In order to capture the impact of the Internet in terms of the economy, BuddeComm has compiled the following statistics:
In general terms, the global telecoms market as a whole boasts some impressive figures. The ITU estimates that active mobile-broadband subscriptions were up 20% year-over-year at end-2014, after having risen by 24% in 2013 and by 31% in 2012. Growth is substantially faster in developing countries (37% in 2013 and 28% in 2014), as opposed to developed countries (13% in 2013 and 12% in 2014).
By end-2014, there were an estimated 3.3 mobile broadband subscriptions for every fixed broadband subscription at the global level. The disproportion was higher in developing countries, where mobile broadband outnumbered fixed broadband by 3.5 to 1, while in developed markets the ratio was 3.0 to 1. Globally and in developed countries, mobile broadband overtook fixed broadband in 2008, but in developing countries, it did not do so until 2010. Since then, however, the adoption of mobile broadband in the developing world has been nothing but spectacular, with growth rates averaging 38% CAGR.
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– Interesting statistics on the impact of the Internet and the economy
· It was forecast by the Boston Consulting Group (BCG) that by 2016 the Internet economy will reach $4.2 trillion across the G-20 economies; · BCG also established that the Internet economy already accounted for 4.2% of GDP across the G-20 in 2010 (the equivalent of $2.3 trillion); · A study by the McKinsey Global Institute in 2011 established that the Internet economy accounted for 3.4% of GDP across the G-8 nations as well as Brazil, China, India, South Korea, and Sweden; · A further study by McKinsey found the Internet contributed $1.7 trillion to the global economy in 2010; · A 2012 study by General Electric forecast the “Industrial Internet” would contribute $10-15 trillion to global GDP by 2030. |
(Source: BuddeComm based on various industry sources)
Other country specific statistics which have been published include:
· China – The McKinsey Global Institute forecast the Internet sector would add between 0.3-1% points to China’s GDP during the 2013 – 2025 period. This would translate into a 7-22% incremental GDP growth – the equivalent of ¥4 trillion (US$650 billion) to ¥14 trillion in GDP annually.
· United Kingdom – a study by the Boston Consulting Group (BCG) published in 2015 identified that 10% of GDP in the UK is contributed by the Internet – more than the manufacturing and retail sectors. The UK has the largest digital economy in the G20, according to the study.
· USA – General Electric (GE) found that the “industrial Internet” which refers to the growth of machine-to-machine sensors connected over the Internet (also known as the Internet of Things, IoT), would contribute as much as $1.5-$2.3 to the GDP in the US by 2020. This is due to the contribution this technology development will make to economic productivity.
· India – a McKinsey report in 2013 forecast the Internet would contribute around $100 billion to India’s GDP by 2015, up from $30 billion in 2011. This is due to the predicted rise in the number of Internet users during that time.
· Russia – a report by The Boston Consulting Group (BCG) in 2012 found that the Internet market contributed around 1% to Russia’s GDP – and forecast this to rise to 2.8% by 2016.