Information and Communications Technology
The term ICT has no universal definition because the aspects, methodologies and applications which it covers are broad. Accelerated together with the fast-evolving phase of technologies, the world would not know what new Internet of Things (IoT) would come next. The broadness of ICT covers any product that will store, retrieve, manipulate, transmit or receive information electronically in a digital form. ICT is central to the need today for speed, communication, and information. ICT needs to, and can progress anywhere, anytime. These are just some reasons to invest in the continual growth of this industry.
Significant growth in consumer and business adoption of ICT products and services has helped drive the sector’s rapid expansion over several years. Research from the Information and Communications Technology Council (ICTC) was conducted closely with the industry and other stakeholders. Their research suggests that a variety of technological subsectors will lead the hyper-connected expansion over 2020. This covers Internet of Things (IoT); Social, Mobile, Applications, Analytics and Cloud technologies (SMAAC); Automation; and additive manufacturing (ICTC 2016).
By 2020, companies in the Asia-Pacific will pump US$58 billion into research and development spending, to realize the myriad of solutions across various industries to realize the full potential of IoT. In conjunction, Asian governments have embarked on digital and IoT-related transformation roadmaps for their respective economies to be future ready. This includes various roadmaps such as Singapore’s Committee on the Future Economy (CFE), ASEAN’s ICT Masterplan 2020 (AIM), Malaysia’s IoT Strategic Roadmap and China’s 10-year IoT roadmap (Made in China 2025) (Dahad 2017).
In 2015, worldwide spending on IoT is forecasted to grow at CAGR of 17% from an approximate amount of US$698 million to US$1.3 trillion by 2019. The Asia-Pacific has been set to lead the growth in spending, accounting for more than 40% of the total spending with a CAGR of 26.5%. Sturdiness of the region’s IOT spending outlook is built on three dynamics; 1) Developing countries’ technology investment needs are not fully met with traditional IT, which is allowing IoT investment to accelerate; 2) Government investments in infrastructure development and local business modernization. China, India and the Philippines for example, are incorporating more IoT elements; 3) A burgeoning new customer class is accelerating expenditure in goods and services, including those with IoT components (Daniels 2015).
Also, strategic analytics expect IoT cellular connections to grow to more than 2.4 billion in 2025, with the top three vertical markets (i.e. automotive, utilities and security) combined accounting for over 46% of global IoT cellular connections in 2025. Across the forecasting period, the Asia-Pacific will remain the single largest region, accounting for almost 1 billion connections (Dahad 2017).