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Digital
Economy
Compass
April 2017
2
“At least 40% of all businesses will
die in the next 10 years…
if they don’t figure out how to
change their entire compa...
Welcome to the Digital Economy Compass
3
Less talking, more facts – our idea behind
creating the Digital Economy Compass.
...
Table of Contents
4
› Connectivity: Numbers behind the “always on” trend…………………………...
› Social Media: Love it, hate it, bu...
Connectivity
Source: internetlivestats.com
2,570,792
e-mails per second
The global number of e-mails sent per second resulted
in around...
The world is more connected than ever, a
development which looks set to continue
Source: Statista Digital Market Outlook
N...
Many people still lack internet access,
particularly in the most populous countries
Source: Statista Digital Market Outloo...
Web consumption per user via Laptop or
Desktop PC is highest in Brazil
Source: Statista Digital Market Outlook
Note: Data ...
In a global comparison, broadband speed is
fastest in East Asia and Scandinavia
Source: Akamai Technologies
Note: Figure r...
11
“Mobile is the future, and there is no
such thing as communication overload.”
Eric Schmidt,
Executive Chairman of Alpha...
Smartphone sales reached almost 1.5 billion in
2016, with Samsung being the biggest vendor
Source: IDC, Gartner
1: Origina...
Android has become the dominating mobile OS,
while Apple’s iOS has maintained market share
Source: Gartner
OS = Operating ...
Cross-device, Android even overtook Windows as
the dominating OS for desktop and mobile
Source: StatCounter.com
14
Global ...
Advanced mobile devices and a growing number
of apps increase time spent on mobile devices
Source: Statista Digital Market...
Being ‘always online’ leads to larger mobile
data traffic per device
Source: Ericsson Mobility Report
16
Estimated data tr...
The sevenfold increase in global mobile data
traffic is mainly driven by online video streaming
Source: Cisco System; figu...
Mobile connection speed varies a lot between
countries, with disappointing speed in the U.S.
Source: Akamai Technologies
F...
Pokémon Go was the most popular mobile game
for iPhone users across the globe
In cooperation with
19
Most downloaded iPhon...
Social Media
“If you make customers unhappy in
the physical world, they might each
tell 6 friends. If you make customers
unhappy on the...
In 2016, Social Media platforms connected 2.8bn
people, more than 1/3 of the world population
Source: wearesocial, Interne...
Users in Brazil are connected to Social Media for
more than 4 hours a day
Source: Statista Digital Market Outlook
Note: Da...
> 50,000,000,000
More than 50 billion messages are sent through WhatsApp every day.
Source: Facebook (February 2017)
Facebook has the biggest Social Media reach,
followed by Chinese tech-company Tencent
MAU1 of selected social networks and...
Facebook and LinkedIn Social Media exits1 were
the most expensive per user to investors
Source: Company Information, Yahoo...
Q1-’12Q4-’11Q1-’11Q2-’10 Q4-’10Q3-’10 Q2-11 Q3-’11
1.14
1.38
1.26
0.90
1.26 1.24
1.21
0.94
0.18
0.50
Q4-’15
0.84
Q3-’16
0....
Post-IPO development is nothing to worry about
for Snapchat
Source: Yahoo! Finance
Note: Figures as per 4-19-2017; all sto...
If you are not Facebook, it remains challenging to
transform Social Media into a profitable business
Source: Company Infor...
Platform Economics
“A platform is a plug-and-play
business model that allows
multiple participants (producers
and consumers) to connect to it...
The success of a digital platform is dependent
on its external ecosystem
Source: Harvard Business Review
32
Factors determ...
Digital platforms with varying business models
can be found in multiple industries
Source: Statista Research
33
Platform e...
Digital
White Sharks
- At the top of the food chain -
› (Very few) digital economy leaders
› Wide, diverse product portfol...
Huge Chinese rivals are catching up on the
big four U.S. platforms
Source: Yahoo! Finance as per 04-12-2017
35
Top 15 publ...
VC-backed platforms are vertically focused and
1/3 of the Top15 is located in China
Source: CB Insights as per 04-12-2017
...
Google
Amazon
Facebook
Apple
The biggest White Sharks in the digital economy:
Google, Amazon, Facebook, and Apple
Source: Company Information, Yahoo Fi...
Revenues of the biggest four U.S. players show
consistent growth
Source: Company Information
Note: FY2016 figures for Goog...
Apple has the highest net income, while
Facebook has just started to make big money
Source: Company Information
Note: The ...
Relationships with their users are key to
the biggest digital platforms’ successes
Source: Statista Research
41
User touch...
Source: internetlivestats.com
59,141
Every second Google receives 59,141 search requests.
On a single day, this number tot...
Google’s extensive product portfolio covers
nearly all aspects of the digital experience
Source: Google
43
Google product ...
“Day 2 is stasis. Followed by irrelevance. Followed
by excruciating, painful decline. Followed by death.
And that is why i...
The key to Amazon’s success is Jeff Bezos’ “Day 1”
philosophy
Source: Amazon, Inc.
45
Amazon revenue development from foun...
Source: Consumer Intelligence Research Partners, Statista Digital Market Outlook
Note: 249 million e-Commerce users in the...
Amazon is far more than just an e-Commerce
giant; it also controls the public cloud landscape
Source: Synergy Research Gro...
48
300,000,000
gigabytes
Facebook stores more than 300 million gigabytes of user data.
This data corresponds to 126 digita...
Facebook has 1,860m MAU1 with 85.2% of them
located outside of North America
Source: Facebook Inc.
Note: all figures as of...
Facebook’s active user base has been
consistently growing
Source: Facebook Inc.
50
Global number of Facebook’s monthly act...
Imagine if Facebook’s worldwide average
revenue per user equaled that of North America
Facebook‘s average revenue per user...
52
“There is no chance that the iPhone is going to get
any significant market share.”
Steve Ballmer in 2007,
Former CEO of...
With nearly 70% revenue share in Q1-’17, the
iPhone is the biggest success in Apple’s history
Source: Company Information
...
Apple is the biggest vendor in a shrinking
tablet market
Source: IDC
54
Global tablet shipments in 2016 in millions
2016
1...
The number of active Apps in Apple’s App Store
is predicted to reach over 5 million by 2020
Source: SensorTower
55
Project...
Stock market prices reflect the tech-giants’
development
Source: Yahoo! Finance
Baseline for stock prices are GE, T, WMT, ...
Only investing $1,000 in bitcoins would have
been more profitable than in digital platforms
Source: Yahoo! Finance; Coinde...
As many western platforms struggle in China,
Chinese competitors have stepped up
Source: Statcounter.com, iResearch China,...
Baidu
Alibaba
Tencent
Huawei
The untapped potential of 676m awakening
digital customers makes China unique
Source: Statista Digital Market Outlook
60
O...
Baidu, Alibaba, Tencent, and Huawei (BATHu) are
China’s overlooked tech-giants
Source: Company Information; Yahoo! Finance...
BATHu’s compound annual growth rates from
2012 to 2016 are consistently above 20%
Source: Company Information
Note: Tencen...
Alibaba’s FY16 net income was almost fifteen
times higher than 5 years ago
Source: Company Information
Note: The size of c...
Accompanied by their financial prosperity,
Chinese platforms invest in U.S. startups
Source: Crunchbase
64
VC-investments ...
Source: CNBC
Baidu was the first Chinese company to be listed in the NASDAQ 100 index.
1st
Although primarily operating in China, Baidu dips
its toes into new markets
Source: Chinainternetwatch.com, StatCounter.co...
In China, Baidu has strong brand awareness,
with a large domestic market share of over 75%
Source: StatCounter.com
67
Sear...
AI will further improve search engines; Baidu’s
face recognition software is a good example
Source: Massachusetts Institut...
Source: Alibaba Group
175,000
Chinese e-Commerce giant Alibaba processed 175,000 transactions per second on the peak time ...
The Alibaba Group has evolved to become a
platform with multiple user touchpoints
Source: Alibaba Group
70
Alibaba Group O...
Singles' Day is the largest shopping day in the
world, and Alibaba benefits most of it
Sources: Fundivo, Adobe, Alibaba Gr...
Alibaba’s fast growth demonstrates how software
is much more scalable than warehousing
Source: Company Information
Note: a...
“Will Tencent join the likes of
Amazon, Google, Facebook and
Twitter? […] They already are in
that league. The rest of the...
China‘s largest tech company can be compared
with its U.S. Social Media counterpart
Key financial and operating metrics of...
WeChat has a diverse business model with
multiple revenue sources
Source: Company Information, OLMA Capital Management
75
...
76
5G
Huawei aims at playing a central role in 5G mobile technology, the next big evolutionary step
in mobile connectivity...
Huawei overtook Apple and became one of the
most R&D-intensive tech companies
Source: Company Information
Note: Dell figur...
1,287%
909%
2009
1,027%
747%
2008
848%
653%
2007
580%
429%
2006
2,977%
336%
2005
281%
242%
2004
180%
144%
2003
127%
108%
2...
Baidu, Alibaba, Tencent and Huawei
vs.
Google, Amazon, Facebook and Apple
–
Who is taking the lead?
79
BATHu may catch up in the digital economy, but
the big U.S. players remain the top innovators
Source: Company Information;...
Comparatively, U.S. tech-giants remain ahead of
their Chinese competitors
Source: Company Information, IDC, WeAreSocial, c...
The Top 10 digital CEOs manage revenues of
$846bn and own a combined fortune of $312bn
Source: Company Information, forbes...
Venture Capital
7,300,000,000
US$
In 2016 Didi Chuxing, the Chinese ride sharing company and major competitor of Uber,
collected fresh cap...
More deals and greater capital invested, bar
2016, complement growing average deal size
Source: KPMG Enterprise, PitchBook...
“Software is eating the world” – at least in the case
of VC financing
Source: KPMG Enterprise, PitchBook
86
Software secto...
10101010
3
8
5
2
Q1/2016 Q2/2016 Q4/2016Q3/2016
New Unicorns Exits > US$1 billion
The stereotype Unicorn1 in 2016: digital...
U.S. and Chinese players take the top spots in
terms of global VC financing and funding
Source: PitchBook
88
Top 5 VC Fina...
VC deals are primarily closed with male
founders, particularly in the tech landscape
Source: PitchBook
89
Global VC deals ...
The U.S. and China are home to the greatest
number of Unicorns, with Europe lagging behind
Source: CB Insights
Unicorn = S...
AI, AR & VR
Source: MIT
Baidu has developed a facial recognition software that recognizes human faces with a 99.77% accuracy.
This sur...
There is a lot of activity in the Artificial
Intelligence and Data Mining startup scene
Source: CB Insights
93
VC-backed c...
VC-backed companies with the terms Machine
Learning, VR & AI drastically increased since ‘10
Source: CB Insights
94
Change...
155
260
77
60
33
91
83
65
121
106
Startups in the machine learning / AI segment
have benefited from the largest VC funding...
AI will also enable human voices to become a
new powerful communication layer
Number of third-party skills available for A...
Augmented & Virtual Reality may be the next big
tech opportunity
Estimated global virtual & augmented reality headset deve...
Global VR revenues are expected to increase to
almost US$40 billion by 2020
Forecasted VR hard- and software revenues by p...
Table of Contents
99
› Connectivity: Numbers behind the “always on” trend…………………………..
› Social Media: Love it, hate it, bu...
The Digital Market Outlook (DMO) provides KPIs
and insights for eight digital markets
100
Statista Digital Market Outlook ...
The DMO markets and forecasts cover a broad
range of products and services
1: B2B and C2C markets are excluded
2: Resale o...
Forecasts based on market-specific knowledge,
enriched with macroeconomic developments
Source: Statista Digital Market Out...
In 2018, China will overtake the U.S. and will
become the biggest digital economy
Source: Statista Digital Market Outlook
...
In 2016, digital expenditure in % of household
consumption per capita are the biggest in China
Source: Statista Digital Ma...
18
101
78
584
997
1
10
24
54
273
13
41
63
355
623
E-Commerce is by far the biggest digital market
people spend their money...
E-Commerce
12,000,000
Chinese online retailer Tmall ships an incredible 12 million boxes per day
108
Global1 e-commerce revenue (in US$bn) and CAGR2 16-21 by segment
Global e-Commerce revenue is expected to
almost doubl...
Source: Statista Digital Market Outlook
1: CAGR: Compound Annual Growth Rate
109
The top e-Commerce markets exhibit growth...
There are many product-specific big players in
addition to large all-encompassing platforms
Source: Statista Digital Marke...
China will dominate the online fashion world
with a turnover of more than US$285bn in 2021
Source: Statista Digital Market...
The Chinese B2C e-Commerce market outper-
formed the U.S. both in size as well as in growth
Source: Statista Digital Marke...
Transparency and simple processes are most
important for online shopping delivery
Source: IPC online survey with 23,331 re...
Amazon leverages loyalty from Prime members;
thus, incentivizing them is an important strategy
Amount spent by U.S. Amazon...
Despite being #1 in the U.S. and Europe,
Amazon has not yet cracked the Chinese market
Source: iResearch China, U.S. Depar...
Discover more
Online Shopping is not as profitable as you think
116
Discover more of our topic-related research for e-Comm...
eServices
Source: Tinder
1,400,000,000
Online dating app Tinder registers a daily average of 1.4 billion swipes on its platform
119
Global1 eServices revenue (in US$ billion) and CAGR2 16-21 by segment
Food delivery is the most dynamic eServices
mark...
Source: Statista Digital Market Outlook
1: CAGR: Compound Annual Growth Rate
120
An estimated eServices market value of US...
Event Tickets Fitness Dating Services Food Delivery
Startups1
Established
players
Market
complexity2
New market entrants c...
