World Economic Forum – Production Technology Radar
How was the Production Technology Radar Constructed
- More than 90 interviews
- A global survey and over 100 open source reports
- Interviews with chief operations, technology and information officers of companies developing and implementing in-scope technologies across 12 industries with global production and supply chain footprints
- The findings were validated through discussions with over 300 business leaders and policy-makers conducted in six regional workshops
In 2016, the 5 key technologies of focus were the:
- internet of things
- artificial intelligence
- 3D printing
- advanced robotics
- wearable technologies (including augmented and virtual reality)
Go to Market Stats – The US of Unicorns
Collectively, US unicorns are worth approximately $360B
Combined, these companies have raised just over $73B.
The top five unicorns are:
Most unicorns are in California, New York, Massachusetts, and Illinois.
The top five most well-funded US unicorns are:
- Uber ($15.1B raised)
- Airbnb ($4.4B)
- WeWork ($2.76)
- Infor ($2.63B)
- Lyft ($2.46B)
The oldest unicorn in the US is the greentech company Bloom Energy, which reached a valuation above $1B in 2009.
The newest unicorn in the US is 3D printing startup Desktop Metal, which became a unicorn in July 2017 after raising a $115M Series D.
The three most active investors in US-based unicorns, by total number of deals are the VC firms:
- Sequoia Capital
- Andreessen Horowitz
- Tiger Global Management
Go to Market Stats – Mary Meeker’s Annual Internet Trends Report 2017
Kleiner Perkins Caufield & Byers partner Mary Meeker’s delivered her Annual Internet Trends Report for 2017.
Here are some highlights:
Mary Meeker’s Annual Internet Trends Report 2017 – Key Takeaways
Global Internet Users = 3.4B @ 46% Penetration
Global smartphone growth is slowing
- Smartphone shipments grew 3% y/y versus 10% the year before
Voice is beginning to replace typing in online queries
- 20% of mobile queries were made via voice in 2016 – accuracy is now about 95%
Netflix went from 0 to more than 30% of home entertainment revenue in a decade in the U.S.
- TV viewership continues to decline
Global interactive gaming is becoming mainstream, with 2.6B gamers in 2017 versus 100M in 1995
- Global gaming revenue is estimated to be around $100B in 2016
- China is now the top market for interactive gaming
In the U.S. in 2016, 60% of the most highly valued tech companies (Apple, Alphabet, Amazon and Facebook) were founded by first- or second-generation Americans and are responsible for 1.5M employees
Wearables are gaining adoption with about 25% of Americans owning one, up 12% from last year
Leading tech brands are well-positioned in the digital health market – 60% of consumers are willing to share their health data
Mary Meeker’s Annual Internet Trends Report 2017 – Digital Media Usage
Mary Meeker’s Annual Internet Trends Report 2017 – Macro Trends 2017
- Global Internet Users = 3.4B…Flat Growth +10% vs. 10% Y/Y…
- +8% vs. 8% Y/Y (ex. India)
- Global Smartphone Shipments = Slowing +3% vs. +10% Y/Y
- Global Smartphone Installed Base = Slowing +12% vs. +25% Y/Y
- USA Internet Usage (Engagement) = Solid +4% Y/Y
Go to Market Stats – Analytical Data Management & Integration Platform Software
- In 2015, the total analytic data management and integration platform software grew 3.3%
- Analytic data management software represents a 76% share but grew at only about half the growth rate of analytic data integration software.
- The on-premises portion of the overall market in 2015 was flat
- The public cloud services revenue grew 89%
- Oracle continued as the largest analytic data management and integration platform software vendor in 2015
- The top 5 vendors in the market (based on revenue) accounted for 76% market share
Go to Market Stats – Analytic & Performance Management
- The total analytic and performance management applications software grew 1.4% in 2015
- Customer relationship analytic applications had the highest growth at 8% in 2015
- The public cloud portion of the market grew 18.8%
- The combined market growth for all other deployment methods was negative 7.6%
- The worldwide analytic and performance management applications software market grew 1.4% in 2015
Go to Market Stats – Big Data
- Wikibon expects the global big data market to grow from $18.3B in 2014 to $92.2B by 2026 – a 14.4% CAGR
- Wikibon breaks down global big data market revenues into three segments: professional services (40% of all rev’s in 2015), hardware (31%) and software (29%)
- Software is expected to represent 46% of all big data spending in the next 10 years, with professional services representing 29% of the market and hardware slipping to 25%
- This shift will occur due to the development of better quality software that reduces the need for big data-related services, Wikibon said.
