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Global internet service providers market: $568.9 billion industry by 2018


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2014-02-14 04:09:02 - Global Internet Service Providers - a new market research report on companiesandmarkets.com

The Global Internet Service Providers market is one of the fastest growing industries in the global economy. Explosive growth is being propelled by rapid advancements in internet-related infrastructure and services. The emergence of a plethora of powerful personal and business internet applications has transformed how businesses and consumers operate. These markets are benefiting from the internet´s increasing ability to cut time and shrink distance. For businesses, this has delivered productivity improvements and enabled greater connectivity. For consumers it has revolutionized communication, information access and entertainment.

Economic instability as a result of the global recession negatively affected part of the developed world. However, the developing world recorded strong growth as demand for relatively new services remained strong. Over the five years to

 

 

2013, industry revenue is expected to grow 8.8% per year on average. In 2013, the industry is expected to grow 8.3% to $358.1 billion. The developed markets of Europe, North America and North Asia still dominate the global industry, accounting for an estimated 82.0% of revenue and, due to the rapid growth of Chinese broadband subscribers, over 80% of global connections.

Nevertheless, the emerging markets of South America, Southeast Asia, India and Central Asia have been making some inroads. Broadband penetration in these regions has increased considerably from very low levels over the past five years. However, the wired ISP market in many countries in these regions is much less competitive than corresponding services offered by wireless providers.

Over the next five years, the internet will become an even greater part of the daily lives of businesses and consumers. Subscriber growth will continue to be strong, driving industry growth. Revenue is forecast to increase at an annualized rate of 9.7% per year to reach $568.9 billion in 2018. However, competition will increase, putting pressure on prices and profitability and spurring greater merger and acquisition activity as firms look to expand economies of scale. Capital investment in the industry is expected to increase as ISPs upgrade and expand their networks.

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