Digital Economy Compass Mai 2017 “At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies.” John Chambers, Chairman of Cisco System 2 Welcome to the Digital Economy Compass Less talking, more facts – our idea behind creating the Digital Economy Compass. It contains facts, trends and key players, covering the entire digital economy. We provide… › key essentials from our research, › actionable insights, › Statista’s exclusive forecasts. This very first edition will provide everything you need to know about the digital economy. Your Digital Market Outlook Team 3 Table of Contents Global Trends › Connectivity: Numbers behind the “always on” trend…………………………... 5 › Social Media: Love it, hate it, but accept that you need it…………………... 20 › Platform Economics: A story about White Sharks and Swordfish……… 30 › Venture Capital: Feed for new Tech-Unicorns…………………………………...... 83 › AI, AR and VR: The next big Technology Hype………………………………………. 91 Statista’s Digital Market Outlook › e-Commerce……………………... 106 › FinTech…………………………………. 148 › eServices……………………………. 117 › Digital Advertising…………….... 160 › eTravel ………………………………. 129 › Smart Home……………………...... 171 › Digital Media……………………...138 › Connected Car…………………….. 181 4 Connectivity 2,570,792 e-mails per second The global number of e-mails sent per second resulted in around 81 trillion e-mails sent during 2016. Source: internetlivestats.com Connectivity The world is more connected than ever, a development which looks set to continue Share of world population connected to the internet from 2016 to 2021 Internet penetration Mobile penetration +3.7% p.a. +5.7% p.a. 63.9% 61.8% 59.7% 57.5% 55.4% 53.2% 50.5% 48.8% 46.9% 44.5% 41.6% 38.2% 2016 2017 2018 2019 2020 2021 Source: Statista Digital Market Outlook Note: Figures account for total world population using the internet / a smartphone within the last 12 months 7 Connectivity Many people still lack internet access, particularly in the most populous countries Internet penetration per country in 2016 (in % of total population) Internet penetration rate > 80% > 70% > 60% < 60% Not included Source: Statista Digital Market Outlook Note: Only includes countries listed in the Digital Market Outlook 8 Connectivity Web consumption per user via Laptop or Desktop PC is highest in Brazil Time spent online via Laptop/Desktop PC (hours per day) 2012 2016 5:28 Brazil 5:36 5:06 United States 4:43 Canada 4:23 4:27 4:30 Italy 4:22 United Kingdom 4:07 4:16 4:08 France 3:57 4:03 Spain 3:55 3:38 Germany 3:36 4:39 China 3:29 3:45 South Korea 3:16 Source: Statista Digital Market Outlook Note: Data is based on internet users aged 16+; non-internet users are excluded from averages 9 Connectivity In a global comparison, broadband speed is fastest in East Asia and Scandinavia Average broadband speed in Top10 and selected countries (in Mbps1) South Korea 1 23.6 Hong Kong 2 20.1 Norway 3 20.0 Sweden 4 19.7 Switzerland 5 18.4 Singapore 6 18.2 Japan 7 18.0 Finland 8 17.6 Netherlands 9 17.3 Latvia 10 16.9 … United States 12 16.3 United Kingdom 20 14.9 Germany 26 13.7 France 49 9.7 China 85 5.7 Source: Akamai Technologies Note: Figure refers to Q3-2016; countries covered: broadband ranking – 147 1: Megabits per second 10 “Mobile is the future, and there is no such thing as communication overload.” Eric Schmidt, Executive Chairman of Alphabet, Inc. 11 Connectivity Smartphone sales reached almost 1.5 billion in 2016, with Samsung being the biggest vendor Global smartphone shipments (in million) and market shares per OEM1 1,471 1,437 Others Xiaomi 2 1,302 2 Lenovo 35.6% Vivo 2 Oppo 2 1,020 Huawei 2 3.1% Apple 4.0% 5.3% Samsung 725 6.8% 9.5% 495 14.6% 305 21.2% 2010 2011 2012 2013 2014 2015 2016 Source: IDC, Gartner 1: Original Equipment Manufacturer 2: Shipment information not available for each year; if no information available, sales are included in “Other” 12 Note: Estimated figures for Lenovo and Xiaomi in 2016; market shares may not sum up in 100% due to rounding Connectivity Android has become the dominating mobile OS, while Apple’s iOS has maintained market share Worldwide smartphone operating system market share1 Others BlackBerry Symbian Windows iOS Android 100% 14.4% 84.8% 14.4% 3.9% 2009 2010 2011 2012 2013 2014 2015 2016 Source: Gartner OS = Operating System 1: based on worldwide unit sales 13 Connectivity