Appleton Greene understands that industry knowledge and experience is vital for clients. If clients are interested in an Appleton Greene corporate training program, or if they are interested in employing the services of a Certified Learning Provider (CLP), or an accredited consultant, one of the first questions that they will ask is about the required industry knowledge and experience. Appleton Greene has specific knowledge and experience relating to the following industry sectors:
Every business, whether they are a huge multinational or a small enterprise, needs an accountant. Generally accountants offer financial advice to clients by managing cash flow and monitoring profit and loss, but this is increasingly joined by the supply of financial information that could influence the strategic development of organizations. The Accountancy sector is modern and fast-moving. It uses the latest technology and attracts some of the most motivated and intelligent graduates from a wide variety of degree backgrounds. Globally, the accountancy sector is dominated by the “Big Four” accountancy firms – PriceWaterhouseCoopers, Ernst & Young, KPMG and Deloitte & Touche – and their thirst for new talent is a year-round strategy. Nearly 10 percent of all graduates choose a career in accountancy, and a vast majority of them go into audit departments within the Big Four. The global accountancy market has grown by 3.4% to reach a value of $364.3 billion. The global accountancy market is forecast to have a value of $487.6 billion, an increase of 33.9%. The global accountancy market has total revenues of $396.0bn, representing a compound annual growth rate (CAGR) of 2.7%.
Technology has prompted tremendous change in the advertising industry—change that would have been inconceivable even a decade ago. People are accessing, consuming, and sharing content in more varied ways than ever, and marketers have scores of new opportunities to understand, reach, and engage with consumers. But at the same time the ecosystem of technologies that supports online advertising has become so complicated and cumbersome that it actually makes it harder for advertisers to invest more money to market effectively, putting the industry’s growth at risk.The next evolution in digital advertising must be driven by innovative platforms that more effectively help marketers move their businesses forward. Technology will only be able to deliver on its promise of moving TV dollars online if it creates greater process efficiencies, drives more commerce, and enables deeper engagement with consumers.The global advertising industry has experienced slow growth over the last five years and is expected to grow moderately with a CAGR of 3.5% over the next five years and reach approximately US $563 billion. The advertising industry is expected to witness growth over the next five years due to improved economic conditions. Newspaper and magazine advertising segments are expected to benefit from double-digit annual growth in digital advertising and a developing digital circulation spending market. The regulatory drive on digitization with increasing mobile and broadband penetration is likely to lead to advertising market growth. The future of the industry is characterized by digital advertising, with the advent of smart phones, cheaper wireless devices, and the growth local advertising from different media. Governments of developing nations are anticipated to support this growth.
Aerospace describes the human effort in science, engineering and business to fly in the atmosphere of Earth (aeronautics) and surrounding space (astronautics). Aerospace organizations research, design, manufacture, operate, or maintain aircraft and/or spacecraft. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. In most industrial countries, the aerospace industry is a cooperation of public and private industries. For example, several countries have a civilian space program funded by the government through tax collection, such as NASA in the United States, ESA in Europe, the Canadian Space Agency in Canada, Indian Space Research Organization in India, JAXA in Japan, RKA in Russia, China National Space Administration in China, SUPARCO in Pakistan, Iranian Space Agency in Iran, and Korea Aerospace Research Institute (KARI) in South Korea. Along with these public space programs, many companies produce technical tools and components such as spaceships and satellites. Some known companies involved in space programs include Boeing, EADS, Lockheed Martin, MacDonald Dettwiler and Northrop Grumman. These companies are also involved in other areas of aerospace such as the construction of aircraft. In the past few years, the global aerospace industry has witnessed an impressive growth, with the civil aviation segment emerging as the major contributor to its expansion. The US and European countries are the dominant markets for the aerospace industry, and acting as catalyst for the overall growth. The global aerospace industry is forecasted to register CAGR of around 2.5%. As per our new research report, “Global Aerospace Industry Outlook”, the aerospace industry has globally emerged as a highly potential market, even after the recession. US represents the biggest aerospace market in the world, followed by France, UK, Germany and Canada. In near future, developing nations, like China, India, Mexico, and Brazil are expected to emerge as potential marketplaces for aerospace products.