ElitePartner
Baihe
OurTime
In Dating Services, different offerings are targeted
at various audiences and types of relation...
Sportswear giants are acquiring fitness apps;
Under Armour is the most active player
Sources: DC Reinmaker, Fortune, Runne...
Fitbit leads the global wearables market; what
can be expected from the Apple Watch?
Source: IDC
124
Worldwide wearable de...
Tinder and Badoo are the top 2 dating apps in
terms of global1 downloads
Sources: BBC News, App Aniie, Statista Digital Ma...
Selling food online is a promising business –
especially in the U.S.
Source: Statista Digital Market Outlook
1: includes m...
Despite not owning a single car, Uber’s market
valuation is closing in on the big OEMs
Source: Yahoo! Finance, CB Insights...
Discover more
Everyone is taking a stab at online food delivery
128
Discover more of our topic-related research for eServi...
eTravel
06-18-2016
The day online ride sharing company Uber reached a record breaking 2 billion users
131
Global1 e-commerce Revenue in US$ billion and CAGR2 16-21 by segment
The global eTravel market will almost double to
a...
Source: Statista Digital Market Outlook
1: CAGR: Compound Annual Growth Rate
132
China displays the fastest growth in term...
Online Travel Booking Mobility Services
Startups1
Established players
Market complexity2
Companies in the eTravel market c...
Four big players account for the major M&A
activity within the Online Travel Booking industry
Source: Statista Digital Mar...
Airbnb has reshaped the way we book
accommodations
Source: Airbnb Data & Analytics
1: Listings refer to entire flats, priv...
Fair deal? In major cities, taxi drivers earn
significantly less than Uber drivers
Source: Uber
136
Estimated hourly earni...
Discover more
Rethinking travel: Airbnb is just the beginning
137
Discover more of our topic-related research for eTravel
...
Digital Media
88,400,000
Virtual Reality is trending in Digital Media. In 2016 88.4 million
Google Cardboards (Google’s budget VR soluti...
140
Global1 Digital Media revenue (in US$ billion) and CAGR2 16-21 by segment
Revenues generated by Video Games
overshadow...
Source: Statista Digital Market Outlook
1: CAGR: Compound Annual Growth Rate
141
The U.S. has the largest Digital Media re...
In most Digital Media segments, very few players
dominate the market
Source: Statista Digital Market Outlook
142
Selection...
Youtube is the world’s largest music streaming
service and at no charge to users
Source: YouTube, IFPI, Ipsos, Spotify, Ap...
Spotify is the leading streaming service with the
largest number of paying subscribers
Source: Company Announcements, MIDI...
51.3
In Q4-’16, Netflix had more paying subscribers in
the U.S. than the top cable companies combined
Source: Company Info...
eBooks and hardcovers are most expensive in
Germany
Source: Statista Digital Market Outlook
As of April 5, 2017
146
Avg. p...
Discover more
What comes after subscription in digital media?
147
Discover more of our topic-related research for Digital ...
FinTech
“If banks cannot truly be customer
intimate, they are doomed to be
just dumb commodities, acting
behind the scenes, like u...
150
Global1 FinTech transaction value and Assets under Management
(in US$ billion) and CAGR2 16-21 by segment
Global1 Digi...
Source: Statista Digital Market Outlook
1: CAGR: Compound Annual Growth Rate
151
It's early days for FinTech markets; howe...
Most prominent FinTech players can be found in
the Digital Payment segment
Source: Statista Digital Market Outlook
152
Rep...
Profiteers in Marketplace Lending are Borrowers,
Marketplaces, Banks and Investors alike
Source: Statista Digital Market O...
U.S. Mobile Payment transaction volume is
expected to increase tenfold from ’16 to ‘21
Estimated U.S Mobile Payment transa...
Robo-Advisors are most prevalent in the U.S.;
only two of the biggest advisors are from Europe
Top Robo-Advisors by assets...
Bitcoin remains the largest crypto-currency with
a market cap of more than US$14 billion
Market caps of the ten largest cr...
In 5 years, Bitcoin & Blockchain start-up funding
increased from US$1m to over US$570m
Source: CB Insights
157
Bitcoin & B...
If you can‘t beat the FinTechs, join them
No. of major bank investments in VC-backed FinTechs (Q3-'15 – Q3-’16)
27.7%
65.3...
Discover more
How FinTech is reshaping the financial world
159
Discover more of our topic-related research for FinTech
Sta...
Digital Advertising
US$935.71
The most expensive keyword for Google AdSense (best mesothelioma lawyer)
was closing in on a truly incredible co...
Digital Ads are expected to grow across all
categories, with Search Ads taking the top spot
Source: Statista Digital Marke...
Digital Advertising revenues in China are
expected to more than double by 2021
Source: Statista Digital Market Outlook
1: ...
SSP/Ad
Network
Trading Desk Ad Exchange Publisher
$0.15
$0.14
$0.29
$0.05
$0.10
$0.15
Advertising
Client
Agency DSP
$0.12
...
There is a significant ‘ad spend gap’ for mobile
Percent of time spent by consumers with media & percent of ad spend
alloc...
Mobile Ad spending will continue to boom over
the next three years
Estimated change in advertising spending between ’16 – ...
Social media & content marketing are top
priorities for marketers
Digital marketing budget plans for 2017 (in % of respond...
There is a clear generational divide in news
consumption
Main news source by age group
12%
8%
24%
8%7% 7%8%
29%
37%
46%
53...
2019 will be a paradigm change: mobile/desktop
internet ad spend is expected to overtake TV
Source: Zenith Advertising Exp...
Discover more
The future of advertising is 'fewer, better ads'
170
Discover more of our topic-related research for Digital...
Smart Home
Source: Statista Digital Market Outlook
57%
of all Smart Homes in 2016 were located in the United States
The global Smart Home market will more than
quadruple by 2021
173
Global1 Smart Home Revenue (in US$bn) and CAGR2 16-21 by...
Smart Home market development is most
dynamic in China and Germany
Source: Statista Digital Market Outlook
1: CAGR: Compou...
The Smart Home ecosystem consists of many
intersections and entry points
Source: Statista Digital Market Outlook
175
Illus...
The Smart Home company landscape comprises
all kinds of origins
Source: Statista Digital Market Outlook
1: Using the most ...
Digital Assistants will become increasingly more
common in people’s homes
Source: Statista Digital Market Outlook; Tractic...
Echo & Co. will enter the Home Automation
market and increase revenues fivefold by 2021
178
Smart Home automation market r...
Americans are keen on Smart Home Security;
could it be due to the high burglary rate?
179
Domestic burglaries per 100,000 ...
Discover more
Smart Home = Connected devices + integration
180
Discover more of our topic-related research for Smart Home
...
Connected Car
Source: Statista Digital Market Outlook
190,850,000
Connected Cars
The predicted global number of Connected Cars on the ro...
Widespread connectivity is a prerequisite for the
development of self-driving cars
Source: Statista Digital Market Outlook...
Connected Car service subscription revenues are
still falling short of OEM’s expectations
Source: Statista Digital Market ...
A pioneer in integrated connectivity, the U.S. will
stay the biggest Connected Car market by 2021
Source: Statista Digital...
Connectivity-related service packages are now
available from most OEMs
Source: Statista Digital Market Outlook
186
Key pla...
Real-time traffic information is already
widespread across the Western world and Asia
Source: Company Information, Statist...
Operating data collected from connected cars
generates both potential and challenges
Sources: AT&T, McKinsey, Verizon
188
...
Tesla’s investment intensity in R&D is much
bigger than that of VW and BMW
Sources: Company Information, Statista
1: R&D i...
Discover more
Monetizing vehicle data – the future for OEMs?
190
Discover more of our topic-related research for Connected...
Imprint
Contacts and authors
Released:
Imprint
Statista ▪ Johannes-Brahms-Platz 1 ▪ 20355 Hamburg ▪ +49 40 413 49 89 0 ▪ w...
About the Digital Market Outlook
192
FinTech
Digital Payments, Business Finance,
Personal Finance
Smart Home
Home Automati...
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Statista Digital Economy Compass 2017

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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.

Published in: Internet
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Statista Digital Economy Compass 2017

  1. 1. Digital Economy Compass April 2017
  2. 2. 2 “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
  3. 3. Welcome to the Digital Economy Compass 3 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
  4. 4. Table of Contents 4 › Connectivity: Numbers behind the “always on” trend…………………………... › Social Media: Love it, hate it, but accept that you need it…………………... › Platform Economics: A story about White Sharks and Swordfish……… › Venture Capital: Feed for new Tech-Unicorns…………………………………...... › AI, AR and VR: The next big Technology Hype………………………………………. Statista’s Digital Market Outlook Global Trends › e-Commerce……………………... › eServices……………………………. › eTravel ………………………………. › Digital Media……………………... › FinTech…………………………………. › Digital Advertising…………….... › Smart Home……………………...... › Connected Car…………………….. 91 5 20 30 83 160 171 181 148 129 106 117 138
  5. 5. Connectivity
  6. 6. Source: internetlivestats.com 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.
  7. 7. The world is more connected than ever, a development which looks set to continue Source: Statista Digital Market Outlook Note: Figures account for total world population using the internet / a smartphone within the last 12 months 7 Share of world population connected to the internet from 2016 to 2021 +5.7% p.a. +3.7% p.a. 2021 50.5% 63.9% 2020 48.8% 61.8% 2019 46.9% 59.7% 2018 44.5% 57.5% 2017 41.6% 55.4% 2016 38.2% 53.2% Mobile penetration Internet penetration Connectivity
  8. 8. Many people still lack internet access, particularly in the most populous countries Source: Statista Digital Market Outlook Note: Only includes countries listed in the Digital Market Outlook 8 Internet penetration per country in 2016 (in % of total population) Internet penetration rate > 80% > 70% > 60% < 60% Connectivity Not included
  9. 9. Web consumption per user via Laptop or Desktop PC is highest in Brazil Source: Statista Digital Market Outlook Note: Data is based on internet users aged 16+; non-internet users are excluded from averages 9 Time spent online via Laptop/Desktop PC (hours per day) Spain Germany South Korea China Brazil Canada United Kingdom Italy France United States 2012 2016 5:36 4:43 4:27 4:22 4:16 3:57 3:55 3:36 3:29 3:16 5:28 5:06 4:23 4:30 4:07 4:08 4:03 3:38 4:39 3:45 Connectivity
  10. 10. In a global comparison, broadband speed is fastest in East Asia and Scandinavia Source: Akamai Technologies Note: Figure refers to Q3-2016; countries covered: broadband ranking – 147 1: Megabits per second 10 Average broadband speed in Top10 and selected countries (in Mbps1) South Korea 1 Hong Kong 2 Norway 3 23.6 18.2 Sweden 4 20.1 18.4 20.0 19.7 China 85 Switzerland 5 Singapore 6 Japan 7 Finland 8 Netherlands 9 Latvia 10 … United States 12 United Kingdom 20 Germany 26 France 49 18.0 17.6 17.3 16.9 5.7 16.3 14.9 13.7 9.7 Connectivity
  11. 11. 11 “Mobile is the future, and there is no such thing as communication overload.” Eric Schmidt, Executive Chairman of Alphabet, Inc.