Cross-device, Android even overtook Windows as the dominating OS for desktop and mobile Global operating system market share from Feb 2016 to Mar 2017 Windows Android iOS OS X Market share (in %) 50 Android 37.93% 45 40 35 30 Windows 37.91% 25 20 15 10 5 0 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Source: StatCounter.com 14 Connectivity Advanced mobile devices and a growing number of apps increase time spent on mobile devices Time spent online via mobile device per user (hours per day) 2012 2016 1:54 Brazil 4:48 1:48 China 3:03 1:35 United States 2:37 1:37 Italy 2:34 1:52 Spain 2:11 1:35 South Korea 2:10 1:14 Canada 2:10 1:16 United Kingdom 2:09 1:20 Germany 1:37 1:01 France 1:32 Source: Statista Digital Market Outlook Note: Data is based on internet users aged 16+; non-internet users are excluded from averages 15 Connectivity Being ‘always online’ leads to larger mobile data traffic per device Estimated data traffic per smartphone (in gigabytes per month) Central and Western Eastern Europe 2021 Europe 2015 11.0 18.0 22.0 1.4 1.9 3.7 North America Asia Pacific 6.5 1.0 6.0 7.0 1.0 Latin America 1.4 Middle East and Africa Source: Ericsson Mobility Report 16 Connectivity The sevenfold increase in global mobile data traffic is mainly driven by online video streaming Global mobile traffic forecast per segment (in petabytes per month) Web, data, and VoIP Consumed via 85.8% Video streaming smartphone Audio streaming File sharing 48,360 85.2% 6,435 1 Petabyte = 1 million Gigabyte 84.7% 34,531 5,539 83.8% 24,452 82.8% 4,675 38,148 81.3% 16,792 26,068 3,780 11,266 17,565 7,241 2,939 11,415 2,154 7,225 4,375 2,674 560 1,621 2,104 152 259 843 403 1,194 592 821 1,103 2016 2017 2018 2019 2020 2021 Source: Cisco System; figures include only cellular mobile traffic (Wi-Fi or small cell from dual-mode devices are excluded) Note: Other mobile devices include Tablets, mobile PCs, M2M (incl. wearables), non-smartphone mobile phones, e-readers and portable gaming consoles 17 Connectivity Mobile connection speed varies a lot between countries, with disappointing speed in the U.S. Average mobile speed in Top10 and selected countries (in Mbps1) United Kingdom 1 23.7 Belgium 2 19.3 Norway 3 17.4 Finland 4 16.9 Spain 5 13.4 UAE 6 13.3 Ireland 7 13.2 Germany 8 13.1 Austria 9 13.0 Australia 10 12.8 … France 13 12.4 Japan 16 11.6 South Korea 18 11.2 China 31 8.9 United States 38 7.5 Source: Akamai Technologies Figure refers to Q3-2016; countries covered in mobile connection ranking – 61 Note: Evaluation of mobile connection speed for each country is based on a minimum of 25,000 observed unique IPv4 addresses 18 1: Megabits per second Connectivity Pokémon Go was the most popular mobile game for iPhone users across the globe Most downloaded iPhone apps per category and country in 2016 Categories covered: Shopping, Music, News, Gaming, Social Networks U.S. Germany France China U.K. Kleinan Spotify Spiegel Amazon Pandora CNN Wish Deezer Le Monde zeigen Online Pokémon Messenger Pokémon Messenger Go Kugou Pokémon WhatsApp eBay Spotify BBC News Go Taobao Toutiao Music Go Pokémon WhatsApp King of Go WeChat Glory In cooperation with 19 Social Media “If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends.” Jeff Bezos, Founder and CEO of Amazon Social Media In 2016, Social Media platforms connected 2.8bn people, more than 1/3 of the world population Selected countries in terms of Social Media MAU1 (in million) Global 2,789 Rest of the world 1,059 China 787 United States 214 India 191 Brazil 122 Japan 64 Russia 56 Turkey 48 62% United Kingdom 42 of global Social Media South Korea 42 users France 36 Germany 33 Italy 31 Spain 25 Canada 23 Australia 16 Source: wearesocial, InternetWorldStats, Statista Digital Market Outlook 1: MAU = Monthly active users 22 Social Media Users in Brazil are connected to Social Media for more than 4 hours a day Avg. time users spend on Social Media platforms (hours per day) 2012 2016 3:03 Brazil 4:18 United States 1:49 2:33 1:55 Italy 2:21 1:35 United Kingdom 2:08 1:33 Canada 2:02 Australia 1:42 2:01 1:31 China 2:00 1:47 Spain 1:57 1:31 France 1:49 1:26 Germany 1:27 Source: Statista Digital Market Outlook Note: Data is based on internet users aged 16+; non users are excluded from averages 23 > 50,000,000,000 More than 50 billion messages are sent through WhatsApp every day.