Agriculture, also called farming or husbandry, is the cultivation of animals, plants, fungi, and other life forms for food, fiber, bio-fuel, medicines and other products used to sustain and enhance human life. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the development of civilization. Modern agronomy, plant breeding, agrochemicals such as pesticides and fertilizers, and technological improvements have sharply increased yields from cultivation, but at the same time have caused widespread ecological damage and negative human health effects. Selective breeding and modern practices in animal husbandry have similarly increased the output of meat, but have raised concerns about animal welfare and the health effects of the antibiotics, growth hormones, and other chemicals commonly used in industrial meat production. Genetically modified organisms are an increasing component of agriculture, although they are banned in several countries. Agricultural food production and water management are increasingly becoming global issues that are fostering debate on a number of fronts. Significant degradation of land and water resources, including the depletion of aquifers, has been observed in recent decades, and the effects of global warming on agriculture and of agriculture on global warming are still not fully understood. The major agricultural products can be broadly grouped into foods, fibers, fuels, and raw materials. Specific foods include cereals (grains), vegetables, fruits, oils, meats and spices. Fibers include cotton, wool, hemp, silk and flax. Raw materials include lumber and bamboo. Other useful materials are produced by plants, such as resins, dyes, drugs, perfumes, bio-fuels and ornamental products such as cut flowers and nursery plants. Over one third of the world’s workers are employed in agriculture, second only to the services sector, although the percentages of agricultural workers in developed countries has decreased significantly over the past several centuries.
The automotive industry is a wide range of companies and organizations involved in the design, development, manufacture, marketing, and selling of motor vehicles. It is one of the world’s most important economic sectors by revenue. The automotive industry does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations. Around the world, there are about 806 million cars and light trucks on the road, consuming over 260 billion US gallons of gasoline and diesel fuel yearly. The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive markets are Iran and Indonesia. Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales. The study expects this trend to accelerate.
Aviation is the practical aspect or art of aeronautics, being the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft. Aviation is a vital part of the increasingly globalized world economy, facilitating the growth of international trade, tourism and international investment, and connecting people across continents. The aviation industry itself is a major direct generator of employment and economic activity, in airline and airport operations, aircraft maintenance, air traffic management, head offices and activities directly serving air passengers, such as check-in, baggage handling, on-site retail and catering facilities. Direct impacts also include the activities of aerospace manufacturers selling aircraft and components to airlines and related businesses. The world’s airlines carry over 2.6 billion passengers a year and 48 million tones of freight. Providing these services generates 8.4 million direct jobs within the air transport industry and contributes $539 billion to global GDP. Compared with the GDP contribution of other sectors, the global air transport industry is larger than the pharmaceuticals ($445 billion), the textiles ($236 billion) or the automotive industries ($484 billion) and around half as big as the global chemicals ($977 billion) and food and beverage ($1,162 billion) sectors. Air transport also has important ‘multiplier’ effects, which mean that its overall contribution to global employment and GDP is much larger than its direct impact alone. These include employment and activities of suppliers to the air transport industry for example, aviation fuel suppliers; construction companies that build airport facilities; suppliers of sub-components used in aircraft; manufacturers of goods sold in airport retail outlets; and a wide variety of activities in the business services sector (such as call centers, information technology and accountancy). Over 9.3 million indirect jobs globally are supported through the purchase of goods and services by companies in the air transport industry. These indirect jobs contribute approximately $618 billion to global GDP.
Assets of the largest 1,000 banks in the world grew by 6.8% to a record US$96.4 trillion while profits declined by 85% to US$115 billion. Growth in assets in adverse market conditions was largely a result of recapitalization. EU banks holds the largest share of the total, 56%. Asian banks’ share amounts to 14%, while the share of US banks amounts to 13%. Fee revenue generated by global investment banking totals US$66.3 billion. The United States has the most banks in the world in terms of institutions i.e. 7,085 including 82,000 branches. This is an indicator of the geography and regulatory structure of the USA, resulting in a large number of small to medium-sized institutions in its banking system. China’s top 4 banks have in excess of 67,000 branches with an additional 140 smaller banks. Japan has 129 banks and 12,000 branches. Germany, France, and Italy each had more than 30,000 branches – more than double the 15,000 branches in the UK. Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, accountancy companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. The financial services industry represents 20% of the market capitalization of the S&P 500 in the United States. Finance industry income as a proportion of GDP is 7.5%, and the finance industry’s proportion of all corporate income is 20%. The financial services industry constitutes the largest group of companies in the world in terms of earnings and equity market capitalization. However it is not the largest category in terms of revenue or number of employees. It is also a slow growing and extremely fragmented industry, with the largest company (Citigroup), only having a 3% US market share.