  12. 12. Smartphone sales reached almost 1.5 billion in 2016, with Samsung being the biggest vendor Source: IDC, Gartner 1: Original Equipment Manufacturer 2: Shipment information not available for each year; if no information available, sales are included in “Other” Note: Estimated figures for Lenovo and Xiaomi in 2016; market shares may not sum up in 100% due to rounding 12 Global smartphone shipments (in million) and market shares per OEM1 4.0% 5.3% 2016 1,437 2014 1,302 2013 1,020 2012 725 2011 495 2010 305 9.5% 6.8% 14.6% 21.2% 3.1% 35.6% 2015 1,471 Samsung Apple Huawei Oppo Vivo Lenovo Xiaomi Others 2 2 2 2 2 Connectivity
  13. 13. Android has become the dominating mobile OS, while Apple’s iOS has maintained market share Source: Gartner OS = Operating System 1: based on worldwide unit sales Worldwide smartphone operating system market share1 84.8% 14.4% 2016 100% 2013 20152014 14.4% 3.9% 2012201120102009 iOS AndroidWindowsSymbianOthers BlackBerry 13 Connectivity
  14. 14. Cross-device, Android even overtook Windows as the dominating OS for desktop and mobile Source: StatCounter.com 14 Global operating system market share from Feb 2016 to Mar 2017 0 5 10 15 20 25 30 35 40 45 50 Mar-17Feb-17Jan-17Dec-16Nov-16Oct-16Sep-16Aug-16Jul-16Jun-16May-16Apr-16Mar-16Feb-16 OS XiOSAndroidWindows Market share (in %) Android 37.93% Windows 37.91% Connectivity
  15. 15. Advanced mobile devices and a growing number of apps increase time spent on mobile devices Source: Statista Digital Market Outlook Note: Data is based on internet users aged 16+; non-internet users are excluded from averages 15 Time spent online via mobile device per user (hours per day) Canada United Kingdom France Germany Brazil United States Spain Italy South Korea China 2012 2016 4:48 3:03 2:37 2:34 2:11 2:10 2:10 2:09 1:37 1:32 1:54 1:48 1:35 1:37 1:52 1:35 1:14 1:16 1:20 1:01 Connectivity
  16. 16. Being ‘always online’ leads to larger mobile data traffic per device Source: Ericsson Mobility Report 16 Estimated data traffic per smartphone (in gigabytes per month) 22.0 7.0 6.0 18.0 11.0 6.5 3.7 North America Latin America Middle East and Africa Asia Pacific Central and Eastern EuropeWestern Europe 1.9 1.4 1.4 1.0 1.0 2021 2015 Connectivity
  17. 17. The sevenfold increase in global mobile data traffic is mainly driven by online video streaming 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 Global mobile traffic forecast per segment (in petabytesper month) 560 11,266 16,792 7,225 2,939 11,415 3,780 1,194 7,241 2,154 4,375 2016 2017 2018 2019 2020 2021 843259 403 24,452 592 1,621 17,565 4,675 34,531 821 2,104 26,068 5,539 48,360 1,103 2,674 38,148 6,435 152 Web, data, and VoIP Video streaming Audio streaming File sharing Consumed via smartphone 85.2% 85.8% 81.3% 82.8% 83.8% 84.7% 1 Petabyte = 1 million Gigabyte Connectivity
  18. 18. Mobile connection speed varies a lot between countries, with disappointing speed in the U.S. 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 1: Megabits per second 18 Average mobile speed in Top10 and selected countries (in Mbps1) United States 38 23.7 7.5 China 31 8.9 South Korea 18 11.2 Japan 16 11.6 France 13 12.4 … United Kingdom 1 Australia 10 12.8 Austria 9 13.0 Germany 8 13.1 Ireland 7 13.2 UAE 6 13.3 Spain 5 13.4 Finland 4 16.9 Norway 3 17.4 Belgium 2 19.3 Connectivity
  19. 19. Pokémon Go was the most popular mobile game for iPhone users across the globe In cooperation with 19 Most downloaded iPhone apps per category and country in 2016 Categories covered: Shopping, Music, News, Gaming, Social Networks U.S. PandoraAmazon CNN Pokémon Go Messenger China Kugou Music Taobao Toutiao WeChat King of Glory Germany SpotifyKleinan zeigen Spiegel Online Pokémon Go WhatsApp U.K. SpotifyeBay BBC News Pokémon Go WhatsApp France DeezerWish Le Monde Pokémon Go Messenger Connectivity
  20. 20. Social Media
  21. 21. “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
  22. 22. In 2016, Social Media platforms connected 2.8bn people, more than 1/3 of the world population Source: wearesocial, InternetWorldStats, Statista Digital Market Outlook 1: MAU = Monthly active users 22 Selected countries in terms of Social Media MAU1 (in million) 16 23 25 31 33 36 42 42 48 56 64 122 191 214 India 2,789 Germany Australia France China Spain 787 Japan 1,059 Canada Rest of the world Russia United Kingdom Global United States Turkey South Korea Brazil Italy 62% of global Social Media users Social Media
  23. 23. Users in Brazil are connected to Social Media for more than 4 hours a day Source: Statista Digital Market Outlook Note: Data is based on internet users aged 16+; non users are excluded from averages 23 Avg. time users spend on Social Media platforms (hours per day) Germany France Spain China Australia Canada United Kingdom Italy United States Brazil 2012 2016 4:18 3:03 2:33 1:49 2:21 1:55 2:08 1:35 2:02 1:33 2:01 1:42 2:00 1:31 1:57 1:47 1:49 1:31 1:27 1:26 Social Media
  24. 24. > 50,000,000,000 More than 50 billion messages are sent through WhatsApp every day. Source: Facebook (February 2017)
  25. 25. Facebook has the biggest Social Media reach, followed by Chinese tech-company Tencent MAU1 of selected social networks and messaging services (in million) Source: We Are Social, Hootsuite, Techcrunch, 1: MAU = Monthly active users, as of January 2017; WhatsApp and Facebook Messenger as of March 2017 2: Estimation as Snapchat only reports daily active users 90 150 297 300 317 632 700 846 877 VK Pinterest Snapchat Weibo Instagram Twitter Qzone 1,200Messenger WeChat Facebook 1,871 1,200Whatsapp QQ Tencent Inc.Facebook Inc. Others 25 2 Social Media
  26. 26. Facebook and LinkedIn Social Media exits1 were the most expensive per user to investors Source: Company Information, Yahoo! Finance, Business Insider, Forbes Note: Figures for monthly active users refer to the time of exit 1: Acquisition or IPO 2: MAU = monthly active user 26 Social Media exits (acquisition or IPO) in comparison 55 24 4 100 163 106 65 400 200 100 0 110,000105,000100,00025,000 800 20,00010,0005,0000 15,000 1,000 600 Monthly active users (in m) Tumblr Exit (US$m ) Price per MAU2 (in US$) Social Media Instagram LinkedIn WhatsApp Twitter Snapchat Facebook
  27. 27. Q1-’12Q4-’11Q1-’11Q2-’10 Q4-’10Q3-’10 Q2-11 Q3-’11 1.14 1.38 1.26 0.90 1.26 1.24 1.21 0.94 0.18 0.50 Q4-’15 0.84 Q3-’16 0.32 Q2-’16 Q4-’16Q2-’15 Q1-’16 0.06 0.31 0.05 Q1-’15 1.05 Q3-’15 Snapchat pre-IPO revenue per user performed well compared to its biggest competitor Sources: Snap Inc., Facebook Inc. 27 Global avg. revenue per user in the eight quarters before IPO (in US$) Snapchat Facebook Social Media
  28. 28. Post-IPO development is nothing to worry about for Snapchat Source: Yahoo! Finance Note: Figures as per 4-19-2017; all stock prices are closing prices; dividends are not considered 28 Stock prices of Snap, Facebook and Twitter in the first 30 days after IPO 0 30 US$44.9 US$38.2 US$19.5 US$25.9 US$39.1 US$20.2 US$31.1 US$57.5 US$24.5 Snap Inc. Twitter Inc.Facebook Inc.  -17.5%  -18.7%  +28.0% Low-point IPO 1st 30 days change3/2/2017IPO: 5/18/2012 11/7/2013 Days after IPO Social Media IPO-to- date  -15.8% - 67.6%  +272.1% 111213
  29. 29. If you are not Facebook, it remains challenging to transform Social Media into a profitable business Source: Company Information, as of Mar 2017 1: Statista estimated financial results for Q4-2016 29 FY2016 results of listed U.S. Social Media platforms (in US$ million ) 404 -515 -457 -162 Snapchat Twitter 2,530 Linkedin 3,868 Facebook 10,217 27,638 Net profit / loss Revenues 1 Social Media
  30. 30. Platform Economics
  31. 31. “A platform is a plug-and-play business model that allows multiple participants (producers and consumers) to connect to it, interact with each other and create and exchange value.” Twitter
  32. 32. The success of a digital platform is dependent on its external ecosystem Source: Harvard Business Review 32 Factors determining successful platforms Connection Gravity Flow Simplicity for partners to plug in, share and transact Capability to attract producers and consumers Promotion of co-creation and exchange of value Platform Economics
  33. 33. Digital platforms with varying business models can be found in multiple industries Source: Statista Research 33 Platform examples and their business models RepositoryDigital Media Infrastructure Search engines Application stores Social Media Ride sharing Market placesClassifieds Advertising Transactions Subscription Freemium Pay-as-you-go Digital Platforms store Platform Economics Didi Chuxing
  34. 34. Digital White Sharks - At the top of the food chain - › (Very few) digital economy leaders › Wide, diverse product portfolio › Gigantic assets Digital Swordfish - Big, fast, rarely get eaten - › (Few) big industry shaping players › Deep, vertical specific products › Already near peak growth Digital Piranhas - Small but aggressive for prey - › (Many) product specific players › Huge, product centric competition › Peak growth not yet reached The platform landscape consists of White Sharks, Swordfish, and Piranhas Source: Statista Digital Market Outlook 34 Platform economics in nutshell Platform Economics
  35. 35. Huge Chinese rivals are catching up on the big four U.S. platforms Source: Yahoo! Finance as per 04-12-2017 35 Top 15 publicly listed platforms by market cap (in US$ billion) 10 14 24 37 45 46 51 60 62 270 276 404 431 574 743 Rank Company Country Market Cap 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Apple Google Amazon Facebook Alibaba Tencent Netflix Baidu Paypal JD.com Yahoo! Ebay Snap Rakuten Twitter ∑ US$3,047bn Platform Economics
  36. 36. VC-backed platforms are vertically focused and 1/3 of the Top15 is located in China Source: CB Insights as per 04-12-2017 36 Top 15 privately held, VC-backed platforms by market cap (in US$ billion) 7 7 9 9 10 10 11 11 17 18 19 29 34 46 68 Rank Company Country Market Cap 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Uber Xiaomi Didi Chuxing Airbnb Lu.com China Internet Plus WeWork Pinterest Toutiao Flipkart Dropbox Stripe Spotify Snapdeal Lyft ∑ US$304bn China Internet Plus Platform Economics Category Ride Sharing Consumer Electr. Ride Sharing Online Travel E-Commerce Financing/Lending Collaboration Social Media Digital Media E-Commerce Collaboration Online Payment Digital Media E-Commerce Ride Sharing
  37. 37. Google Amazon Facebook Apple
  38. 38. The biggest White Sharks in the digital economy: Google, Amazon, Facebook, and Apple Source: Company Information, Yahoo Finance; Note: All figures refer to end of fiscal year 2016, except market cap which is as of 03-10-2017; figures related to Google correspond to Alphabet Inc. conglomerate 1: Unaudited as per released financial results 2: Full-time and part-time employees 38 Google, Amazon, Facebook and Apple key figures Founded: 04-1976 HQ: Cupertino, California CEO: Tim Cook (since 08-2011) Revenues: US$215.64 billion Net income: US$45.69 billion Employees: 116,000 Market cap: US$727.4 billion Founded: 09-1994 HQ: Mountain View, California CEO: Sundar Pichai (since 10-2015) Revenues1: US$90.23 billion Net income1: US$19.48 billion Employees: 69,953 Market cap: US$558.1 billion Founded: 05-1994 HQ: Seattle, Washington CEO: Jeff Bezos (since 05-1996) Revenues1: US$135.99 billion Net income1: US$2.37 billion Employees2: 341,400 Market cap: US$407.0 billion Founded: 02-2004 HQ: Menlo Park, California CEO: Mark Zuckerberg (since 2004) Revenues1: US$27.64 billion Net income1: US$10.22 billion Employees: 17,048 Market cap: US$399.5 billion Platform Economics
  39. 39. Revenues of the biggest four U.S. players show consistent growth Source: Company Information Note: FY2016 figures for Google, Amazon, Facebook are unaudited as per released financial results 39 Google, Amazon, Facebook and Apple global revenues (in US$ billion) 50.0 Apple 214.2 231.3 183.2 170.9 156.0 Facebook 27.6 17.9 12.57.95.1 Amazon 136.0 107.0 89.0 74.5 61.1 Google 89.7 73.6 65.8 59.7 20162015201420132012 CAGR +15.8% CAGR +22.2% CAGR +52.7% CAGR +8.3% Platform Economics
  40. 40. Apple has the highest net income, while Facebook has just started to make big money Source: Company Information Note: The size of circles corresponds to net income; FY2016 figures for Google, Amazon and Facebook are unaudited financial results 40 Google, Amazon, Facebook and Apple global net income (in US$ billion) 20152011 20132012 20162014 0.05 12.7310.62 14.14 -0.04 2.94 16.35 2.370.27 -0.24 39.51 45.6941.73 37.04 10.22 0.60 1.50 19.48 3.69 53.39 Platform Economics
  41. 41. Relationships with their users are key to the biggest digital platforms’ successes Source: Statista Research 41 User touchpoints of Google, Amazon, Facebook and Apple IT & Infrastructure Aquila Apple SIM Artificial Intelligence Google Assistant Jarvis Siri Hardware Devices Communication & Messaging Digital Media & Entertainment Connected Car & e-Mobility -Integration (Transportation) CarPlay E-Commerce & Retail Facebook ‘Buy-Button’ FinTech & Payment -Integration (Friend-to-Friend Payment) Navigation & Location services Amazon Maps API, MAPS.ME integration Advertising Facebook Business, Instagram Business Apple Search Ads Google+ Allo Pixel Chromecast Home Google Maps AdExchange Alexa integration Whatsapp facebook Messenger etc. etc. iBeacon store Apple Maps facebook.com/gaming ‘Purchase on Google’
  42. 42. Source: internetlivestats.com 59,141 Every second Google receives 59,141 search requests. On a single day, this number totals over 5.1 billion.
