Market Opportunities and Key Foreign Trade Restrictions
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United States International Trade Commission Global Digital Trade 1: Market Opportunities and Key Foreign Trade Restrictions August 2017 Publication Number: 4716 Investigation Number: 332-561 United States International Trade Commission Commissioners Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman Irving A. Williamson Meredith M. Broadbent Catherine DeFilippo Director, Office of Operations Jonathan Coleman Director, Office of Industries Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 United States International Trade Commission Global Digital Trade 1: Market Opportunities and Key Foreign Trade Restrictions August 2017 Publication Number: 4716 Investigation Number: 332-561 United States International Trade Commission This report was prepared principally by: Project Leader David Coffin [email protected] Deputy Project Leader Jeremy Streatfeild [email protected] Office of Industries Jared Angle, Renato Barreda, Laura Bloodgood, Sharifa Crawford, Sharon Ford, Eric Forden, John Giamalva, Fernando Gracia, Jeffrey Horowitz, Mahnaz Khan, Dan Kim, Erick Oh, Sarah Oliver, Chris Robinson, Mitchell Semanik, George Serletis, Isaac Wohl Office of Economics Nabil Abbyad, Tamara Gurevich, Peter Herman, Grace Kenneally, Ricky Ubee, Heather Wickramarachi Content Reviewers Jennifer Powell and David Riker Editorial Reviewers Judy Edelhoff and Peg Hausman Office of Analysis and Research Services Maureen Letostak Document Preparation and Support Jaime Bruckman, Monica Sanders, Blair Williams Statistical Review Jeremy Wise Under the direction of Martha Lawless, Chief Services Division Table of Contents Abbreviations and Acronyms .............................................................................. 9 Executive Summary .......................................................................................... 13 Chapter 1 Introduction ...................................................................................... 31 Overview ................................................................................................................................... 31 The Request .............................................................................................................................. 32 Scope of the Investigation ........................................................................................................ 33 Information Sources ................................................................................................................. 36 Organization of the Report ....................................................................................................... 36 Internet Infrastructure and Network Communication Services ........................................... 37 Cloud Computing Services .................................................................................................... 38 Digital Content, Search, and News ....................................................................................... 38 E-commerce, Digital Payments, and Records ....................................................................... 38 Industry Adoption of Digital Technologies ........................................................................... 39 Consumer Communications Services and Connected Devices ............................................. 39 Regulatory and Policy Measures Related to Digital Trade ................................................... 40 Bibliography .............................................................................................................................. 42 Chapter 2 Internet Infrastructure and Network Communication Services ......... 45 Introduction .............................................................................................................................. 45 Internet Infrastructure .............................................................................................................. 45 Communications Network Services .......................................................................................... 50 Wide Area Networking .......................................................................................................... 50 Software-Defined Networking .............................................................................................. 52 Chapter 3 Cloud Computing Services: Data Processing, Storage, Analytics, and Software Applications ....................................................................................... 57 Introduction .............................................................................................................................. 57 What Is Cloud Computing? ....................................................................................................... 58 Types of Cloud Services ......................................................................................................... 58 Adoption of Cloud Computing Services: Drivers and Inhibitors ........................................... 66 Estimating the Size of the Global Cloud Computing Market .................................................... 67 The Volume of Data Traffic in the Cloud ............................................................................... 68 Spending by Firms on Cloud Computing Services and Industry Revenues from Providing Cloud Services ....................................................................................................................... 70 Market Competition and Trends .............................................................................................. 73 Geographic Breakdown of the Market for Cloud Services ................................................... 73 Providers of Cloud Services in Global Markets ..................................................................... 75 Bibliography .............................................................................................................................. 78 U.S. International Trade Commission | 1 Table of Contents Chapter 4 Digital Content, Search, and News .................................................... 85 Introduction .............................................................................................................................. 85 U.S. and International Markets ............................................................................................. 87 Video Games ............................................................................................................................. 88 U.S. and International Markets ............................................................................................. 89 Market Competition and Trends........................................................................................... 90 Video ......................................................................................................................................... 95 U.S. and International Markets ............................................................................................. 97 Market Competition and Trends........................................................................................... 97 Music ....................................................................................................................................... 101 U.S. and International Markets ........................................................................................... 102 Market Competition and Trends......................................................................................... 104 E-books .................................................................................................................................... 106 U.S. and International Markets ........................................................................................... 107 Market Competition and Trends......................................................................................... 108 Search...................................................................................................................................... 111 U.S. and International Markets ........................................................................................... 112 Market Competition and Trends......................................................................................... 116 News Aggregators and Social Media ...................................................................................... 118 U.S. and International Markets ........................................................................................... 119 Market Competition and Trends......................................................................................... 120 Bibliography ............................................................................................................................ 126 Chapter 5 E-commerce, Digital Payments, and Records .................................. 147 Introduction ............................................................................................................................ 147 E-commerce ............................................................................................................................ 148 Introduction ........................................................................................................................ 148 B2B E-commerce ................................................................................................................