Biotechnology is the use of living systems and organisms to develop or make useful products, or any technological application that uses biological systems, living organisms or derivatives thereof, to make or modify products or processes for specific use. For thousands of years, humankind has used biotechnology in agriculture, food production, and medicine. Biotechnology has applications in four major industrial areas, including health care (medical), crop production and agriculture, non food (industrial) uses of crops and other products (e.g. biodegradable plastics, vegetable oil, bio-fuels), and environmental uses. The biotechnology market consists of the development, manufacturing, and marketing of products based on advanced biotechnology research. The global biotechnology market has total revenues of $304.0bn, representing a compound annual growth rate (CAGR) of 9.6%. The medical/healthcare segment is the market’s most lucrative, with total revenues of $182.5bn, equivalent to 60.0% of the market’s overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 9%, which is expected to drive the market to a value of $468.2bn.
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials (oil, natural gas, air, water, metals, and minerals) into more than 70,000 different products. In the U.S. there are 170 major chemical companies. They operate internationally with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates operating. The U.S. chemical output is $750 billion a year. The U.S. industry records large trade surpluses and employs more than a million people in the United States alone. The chemical industry is also the second largest consumer of energy in manufacturing and spends over $5 billion annually on pollution abatement. In Europe the chemical, plastics and rubber sectors are among the largest industrial sectors. Together they generate about 3.2 million jobs in more than 60,000 companies. The chemical sector alone represents 2/3 of the entire manufacturing trade surplus of the EU. The chemical sector accounted for 12% of the EU manufacturing industry’s added value. Europe remains the world’s biggest chemical trading region with 43 % of the world’s exports and 37%of the world’s imports, although the latest data shows that Asia is catching up with 34% of the exports and 37% of imports. Even so Europe still has a trading surplus with all regions of the world except Japan and China where there was a chemical trade balance. Europe’s trade surplus with the rest of the world today amounts to 41.7 billion Euros. The chemical industry has shown rapid growth for more than fifty years. The fastest-growing areas have involved the manufacture of synthetic organic polymers used as plastics, fibers and elastomers. Historically and presently the chemical industry has been concentrated in three areas of the world, Western Europe, North America and Japan. The European Community remains the largest producer area followed by the USA and Japan.
In the United States, the industry has around $850 billion in annual revenue according to statistics tracked by the Census Bureau, with an $857 billion annual rate, of which $600 billion is private (split evenly between residential and nonresidential) and the remainder is government. There are about 667,000 firms employing 1 million contractors (200,000 general contractors, 38,000 heavy, and 432,000 specialty); the average contractor employs fewer than 10 employees. As a whole, the industry employs an estimated 5.8 million. A salary survey revealed the differences in remuneration between different roles, sectors and locations in the construction and built environment industry. The results showed that areas of particularly strong growth in the construction industry, such as the Middle East, yield higher average salaries than in the UK for example. Despite adverse economic conditions, the global construction industry has witnessed growth during the past five years and the market is forecast to reach US $8,929 billion with a CAGR of 7.3% over the next five years. The Construction industry consists of establishments primarily engaged in the construction of residential construction, commercial buildings, and infrastructural projects. The industry also includes additions, alterations, maintenance, and repairing activities. The industry is highly fragmented in terms of suppliers and buyers and highly dependent on consumer spending, interest rates, and government spending in different countries.
Management consulting, the practice of helping organizations to improve their performance, operates primarily through the analysis of existing organizational problems and the development of plans for improvement. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external (and presumably objective) advice and access to the consultants’ specialized expertise. Consultancies may also provide organizational change-management assistance, development of coaching skills, process analysis, technology implementation, strategy development, or operational improvement services. Management consultants often bring their own proprietary methodologies or frameworks to guide the identification of problems and to serve as the basis for recommendations for more effective or efficient ways of performing work tasks. Management consulting has grown quickly, with growth rates of the industry exceeding 20% during the past 30 years. As a business service, consulting remains highly cyclical and linked to overall economic conditions. Currently, there are three main types of consulting firms. Large, diversified organizations, Medium-sized management consultancies and boutique firms that have focused areas of consulting expertise in specific industries, functional areas, technologies, or regions of the world. The value of the management & marketing consultancy market is calculated as the total revenues received for the provision of corporate strategy services, operations management services, information technology solutions, human resource management services and outsourcing services. The global management & marketing consultancy market has total revenues of $305.0bn, representing a compound annual growth rate (CAGR) of 3%. The operations management segment is the market’s most lucrative, with total revenues of $93bn, equivalent to 30.5% of the market’s overall value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 7% during the next 5 years, which is expected to drive the market to a value of $427.9bn.