- The CAGR for the software segment between 2014 – 2026 is forecast to be 20%
- Wikibon predicts significant growth in all four sub-segments of big data software through 2026
- Data management (14% CAGR)
- Core technologies such as Hadoop, Spark and streaming analytics (24% CAGR)
- Databases (18% CAGR)
- Big data applications, analytics and tools (23% CAGR)
Go to Market Stats – Big Data & Analytics
- Worldwide Big Data & Business Analytics software revenues expected to increase from nearly $122B in 2015 to more than $187B in 2019–an increase of more than 50% over the five-year forecast period.
- Software is expected to account for $55B in revenues by 2019
- Approximately 50% of software revenues are predicted to come from End-User Query, Reporting, and Analysis Tools and Data Warehouse Management Tools
- Hardware spending is expected to grow to nearly $28B in 2019
- The industries representing the greatest revenue opportunities in 2019 are: Discrete Manufacturing $22.8B, Banking $22.1B, Process Manufacturing $16.4B
- Federal/Central Government, Professional Services, Telecommunications, and Retail – are expected to generate revenues of more than $10B in 2019
- Organizations with more than more than 500 employees are expected to be the primary driver of the big data and analytics opportunity and they are expected to generate revenues of more than $140B in 2019
- More than 50% of all big data and analytics revenues are expected to come from the US
- By 2019, IDC forecasts that the U.S. market for big data and business analytics solutions will reach more than $98B
- The regions with the fastest growth over the 5 year forecast period are expected to be Latin America and the Middle East & Africa
Go to Market Stats – Business Analytics
- In 2015, the worldwide business analytics software market grew 2.5%
- In 2015, the fastest growing markets in the business analytics software market were content analytics, customer relationship analytic applications, and advanced and predictive analytics
- In 2015, the largest markets (in absolute terms) in the business analytics software market were end-user query, reporting, and analysis and analytic data management
- In 2015, end-user query, reporting grew at 0.7%
- In 2015, analytic data management grew at 2.7%
Go to Market Stats – Business Intelligence & Analytical Tools Market
- Business intelligence (BI) & analytics revenue is forecast to reach $16.9B in 2016, an increase of 5.2% over 2015
- In 2015, the total business intelligence and analytics tools software market grew 3.0%
- In 2015, end-user query, reporting, and analysis software had a 72% share of the Business Intelligence & Analytical Tools Market
- Advanced and Predictive Analytics market grew 7.8%
- The market for prescriptive analytics software is estimated to grow from approximately $415M in 2014 to $1.1B in 2019 — a 22% CAGR.
- By 2020, predictive and prescriptive analytics is expected to attract 40% of enterprises’ net new investment in business intelligence and analytics.
- Content Analytics Market grew 12.9%
- The on-premises portion of the overall market grew only 1.2%
- The public cloud services revenue grew 38.5%
- In 2015, public cloud revenue was more than 5% of the overall BI and analytics tools market
B2B Market Stats – Cloud Computing
Gartner estimates that the aggregate amount of cloud shift in 2016 is estimated to reach $111B, increasing to $216B in 2020.
- BPaaS + Business Process Outsourcing = $119B in 2016 – BPaaS = $42B
- SaaS + Application Software = $144B in 2016, SaaS = $36B
- PaaS _+ Application Infrastructure Software = $177B in 2016, PaaS = $11B
- IaaS + System Infrastructure = $294B in 2016, IaaS = $22B
- Note: BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Go to Market Stats – Data & Analytics
IDGs 2016 Data & Analytics Research of over 700 respondents reveals that companies believe that Big Data & Analytics can solve for the following business problems
- Finding correlations across multiple disparate data sources
- Predicting customer behavior
- Predicting product or service sales
- Identifying computer security risks
- Analyzing high scale machine data
- Predicting fraud or financial risk
- Analyzing social network comments
- Analyzing web click streams
Go to Market Stats – eCommerce
The Global B2B E-commerce Market Will Reach $6.7T by 2020 says Frost & Sullivan
- The B2B online retail market is expected to be 2X size of the business-to-consumer (B2C) online market, generating revenues of $6.7T by 2020.
- B2B online sales will account for almost 27% of total manufacturing trade which is forecast to reach $25T by 2020.
