The report below gives a good overview of the Fall 2024 M&A activity in the Technology, Media and Telecom Industry Sector. According to Nasscom, global software and IT services spending is projected to rise by 9.2% year-over-year (y-o-y) in 2024, a modest slowdown compared to earlier forecasts of 11.4% as of April 2024. For the Indian technology industry, revenues posted a 1.3% q-o-q growth and surged by 23% y-o-y. Similarly, selected global tech companies experienced a 1.5% q-o-q increase and a 1.4% YoY decrease in revenue growth. According to a report by Precedence Research, the global AI market is projected to increase from $638.23 billion in 2024 to $3.6 trillion in 2034, with a CAGR of 19%. The Asia Pacific region is anticipated to show the highest CAGR of 19.8% from 2024 to 2034. McKinsey report states that throughout 2023 and 2024, the capacity of large language models (LLMs) to handle prompts, referred to as "context windows," increased dramatically from 100,000 to two million tokens. This change represents a significant leap, akin to the difference between incorporating a single research paper into a model prompt and including around 20 novels. According to Statista report, the media market is poised for steady growth, with revenues projected to reach US$53.53 billion in 2024. Over the next five years, the market is expected to experience a compound annual growth rate (CAGR) of 1.84%, culminating in a market volume of US$58.64 billion by 2029. China will be the largest revenue contributor, generating a substantial US$332.70 billion in 2024. In terms of users, the market is expected to grow to 187.6 million users by 2029, with user penetration rising from 51.2% in 2024 to 54.6% by 2029. The average revenue per user (ARPU) is anticipated to reach US$323.40, indicating consistent monetization potential within the sector.
Posted by Dan Vermeire.
Read the Entire Fall 2024 Technology, Media and Telecom Report Here