  43. 43. Google’s extensive product portfolio covers nearly all aspects of the digital experience Source: Google 43 Google product portfolio Data Analysis VR/AR Office Android System Translate Android Phones Android Auto Entertainment Google Play Music Youtube Chrome- cast Google Play Movies & TV Google Play Google Play Apps Play Games Play Newsstand YouTube Kids Social Gmail Google Allo Google Duo Google+Messenger Hangouts Inbox by Gmail Voice Docs Sheets Drive Slides Android for Work Forms Analytics Education Google Classroom Education Scholar Internet Browser Chrome Chromebook Chrome for Work Chrome Web Store Drawings Google Expeditions Blogger Google Cast Google Cloud Print Gboard TangoTilt Brush Sites Search Engine Search Google Search for Work Search Console Google Sync Navigation Maps Google Maps Business View Google Maps for Work Earth Waze Google Domains Google Surveys Designing Google Fonts Nik Collection Web Designer Android OS Android Pay Google Alerts News YouTube Gaming G Suite Google Cloud Platform Google Trends Android One Google Groups Google Input Tools Android Tablet Life Google Flights Google One Today Project Fi Google Fit Zagat Google Camera E-Commerce Google Express Trusted Stores Google Store Business & Marketing AdWords AdSense My Busines Google Shopping Campaigns Google+ Brands Local Inventory Ads Merchant Center DoubleClick by Google FinanceTag Manager AdMob Google Calendar Hardware Pixel Home Google Wifi Smartbox OnHub Cardboard Daydream View Android Wear Google Goggles Nexus Platform Economics
  44. 44. “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.” Jeff Bezos, Founder and CEO of Amazon
  45. 45. The key to Amazon’s success is Jeff Bezos’ “Day 1” philosophy Source: Amazon, Inc. 45 Amazon revenue development from foundation to 2016 (in US$ million) 61014816 135,987 2015 107,006 2014 88,988 2013 74,452 2012 61,093 2011 48,077 2010 34,204 2009 24,509 2008 19,166 2007 14,835 2006 10,711 2005 8,490 2004 6,921 2003 5,264 2002 3,933 2001 20162000 2,762 1999 1,640 3,122 199719961995 1 1998 Mission statement: ‘Earth’s biggest book store’ Vision statement: ‘Our vision is to be earth's most customer centric company […]’ Platform Economics
  46. 46. Source: Consumer Intelligence Research Partners, Statista Digital Market Outlook Note: 249 million e-Commerce users in the U.S. in 2016 (Statista estimates) About 32% of U.S. e-Commerce customers subscribe to Amazon Prime Amazon Prime subscribers in the United States (in million users) 63 54 44 40 28 25 80 June 2016December 2015June 2015December 2014June 2014December 2013 Mar 2017 46 Platform Economics
  47. 47. Amazon is far more than just an e-Commerce giant; it also controls the public cloud landscape Source: Synergy Research Group 1: includes platform as a service (PaaS) and infrastructure as a service (IaaS) revenues Global public cloud infrastructure1 market share (% of revenue) in Q4-’16 23% 40% Next 10 providers 18% 18% Long tail of small providers Public cloud infrastructure revenues are estimated at over US$7 billion per quarter 47 Platform Economics
  48. 48. 48 300,000,000 gigabytes Facebook stores more than 300 million gigabytes of user data. This data corresponds to 126 digital books about each active user.
  49. 49. Facebook has 1,860m MAU1 with 85.2% of them located outside of North America Source: Facebook Inc. Note: all figures as of Q4 ’16 1: MAU = monthly active user 49 Facebook key facts 5m Instagram business profiles 84% mobile share of advertising revenues 101 available languages 85.2% daily active users outside North America Feb 2009 invention of the ‘Like’ button 300,000 translators 1,860m monthly active users 65m business pages 4m businesses directly advertising Platform Economics
  50. 50. Facebook’s active user base has been consistently growing Source: Facebook Inc. 50 Global number of Facebook’s monthly active users (in million users) 197 955 901 845 800 739 680 608 550 482 431 360 305 242 1,189 1,228 1,276 1,317 1,350 1,393 1,441 1,490 1,545 1,591 1,654 1,712 1,788 1,860 1,155 1,110 1,056 1,007 2009 2010 2011 2012 2013 2014 2015 2016 Platform Economics
  51. 51. Imagine if Facebook’s worldwide average revenue per user equaled that of North America Facebook‘s average revenue per user, by user geography in US$ 5.91 19.40 2.35 7.29 Europe 13.58 62.23 1.84 4.66 5.32 15.98 Asia-PacificU.S. and Canada Rest of the World Worldwide 2012 2016 358% 228% 200%153%210% 51 Source: Facebook Inc. Platform Economics
  52. 52. 52 “There is no chance that the iPhone is going to get any significant market share.” Steve Ballmer in 2007, Former CEO of Microsoft
  53. 53. With nearly 70% revenue share in Q1-’17, the iPhone is the biggest success in Apple’s history Source: Company Information 1: Fiscal quarters; Apple’s fiscal year ends in September iPhone revenue as percentage of Apple’s total revenue since 20071 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 69.4% 69.4% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 53 Platform Economics 2017
  54. 54. Apple is the biggest vendor in a shrinking tablet market Source: IDC 54 Global tablet shipments in 2016 in millions 2016 174.8 24.4% 15.2% 6.9% 6.4% 5.5% 41.6% 2015 207.2 2014 230.1 2013 219.9 2012 143.4 2011 71.4 2010 17.9 Apple Samsung Amazon Lenovo Huawei Others Platform Economics
  55. 55. The number of active Apps in Apple’s App Store is predicted to reach over 5 million by 2020 Source: SensorTower 55 Projected number of active apps in Apple’s App Store worldwide by 2020 0 1 2 3 4 5 6 2020201920182017201620152014201320122011201020092008 Forecast million Platform Economics
  56. 56. Stock market prices reflect the tech-giants’ development Source: Yahoo! Finance Baseline for stock prices are GE, T, WMT, XOM, GOOGL, AMZN, AAPL, FB 1: Figures as per 03-10-2017; all stock prices are closing prices; dividends are not considered 56 U.S. tech-giants vs. Top U.S. non-tech giants stock market development 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 01/1801/1701/1601/1501/1401/1301/12 Stock price in USD +43.0% -0.9% +61.4% +14.8% 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 01/12 01/13 01/14 01/15 01/16 01/17 01/18 Stock price in USD +342% +188% +136% +339% Combined market cap1: US$1,070 billion Combined market cap1: US$2,119 billion Platform Economics
  57. 57. Only investing $1,000 in bitcoins would have been more profitable than in digital platforms Source: Yahoo! Finance; Coindesk.com Baseline for stock prices are GE, T, WMT, XOM, GOOGL, AMZN, AAPL, FB (NASDAQ) Note: Dividends are not considered 57 Pay-off in Mar 2017 for a US$1,000 investment in Jan 2012 991 778 207,071 4,419 4,387 2,364 1,614 1,429 2,882 1,148 Gold 2,805NASDAQ Platform Economics
  58. 58. As many western platforms struggle in China, Chinese competitors have stepped up Source: Statcounter.com, iResearch China, CNN, Bloomberg, Techcrunch, ChinaSalesCo.com, Fortune.com, Marketwatch.com 58 Major digital platforms and their appearance in the Chinese market 1.45% search engine market share 0.8% e-Commerce market share BANNED Fail and retreat a decade ago 0.0001% share of China e-Commerce transactions Acquired by Didi Chuxing Licensing partnership instead of own business 0.49% search engine market share Platform Economics
  59. 59. Baidu Alibaba Tencent Huawei
  60. 60. The untapped potential of 676m awakening digital customers makes China unique Source: Statista Digital Market Outlook 60 Online vs. Offline population in China and the U.S. in 2016 Online population Offline population (growth potential) 10,000,000 people Platform Economics 264 million 59 million 676 million 702 million
  61. 61. Baidu, Alibaba, Tencent, and Huawei (BATHu) are China’s overlooked tech-giants Source: Company Information; Yahoo! Finance Note: Alibaba Group FY2016 ended on 03-31-2016; revenues converted from RMB to US$ as per annual reports respectively press releases 1: Unaudited as per FY2016 released financial results 61 BATHu key figures Founded: 1987 HQ: Shenzhen CEO: Ren Zhengfei (since 1988) Revenues: US$75.10 billion Net income: US$5.34 million Employees: 180,000 Market cap: not listed Founded: 04-1999 HQ: Hangzhou CEO: Daniel Zhang (since 05-2015) Revenues: US$15.69 billion Net income: US$11.06 billion Employees: 36,446 Market Cap: US$258.47 billion Founded: 01-2000 HQ: Peking CEO: Robin Lu (since 01-2004) Revenues1: US$10.20 billion Net income1: US$1.68 billion Employees: 45,887 Market cap: US$60.04 billion Founded: 11-1998 HQ: Shenzhen CEO: Ma Huateng (since 11-1998) Revenues1: US$21.97 billion Net income1: US$5.99 billion Employees: 38,775 Market cap: US$257.57 billion Platform Economics
  62. 62. BATHu’s compound annual growth rates from 2012 to 2016 are consistently above 20% Source: Company Information Note: Tencent and Baidu monetary figures for FY2016 yet unaudited Revenues converted from RMB to US$ as per annual reports respectively press releases 62 BATHu global revenues (in US$ billion) HuaweiAlibaba TencentBaidu CAGR +20.7% Huawei 75.1 60.8 46.5 39.5 35.4 Tencent 22.0 15.9 12.7 10.0 7.0 Alibaba 15.7 12.3 8.5 5.7 3.2 Baidu 10.210.2 7.9 5.3 3.6 20162015201420132012 CAGR +29.9% CAGR +48.6% CAGR +32.9% Platform Economics
  63. 63. Alibaba’s FY16 net income was almost fifteen times higher than 5 years ago Source: Company Information Note: The size of circles corresponds to net income; Tencent and Baidu monetary figures for FY2016 not yet unaudited Net income converted from RMB to US$ as per annual reports respective press releases 63 BATHu global net income in US$ billion 201620152012 201420132011 1.97 11.06 4.503.47 5.992.05 3.77 3.92 2.47 1.71 0.75 2.57 1.685.011.67 1.43 3.85 5.69 4.49 5.34 Platform Economics
  64. 64. Accompanied by their financial prosperity, Chinese platforms invest in U.S. startups Source: Crunchbase 64 VC-investments of Baidu, Alibaba and Tencent in the U.S. 2014 2015 2016 IndoorAtlas Cloudflare IndoorAtlas Taboola GWC Dynamic Yield Velodyne LiDAR ZestFinance Peel Kabam Lyft Tango 1stdibs Lyft Mei.com Snap Inc. Quixey Barefoot Networks Magic Leap PlaceIQ Playdots Kamcord Heirloom Technology Tile Heirloom, Inc. Woqu.com AltspaceVR Moon Express, Inc. Vurb Women.com Scaled Inference TapZen Whisper Weebly Circle Medical Watsi Artillery FlightCar Clinicloud Nav Nixie Labs HomeHero Tute Genomics Tissue Analytics Lyft Pocket Gems CloudMedx Inc Scanadu Skymind VC Mobile Entertainment Inc. Cyanogen Satellogic Robot Entertainment Discord SketchMe Stae Clear Labs Barefoots Networks Petuum Skymind Nav Payoff Meta Tile Paradox Interactive Planetary Resources Kamcord Diffbot Discord Platform Economics
  65. 65. Source: CNBC Baidu was the first Chinese company to be listed in the NASDAQ 100 index. 1st
  66. 66. Although primarily operating in China, Baidu dips its toes into new markets Source: Chinainternetwatch.com, StatCounter.com, Alexa.com 1: The rank is calculated using a combination of avg. daily visitors and pageviews over the past three months 66 Baidu key facts Popularity Chinese Rank1: 1 Global Rank1: 4 Stock Market 1st Chinese company listed in NASDAQ 100 Performance 2nd largest search engine in the world Request Origin 1) China: 91.5% 2) Japan: 3.2% 3) South Korea: 1.5% Subsidiaries Tokyo, Sunnyvale (CA), Jakarta, Bangkok, Cairo, Sao Paulo Top Tech Keywords 1) VR 2) Gravitational wave 3) AlphaGo Platform Economics
  67. 67. In China, Baidu has strong brand awareness, with a large domestic market share of over 75% Source: StatCounter.com 67 Search engine market share in China (in percentage) 0 10 20 30 40 50 60 70 80 90 100 Dec ’13 69.8% 79.1% Dec ’15 74.8% 54.4% Dec ’14 Apr ’17 75.1% Dec ’16 Dec ’12 70.3% 3.7% 7.8% 10.2% 1.4% 1.8% Others Market share in % Platform Economics
  68. 68. AI will further improve search engines; Baidu’s face recognition software is a good example Source: Massachusetts Institute of Technology Note: Figures as of 2015, based on the Labeled Faces in the Wild (LFW) dataset 68 Face recognition software comparison as %-error in face recognition Platform Economics Human-Level: 0.80% Baidu 0.23% Google 0.37% University of Hong Kong 0.53% Facebook 1.65% Microsoft 3.67%
  69. 69. Source: Alibaba Group 175,000 Chinese e-Commerce giant Alibaba processed 175,000 transactions per second on the peak time of “Singles’ Day” in 2016. At the end of the day the number of orders processed totaled 657 million.
  70. 70. The Alibaba Group has evolved to become a platform with multiple user touchpoints Source: Alibaba Group 70 Alibaba Group Overview E-Commerce OthersDigital Media Platform Economics Core Business
  71. 71. Singles' Day is the largest shopping day in the world, and Alibaba benefits most of it Sources: Fundivo, Adobe, Alibaba Group, Tech in Asia, Thomson Reuters, MarketWatch 71 U.S. Cyber Monday spending and Alibaba Single’s Day GMV (in US$bn) 2012 9.30 2011 14.30 2010 3.45 0.14 20152013 2016 17.79 3.04 5.80 2014 0.82 1.30 1.98 2.982.652.29 1.30 Cyber Monday Single’s Day Platform Economics
  72. 72. Alibaba’s fast growth demonstrates how software is much more scalable than warehousing Source: Company Information Note: all figures correspond to calendar years and quarters; financial years do not equal calendar years 72 Walmart and Alibaba quarterly key-figure comparison (in US$ billion) 20 140 100 0 40 120 60 80 Q4Q3 Q2Q2Q2 Q3Q4 Q3 Q1Q1 Q4 Q1 Q2Q1 Q3Q2 Q4 2012 2013 2014 2015 2016 Net Sales / GMV Global net sales Chinese gross merchandise value Platform Economics
  73. 73. “Will Tencent join the likes of Amazon, Google, Facebook and Twitter? […] They already are in that league. The rest of the world just doesn’t know it.” Aditya Rathnam, Co-Founder of Kamcord
  74. 74. China‘s largest tech company can be compared with its U.S. Social Media counterpart Key financial and operating metrics of Tencent and Facebook in 2016 Revenue 5.99 10.22 21.97 Net Profit 27.64 TencentFacebook Source: Company Information, We Are Social, Hootsuite Key Financials (in US$ billion) Monthly Active Users (in million) 632 846 877 700 1,871 Qzone Whatsapp Instagram Facebook QQ 1,200 WeChat 74 Platform Economics
  75. 75. WeChat has a diverse business model with multiple revenue sources Source: Company Information, OLMA Capital Management 75 Direct comparison of WeChat and WhatsApp WeChat WhatsApp Geographical focus China US Europe Monthly active users 846 million 1,200 million Price Free of Charge Free of Charge Monetization Transaction Fees & Mobile Advertising › Social & Communication › Leisure & Commerce › Media & Gaming VideoPhoto- graphy Voice Message Location Texting Voice Chat Photography Video Moment Feeds Group Chats Video Chat Group Chats Video Chat Translation e-Commerce Event Organization Mobile Banking Location Official Accounts Voice Message Meet Strangers (Shake) Taxi Reservation Online Ticketing Mobile Gaming Desktop Gaming Texting QR Code Reader Newsfeeds Price Checks Music Platform Economics
  76. 76. 76 5G Huawei aims at playing a central role in 5G mobile technology, the next big evolutionary step in mobile connectivity. Along with large R&D expenditures, Huawei also initiated a number of collaborative research initiatives – widely known as Wireless X labs.
