Some quick survey results from the GSMA Intelligence, the GSMA’s research business, about how enterprises just love technology so much, and want to spend more on it; or something like that, anyway. It goes like this: most enterprises (60 percent; presumably of those surveyed / identified as already-engaged in digital transformation) are prioritising revenue growth – and things that get them there (“customer experience, competitive positioning”) – over cost-cutting; their digital-change budgets are rising (from nine percent to 11 percent of revenues by 2030); and they all (85 percent) think 5G (“and connectivity”) is “important”.
Almost half of them think it is “extremely important”. Which makes one wonder about the half, or even the 15 percent, that don’t, as well as about the value of such studies. But maybe we should hang the scepticism, and just relay the findings and the message. GSMA Intelligence polled 4,200 enterprises from 10 industries in 21 countries, through June and August 2024. It asked about digital transformation in general, and about 5G, private networks, AI, cloud,. Edge, IoT, eSIM, cybersecurity, and, of course, network APIs, specifically. Enterprises are most focused on shoring up the backend (cybersecurity) while opening up the front-end (“revenue growth”, by any means of tech).
They will allocate nine percent of revenue on digital technologies during 2024-2026, rising to 11 percent during 2027-2030. The findings state: “Enterprises plan to spend 21 percent of their digital transformation budgets on connectivity and associated devices, 13 percent on mobile (including 5G), and eight percent on fixed and Wi-Fi networks. Enhanced security (57 percent) and connectivity (52 percent) are the top 5G features they value most and investment in 5G between 2024 and 2030 is projected to be 2.5 times more than in 4G – especially in high mobility sectors such as automotive, transportation, logistics, and warehousing.”
They continue: “AI is also a significant factor, making up 14 percent of enterprise technology expenditures, implemented to elevate customer experiences, strengthen security protocols and increase productivity among employees. Generative AI has swiftly gained importance in the digital strategy of companies, with 90 percent of them incorporating it, but only 33 percent are utilising it in advanced ways, indicating potential for further development. IoT adoption is progressing, with businesses transitioning to more advanced use of IoT, including greater use of 5G… Enterprises expect eSIM to account for 42 percent of the total IoT cellular market by 2030.”
So, interesting numbers, after all. Pablo Iacopino, head of research at GSMA Intelligence, said: “Telcos need to go beyond just providing network services since enterprises are increasingly looking for partners who can help them throughout their full digital transformation journeys, combining technologies such as 5G, AI, IoT and cloud to improve efficiency, security and drive revenues. The cost of implementation and complexity of tech integration are the top two deployment challenges faced by enterprises. This means the role of tech orchestrator will become even more important, and demanded in the future, which presents new opportunities for multi-service suppliers.”
The report can be found here. Some other highlights are included below, split by industry, and lifted directly from the press notice.
– Financial services | 92% are already using generative AI technology, and they lead in both wider AI adoption (92%) and spending on digital transformation (10.4% of revenue).
– Media and entertainment | This sector leads in revenue growth as a top digital transformation objective, with 65% citing it as an extremely important objective. Also, 91% of media and entertainment enterprises are already using generative AI.
– Utilities and energy | 51% of utility and energy enterprises are making advanced use of cloud technology—the highest of all sectors. 37% are prioritising generative AI for their financial spending through 2026 and allocating 16% of their digital transformation budgets to AI in the longer term.
– Manufacturing and industrial | 33% of manufacturing enterprises identify a lack of internal expertise as a key challenge to AI deployment, the highest across all sectors. Manufacturing ranks high in its focus on cybersecurity, with 55% of enterprises making advanced use of these technologies.
– Transportation, logistics and warehousing | This sector shows strong engagement with AI, including working with MNOs for AI solutions in any forms. This sector also stands out for its focus on IoT, with 36% of enterprises making advanced use of IoT technologies.
– Healthcare | Healthcare enterprises allocate 14% of their digital transformation budgets to AI, and 41% of enterprises cite cybersecurity as one of their top five areas of financial spending over the next few years.
– Automotive and mobility | This sector leads in terms of its focus on 5G, with 54% of enterprises rating 5G as extremely important to digital transformation.
– Retail | 63% of retailers prioritise revenue growth as an extremely important digital transformation objective. They are also quickly adopting generative AI, with 87% using the technology and 34% making advanced use of it.
– Public sector | The public sector is investing heavily in digital transformation, allocating 10.1% of its revenues to these initiatives.
– Agriculture, forestry, and fishing | This sector shows the lowest digital transformation score overall, leaving potential for improvement in areas such as IoT, AI and 5G.
