Technology Industry Report
Technology Industry Report
The Technology sector showed a small growth of .2% year over year in 2015. Companies in Internet services, cloud computing, Internet of Things, and software so evidence of likely increased in growth in 2016 due to the increasing demand for remote servers and software as a service (SaaS). Cloud computing and SaaS have the potential of reducing costs while allowing companies to remain updated with the newest technologies. Little sign of a slowdown in 2016 in terms of the rate of technological development, but issues with China’s slowing economic growth and other global macroeconomic factors could impact corporate technology spending.
In terms of subsector performance, Internet services outperformed in 2015 with 29.5% increase in the past year. Companies including Alphabet Inc. and Amazon led with the highest growth in 2015, and are projected to lead the way in internet services. The Semiconductor sector has been underperforming due to several causes including the significant decline PC sales, falling around 8% in Q4 2015.This sector will likely remain slow in growth due to the lower demand and Worldwide semiconductor capital spending is projected to decline 5% in 2016. PC sales are not likely to improve in the first half of 2016 due to the fact that Windows 10 is a free upgrade. “Commercial adoption of Windows 10 is expected to accelerate, and consumer buying should also stabilize by the second half of the year.” says the International Data Corporation (IDC).
Source: Pwc Tech Scorecard
An estimated 3.2 billion people, or 44% of the worlds population, will have access to the Internet by 2016. Increased internet access in China, 688 million internet users, India with 402 million, and Indonesia with 93.4 million account for more than half the growth in internet access. More than 2 billion will have