& cplSiteName &

TIA Issues Annual Market Review, Touts US Growth

Light Reading
News Wire Feed
Light Reading
7/1/2014
50%
50%

ARLINGTON, Va. -- The Telecommunications Industry Association (TIA), the leading association representing the manufacturers and suppliers of high tech communications networks, today released its 2014 ICT Market Review & Forecast (MR&F) – the industry’s most comprehensive data review and analysis. The report finds that in 2013, for the first time, United States information and communications technology (ICT) spending accelerated faster than overall global spending – a trend that is expected to continue through 2017. Additionally, the U.S. has passed Europe in overall ICT spending by region, and now ranks behind only Asia.

Big data is driving the accelerating investment in the U.S. market. Growing consumer demand for data led to a double-digit increase in spending on wireless telecommunications equipment last year, as carriers rolled out long term evolution (LTE) networks. Meanwhile, specialized services that rely on, and protect, data – including cloud services, machine-to-machine communications (M2M) and cybersecurity – all saw large spending gains in 2013. In fact, spending on cybersecurity grew faster in 2013 than in any recent year, and has shown significant increases in each of the last three years.

“The MR&F makes it clear that the historic, data-driven transition of the global ICT industry continues, with the U.S. leading the way,” said TIA president Grant Seiffert. “A significant milestone was reached in 2013, with U.S. ICT spending growth outpacing the rest of the world, and our overall spending leaping ahead of Europe.” Seiffert continued, “It’s all about data – building the infrastructure to handle it, managing it, storing it and protecting it. Smartphones and LTE are driving consumer demand, and companies in the U.S. are spending heavily on the specialized services that rely on data – in particular, cloud computing and M2M. At the same time, ICT spending increasingly reflects the significant challenge of protecting data. With high-profile breaches occurring on a regular basis, companies have dramatically increased their investment in cybersecurity.”

The MR&F provides the industry's most comprehensive data review and analysis, with forecasts through 2017, of domestic and international spending and usage of wireless and wireline communications, specialized services (cloud computing, M2M, cybersecurity, etc.), enterprise networks and more.

The MR&F is compiled annually by TIA and used as a key resource for industry executives, government policymakers, analysts and the media. The report provides a global industry overview along with chapters that offer a deep-dive into specific industry segments. The MR&F also features a “Major Trends” chapter, providing in-depth analysis of significant developments, including advancements in M2M, cybersecurity and sustainability. More detail on some of the key MR&F data follows.

Industry Growth: U.S. Leaps Ahead
In 2013, telecommunications spending grew 6.6 percent in the United States, surpassing the non-U.S. growth rate of 4.5 percent. This marks a significant reversal – TIA’s MR&F has always shown faster growth globally than in United States. In 2012, spending in the U.S. grew 6.3 percent, while spending internationally grew 7.2 percent. The overall U.S. growth during 2013 also was the most significant in the last four years – jumping from a low of 2 percent in 2010. The MR&F predicts that over the next four years spending growth in the U.S. will continue to outpace the combined growth in the rest of the world.

In another milestone, the U.S. in 2013 surpassed Europe in overall ICT spending. $1.25 trillion was spent in the U.S. in 2013, while $1.22 trillion was spent in Europe. Asia continues to lead all regions, with $1.67 trillion spent in 2013.

Cloud, M2M and Cybersecurity Are Huge Drivers
The principal driver of spending in the U.S. market is the soaring demand for data. Data usage through smartphones continues to grow rapidly, while heavy investment is being in made in specialized services – cloud computing, M2M, cybersecurity – that are critical to the Big Data revolution.

The fastest growing of the specialized services was M2M, which jumped 61.6 percent (to $8.5 billion) in 2013 and is predicted to achieve a 34.8 percent compound annual increase over the next four years. Cloud services rose 19.6 percent in 2013 (to $56.2 billion) and is expected to see a 17.5 percent compound annual growth over the next four years.

Meanwhile, businesses are clearly recognizing the imperative to protect the valuable data they control. In 2013, cybersecurity spending saw its largest jump in years – rising from $26.5 billion in 2009 to $40 billion in 2013 (a 15.9 percent increase over 2012), and is projected to total $63.5 billion in 2017.

Mobile: LTE Takes Over
Smartphones generated 91 percent of the total handset market revenue in 2013, and LTE-enabled smartphones (introduced in 2012) became the dominant handsets in 2013.

The LTE rollout is sending U.S. wireless infrastructure spending higher. In 2013, $33.6 billion was spent on wireless infrastructure – an increase of 11.7 percent from 2012 – while U.S. wireline spending was $38.6 billion. U.S. wireline infrastructure spending will continue to outpace wireless for the next several years, but in 2017 is predicted to be surpassed by wireless infrastructure spending. At the same time, the switch to LTE is leading consumers to spend more per month on wireless service. In 2013, the average revenue per user (ARPU) in the U.S. increased 5 percent – the largest jump in the last four years.

Overall spending on both wireless and wireline infrastructure will total $323 billion over the next four years (2014-2017) according to TIA estimates – an increase of 25 percent over the $259 billion that was spent during the previous four years (2010-2013).

Telecommunications Industry Association (TIA)

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Top Priorities for B/OSS Transformation
James Crawshaw, Senior Analyst – OSS/BSS Transformation, Heavy Reading, 3/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.