In economics, any commodity which is produced and subsequently consumed by the consumer, to satisfy its current wants or needs, is a consumer good or final good. Consumer goods are goods that are ultimately consumed rather than used in the production of another good. For example, a microwave oven or a bicycle which is sold to a consumer is a final good or consumer good, whereas the components which are sold to be used in those goods are called intermediate goods. For example, textiles or transistors which can be used to make some further goods. When used in measures of national income and output, the term “final goods” only includes new goods. For instance, the GDP excludes items counted in an earlier year to prevent double counting of production based on resales of the same item second and third hand. In this context the economic definition of goods includes what are commonly known as services. Manufactured goods are goods that have been processed in any way. As such, they are the opposite of raw materials, but include intermediate goods as well as final goods. Consumer goods are goods which are intended for everyday private consumption. They cover a large product portfolio including food and non-food categories in order to meet consumer demand. They are further classified in fast moving consumer goods (FMCG) and slow moving consumer goods (SMCG). The definitions are based on how fast products are sold to the customer, a determining factor in the rotation of goods. SMCG are goods with a useful life longer than a year comprising items such as household appliances, furniture and home improvement products. These items have a lower sales frequency and are not rotating as rapidly as FMCG. The competitive landscape of the consumer packaged goods (CPG) industry is shaped by global leading CPG companies such as US-based Procter & Gamble (P&G), Unilever, L’Oréal and Nestlé. Many companies invest large amounts of money for the development of new products in accordance with recent market trends and the latest research findings. As many manufacturers operate globally, product packaging and labeling regulations have to be fulfilled in order to meet the country-specific requirements. In addition, product formulas may have to be adapted to suit different consumer tastes.
The arms industry is a global business that manufactures weapons and military technology and equipment. It consists of commercial industry involved in research, development, production, and the service of military material, equipment, and facilities. Arms producing companies, also referred to as defense contractors or military industry, produce arms mainly for the armed forces of states. Departments of government also operate in the arms industry, buying and selling weapons, munitions and other military items. Products include guns, ammunition, missiles, military aircraft, military vehicles, ships, electronic systems, and more. The arms industry also conducts significant research and development. It is estimated that yearly, over 1.5 trillion US dollars are spent on military expenditures worldwide (2.7% of World GDP). Part of this goes to the procurement of military hardware and services from the military industry. The combined arms sales of the top 100 largest arms producing companies amounts to an estimated $315 billion. Many industrialized countries have a domestic arms industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by its citizens. The Small Arms Survey estimates 875 million small arms in circulation worldwide, produced by more than 1,000 companies from nearly 100 countries.
New media refers to on-demand access to content anytime, anywhere, on any digital device, as well as interactive user feedback, and creative participation. Another aspect of new media is the real-time generation of new and unregulated content. Most technologies described as “new media” are digital, often having characteristics of being manipulated, network-able, dense, compressible, and interactive. Some examples may be the Internet, websites, computer multimedia, video games, CD-ROMS, and DVDs. New media does not include television programs, feature films, magazines, books, or paper-based publications – unless they contain technologies that enable digital interactivity. Wikipedia, an online encyclopedia, is an example, combining Internet accessible digital text, images and video with web-links, creative participation of contributors, interactive feedback of users and formation of a participant community of editors and donors for the benefit of non-community readers. Facebook is an example of the social media model, in which most users are also participants. The rise of new media has increased communication between people all over the world and the Internet. It has allowed people to express themselves through blogs, websites, pictures, and other user-generated media. The new media industry shares an open association with many market segments in areas such as software/video game design, television, radio, and particularly movies, advertising and marketing, through which industry seeks to gain from the advantages of two-way dialogue with consumers primarily through the Internet. As a device to source the ideas, concepts, and intellectual properties of the general public, the television industry has used new media and the Internet to expand their resources for new programming and content.