- China and the US are expected to lead the B2B online retailing market
- The US is forecast to double its revenue contribution to $1.2B by 2020.
US B2B eCommerce Forecast: 2015 To 2020
B2B US eCommerce to Top $1T By 2020
Forrester estimates that B2B eCommerce will top $1.1 by 2020 and that would represent 12.1% of all B2B sales.
Forrester expects eCommerce to reach $780B by the end of 2015 and that would represent 9.3% of all B2B sales in the US.
Forrester projects a CAGR of 7.7% in B2B eCommerce over the next 5 years.
U.S. e-commerce Grows 14.6% in 2015
Online sales accounted for more than 1/3 of total retail sales growth in 2015, according to the U.S. Commerce Department
- E-commerce sales remained strong in 2015 as web sales totaled $342B – a 14.6% increase over $298B in 2014
- E-commerce sales remained strong in 2014 as web sales totaled $298B – a 15.4% increase over $264B in 2013
- E-commerce sales remained strong in 2013 as web sales totaled $264B – a 16.5% increase over $227B in 2012
Go to Market Stats – IT Spending
- Worldwide IT spending is forecast to be flat at $3.4T in 2016, according to Gartner which is up from last quarter’s forecast of negative 0.5 % growth
- Worldwide spending on information security products and services will reach $81.6B in 2016 according to Gartner which would be an increase of 7.9%
Go to Market Stats – Mobile
- In 2016, 42% of organizations expect to increase spending on mobile app development by an average of 31% according to Gartner
- The average proportion of the overall application development budget allocated to mobile is only 10%, a 2% decrease from 2015
- In 2016, Gartner says global smartphone sales are expected to experience single digit growth 7% to total 1.5 billion units — compared to 14.4% growth in 2015
- Gartner estimates that 82% of mobile phones across the world will be smartphones in 2016, up by 12% from 2015.
Go to Market Stats – Security Market
- The Global Security Software Market rose 3.7% in 2015
- Security information and event management (SIEM) remained the fastest-growing segment in 2015 with 15.8 per cent growth, while consumer security software showed the sharpest decline at 5.9 per cent year-on-year, Gartner said in a statement.
- The top five vendors represent 37.6% of the security software revenue market and saw revenue decline a collective 4.2% in 2015
- The rest of the market experienced a 9% growth rate (Y/Y)
Go to Market Stats – Global 100 Software Leaders
PwC created a Global 100 Software Leaders ranking that documents who is taking advantage of both the evolutionary and revolutionary changes afoot in technology.
While the cloud continues to underpin massive change, other trends are building on its capabilities to create opportunities in digital innovation, industrial capabilities and convergence within vertical markets.
Go to Market Stats – Global 100 Software Leaders – Key Findings
- The software industry is experiencing a rapid expansion of its total addressable market (TAM) and it has volatility
- Cloud adoption is creating new software-as-a-service (SaaS)-based business models
- The move to SaaS significantly impacts the revenue of traditional, on-premise vendors
- Connected devices and artificial intelligence (AI) are creating new business models and opportunities
- The Global 100 Software Leaders’ revenues grew from $247.5B in 2012 to $272.2B in 2014, a 10% increase
- According to IDC calculations, subscriptions will grow 20% and licensing will decrease 1.7% in 2016
- The top 10 global software companies generated almost half of the entire industry’s revenues
- The top 5 lag in cloud-based revenues.
- NA and EMEA software companies grew at 11.8% and 7.8%, respectively, while APAC companies lost ground
The Global 20 Software Companies
Go to Market Stats – Worldwide Revenues for Augmented and Virtual Reality Forecast
IDCs Worldwide Semiannual Augmented and Virtual Reality Spending Guide from IDC, global revenues for the augmented reality and virtual reality (AR/VR) market will grow from $5.2B in 2016 to more than $162B in 2020. This is a CAGR of over 180% over the 2015-2020 forecast period.
Sales of AR/VR hardware will generate more than 50% of global revenues.
AR/VR software revenues is expected to grow more than 200% year over year in 2016.
Services revenues in the middle years of the forecast period is expected to become significant.
Revenues for VR systems (viewers, software, consulting services and systems integration services) are forecast to be greater than AR-related revenues in 2016 and 2017.
The United States is forecast to be the largest market by 2020.
AR/VR technology is still in the early stages of adoption, so every geographical region is expected to see annual growth in excess of 100% throughout 2020.