The information and communication technology (ICT) sector will see significant growth over the next two years, according to a recent report by Crédito y Caución. The report forecasts global growth of 5.3% in 2024 and 6.3% in 2025, driven by rapid digitization, advances in industrial automation and rising demand for semiconductors crucial for artificial intelligence (AI) and electric vehicles (EVs).
Crédito y Caución report highlights the expansion of the sector, emphasizing that the ICT market is fueled by the production of high-tech goods and the shift towards more automated industrial processes. This growth is expected despite a projected decline of 0.4% in Europe in 2024, due to high interest rates. However, the European market is expected to recover in 2025 as financial conditions ease and production increases.
Technological drivers
Demand for electronic components and semiconductors will rise sharply, reflecting the general trend towards digital transformation and AI integration in all industries. This includes the growing electric vehicle market, which relies heavily on advanced semiconductor technology. The report highlights the importance of these components in meeting the technological demands of modern industries.
While Europe faces short-term challenges due to economic pressures, other regions are expected to continue their upward trend. The global ICT landscape will benefit from increased investment in digital infrastructure and technological innovation. The US and China remain the key players, although ongoing geopolitical tensions between these superpowers pose potential risks to supply chains and production efficiency.
Despite the positive outlook, the ICT sector faces several challenges. Market saturation in certain segments and the complex geopolitical landscape, particularly the trade dynamics between the US and China, could disrupt supply chains. In addition, companies must adapt to rapidly changing technologies and consumer expectations, which requires constant innovation and flexibility.
Investment and innovation
The report shows that sustained investment in research and development (R&D) is critical to maintaining growth momentum. Companies are expected to focus on improving their technological capabilities and expanding their product offerings in order to remain competitive. Innovations in AI, machine learning and other advanced technologies will be key drivers of the sector’s expansion.