  77. 77. Huawei overtook Apple and became one of the most R&D-intensive tech companies Source: Company Information Note: Dell figures refer to FY2017 as this year ended on 01-31-2017 77 R&D spending of major global tech-companies in 2016 (in US$ billion) Google Samsung Intel 13.95 Microsoft Facebook 12.84 Amazon Apple 12.70 Huawei Oracle IBM Sony Dell 12.59 12.00 11.00 10.05 5.92 5.79 5.75 4.32 2.64 Platform Economics
  78. 78. 1,287% 909% 2009 1,027% 747% 2008 848% 653% 2007 580% 429% 2006 2,977% 336% 2005 281% 242% 2004 180% 144% 2003 127% 108% 2002 100% 100% 2,717% 2016 1,661% 4,029% 2011 1,522% 2012 2,859% 2013 2,186% 400% 3,192% 3,732% 2014 2015 3,529% 1,854% 1,885% 2010 Huawei and Apple show similar revenue growth Source: Company Information, Statista Digital Market Outlook Revenues converted from RMB to US$ as per annual reports respectively press releases; years 2007-2011 are calculated with the avg. exchange rate of the specific year with exchange rates from www.oanda.com 78 Annual revenue comparison of Huawei and Apple from ’02-’16 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 5.7 6.2 8.3 13.9 19.3 24.6 37.5 42.9 52.2 108.2 156.0 170.9 183.2 231.3 214.2 2.1 2.7 3.8 6.0 8.5 12.3 18.0 21.9 27.4 32.4 35.4 39.5 46.5 60.8 75.1 Annual revenue (in US$ billion) Indexed revenue development (year 2002 = 100%) Platform Economics
  79. 79. Baidu, Alibaba, Tencent and Huawei vs. Google, Amazon, Facebook and Apple – Who is taking the lead? 79
  80. 80. BATHu may catch up in the digital economy, but the big U.S. players remain the top innovators Source: Company Information; YCharts.com Note: Revenues and R&D expenditures converted from RMB to US$ from annual reports respectively press releases 80 Research & Development expenditures (in percent of total revenues) 15% 15%14% 13% 14% 8% 9% 10% 8% 10% 2%2% 2%2%2% 14% 14% 14% 13% 3%3% 3%2% 21% 21% 21% 27% 9%9% 10% 9% 10% 16% 17% 15% 14% 5% 10% 20152014 201620132012 12% 18% Total Research & Development expenditures: US$141.4bn Total Research & Development expenditures: US$48.6bn Platform Economics
  81. 81. Comparatively, U.S. tech-giants remain ahead of their Chinese competitors Source: Company Information, IDC, WeAreSocial, comScore Note: Monetary figures converted from RMB to US$ sourced from annual reports respectively press releases 1: CAGR = Compound annual growth rate 2: Statista estimates 3: MAU = Monthly active users; only take into account the biggest single Social Media Platforms Facebook and QQ 81 Key-figure comparison: GAFA vs. BATHu Revenues US$bn 89.73 10.20 CAGR1 ’12-’16 % 15.77 29.92 Profit margin % 21.71 16.44 R&D expend. US$bn 13.95 1.47 Domestic market share % 64.0 75.1 Revenues US$bn 135.99 15.69 CAGR1 ’12-’16 % 22.15 48.63 Profit margin % 1.74 70.5 R&D expend. US$bn 12.59 0.34 GMV US$bn 251.02 484.6 Revenues US$bn 27.64 21.97 CAGR1 ’12-’16 % 52.66 32.88 Profit margin % 36.97 27.3 R&D expend. US$bn 5.92 1.71 MAU3 m 1,871 877 Revenues US$bn 214.23 75.10 CAGR1 ’12-’16 % 8.26 20.73 Profit margin % 21.33 7.1 R&D expend. US$bn 10.05 11.00 Smartphone shipments m 215.4 139.3 vs. vs. vs. vs. Platform Economics
  82. 82. The Top 10 digital CEOs manage revenues of $846bn and own a combined fortune of $312bn Source: Company Information, forbes.com, celebritynetworth.com, therichest.com Note: Jack Ma is founder of the Alibaba Group, in 05-2015 Daniel Zhang became CEO Managed revenues referring to FY2016; Private fortune as of 04-10-2017 82 Top 10 business people in the digital economy Elon Musk 14.8 6.4 Jack Ma 29.5 15.7 Mark Zuckerberg 58.9 27.7 Larry Ellison 54.4 37.1 Michael Dell 20.5 58.2 Sadya Nadella 0.1 85.3 Larry Page 40.5 90.2 Jeff Bezos 76.8 136.0 Lee Kun-Hee 16.6 174.1 Tim Cook 0.4 215.6 Google Search Results (in million) Private fortune (in US$bn)Managed revenues (in US$bn) 79.3 28.3 18.1 67.2 29.8 0.8 0.5 23.9 6.0 1.3 Platform Economics
  83. 83. Venture Capital
  84. 84. 7,300,000,000 US$ In 2016 Didi Chuxing, the Chinese ride sharing company and major competitor of Uber, collected fresh capital funding totaling US$7.3 billion in order to strengthen its position in the Southeast Asian market Source: PitchBook
  85. 85. More deals and greater capital invested, bar 2016, complement growing average deal size Source: KPMG Enterprise, PitchBook 85 Global venture financing from 2010-2016 (in US$ billion) 21 39 39 9 10 10 11 15 18 16 32 46 43 47 72 82 72 68 2016 127 0 2015 141 2 2014 108 0 2013 65 1 2012 59 1 5 2011 64 0 2010 45 0 4 ROW Asia Europe Americas 8,459 10,842 18,157 17,992 13,66513,006 15,800 Capital invested Deal count Venture Capital
  86. 86. “Software is eating the world” – at least in the case of VC financing Source: KPMG Enterprise, PitchBook 86 Software sector share in venture financing in a regional comparison Americas Europe Asia Pacific 18% 21% 54% 22% 47% 2012 25% 13% 2010 2013 17% 21% 42% 33% 39% 22% 2014 32% 40% 36% 31% 2011 33% 2015 2016 33% 31% 24% Venture Capital
  87. 87. 10101010 3 8 5 2 Q1/2016 Q2/2016 Q4/2016Q3/2016 New Unicorns Exits > US$1 billion The stereotype Unicorn1 in 2016: digital and most likely to be Chinese or American Source: CB Insights 1: Unicorn = Startup company with a company valuation of more than US$ 1.0 billion 2: Company valuation as per 03-15-2017 87 New VC-backed Tech Unicorns and Exits in 2016 Skyscanner became Unicorn and exited in 2016 40 out of 41 new Unicorns were highly Tech-related 31 out of 40 Tech Unicorns were Chinese or American US$66.4 billion valuation2 of the 2016 Tech Unicorns US$34.4 billion value of the 18 Tech Unicorn Exits Venture Capital
  88. 88. U.S. and Chinese players take the top spots in terms of global VC financing and funding Source: PitchBook 88 Top 5 VC Financings and Funds in 2016 (in US$ billion) Top 5 VC Financings Top 5 VC Funds Snap Inc. 1.8 Meituan Dianping 3.3 Ant Financial 4.5 Uber 5.6 Didi Chuxing 7.3 Norwest Venture Partners XII 1.2 Founders Fund VI 1.3 Andreessen Horowitz 1.5 TCV IX 2.5 Baidu Capital Fund 3.0 Venture Capital
  89. 89. VC deals are primarily closed with male founders, particularly in the tech landscape Source: PitchBook 89 Global VC deals for companies with at least one female founder 9.4% 20162014 20152010 11.4% 14.2% 2011 20132012 15.1% 16.0% 16.5% 16.8% Energy Commercial Services Consumer Goods & Recreation Pharmaceuticals & Biotechnology Media Healthcare Devices & Supplies Software 28.2% 14.5% 7.5% 17.6% Healthcare Services & Systems 15.5% 11.8% 16.3% IT Hardware 12.6% 7.3% Percentage of deals Top industries Venture Capital
  90. 90. The U.S. and China are home to the greatest number of Unicorns, with Europe lagging behind Source: CB Insights Unicorn = Startup company with a company valuation of more than US$ 1.0 billion 1: countries with one ‘unicorn’: Argentina, Colombia, Czech Republic, Indonesia, Japan, Luxembourg, Netherlands, Nigeria, South Africa, United Arab Emirates 90 Private companies valued at one US$ billion or more as of 03-27-2017 1 2 2 2 2 2 3 4 7 9 45 99 Germany South Korea France Israel Singapore Sweden Switzerland 10 other countries China United States United Kingdom India 1 Venture Capital
  91. 91. AI, AR & VR
  92. 92. Source: MIT Baidu has developed a facial recognition software that recognizes human faces with a 99.77% accuracy. This surpasses average human-level facial recognition and many Silicon Valley competitors. 99.77%
  93. 93. There is a lot of activity in the Artificial Intelligence and Data Mining startup scene Source: CB Insights 93 VC-backed companies with certain words in their company description 2010 2011 2012 2013 2014 2015 2016 0.00% 0.07% 0.00% 2.18% 0.25% 0.42% 0.32% 0.61% 0.11% 1.96% 0.13% 0.31% 0.12% 0.74% 1.49% 0.33% 1.53%1.55% 0.94% 0.61% 0.34% Deep LearningArtificial Intelligence Machine Learning AI, AR & VR
  94. 94. VC-backed companies with the terms Machine Learning, VR & AI drastically increased since ‘10 Source: CB Insights 94 Change of VC-backed companies with given terms in their description Rank Word % in 2010 % in 2016 Change Rank Word % in 2010 % in 2016 Change 1 Virtual Reality 0.0% 1.0% - 21 Human 1.7% 3.5% 106% 2 Machine Learning 0.3% 2.0% 507% 22 Connected 1.0% 2.0% 102% 3 Natural Language 0.2% 1.0% 507% 23 Genetic 0.8% 1.5% 102% 4 Ingredients 0.3% 1.2% 385% 24 Videos 0.6% 1.1% 91% 5 Cyber 0.3% 1.5% 355% 25 Risk 2.4% 4.2% 78% 6 Artificial Intelligence 0.4% 1.8% 337% 26 Intelligent 1.7% 3.0% 76% 7 Reality 0.3% 1.4% 325% 27 Algorithms 0.8% 1.3% 75% 8 Automates 0.3% 1.0% 304% 28 Treatments 0.8% 1.3% 75% 9 Sensors 0.3% 1.3% 294% 29 Audio 0.6% 1.0% 73% 10 Feedback 0.4% 1.3% 215% 30 Culture 0.6% 1.0% 73% 11 Seconds 0.3% 1.0% 203% 31 Women 0.6% 1.0% 73% 12 Minutes 0.4% 1.2% 191% 32 Body 0.8% 1.4% 70% 13 Oncology 0.4% 1.2% 191% 33 Healthy 0.8% 1.4% 70% 14 Therapy 0.7% 1.9% 188% 34 Language 0.8% 1.4% 70% 15 Modern 0.5% 1.4% 183% 35 Stream 2.4% 4.1% 67% 16 Tumor 0.4% 1.1% 167% 36 Threat 0.4% 1.5% 65% 17 Stealth 1.3% 3.3% 143% 37 Hand 2.1% 3.5% 65% 18 Workflow 0.7% 1.6% 143% 38 Labs 1.7% 2.8% 64% 19 Insurance 0.8% 1.9% 130% 39 Bank 0.8% 1.3% 58% 20 Software Platform 0.5% 1.1% 122% 40 Measure 1.4% 2.2% 57% AI, AR & VR
  95. 95. 155 260 77 60 33 91 83 65 121 106 Startups in the machine learning / AI segment have benefited from the largest VC funding Funding and number1 of startups working in the AI market, by category 120190220240 330 390 490520 660 Recommen- dation engines Speech recognition Gesture control Virtual personal assistants Computer vision (applications) Smart robots Machine learning (general) Computer vision (general) Natural language processing Machine learning (applications) 2,070 Number of companies Total funding (in million US$) 95 Sources: Statista estimates, Medium 1: as of March 2016 AI, AR & VR