The educational services market is large and growing with several types of opportunities available for franchisees. There are approximately 58,113 establishments in the industry which earn a combined $19.4 billion dollars in revenue. The industry is largely fragmented, the fifty largest companies represent just 30% of the total revenue in the industry. There ere 55.1 million students attending school in grades K-12, all of whom are potential clients for educational services – and that number is expected to increase to 74 million. The vast majority of revenue in this industry comes from tuition or program fees. Gross profits tend to range from 60-90% depending on the location and particular course, and net profit averages out to between 2-10%. Increasing company size has helped consolidate operations in the educational services field – helping to lower fixed costs and improve overall operational efficiency, both of which are very important to keeping businesses in the field healthy and profitable. Finding qualified instructors in any field is becoming increasingly challenging; it is important to inquire about this when researching potential companies. There is a potential danger to some areas of the field in future competition from online training courses, which are growing more and more popular as technology spreads. In addition, businesses face competition from free online resources and computer software. Overall, however, the field is expanding, educational services in the United States are forecast to grow by 5% per year over the next five years.
The electronics industry, especially meaning consumer electronics has now become a global industry worth billions of dollars. Contemporary society uses all manner of electronic devices built in automated or semi-automated factories operated by the industry. The size of the industry and the use of toxic materials, as well as the difficulty of recycling has led to a series of problems with electronic waste. International regulation and environmental legislation has been developed in an attempt to address the issues. Consumer electronics is that which is intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver. Later products include personal computers, telephones, MP3 players, audio equipment, televisions, calculators, GPS automotive electronics, digital cameras and players and recorders using video media such as DVDs, VCRs or camcorders. Increasingly these products have become based on digital technologies, and have largely merged with the computer industry in what is increasingly referred to as the consumerization of information technology. The CEA (Consumer Electronics Association) estimated the value of consumer electronics sales at US$150 billion. Favorable demographics, rising consumer incomes, and evolving more interconnected lifestyles are anticipated to boost the global consumer electronics industry. The market is expected to reach an estimated US $1,210 billion with a CAGR of 5.4% over next five years. The consumer electronics industry is consolidated as the top 10 players contribute approximately 52% of total market size. The industry, which is capital intensive and price sensitive, is a highly dynamic and fast-changing industry. Costs of raw materials such as steel and copper have increased, which had a significant effect on the price of the finished goods. A combination of factors such as rising income and consumer spending affect the market dynamics significantly. The industry has essentially recovered from the recent recessionary condition globally and is in the growing phase.
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution. Modern society consumes large amounts of fuel, and the energy industry is a crucial part of the infrastructure and maintenance of society in almost all countries. In particular, the energy industry comprises: the petroleum industry, including oil companies, petroleum refiners, fuel transport and end-user sales at gas stations; the gas industry, including natural gas extraction, and coal gas manufacture, as well as distribution and sales; the electrical power industry, including electricity generation, electric power distribution and sales; the coal industry; the nuclear power industry; the renewable energy industry, comprising alternative energy and sustainable energy companies, including those involved in hydroelectric power, wind power, and solar power generation, and the manufacture, distribution and sale of alternative fuels; traditional energy industry based on the collection and distribution of firewood, the use of which, for cooking and heating, is particularly common in poorer countries. Production and consumption of energy resources is very important to the global economy. All economic activity requires energy resources, whether to manufacture goods, provide transportation, run computers and other machines. Widespread demand for energy may encourage competing energy utilities and the formation of retail energy markets.
The entertainment industry is part of the tertiary sector of the economy and includes a large number of sub-industries devoted to entertainment. However, the term is often used in the mass media to describe the mass media companies that control the distribution and manufacture of mass media entertainment. In the popular parlance, the term show biz in particular connotes the commercially popular performing arts, especially musical theater, vaudeville, comedy, film, and music. It applies to every aspect of entertainment including cinema, television, radio, theater and music. The global entertainment industry is expected to reach an estimated US $139 billion with a CAGR of 4.2% over the next five years. This growth is likely to be driven by the acceleration of online and mobile distribution of movies, lower admission prices, and government policy initiatives in developing countries.
