Rivoli Group AG recognized the future-oriented information and communication technologies sector as an attractive investment market at an early stage. In recent years, we were able to closely familiarise ourselves with this growth-oriented industry through a series of successful investments. In addition, we are networked with experts at all levels of the ICT market worldwide whose know-how can prove beneficial for our customers.
Opportunity market for economy and industry
The increasing digital networking of our world offers great opportunities for businesses and especially for the IT industry. In order to exploit these opportunities efficiently, several funding programs were already initiated in Europe. In Germany, for example, the Federal Government adopted a comprehensive “Digital Agenda” in 2014. It not only provides for the construction of a nationwide high-speed network but also the allocation of extensive funding measures for young innovative IT companies.
Long-term growth forecasts
We see the increasing digitalization not only in the high-tech trends of the ICT sector, but also in the increase in sales in the European ICT market.
According to a forecast by the American market analysis company IDC, the information and communication technology industry will report a growth of 2.3% in 2016 and continue to grow until 2019.
Big Data Analytics is the analysis of large amounts of data from different sources at high speed. Various technologies are used: from distributed storage and novel databases through linguistic and semantic analyses to visualization tools. The aim is to achieve economic, scientific or social benefits. The application areas of Big Data are diverse. The spread of epidemics can be predicted more accurately and more quickly than before, for example. In traffic control, big data solutions reduce congestion and prevent accidents. Traders can better predict the sale of their products and reduce the waste of perishable goods.
Mobile Internet usage with devices such as smartphones and tablet computers is one of the megatrends of the past few years. 85% of Internet users today access the web with mobile devices and only 69% with a stationary computer. The mobile use of social networks, video and music services, navigation or games already is a mass market today. According to Gartner, around 268 billion apps for mobile devices will be downloaded worldwide by 2017. Companies and other organizations are faced with the challenge of integrating mobile devices and the apps offered as securely as possible into their own IT infrastructure. In addition, they must prepare their content for different screen sizes and mobile operating systems. In addition to smartphones and tablets, more and more wearable small items, so-called wearables, hit the market. These include, data glasses, smartwatches, or fitness trackers.
The next step in digitalization in the manufacturing sector is the cross-enterprise and cross-site networking of systems operated individually so far. Industry 4.0 is about the development, production, and maintenance of products, machines, and systems over the Internet. Production processes in particular are becoming more efficient and flexible. For example, small series or variants of a product can be manufactured profitably. From the perspective of the IT industry, the trend towards Industry 4.0 has the potential to fundamentally change existing structures and markets.
Rising sales and expenses
The market for end devices (PCs, ultra-mobiles, mobile phones, tablets and printers), on the other hand, is expected to decline (2016: by about 3.7%). This is because the growth of the smartphone market is slowing downand gradually reaching saturation. On the other hand, this decline is linked with the persistent decline in PCs and in the ultra-mobile segment. The “data centres” division is last in this comparison with a turnover of 171 billion USD in 2015. (Source: Gartner Market Data Book, April 2016)
The growing significance of the ICT sector is substantiated worldwide by increasing sales and expenses. The largest share is attributable to the services sector. A total of USD 1.4 trillion was spent on services in the telecommunications sector in 2015 alone. However, a drop in sales of 2.0% is expected for this industry. In contrast, an increase of 2.1% is forecast for the “IT Services” division, which would correspond to sales of USD 929 billion. A further high share is expected by companies to be spent on software products. Although this figure is lower than that for services, the software sector is expected to grow by 4.2%.
Looking at the industry outlook divided into sectors, cloud computing, IT security and Big Data are the three most important current high-tech topics, according to a survey of experts. At 64%, cloud computing ranks first in the annual survey of the Federal Association for Information Management, Telecommunications and New Media (BITKOM), closely followed by IT security at 61%. 48% of respondents chose “Big Data” for third place.