Ericsson: Energy sector shows high potential in digitalization revenue

By Rizal Raoul Reyes - June 24, 2017

http://www.businessmirror.com.ph/ericsson-energy-sector-shows-high-potential-in-digitalization-revenue/

THE energy and utilities (E&U) industry would outpace six other sectors in terms of digitalization revenue in the Philippines, a research by a Swedish telecommunications firm bared. Telefonaktiebolaget L. M. Ericsson said in its report that E&U outpaces the following industries: automotive, financial services, health care, manufacturing, media and entertainment, public safety and public transportation in terms of digitalization revenue (DR) potential.

From $4 billion in 2016 the DR potential of the E&U industry is forecast by the Swedish multinational firm to hit nearly $16 billion by 2026. The financial-services industry nearly hit the DR potential of the E&U sector last year, but only shows just over $9 billion in DR potential in 2026. The public-safety sector follows the E&U industry in terms of DR potential by 2026, expected by Ericsson to hit nearly $14 billion.

According to Ericsson, the DR is one of three factors that telecommunications operators should consider if they want to help create a “Digital Philippines”.

According to a 2011 Gartner CIO Survey involving 2,014 enterprises, digitalized businesses have higher growth rates, scale efficiencies and asset effectiveness than their less-digitalized peers.

“Operators need to differentiate offerings through the Internet of Things [IoT],” Ericsson said. The company noted that last year, cellular IoT-connected devices in Southeast Asia and Oceania was at 30 million. Ericsson expects these devices to hit around 50 million this year and 60 million by 2018.

Ericsson said it forecasts the number of cellular IoT subscriptions in the region to increase almost six-fold between 2016 and 2022, reaching around 180 million.

Last week the International Data Corp. said it forecasts worldwide spending on the IoT to grow 16.7 percent year over year in 2017, reaching just over $800 billion. By 2021 global IoT spending is expected to total nearly $1.4 trillion as organizations continue to invest in the hardware, software, services and connectivity that enable the IoT.