Market Research Tells All about $4.2 Trillion dollar Internet Economy…

Posted November 21, 2011 by Winson Ng in Market Intelligence

The G-20′s Internet Economy Is Set to Reach $4.2 Trillion by 2016 — Up From $2.3 Trillion in 2010 — As Nearly Half the World’s Population Become Web Users, Says Report by The Boston Consulting Group (BCG)

Every Business Needs to “Go Digital“ If It Is to Capitalize on the Dramatic Transformation of the Internet Across the World’s Biggest Economies Over the Next Five Years, While Governments “Should Let the Market Sort Out the Winners and Losers”

The e-commerce created by the G-20 nations will equal that of the U.S. economy in just 4 years.
IBM predicts that 1 trillion devices will be connected to the Internet by 2015.
Ninety percent of all data were created in the past two years.

We will look at why this is happening and how you can grab your share of the $4.2 Trillion dollar pie….

1. Dramatic increase in the number of users around the world.

From 1.9 billion users in 2010; BCG reports that there will be 3 billion users in 2016, about 45 percent of the world’s population. Accessing the internet from anywhere around the world whether you are in the office or even in a subway down in Manhattan has become an Ordinary Good. Twenty years ago, at the birth of the World Wide Web, its use was only restricted to the relatively wealthy.

2. The rise of emerging markets

BCG: By 2016 nearly 70 percent of the Internet Users in the G-20 will be from emerging markets, up from 56 percent in 2010. China is estimated to have near to 800 million Internet users — This is a shocking combination of the number of internet users from France, Germany, India, Japan, The U.K. and U.S.

3. The popularity of mobile devices such as tablet and smart phones

The transition from PC’s to mobile devices, by 2016, mobile will account for 80% of all broadband connections in the G-20 nations.

4. The growth and impact of social media on the speed of sharing information

Gone were the days of passivity and ignorance. Today, social media is playing a huge role in how we communicate, share information, interact and socialize in a community and also react psychologically. Countries such as Argentina, Brazil, Indonesia, and Mexico are going straight to social with 90% of the internet users engaging in Facebook, twitter and other local social networks. (This is even more intensive than developed G-20 nations.)

The above was BCG’s in depth analysis of the impact of the Internet in 14 countries commissioned by Google.

At the Davos discussion, Patrick Pichette, Google’s senior vice president and chief financial officer, said, “Understanding the economic potential of the Web should be an urgent priority for leaders. The Digital Manifesto makes a powerful case for countries and companies to get online and reap the rewards of an age of data.”

You and me can no longer ignore this phenomenon. The fact that you are reading this article says it all, the “new” Internet is different i many ways than the old internet.

Even now, internet companies non other than Facebook are vying for spots at the World Economic Forum this year. A study that Facebook partnered with Deloitte showed that the social network giant added $15.3 billion in value to the European economy and social media was responsible for adding 232,000 jobs to Europe in 2011 alone.

“No company, country or individual can afford to ignore this Internet renaissance any longer”. Every business needs to go digital,” said David Dean, a coauthor of the report and a senior partner at BCG, in a statement. “The ‘new’ Internet is no longer largely Western, accessed from your PC. It is now global, ubiquitous, and participatory.”

What about the Home based business industry, where you and me thrive to make a living out of the internet?

Throughout the G-20, $1.3 trillion of goods was researched online before being purchased offline — a staggering 2.7% of GDP, or more than $3,000 per Internet-connected household.
Businesses with a medium or high Internet presence are expected to grow by 17% over the next three years, compared with 12% for less Internet savvy companies.

Governments in the G-20 need to embrace the growth and diversity of the Internet rather than impede the progress with the recent Stop Online Piracy Act (SOPA).

These predictions are set to occur and are all very promising for companies that have recently invested in more online innovation and want to increase brand awareness. At this point, there are no signs that the Internet economy is anywhere near its critical mass.

* The G-20 includes Argentina, Australia, Brazil, Canada, China, the EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the U.K., and the U.S.

featured, internet consumer trends, Internet Trends, internet trends 2012, Market Research

About the Author

Winson Ng

Winson ng writes about Maverick entrepreneurs as well as emerging technology trends in Market Intelligence, Mobile and social media. He Founded Financial Freedom Online in August 2010, a Global Internet Collaboration passionate about helping people turning their greatest strengths into a Successful online business. Winson is now taking this opportunity to explore his existing passion for Entrepreneurial start ups, Spiritual Enlightenment, and Technological Creativity & Innovation for Think Maverick, where he developed a passion for "Making a Dent" in the Universe.

Market Research Tells All about $4.2 Trillion dollar Internet Economy…

The G-20′s Internet Economy Is Set to Reach $4.2 Trillion by 2016 — Up From $2.3 Trillion in 2010 — As Nearly Half the World’s Population Become Web Users, Says Report by The Boston Consulting Group (BCG)

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