Web Economy Predicted to Double by 2016

According a recent study by Boston Consulting Group and web giant Google, the web economy of the G20 should double by 2016.

That means the current $2.3tn will likely hit $4.2tn in a few years time and due mostly to the rapid rise of mobile internet access.

Some statistics from the study:

  • in four years 3 billion people will be using the internet, (nearly 50% of the world’s population).
  • every year about 200 million people go online for the very first time
  • traditional internet access via a desktop PC will seriously decline
  • by 2016 about 80% of all internet users will access the web using a mobile phone (due to cheaper smartphones)

The ‘new’ internet

In 2010, the internet economy of the G20 group of leading nations was worth $2.3tn, which is impressive but still only about 4.1% of the total size of all G20 economies. The research done by the Boston Consulting Group lists some characteristics of the “new internet” in 2016 as follows:

  • web access will be mainstream and the standard
  • the majority of web users will live in emerging markets (China is expected to have 800 million people using the internet by 2016)
  • about 80% of all internet access will be from the mobile
  • the internet will go more social allowing customers and companies to engage with each other
  • there will be a substantial rise of the “internet of things” – all kinds of devices from sensors to cars to radiators will be connected to the web
  • Technology giant IBM estimates that by 2015, one trillion devices will be internet-connected.

The winners

Of course, Google who supported the research, will most likely be one of the companies set to gain most from the rapid growth of the internet. Patrick Pichette, Google’s chief financial officer, was quoted, ”Understanding the economic potential of the web should be an urgent priority for leaders…”

The report also suggests a few of the other likely winners apart from Google.  The research points to Amazon, Apple, Facebook, Google, Baidu and Tencent in China and Yandex in Russia as ”internet ecosystems” that will try to tie users in to their customised part of the internet.

Read the full articleWeb economy in G20 set to double by 2016, Google says by Tim Weber, Business editor, BBC News website

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