London, May 12, 2020 (GLOBE NEWSWIRE) -- Recent pandemic of Coronavirus disease (COVID‑19) has impacted more than 200 countries and claimed more lives than any other pandemic in the 21st century. According to an article published by Trace Media Ltd., the overall impact of COVID-19 turned out to be worse than any recent critical economic, strategic, and political clashes happening around the world. The impact is not limited to human health; this pandemic has affected every industry economically and the global information & communication technology (ICT) sector is no exception to this. Majority of the local and multinational ICT corporations recently halted majority of their manufacturing operations, canceled their participation in important events and conferences, and announced financial projections below expectations.
The ICT sector has already suffered considerable losses owing to COVID-19 (Coronavirus disease) in the first quarter of 2020. However, the industry is determined to make a solid comeback and the average industry growth will be in the range of 7-8% by end of 2020.
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Some of the major areas of impact on the ICT industries include:
- Slow Growth
The juggernaut growth of the ICT sector witnessed a sudden shock in Q1 2020, as majority of ICT projects are losing their momentum owing to the delays or even cancellations in some conditions. Major segment of the ICT sector, including hardware and IT services experienced a nearly 4% dip in revenues in the first quarter of 20202, and are not expected to recover over the next two to three quarters. Companies are forced to meet their existing deadlines with limited workforce, and hence are hardly concentrating on setting new targets and projects. This, in turn, has slowed down the growth of the sector and stunted the previously predicted optimistic industry growth.
- Cancellation of ICT events
With the onset of Coronavirus disease (COVID‑19) crisis in January 2020, majority of international ICT events, gatherings, conferences were canceled. Major international events for the ICT industry, such as Mobile World Conference 2020, Game Developers Conference 2020, MTN GlobalConnect and other prominent ICT gatherings & conferences faced the fate of cancellation. Also, tech leaders including Google, Microsoft, Adobe, Facebook, NVidia, Cisco, and Salesforce among others were also forced to call off their yearly events. Such events & gatherings offer vital business opportunities to ICT companies to showcase their products & solutions. Cancellation of such events has certainly affected the forthcoming opportunities for market players, making revival of the industry more difficult.
- Disruption of Supply Chains
With a jaw-dropping decline in China’s manufacturing capacity, the global supply chain for ICT sector is disrupted to a much greater extent. Being a manufacturing hub, China was a key manufacturing location of some of the global ICT leaders including IBM, Intel, Apple, and Qualcomm among others. Although China is striving hard to regain its manufacturing capacity, it is difficult to predict the time it will take for complete revival of the operations. This has certainly obstructed the supply chains of the ICT industry, temporarily. Companies like Apple, who have China as the key manufacturing hubs and also one of the major markets for their products, are severely hit from both sides, indicating severe revenue implications for the companies throughout 2020.
To read more about the impact of Coronavirus disease (COVID‑19) on different Industries, please visit our COVID-19 resource center page here- https://www.meticulousresearch.com/covid-19.php
Areas of Opportunity
With aforementioned factors playing their part, it is more than justified to say that COVID-19 has definitely slowed-down the overall ICT spending at least for the first two quarters of 2020. However, industry experts are more than optimistic that the impact of COVID-19 is likely to fade down towards the latter half of the year to a certain extent, enabling companies to overcome the current crises. Australian Computer Society predicted that ICT sector will witness a sharp decline of 1.5% in global technology spending. However, the sector is expected to come back on track with 1.5% to 2% growth beyond 2020. Some of the positive factors working in favor of overall ICT during this crisis scenario include growth in some ICT sub-sectors including telecom service providers, remote & online educational sector, collaborative software & services sector, cloud service, and healthcare IT sector.
- Telecommunications Sector
Telecommunications industry is witnessing a surge from past few months (from spreading of pandemic). After the onset of COVID-19 crisis, social distancing has limited consumers’ mobility; hence, people are seeking new ways to keep themselves busy, entertained, and connected. According to an article published by The New York Times, websites such as Facebook, Netflix, and YouTube witnessed a growth of 27.0%, 16.0%, and 15.3% viewership growth respectively in the U.S. Similar trends are also observed across the globe, including China where social networking, short videos, and mobile gaming has gained momentum. Consequently, social distancing and isolation have helped the telecommunication sector maintain its growth trajectory.
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Amidst this crisis for the ICT industry, we at Meticulous Research® are continuously assessing the impact of COVID-19 pandemic on various sub-markets, and enable global organizations to strategize for the post Coronavirus disease (COVID‑19) world and sustain their growth. For more details, please reach us on sales@meticulousresearch.com
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