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, Over-the-counter drugs, toys, processed foods and many other Consumables. Though the profit margin made on FMCG products is relatively small, more so for retailers than the producers/suppliers, they are generally sold in large quantities. FMCG is probably the most classic case of low margin/high volume business. Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including mobile phones, MP3 players, game players, and digital cameras which are of disposable nature. According to the Grocery Manufacturers Association, US CPG market is worth $2.1 trillion. With retail sales up about 4.9%, according to Moody’s Economy, that probably puts it at about $2.2 trillion. And, with GDP numbers from the IMF indicating that the US only represents about 21.6% of global GDP, the global FMCG market size can be projected to be more than $10 trillion; about one-seventh of the global economy. The FMCG market is still fragmented; especially in some of the fastest-growing emerging markets. Estimates indicate that less than one-quarter of global retail FMCG products sell through the Top 250 Retailers.
The food industry is a complex, global collective of diverse businesses that supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: Regulation: local, regional, national and international rules and regulations for food production and sale, including food quality and food safety, and industry lobbying activities; Education: academic, vocational, consultancy; Research and development: food technology; Financial services insurance, credit; Manufacturing: agrochemicals, seed, farm machinery and supplies, agricultural construction, etc; Agriculture: raising of crops and livestock, seafood; Food processing: preparation of fresh products for market, manufacture of prepared food products; Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc; Wholesale and distribution: warehousing, transportation, logistics; Retailing. The global food and beverage retail industry has witnessed significant growth over the last five years and is expected to continue its growth momentum, reaching approximately US $5,776 billion with a CAGR of 5% over the next five years. Macroeconomic factors such as burgeoning GDP, increasing consumer spending and changing lifestyle, taste, and preferences are expected to drive the industry over the forecast period.
Franchising is the practice of selling the right to use a firm’s successful business model. Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier’s trademark and distribute the supplier’s goods. In return, the operator pays the supplier a fee. Thirty three countries, including the United States, and Australia, have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising. There are approximately 909,253 established franchised businesses, generating $880.9 billion of output and accounting for 8.1 percent of all private, non-farm jobs. This amounts to 11 million jobs, and 4.4 percent of all private sector output.
The economic, financial and military pressures on global governments are especially high in today’s world. Those that perform best under pressure are armed with insight that helps identify new or missed tax revenue opportunities, reduce fraud and waste in human health services, effectively manage key military assets, and analyze and predict events related to security intelligence. From state and local issues – to national security at home and abroad, all levels of government are faced with the daunting task of collecting and analyzing data and assuring compliance, accurately and in real time.
The health care industry, or medical industry, is an aggregation of sectors within the economic system that provides goods and services to treat patients with curative, preventive, rehabilitative, and palliative care. The modern health care industry is divided into many sectors and depends on interdisciplinary teams of trained professionals and paraprofessionals to meet health needs of individuals and populations. The health care industry is one of the world’s largest and fastest-growing industries. Consuming over 10 percent of gross domestic product (GDP) of most developed nations, health care can form an enormous part of a country’s economy. For purpose of finance and management, the health care industry is typically divided into several areas. As a basic framework for defining the sector, the United Nations International Standard Industrial Classification (ISIC) categorizes the health care industry as generally consisting of: hospital activities; medical and dental practice activities; “other human health activities”. This third class involves activities of, or under the supervision of, nurses, midwives, physiotherapists, scientific or diagnostic laboratories, pathology clinics, residential health facilities, or other allied health professions, e.g. in the field of optometry, hydrotherapy, medical massage, yoga therapy, music therapy, occupational therapy, speech therapy, chiropody, homeopathy, chiropractics, acupuncture, etc. The Global Industry Classification Standard and the Industry Classification Benchmark further distinguish the industry as two main groups: health care equipment and services; and pharmaceuticals, biotechnology and related life sciences. Health care equipment and services comprise companies and entities that provide medical equipment, medical supplies, and health care services, such as hospitals, home health care providers, and nursing homes. The second industry group comprises sectors companies that produce biotechnology, pharmaceuticals, and miscellaneous scientific services. Other approaches to defining the scope of the health care industry tend to adopt a broader definition, also including other key actions related to health, such as education and training of health professionals, regulation and management of health services delivery, provision of traditional and complementary medicines, and administration of health insurance. The global medical device industry has experienced significant growth over the last five years and is expected to continue, reaching approximately US $302 billion with a CAGR of 6.1% during the next five years. The medical device industry is comprised of surgical, cardiovascular, home healthcare, general medical and other devices. The industry is highly fragmented, and North America dominates with 46% of the global market. High competitive rivalry prevails with low to moderate barrier for entry into the industry. The aging population and growing demand for convenient and cost-effectiveness products are expected to drive the global home healthcare device industry, and the home healthcare device market is expected to reach an estimated US $29 billion with a CAGR of 3.4% over the next five years. The home healthcare device industry consists of home-based treatment such as glucose monitor, blood pressure monitor, diabetic control device, wheelchair, walking aids, oxygen inhaler, thermometer, home dialysis, test strips, heart rate meters, sleep monitor device, and such other home healthcare devices. A combination of factors such as technological innovations, aging population, rising patient pool, and changing lifestyle is seen to impact the market dynamics significantly.
