The digital economy will be worth $23 trillion by 2025 – are you ready to explore the opportunities.
Something bigger is happening at the confluence of connectivity and artificial intelligence (AI), according to the Huawei Global Connectivity Index 2018.
The report stated that industries are embedding AI in all five enabling technologies, transforming traditional connectivity into intelligent connectivity to unleash innovation and economic opportunities on a scale previously unimagined.
“Whole new business models, products, processes and services are emerging every day, accelerating growth towards a digital economy worth upwards of $23 trillion by 2025 and throwing open the gates to a new economic growth cycle,” said the report.
Intelligent Connectivity will unleash a new wave of innovation and economic activity.
According to Huawei and Oxford Economics’ Digital Spillover research, this will spur new growth in the digital economy, which will reach an estimated value of $23 trillion by 2025 (from $12.9 trillion in 2017). In other words, by 2025, the percentage of digital economy will increase from 17.1 percent to 24.3 percent of global GDP.
The global digital economy has been growing at a rate two-and-a-half times faster than global GDP over the past 15 years.
The true value of the digital economy lies in the positive impact that investments in ICT infrastructure and artificial intelligence have on productivity and the optimization of economic structures.
“To reap the true benefits of digital transformation, it is paramount for industry leaders to have a sound, long-term investment strategy in place, because long-term return on investment in digital technologies is 6.7 times that of non-digital investments,” according to the report.
Manufacturing is expected to be one of the main beneficiaries of intelligent connectivity.
In terms of digital economy, the addition of intelligent connectivity to traditional manufacturing industries is forecast to produce an additional market value of $6.4 trillion by 2025, according to Huawei’s CGI.
“By leveraging intelligent technologies, traditional industries will be well-positioned to maximize their digital spillover and contribute more to the overall digital economy,” it said.
Other industries with tremendous growth projections include those that are typically more data-driven, and therefore more likely to be early adopters of AI. Sectors like ICT, professional services, and finance are expected to prosper in the digital economy.
“They will see additional market growth of $5 trillion, $3 trillion and $1.7 trillion, respectively. Industries such as social and personal services, retail, transportation and utilities are also on track to achieve digital transformation on a timeline now accelerated by intelligent connectivity.”
- Intelligent connectivity will unleash a new wave of innovation and economic activity.
- Intelligent manufacturing is connecting the dots along the value chain with the sector expected to reach a value of $6.4 trillion by 2025.
- Intelligent government is optimizing efficiency, management and service delivery to foster economic growth of $2.9 trillion by 2025.
- Intelligent utilities are allocating resources more efficiently with the industry forecast to reach $0.5 trillion by 2025.