- GSMA report says cybersecurity spending will increase by end of decade
- Unsurprisingly, 5G will receive 2.5 times more investment than 4G by 2030
- Telecommunications companies must help companies carry out digital transformations
Most companies are not reacting to difficult economic conditions by cutting costs but instead seeking to increase revenue, according to new research.
A new report from the GSMA notes that three-fifths of businesses are now prioritizing revenue growth, customer experience and competitive positioning to help grow their businesses rather than making reactive decisions to cut costs.
But the study also found that cybersecurity is at the top of many companies' lists, and that investments will continue to grow in the long term.
Companies are investing in future growth
The report noted that companies plan to allocate a hefty 9% of their revenue during 2024-2026 to cybersecurity, and that figure will increase two percentage points to 11% during 2027-2030.
In addition to increasing security, companies have also expressed their commitment to investing in artificial intelligence and improving their connectivity.
The majority (85%) now consider 5G networks and connectivity important, with an average of 21% of digital transformation budgets allocated to connectivity: 13% for mobile and 5G and 8% for landline and Wi-Fi. Between 2024 and 2030, investment in 5G is expected to be 2.5 times greater than in 4G, and high mobility sectors such as automotive, transportation, logistics and storage will drive much of this investment.
Finally, spending on AI will continue as companies look to increase productivity and efficiency. It already represents 14% of business spending on technology, and 90% of companies have incorporated technology in some form; However, the room for growth is enormous given that only a third are using it in “advanced” ways.
“Telcos must go beyond simply providing network services, as companies increasingly look for partners who can help them throughout their complete digital transformation process, combining technologies such as 5G, AI, IoT and cloud to improve efficiency, safety and boost revenue,” he said. Head of Research at GSMA Intelligence Pablo Iacopino.