The hotel industry has experienced tremendous growth and has emerged as a global industry. During the expansion processes and rise of competition, multinational, multi-brand corporations, such as Hilton Hotels Corporation, were in the process of finding new markets and setting priorities. The global luxury travel market recorded strong growth during the past five years. One of the key drivers of this growth was the increasing number of high net worth individuals (HNWIs) globally, primarily in the BRIC countries. This growth in global luxury travel is expected to continue over the next five years. Luxury hotel companies around the world are expected to focus on achieving operational efficiency, reducing spending on customer services that offer little value, developing the use of mobile technology, and targeting high-value customers. Luxury hotel companies are increasingly using mobile technology to enhance value and transforming how they interact with customers. Leading luxury hotel brands had mobile websites and offered mobile applications. Most leading global luxury hotel chains are based in the US, and the country is also the largest source market in the global luxury hospitality sector. Cities in the US are among the leading, and fastest-growing tourism destinations. In Western Europe, the luxury hospitality segment achieved growth of 9%. The European region experienced an overall increase in RevPAR and ADR, although the occupancy rate is expected to remain largely unchanged.
Global supermarket food products sales are predicted to generate revenue in excess of $1.70 trillion, according to research from Global Industry Analysts. Market growth has been driven by the rising importance of consumerism. Since supermarkets first appeared in the US, they have been rolled out all over the globe, with supermarket chains securing their place at the top of the world’s retail chain. Due to the effects of the economic recession, the number of consumer visits to supermarkets has fallen over recent years. However, average spends-per-visit have risen due to a trend that has seen consumers shy away from dining out in restaurants in favor of purchasing prepared food in supermarkets to eat at home. The global hypermarket industry has witnessed changes in recent years. Faced with the obstacle of stricter legislation on expansion, superstore retailers have sought different formats, using in-store services, downsizing stores, and promoting click and collect services. This has lead to a new approach to large format grocery stores, encouraging business to diversifying in terms of the services offered to consumers, reports Verdict. While the traditional hypermarket format is losing popularity in established markets, the big-box format has yet to reach its growth potential in emerging markets.
Global insurance premiums grew by 2.7% in inflation-adjusted terms to $4.3 trillion, climbing above pre-crisis levels. The return to growth and record premiums generated during the year followed two years of decline in real terms. Life insurance premiums increased by 3.2% and non-life premiums by 2.1%. While industrialized countries saw an increase in premiums of around 1.4%, insurance markets in emerging economies saw rapid expansion with 11% growth in premium income. The global insurance industry was sufficiently capitalized to withstand the financial crisis and most insurance companies have restored their capital to pre-crisis levels. With the continuation of the gradual recovery of the global economy, it is likely the insurance industry will continue to see growth in premium income both in industrialized countries and emerging markets. Advanced economies account for the bulk of global insurance. With premium income of $1.62 billion, Europe is the most important region, followed by North America $1.409 billion and Asia $1.161 billion. Europe has however seen a decline in premium income in contrast to the growth seen in North America and Asia. The top four countries generated more than a half of premiums. The United States and Japan alone account for 40% of world insurance, much higher than their 7% share of the global population. Emerging economies account for over 85% of the world’s population but only around 15% of premiums. Their markets are however growing at a quicker pace. The country expected to have the biggest impact on the insurance share distribution across the world is China, which is expected to be the largest insurance market in the next decade or two. The insurance industry comprises establishments that are primarily engaged in the pooling of risk by underwriting insurance (i.e., assuming the risk and assigning premiums) and annuities. The insurance industry is a highly fragmented and includes segments such as life insurance and non-life insurance. The European region currently dominates this industry; however, Latin America, eastern Europe, and the Middle East are expected to lead the industry in the future. Asia is expected to grow the fastest over the next decade.
