase owing to the need to maintain health in a time when chronic diseases and infections are on the rise. Factors such as convenience are prognosticated to boost the demand for mobile payments.

IP Video Traffic to Grow Strong in Near Future

Compared to average internet traffic, busy hour internet traffic is predicted to rise more aggressively in the next few years. As mentioned in the Cisco Visual Networking Index: Forecast and Trends, 2017-2022 white paper, M2M connections are foretold to increase to 14.6 billion in 2022. In the same year, they are anticipated to increase to over half of the global connections and connected devices. Devices connected to IP networks are also foreseen to increase in number. In 2022, the number of networked devices is forecast to reach 28.5 billion. In the same year, the number of devices connected to IP networks is projected to increase over thrice the global population.

The Cisco Visual Networking Index: Forecast and Trends, 2017-2022 white paper also shows that the global IP video traffic is expected to increase rapidly in the coming years. In 2022, IP video traffic is forecast to account for an 82% of the total IP traffic (both consumer and business) globally. Internet traffic is prognosticated to evolve to a more dynamic traffic pattern from a relatively steady stream of traffic due to video growth. The application of internet video is prophesied to account for a 71% of the global IP traffic in 2022, followed by web/data with a 12% share. IP VOD/managed IP video is expected to secure an 11% share, which is higher than gaming’s 4% share and file sharing’s 2% share.

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