The global demand and dependence on data has led to an exponential growth in data creation in the past decade. Accelerated by the COVID-19 pandemic, we expect this trend to continue in the current decade. The structural shift, including the popularization of smartphones, has altered the landscape of data connectivity, increasing the adoption of artificial intelligence and the deployment of 5G wireless. Driven by a desire to stay connected all the time and the need to efficiently multitask throughout a busy day, many of us have become digital omnivores, producing unprecedented amounts of data. In the next decade, favorable demographics and other secular trends are expected to drive solid data growth.
Projections and opportunities
- Internet penetration
Over the next decade, the global inter-net user base is expected to increase by 2bn, and internet penetration to reach 82%.
- Internet of Things (IoT)
According to Ericsson, the number of IoT units is expected to grow from 14.6 bn units in 2021 to 30.2 bn units in 2027.
Data goes through six distinct stages during its life.
- Data universe growth
We expect the data universe to grow more than 10 times from 2020 to 2030, reaching 660 zettabytes—equivalent to 610 iPhones (128GB) per person.
- Big data growth
Big data revenues are expected to grow from USD 205bn in 2020 to USD 300bn in 2025.
- Data storage costs
Data storage costs generally decline by 25–30% a year.
Some near-term drivers of the Digital data include, Internet penetration, Changing consumer digital life-styles and Internet of Things
Main contributors - Sundeep Gantori, Bennett Chu, Kevin Dennean
The Longer Term Investments (LTI) series contains thematic investment ideas based on long term structural developments. Secular trends such as population growth, aging, and increase urbanization create a variety of longer term investment opportunities. To learn more, contact your Financial Advisor or go to: ubs.com/lti
For more, see the one pager on the Digital data.