  96. 96. AI will also enable human voices to become a new powerful communication layer Number of third-party skills available for Amazon‘s virtual assistant 135 Q1 ’16 Q3 ’16 5,000 10,000 1,000 3,000 Q2 ’26 Q4 ’16 Q1 ’17 96 Sources: Amazon, Press reports AI, AR & VR
  97. 97. Augmented & Virtual Reality may be the next big tech opportunity Estimated global virtual & augmented reality headset development 2021 72.0 27.3 2016 10.0 0.1 Augmented Reality Virtual Reality Source: IDC Unit Shipments (in million) Revenue (in US$ billion) 97 2.1 48.7 0.2 18.6 2016 2021 AI, AR & VR
  98. 98. Global VR revenues are expected to increase to almost US$40 billion by 2020 Forecasted VR hard- and software revenues by platform in US$ billion 2020 1.2 1.6 40.4 2019 2.6 0.8 22.7 2018 2.0 1.8 12.1 2017 4.5 4.6 6.4 2016 8.6 3.0 3.6 8.3 5.8 16.3 15.6 8.5 PC Console Mobile Source: Superdata via VRFocus 98 AI, AR & VR
  99. 99. Table of Contents 99 › Connectivity: Numbers behind the “always on” trend………………………….. › Social Media: Love it, hate it, but accept that you need it…………………... › Platform Economics: A story about White Sharks and Swordfish……… › Venture Capital: Feed for new Tech-Unicorns…………………………………...... › AI, AR and VR: The next big Technology Hype………………………………………. Statista’s Digital Market Outlook Global Trends › e-Commerce……………………... › eServices……………………………. › eTravel ………………………………. › Digital Media……………………... › FinTech…………………………………. › Digital Advertising…………….... › Smart Home……………………...... › Connected Car…………………….. 91 83 30 20 5 181 171 160 148 138 129 117 106
  100. 100. The Digital Market Outlook (DMO) provides KPIs and insights for eight digital markets 100 Statista Digital Market Outlook coverage FinTech Digital Payments, Business Finance, Personal Finance Smart Home Home Automation, Security, Home Entertain- ment, Ambient Assisted Living, Energy Mgmt. eTravel Online Travel Booking, Mobility Services e-Commerce Fashion, Electronics & Media, Food & Personal Care, Furniture & Appliances, Toys, Hobby & DIY eServices Event Tickets, Fitness, Dating Services, Food Delivery Digital Advertising Banner Ads, Video Ads, Search Ads, Social Media Ads, Classifieds Connected Car Connected Hardware, Vehicle Services, Infotainment Services Digital Media Video-on-Demand, Digital Music, Video Games, ePublishing DMO
  101. 101. The DMO markets and forecasts cover a broad range of products and services 1: B2B and C2C markets are excluded 2: Resale of used goods is not included 101 DMO scoping B2C1 markets and revenues for… new2 products and services… covering 7 years, from ’15 to ’21.in over 50 regions and countries... DMO
  102. 102. Forecasts based on market-specific knowledge, enriched with macroeconomic developments Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 102 Macroeconomic overview 2016 United States Europe1 China GDP / Capita: US$57,220 US$27,599 US$8,240 Population: 323.3 million 671.2 million 1,382.2 million Households: 126.6 million 269.3 million 399.6 million Internet penetration: Mobile penetration: Social Media penetration: 81.9% 85.8% 69.6% 80.6% 20212016 60.5% 64.6% 72.2% 76.6% 60.2% 70.6% 20212016 48.5% 53.6% 50.9% 67.9% 44.9% 58.6% 20212016 37.3% 48.5% DMO
  103. 103. In 2018, China will overtake the U.S. and will become the biggest digital economy Source: Statista Digital Market Outlook 1: including all revenues generated within the e-Commerce, eTravel, eServices, Digital Media and Connected Car market 2: including France, Germany, Italy, Spain and the United Kingdom 103 Digital market1 development of the three major regions (in US$bn) 874 824 763 698 633 575 901 765 626 500 549 515 476 434 390 351 1,135 202120192016 2020 1,028 20182017 U.S. China EU 5 2 DMO
  104. 104. In 2016, digital expenditure in % of household consumption per capita are the biggest in China Source: Statista Digital Market Outlook 1: including all revenues generated within the e-Commerce, eTravel, eServices, Digital Media and Connected Car market 2: including France, Germany, Italy, Spain and the United Kingdom 104 Digital expenditure1 as share of household consumption per capita in ‘16 U.S. 10.6% 4.5% 5.0% Euro EU 5China EU 52 DMO
  105. 105. 18 101 78 584 997 1 10 24 54 273 13 41 63 355 623 E-Commerce is by far the biggest digital market people spend their money on Source: Statista Digital Market Outlook 1: including France, Germany, Italy, Spain and the United Kingdom 105 Digital expenditure per capita in the major regions per category in ‘16 Connected CarDigital MediaeServiceseTravele-Commerce EU 51 US$1,777 US$362 US$1,096 DMO
  106. 106. E-Commerce
  107. 107. 12,000,000 Chinese online retailer Tmall ships an incredible 12 million boxes per day
  108. 108. 108 Global1 e-commerce revenue (in US$bn) and CAGR2 16-21 by segment Global e-Commerce revenue is expected to almost double to US$2,108bn by 2021 Toys, Hobby & DIY 440.72 252.75 Furniture & Appliances 342.88 199.04 Food & Personal Care 218.35 104.67 Electronics & Media 472.62 290.61 Fashion 633.53 332.13 2016 2021 +13.8% p.a. +10.2% p.a. +15.8% p.a. +11.5% p.a. +11.8% p.a. Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate E-Commerce
  109. 109. Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 109 The top e-Commerce markets exhibit growth and maintain their position in global ranking Total e-Commerce revenue by region (in US$ billion) Germany 56.25 81.01 Japan 74.40 111.80 United Kingdom 84.09 124.51 United States 322.17 485.27 China 376.18 839.54 2016 2021 E-Commerce CAGR1 ’16-’21 +17.4% p.a. +8.5% p.a. +8.2% p.a. +8.5% p.a. +7.6% p.a.
  110. 110. There are many product-specific big players in addition to large all-encompassing platforms Source: Statista Digital Market Outlook 110 Key players by segment and business model Fashion Electronics & Media Food & Personal Care Furniture & Appliances Toys, Hobby & DIY Market Places Online Retailer Direct Seller Key Player E-Commerce
  111. 111. China will dominate the online fashion world with a turnover of more than US$285bn in 2021 Source: Statista Digital Market Outlook 111 Projected online turnover from fashion (in US$ billion) 228.0 140.5 96.4 221.2 285.3 90.3 236.9 260.5 203.1 83.9 184.5 76.8 130.8 119.2 159.0 63.3 150.0 86.8 125.8 96.7 193.9 107.7 69.8 166.5 Europe China USA 2016 2017 2018 2019 2020 2021 E-Commerce
  112. 112. The Chinese B2C e-Commerce market outper- formed the U.S. both in size as well as in growth Source: Statista Digital Market Outlook 1: Prediction 112 B2C e-Commerce turnover from 2015 to 20171 in US$ billion 30.6 33.9 61.4 84.5 75.8 84.1 63.8 74.4 37.3 376.2 93.2 298.9 294.5 322.2 470.1 353.7 51.6 56.2 16.1 12.1 14.2 20.0 12.9 16.1 16.9 19.1 21.4 16.9 18.3 20.2 2017 2015 2016 China Russia South Korea Germany India U.S. Canada France Japan United Kingdom E-Commerce
  113. 113. Transparency and simple processes are most important for online shopping delivery Source: IPC online survey with 23,331 respondents (Sept. to Oct. 2016) 113 Most important aspects of online shopping delivery for customers 51%Possibility to select the delivery company Possibility to select speed of delivery 64% Possibility to place an order anytime, anywhere, on any device 64% Variety of payment options 69% Knowing which company will deliver goods 71% Landed cost calculator at check-out 79% Rapid response customer service 83% Free returns 86% Free delivery on purchases over a particular value 86% Simple and reliable returns process 88% Clear information about delivery charges before purchase 92% E-Commerce
  114. 114. Amazon leverages loyalty from Prime members; thus, incentivizing them is an important strategy Amount spent by U.S. Amazon customers in the past 12 months 0% 3% $20,000+$10,001 to $20.000 0% 2% $6,001 to $10,000 0% 3% $4,001 to $6,000 1% 7% $2,001 to $4,000 2% 10% $1,001 to $2,000 5% 16% $501 to $1,000 13% 24% $100 to $500 46% 26% Less than $100 34% 9% Prime Members Non-Prime Members Average spend per customer (past 12 months) Non-Prime $544 $2,486 114 Sources: Morgan Stanley Research, AlphaWise E-Commerce
  115. 115. Despite being #1 in the U.S. and Europe, Amazon has not yet cracked the Chinese market Source: iResearch China, U.S. Department of Commerce, Statista Digital Market Outlook 115 Market share of e-Commerce websites in China (in % of B2C sales) Amazon.cn 0.8% 6.7%Others Dandang.com 0.7% Jumei.com 0.5% Yhd.com 1.1% Gome.com.cn 1.2% Vip.com 3.5% Suning.com 4.3% JD.com 24.7% Tmall.com 56.6% B2C e-Commerce sales in 2016 US$376 billion US$322 billion E-Commerce
  116. 116. Discover more Online Shopping is not as profitable as you think 116 Discover more of our topic-related research for e-Commerce Statista‘s point of view + exclusive country-specific forecasts about: › Fashion › Electronics & Media › Food & Personal Care › Furniture & Appliances › Toys, Hobby & DIY Get the study Every topic in a nutshell – all relevant statistics in one single document: E-Commerce
  117. 117. eServices
  118. 118. Source: Tinder 1,400,000,000 Online dating app Tinder registers a daily average of 1.4 billion swipes on its platform
  119. 119. 119 Global1 eServices revenue (in US$ billion) and CAGR2 16-21 by segment Food delivery is the most dynamic eServices market, with revenues expected to triple by 2021 Food Delivery 210.32 72.86 Dating Services 5.874.60 Fitness 9.65 4.45 Event Tickets 50.81 25.06 2016 2021 +15.2% p.a. +16.7% p.a. +5.0% p.a. +23.6% p.a. Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate eServices
  120. 120. Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 120 An estimated eServices market value of US$86bn by 2021 will increase China’s lead over the U.S. Total eServices revenue by region (in US$ billion) United States 61.18 25.28 China 85.99 33.10 Japan 10.02 3.81 Germany 11.29 5.01 United Kingdom 14.69 6.95 20212016 eServices CAGR1 ’16-’21 +21.0% p.a. +19.3% p.a. +16.2% p.a. +17.7% p.a. +21.4% p.a.
  121. 121. Event Tickets Fitness Dating Services Food Delivery Startups1 Established players Market complexity2 New market entrants create competitive pressures in the eServices market Source: Statista Digital Market Outlook 1: Founded after or in 2007 2: Estimate; considers value chain complexity and competitor landscape Selected key players by segment and market complexity 121 eServices
  122. 122. ElitePartner Baihe OurTime In Dating Services, different offerings are targeted at various audiences and types of relationship Source: Statista Digital Market Outlook Company information 122 Dating portals/apps segmentation of selected players Type of relationship Audience/coverage Casual Serious Mass Niche AshleyMadison Firstaffair Zoosk VictoriaMilan C-Date Badoo OkCupid ChristianMingle JDate BDSMSingles WooPlus Tinder Whiplr eDarling Grindr EuropeChinaUnited States Headquarters: Parship Momo Lovoo Meetic Chemistry TanTan Blued Neu LoveScout24 Match Plenty of Fish eServices
  123. 123. Sportswear giants are acquiring fitness apps; Under Armour is the most active player Sources: DC Reinmaker, Fortune, Runnersworld, Statista Digital Market Outlook 1: Under Armour also acquired Gritness in July 2015 for an unknown amount. 123 Sportswear companies’ fitness app acquisitions 45 70 20 80 20 $85 $240 $85 $475 $150 Endomondo Runtastic Runkeeper MapMyFitness MyFitnessPal Registerd users at the time of acquistion in million Acquistion price in million Acquisition price per user $7.50 $5.94 $4.25 $3.43 $1.89 1 Nov 2013 Feb 2015 Feb 2015 Aug 2015 Feb 2015 eServices
  124. 124. Fitbit leads the global wearables market; what can be expected from the Apple Watch? Source: IDC 124 Worldwide wearable device shipments by the Top 5 vendors in million 4.4 3.2 6.15.8 10.7 11.6 15.7 12.0 22.5 22.0 20162015 81.9 Global wearable device shipments 2015 20162014 28.8 102.4 eServices
  125. 125. Tinder and Badoo are the top 2 dating apps in terms of global1 downloads Sources: BBC News, App Aniie, Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook The most downloaded dating app by country 2015  Tinder  Badoo  Lovoo  Frim  Momo  Heartbeep  YYC  Paktor  WhosHere eServices
  126. 126. Selling food online is a promising business – especially in the U.S. Source: Statista Digital Market Outlook 1: includes meals ordered online and delivered by restaurants, delivery services and online orders collected by the customer; does not include phone orders and grocery deliveries 126 Online food delivery1 revenue forecast (in US$ billion) 9.6 2.5 0.8 13.3 39.9 GermanyUSA UK SpainFrance 6.0 2.1 3.8 2.8 7.3 20212016 +24.6% p.a. +20.2% p.a. +20.8% p.a. +23.2% p.a. +24.8% p.a. eServices
  127. 127. Despite not owning a single car, Uber’s market valuation is closing in on the big OEMs Source: Yahoo! Finance, CB Insights, livemint Note: Market cap as of 04-20-2017 127 Market cap/valuation of selected companies in 2017 (in US$ billion) 3.0 Lyft Inc. ANI Technologies Pte Ltd. (Ola) 3.0 Volkswagen AG 74.3 Toyota Motor Corp. Daimler AG 68.0 75.3 GrabTaxi Holdings Pte Ltd. Didi Chuxing Tesla Motors Inc. 33.8 6.9 49.8 General Motors Co. 51.0 Uber Technologies Inc. 147.3 Ride sharing providersAutomobile manufactures eServices
  128. 128. Discover more Everyone is taking a stab at online food delivery 128 Discover more of our topic-related research for eServices Statista‘s point of view + exclusive country-specific forecasts about: › Event Tickets › Fitness › Dating Services › Food Delivery Get the study Every topic in a nutshell – all relevant statistics in one single document: eServices
  129. 129. eTravel
  130. 130. 06-18-2016 The day online ride sharing company Uber reached a record breaking 2 billion users
  131. 131. 131 Global1 e-commerce Revenue in US$ billion and CAGR2 16-21 by segment The global eTravel market will almost double to around US$1 trillion by 2021 Mobility Services 288.11 Online Travel Booking 667.66 377.27 178.78 20212016 +12.09% p.a. +10.01% p.a. Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate eTravel
  132. 132. Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 132 China displays the fastest growth in terms of eTravel revenues Total eTravel revenue by region (in US$ billion) France 25.61 40.93 Germany 32.53 44.35 United Kingdom 38.81 53.56 China 75.04 170.89 Untied States 188.76 269.74 2016 2021 eTravel +7.4% p.a. +17.9% p.a. +6.7% p.a. +6.4% p.a. +9.8% p.a. CAGR1 ’16-’21
  133. 133. Online Travel Booking Mobility Services Startups1 Established players Market complexity2 Companies in the eTravel market can be grouped into startups and established players Source: Statista Digital Market Outlook 1: Companies founded in or after 2007 2: Estimate; considers value chain complexity and competitor landscape Key players by segment and market complexity 133 eTravel
  134. 134. Four big players account for the major M&A activity within the Online Travel Booking industry Source: Statista Digital Market Outlook, Dealroom.co Selected players and selected acquisitions/ investments Ctrip eDreams ODIGEO Expedia Priceline 2016 Skyscanner US$1700m 2013 Liligo.com N/A 2015 Homeaway US$3900m 2015 PriceMatch N/A 2016 MakeMyTrip US$180m (27% stake) 2011 Opodo N/A 2015 Orbitz, eBookers US$1600m 2014 Hotel Ninjas N/A 2015 Tuniu US$500m 2011 eDreams Merger 2015 Travelocity US$280m 2014 Buuteeq N/A 2015 eLong US$400m (38% stake) 2011 GoVoyages Merger 2014 Wotif US$658m 2014 OpenTable US$2600m 2015 Travelfusion US$160m 2014 Auto Escape US$85m 2012 Kayak US$1800m 2015 Qunar 45% stake 2012 Trivago US$632m (62% stake) 2010 Rentalcars N/A 2015 Suanya US$16m 2008 CarRentals.com N/A 2010 Swoodoo N/A 2014 ToursForFun US$100m 2008 Venere N/A 2007 Agoda N/A 2014 Tujia US$100m 2001 Hotels.com N/A 2005 Booking.com US$135m 2013 Yongche US$60m 134 eTravel
  135. 135. Airbnb has reshaped the way we book accommodations Source: Airbnb Data & Analytics 1: Listings refer to entire flats, private rooms and shared rooms 135 Number of Airbnb listings in cities worldwide in 20161 23,000 26,000 20,000 23,000 33,000 46,000 Paris London 17,000 20,000 Los Angeles Barcelona Rome New York Rio de Janeiro 78,000 Sydney Copenhagen Amsterdam 47,000 eTravel
  136. 136. Fair deal? In major cities, taxi drivers earn significantly less than Uber drivers Source: Uber 136 Estimated hourly earnings of driver services in major U.S. cities San Francisco 23.87 12.96 18.43 Washington D.C. 14.53 Boston 16.23 14.26 20.68 12.54 18.46 New York 13.92 Chicago 23.69 Los Angeles 15.74 Uber Drivers (Net Earings Per Hour) Taxi Drivers & Chaufffeurs (Hourly Wages) vs. eTravel
  137. 137. Discover more Rethinking travel: Airbnb is just the beginning 137 Discover more of our topic-related research for eTravel Statista‘s point of view + exclusive country-specific forecasts about: › Online Travel Booking › Mobility Services Get the study Every topic in a nutshell – all relevant statistics in one single document: eTravel
  138. 138. Digital Media
  139. 139. 88,400,000 Virtual Reality is trending in Digital Media. In 2016 88.4 million Google Cardboards (Google’s budget VR solution) were shipped, demonstrating how big a trend it really is. Source: SuperData Research
  140. 140. 140 Global1 Digital Media revenue (in US$ billion) and CAGR2 16-21 by segment Revenues generated by Video Games overshadow other Digital Media 50.52 Video Games 15.27 ePublishing 67.10 21.22 16.16 23.89 13.20 Video-on-Demand 9.14 Digital Music 20212016 +8.1% p.a. +7.6% p.a. +5.8% p.a. +6.8% p.a. Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate Digital Media
  141. 141. Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 141 The U.S. has the largest Digital Media revenues, while China shows promising development Total Digital Media revenue by region (in US$ billion) South Korea 4.36 2.90 Germany 4.16 3.07 United Kingdom 7.10 5.54 Japan 15.13 12.76 China 31.38 13.35 United States 39.98 32.51 20212016 Digital Media +8.5% p.a. +6.3% p.a. +5.1% p.a. +3.5% p.a. +18.6% p.a. +4.2% p.a. CAGR1 ’16-’21
  142. 142. In most Digital Media segments, very few players dominate the market Source: Statista Digital Market Outlook 142 Selection of key players in Digital Media Digital Music Video-on-Demand Video Games ePublishing Digital Media
  143. 143. Youtube is the world’s largest music streaming service and at no charge to users Source: YouTube, IFPI, Ipsos, Spotify, Apple, Pandora, Apple Music Youtube has 1+ billion users. According to a survey among 10,552 YouTube users from 13 countries, 82 percent use it to listen to music 143 Largest services for online music consumption and their number of users 820m 81m 4m 100m 50m 20m Total listeners Paid subscribers Digital Media
  144. 144. Spotify is the leading streaming service with the largest number of paying subscribers Source: Company Announcements, MIDIA 144 Worldwide paid subscribers of music streaming services (in million) ’Apr 2016 1.1 Dec 2016 4.4 Dec 2016 4.5 ’Jan 2017 6.9 Dec 2016 20.0 Mar 2017 50.0 Digital Media
  145. 145. 51.3 In Q4-’16, Netflix had more paying subscribers in the U.S. than the top cable companies combined Source: Company Information, MarketingCharts, Leichtman Research Group 145 Netflix subscribers vs. top cable companies customers in the U.S. (in m) 23.923.4 25.1 27.2 29.2 29.8 31.1 33.4 35.7 36.2 37.2 39.1 41.4 42.3 43.2 44.7 47.0 47.1 47.5 49.4 Q1 Q42012 Q1 Q42013 Q1 Q42014 Q1 Q42015 Q1 Q42016 17.2 4.6 0.8 0.4 3.1 48.7 Q4-2016 22.5 Charter Comcast Other major CableOne Mediacom Altice Paying U.S. Netflix subscribers Top Cable Companies Digital Media
  146. 146. eBooks and hardcovers are most expensive in Germany Source: Statista Digital Market Outlook As of April 5, 2017 146 Avg. price of the Top 10 bestsellers on Amazon (in US$) 1.19 20.49 24.64 3.39 7.86 10.96 eBook Price (US$) Hardcover Price (US$) 28% 17% 65% NY Times Bestsellers Spiegel Bestsellers Open Book Bestsellers eBook discount rate Digital Media
  147. 147. Discover more What comes after subscription in digital media? 147 Discover more of our topic-related research for Digital Media Statista‘s point of view + exclusive country-specific forecasts about: › Digital Music › Video-on-Demand › Video Games › ePublishing Get the study Every topic in a nutshell – all relevant statistics in one single document: Digital Media
  148. 148. FinTech
  149. 149. “If banks cannot truly be customer intimate, they are doomed to be just dumb commodities, acting behind the scenes, like utilities.” JP Nicols, Bank innovation consulting expert
  150. 150. 150 Global1 FinTech transaction value and Assets under Management (in US$ billion) and CAGR2 16-21 by segment Global1 Digital Payments are expected to more than double by 2021 Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate 260 120 565 Personal Finance 1,753 Business FinanceDigital Payments 4,644 2,222 2016 2021 +15.9% p.a. +36.4% p.a. +46.5% p.a. FinTech
  151. 151. Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 151 It's early days for FinTech markets; however, the U.S. and China have promising prospects Total FinTech transaction value by region (in US$ billion) 104 126 156 765 824 163 225 323 China Germany Japan United Kingdom United States 2,861 1,983 2016 2021 FinTech +9.4% p.a. +12.3% p.a. +15.6% p.a. +30.2% p.a. +19.2% p.a. CAGR1 ’16-’21
  152. 152. Most prominent FinTech players can be found in the Digital Payment segment Source: Statista Digital Market Outlook 152 Representative FinTech key player by segment Digital Payment Business Finance Personal Finance Digital Commerce P2P Money Transfers Mobile Payments Crowd- lending Crowd- investing Crowd- funding Robo- Advisors Marketplace Lending FinTech
  153. 153. Profiteers in Marketplace Lending are Borrowers, Marketplaces, Banks and Investors alike Source: Statista Digital Market Outlook 1: Includes determination of loan interest rates, based on a prior credit scoring 2: Including initially agreed interest rate 3: Interest rate is based on credit worthiness of marketplace and therefor lower than for indivudual borrowers 153 Generic process overview and revenue streams Personal Lending Marketplace Loan application Borrower evaluation1 Loan listing Investment payout2 Loan issuing Loan repayment Investors funding Issuing Bank Loan purchasing Investors Loan granted Transaction fee from Bank, service fee from Investors Interest rate from loan issuance3 Return on investment from Marketplace Borrowers Borrower: Lending Market Place: Issuing Bank: Investor: Financial Benefits for parties involved FinTech
  154. 154. U.S. Mobile Payment transaction volume is expected to increase tenfold from ’16 to ‘21 Estimated U.S Mobile Payment transaction volume (in US$ billion) 2015 8.6 55.0 2016 24.9 99.4 20182017 2020 214.7 154.4 2019 2021 274.4 Average annual growth rate 2016-2021 62% 154 Source: Statista Digital Market Outlook FinTech
  155. 155. Robo-Advisors are most prevalent in the U.S.; only two of the biggest advisors are from Europe Top Robo-Advisors by assets under management (in US$ million) 403 454 574 671 751 808 222Scalable Capital Rebalance IRA Financial Guard Wealthsimple AssetBuilder Nutmeg Futur Advisor (Blackrock) Personal Capital 3,600 Wealthfront 5,010 Betterment 7,360 Schwab Intelligent Portfolios 10,200 Vanguard 47,000 155 Sources: Statista estimates based on company information, Press Releases, Graphiq, Nerdwallet, CNBC, Business Insider Information based on latest available data, as of February 2017. We do not claim that the information provided is complete. FinTech
  156. 156. Bitcoin remains the largest crypto-currency with a market cap of more than US$14 billion Market caps of the ten largest crypto-currency markets (in US$ million1) Bitcoin Steem 38.0 Augur 48.0 MaidSafeCoin 50.4 Dash 93.0 Ethereum Classic 109.3 Monero 148.3 Litecoin 203.4 14,003.7 Ripple 260.5 Ethereum 900.4 156 Source: CoinMarketCap 1: as of January 16th, 2017 FinTech
  157. 157. In 5 years, Bitcoin & Blockchain start-up funding increased from US$1m to over US$570m Source: CB Insights 157 Bitcoin & Blockchain funding and investment of start-ups (in US$ million) 572 501 343 90 1 20162015201420132012 FinTech
  158. 158. If you can‘t beat the FinTechs, join them No. of major bank investments in VC-backed FinTechs (Q3-'15 – Q3-’16) 27.7% 65.3% 6.9% Partner Irrelevant Competitor Competitor, partner or irrelevant? How banking executive view Fintech firms1 8 8 7 5 3 3 Citigroup Banco Santander Goldman Sachs Mitsubishi UFJ Financial Group UBS AG Sumitomo Mitsui Financial Group 158 Sources: KPMG, CB Insights, Capgemini 1: Worldwide survey; 2016 FinTech
  159. 159. Discover more How FinTech is reshaping the financial world 159 Discover more of our topic-related research for FinTech Statista‘s point of view + exclusive country-specific forecasts about: › Digital Payments › Business Finance › Personal Finance Get the study Every topic in a nutshell – all relevant statistics in one single document: FinTech
  160. 160. Digital Advertising
  161. 161. US$935.71 The most expensive keyword for Google AdSense (best mesothelioma lawyer) was closing in on a truly incredible cost of US$1,000 per click in March 2016. Source: searchenginewatch; Semrush
  162. 162. Digital Ads are expected to grow across all categories, with Search Ads taking the top spot Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate Global1 digital advertising revenue forecast (in US$ billion) 69.8 Social Media 142.5 43.3 90.7 27.1 48.9 Banner ClassifiedsVideo 25.6 16.5 45.4 20.7 Search 2016 2021 162 +9.5% p.a. +12.5% p.a. +17.0% p.a. +9.28% p.a.+10.0% p.a. Digital Advertising
  163. 163. Digital Advertising revenues in China are expected to more than double by 2021 Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 163 Total Advertising revenue by region (in US$ billion) Germany 6.78 8.65 Japan 8.67 12.60 United Kingdom 14.25 21.51 China 43.90 98.69 United States 80.18 116.08 2016 2021 Digital Advertising +5.0% p.a. +7.8% p.a. +8.6% p.a. +17.6% p.a. +7.7% p.a. CAGR1 ’16-’21
  164. 164. SSP/Ad Network Trading Desk Ad Exchange Publisher $0.15 $0.14 $0.29 $0.05 $0.10 $0.15 Advertising Client Agency DSP $0.12 DMP/Date Provider $1.00 In programmatic advertising 60% of the budget can be allocated to service contractors Allocation of US$1 in programmatic advertising $0,61 164 Source: IHS Markit 2016, interviews with over 100 market players Note: share of DMP/Date Provider and DSP might be slightly higher Digital Advertising
  165. 165. There is a significant ‘ad spend gap’ for mobile Percent of time spent by consumers with media & percent of ad spend allocate to media in the U.S. 2015 39% Radio TV 36% 10% 13% Print 22% Internet 4% 16% 23% Mobile 25% 12% Time spent Ad spend 165 Source: KPCB Note: Print includes newspaper and magazine. Internet includes desk top, laptop & other connected devices; Excludes out of home, video games, and cinema advertising. Digital Advertising
  166. 166. Mobile Ad spending will continue to boom over the next three years Estimated change in advertising spending between ’16 – ’19 in US$bn p.a. -7.7 Radio -3.7Magazines -11.9Desktop Internet Cinema 0.8 6.8 Newspapers 2.9 80.5 0.9 Television Mobile Internet Outdoor 166 Source: Zenith Optimedia Digital Advertising
  167. 167. Social media & content marketing are top priorities for marketers Digital marketing budget plans for 2017 (in % of respondents)1 56% 55% 51% 50% 48% 46% 40% 34% 32% 29% 39% 42% 44% 43% 47% 47% 49% 53% 55% 63% 7% 11% 13% 13% 8% 7% 5% 5% 5%Social media marketing 3% Video advertising Content marketing Personalization Mobile marketing E-Mail marketing Webinars Display advertising Affiliate marketing Paid search Keep the sameIncrease Decrease 167 Source: Econsultancy, Adobe 1: based on a survey of 3,347 marketing professionals around the world Digital Advertising
  168. 168. There is a clear generational divide in news consumption Main news source by age group 12% 8% 24% 8%7% 7%8% 29% 37% 46% 53% 25% TVRadio 47% 36% 57% 64% PrintOnline 5% 6%6%6% 35-4425-3418-24 45-54 55+ 168 Source: Reuters Institute for the Study of Journalism Note: Based on a survey of 52,225 news consumers across 26 countries; numbers may not add up to 100% due to rounding Digital Advertising
  169. 169. 2019 will be a paradigm change: mobile/desktop internet ad spend is expected to overtake TV Source: Zenith Advertising Expenditure Forecast 169 Share of global ad spend by medium (in percentage) 0.6% 6.7% 6.4% 5.8% 10.9% 15.2% 18.9% 35.5% 0.7% 6.4% 5.8% 4.4% 8.3% 27.0% 14.7% 32.6% 2016 2019 Cinema Outdoor Radio Magazines Newspapers Mobile Internet Desktop Internet Televesion Television:  - 2.9% points Desktop Internet:  - 4.2% points Mobile Internet:  +11.8% points Digital Advertising
  170. 170. Discover more The future of advertising is 'fewer, better ads' 170 Discover more of our topic-related research for Digital Advertising Statista‘s point of view + exclusive country-specific forecasts about: › Banner Advertising › Video Advertising › Social Media Advertising › Search Advertising › Online Classifieds Get the study Every topic in a nutshell – all relevant statistics in one single document: Digital Advertising
  171. 171. Smart Home
  172. 172. Source: Statista Digital Market Outlook 57% of all Smart Homes in 2016 were located in the United States
  173. 173. The global Smart Home market will more than quadruple by 2021 173 Global1 Smart Home Revenue (in US$bn) and CAGR2 16-21 by segment Source: Statista Digital Market Outlook 1: only includes countries of the Digital Market Outlook 2: CAGR: Compound Annual Growth Rate 3.11 Security 22.12 4.17 Home Automation 25.31 16.82 12.03 2.91 Ambient Assisted Living (AAL) 5.59 Energy Management 0.56 Home Entertainment 14.25 20212016 +33.1% p.a. +39.6% p.a. +35.6% p.a. +58.4% p.a. +32.6% p.a. Smart Home
  174. 174. Smart Home market development is most dynamic in China and Germany Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 174 Total Smart Home revenue by region (in US$ billion) South Korea 0.64 2.84 United Kingdom 4.60 0.89 China 1.18 13.43 United States 10.43 32.19 Germany 0.93 3.76 2016 2021 Smart Home +34.5% p.a. +39.1% p.a. +32.3% p.a. +62.5% p.a. +25.3% p.a. CAGR1 ’16-’21
  175. 175. The Smart Home ecosystem consists of many intersections and entry points Source: Statista Digital Market Outlook 175 Illustration of the Smart Home ecosystem and value chain Manufacturer Offers devices Service provider Offers control software/ platform, connectivity, additional services Supply side Retail Websites Owned or third party Stores Owned or third party Technicians Sells, installs and maintains system data and/ or revenue Devices and/ or services Smart Home devices Sensors/ actuators to automate the home Demand side/ Customer ecosystem Control devices e.g. Smartphone, tablet or connected buttons Internet Enables remote access Platform Software to control devices Gateway Provides connectivity : Data Smart Home
  176. 176. The Smart Home company landscape comprises all kinds of origins Source: Statista Digital Market Outlook 1: Using the most relevant segment as most companies are active in multiple product segments 2: Estimate; considers the potential for integration with devices from other segments 176 Key players by segment1 and integration potential Generalists and Home Automation Security Home Entertainment Ambient Assisted Living (AAL) Energy Management Dedicated Smart Home companies Players entering the market from foreign industries Integration potential2 Smart Home
  177. 177. Digital Assistants will become increasingly more common in people’s homes Source: Statista Digital Market Outlook; Tractica, 2015 to 3rd quarter 2016 1: Forecast, figures do not include business usage 177 Estimated global number of virtual digital assistant users (in m) 710 504 390 2021 1,831 2020 1,642 2019 1,376 2018 1,016 201720162015 Hi, how can I help? 1 1 1 1 1 1 Smart Home
  178. 178. Echo & Co. will enter the Home Automation market and increase revenues fivefold by 2021 178 Smart Home automation market revenue (in US$ billion) 0.36 2015 2020 20.78 4.10 2.10 Total home automation market Thereof VPA-enabled wireless speakers Source: Statista Digital Market Outlook, Gartner Smart bulbs Traditional gateways/hubs Window/door sensor General control buttons/dimmers Garage door controls Shading devices Other home automation solutions VPA-enabled wireless speakers Smart Home
  179. 179. Americans are keen on Smart Home Security; could it be due to the high burglary rate? 179 Domestic burglaries per 100,000 inhabitants Smart Home security revenue per 100,000 inhabitants Source: Statista Digital Market Outlook, UNODC 290 282 196 $275,000 United States $209,000 $881,000 United Kingdom Germany Smart Home
  180. 180. Discover more Smart Home = Connected devices + integration 180 Discover more of our topic-related research for Smart Home Statista‘s point of view + exclusive country-specific forecasts about: › Home Automation › Security › Home Entertainment › Ambient Assisted Living › Energy Management Get the study Every topic in a nutshell – all relevant statistics in one single document: Smart Home
  181. 181. Connected Car
  182. 182. Source: Statista Digital Market Outlook 190,850,000 Connected Cars The predicted global number of Connected Cars on the road in 2021
  183. 183. Widespread connectivity is a prerequisite for the development of self-driving cars Source: Statista Digital Market Outlook 1: Following Zuboff‘s Laws about the implications of information technology Note: Width and height of bars does not correspond to the actual timeline or digital maturity 183 Gradual automotive development towards autonomous vehicles Mechnical devices replace manual actions › Indicators › etc. Mechanization Technological im- provement of car parts › Electric windows › Power door locks › etc. Electrification Introduction of embed- ded digital components › Radio data system technology › Parking cameras › Working parts sensors › etc. Digitization Interconnection of digital components › Embedded in-car connectivity › Connected working parts › Monitoring Real- time operating car- data › etc. Connectivity Incorporation of intelli- gent hard- and software › Autonomous driving › Vehicle-to- Everything communication › Automatic self- diagnosis systems › etc. AutonomizationDigital Maturity Time2017 “Every digital application that can be used for surveillance and control will be used for surveillance and control.1” ABC Mass market focus Digital maturity level Selected focus technologies per stage Technological status quo in the mass market Connected Car
  184. 184. Connected Car service subscription revenues are still falling short of OEM’s expectations Source: Statista Digital Market Outlook 1: Only includes countries listed in the Digital Market Outlook 2: CAGR: Compound Annual Growth Rata/ average growth rate per year 184 Global1 Connected Car revenue (in US$ billion) and CAGR2 by segment Infotainment Services 7.91 1.06 Vehicel Services 1.92 0.19 Connected Hardware 71.82 14.83 20212016 +37.1% p.a. +58.5.4% p.a. +49.4% p.a. Connected Car
  185. 185. A pioneer in integrated connectivity, the U.S. will stay the biggest Connected Car market by 2021 Source: Statista Digital Market Outlook 1: CAGR: Compound Annual Growth Rate 185 United Kingdom 1.33 5.24 5.92 1.03 Japan China Germany 16.92 1.84 1.91 United States 5.82 18.14 8.27 2016 2021 Total Connected Car revenue (in US$ billion) by region Connected Car +42.0% p.a. +31.5% p.a. +55.8% p.a. +34.1% p.a. +25.5% p.a. CAGR1 ’16-’21
  186. 186. Connectivity-related service packages are now available from most OEMs Source: Statista Digital Market Outlook 186 Key players and their digital service programs1 Europe North America Asia Manufacturer ConnectedDrive Audi Connect MercedesMe Car-Net R-Link UConnect Porsche Connect InControl OnStar MyCitroën Peugeot Connect Škoda Connect OnStar Sensus Connect SYNC3 OnStar OnStar OnStar UConnect EVE MZD Connect Mitsubishi Connect Entune Nissan Connect Enform UVO BlueLink Honda Connect Connect World STARLINK InTouch / Connection UConnect UConnect Connect Connected Car
  187. 187. Real-time traffic information is already widespread across the Western world and Asia Source: Company Information, Statista Digital Market Outlook 1: the four providers are Google (available in 61 countries), Here (52), TomTom (52) and Apple (46) 187 Availability of real-time traffic information by the four largest providers1 Covered by … 1 provider 2 providers 3 providers 4 providers Connected Car
  188. 188. Operating data collected from connected cars generates both potential and challenges Sources: AT&T, McKinsey, Verizon 188 Data generate per hour by Connected Cars compared to online activities 25,000 MB Vehicle data generated HD video streaming Web browsing Turn-by-turn navigation 5 MB 15 MB Music streaming 29 MB 869 MB Connected Car
  189. 189. Tesla’s investment intensity in R&D is much bigger than that of VW and BMW Sources: Company Information, Statista 1: R&D intensity is defined as the ratio between a company’s investment in research and development and its revenue R&D intensity of Tesla and selected car manufacturers in 20161 Toyota 3.7 Daimler 4.9 Ford 4.8 General Motors 4.9 BMW 5.5 VW 7.3 Tesla 11.9 Connected Car
  190. 190. Discover more Monetizing vehicle data – the future for OEMs? 190 Discover more of our topic-related research for Connected Car Statista‘s point of view + exclusive country-specific forecasts about: › Connected Hardware › Infotainment Services › Vehicle Services Get the study Every topic in a nutshell – all relevant statistics in one single document: Connected Car
  191. 191. Imprint Contacts and authors Released: Imprint Statista ▪ Johannes-Brahms-Platz 1 ▪ 20355 Hamburg ▪ +49 40 413 49 89 0 ▪ www.statista.com Disclaimer This study is based on survey and research data of the previously mentioned sources. The forecasts and market analysis presented were researched and prepared by Statista with great care. For the presented survey data, estimations and forecasts Statista cannot assume any warranty of any kind. Surveys and forecasts contain information not naturally representing a reliable basis for decisions in individual cases and may be in need of further interpretation. Therefore, Statista is not liable for any damage arising from the use of statistics and data provided in this report. April 2017 Tobias BohnhoffFelix Wegener Philipp HuhnSebastian Buss Kathrin Schreiber E-MAIL DMO@statista.com WEB statista.com/outlook
  192. 192. About the Digital Market Outlook 192 FinTech Digital Payments, Business Finance, Personal Finance Smart Home Home Automation, Security, Home Entertainment, Ambient Assisted Living, Energy Management eTravel Online Travel Booking, Mobility Services e-Commerce Fashion, Electronics & Media, Food & Personal Care, Furniture & Appliances, Toys, Hobby & DIY eServices Event Tickets, Fitness, Dating Services, Food Delivery Digital Advertising Banner Ads, Video Ads, Search Ads, Social Media Ads, Classifieds Connected Car Connected Hardware, Vehicle Services, Infotainment Services Digital Media Video-on-Demand, Digital Music, Video Games, ePublishing Exclusive part of the Statista Corporate Account Access to more than 1,000,000 statistics and all digital markets more informationmore information Details › 50 countries › Direct access & downloads › 7-Year coverage: 2015 – 2021 › Revenue forecasts › User count & penetration › Comparable data 9 Markets, 34 segments & 85 sub-segments

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