The Internet continues to grow, driven by ever greater amounts of online information and knowledge, commerce, entertainment and social networking. The estimated total number of Internet users is 2.095 billion (30.2% of world population). It is estimated that the Internet now carries more than 97% of all telecommunicated information was carried over the Internet. Overall Internet usage has seen tremendous growth. The prevalent language for communication on the Internet has been English. Electronic business (E-business) involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. E-commerce seeks to add revenue streams using the Internet to build and enhance relationships with clients and partners. According to research firm IDC, the size of total worldwide e-commerce, when global business-to-business and -consumer transactions are added together, will equate to $16 trillion. I Date, another research firm, estimates the global market for digital products and services at $4.4 trillion. A report by Oxford Economics adds those two together to estimate the total size of the digital economy at $20.4 trillion, equivalent to roughly 13.8% of global sales. While much has been written of the economic advantages of Internet-enabled commerce, there is also evidence that some aspects of the Internet such as maps and location-aware services may serve to reinforce economic inequality and the digital divide. Electronic commerce may be responsible for consolidation and the decline of brick and mortar businesses resulting in increases in income inequality. The global internet access market has total revenues of $242,420.1m, representing a compound annual growth rate (CAGR) of 13.8%. Market consumption volume increased with a CAGR of 10.2%, to reach a total of 573,193.2 thousand subscribers. The performance of the market is forecast to decelerate, with an anticipated CAGR of 8.2% over the next five years, which is expected to drive the market to a value of $359,280.7m.
Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, animals, equipment and liquids, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in logistics for import and export.
Manufacturing is the production of merchandise for use or sale using labor and machines, tools, chemical and biological processing, or formulation. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation. Modern manufacturing includes all intermediate processes required for the production and integration of a product’s components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. The manufacturing sector is closely connected with engineering and industrial design. According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming. Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and for national defense. On the other hand, most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving efficiency, reducing waste, using industrial symbiosis, and eliminating harmful chemicals. The increased use of technologies such as 3D printing also offer the potential to reduce the environmental impact of producing finished goods through distributed manufacturing.
The mass media are diversified media technologies that are intended to reach a large audience by mass communication. The technologies through which this communication takes place varies. Broadcast media such as radio, recorded music, film and television transmit their information electronically. Print media use a physical object such as a newspaper, book, pamphlet or comics, to distribute their information. Outdoor media is a form of mass media that comprises billboards, signs or placards placed inside and outside of commercial buildings, sports stadiums, shops and buses. Other outdoor media include flying billboards (signs in tow of airplanes), blimps, and skywriting. Public speaking and event organizing can also be considered as forms of mass media. The digital media comprises both Internet and mobile mass communication. Internet media provides many mass media services, such as email, websites, blogs, and internet based radio and television. Many other mass media outlets have a presence on the web, by such things as having TV ads that link to a website, or distributing a QR Code in print or outdoor media to direct a mobile user to a website. In this way, they can utilize the easy accessibility that the Internet has, and the outreach that Internet affords, as information can easily be broadcast to many different regions of the world simultaneously and cost-efficiently. The organizations that control these technologies, such as television stations or publishing companies, are also known as the mass media. Corporate media is a term which refers to a system of mass media production, distribution, ownership, and funding which is dominated by corporations and their CEOs. It is sometimes used as a pejorative term in place of mainstream media, which tends to also be used as a derisive term, to indicate a media system that does not serve the public interest. The global broadcast media industry offers significant opportunities for industry players due to increasing mobile television subscribers and a surging entertainment and media market. The market is expected to continue its expansion and reach approximately US $597 billion with a CAGR of 4.5% over the next five years.
Ores recovered by mining include metals, coal and oil shale, gemstones, limestone, and dimension stone, rock salt and potash, gravel, and clay. Mining is required to obtain any material that cannot be grown through agricultural processes, or created artificially in a laboratory or factory. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even water.Mining exists in many countries. While exploration and mining can be conducted by individual entrepreneurs or small businesses, most modern-day mines are large enterprises requiring large amounts of capital to establish. Consequently, the mining sector of the industry is dominated by large, often multinational, companies, most of them publicly listed. It can be argued that what is referred to as the ‘mining industry’ is actually two sectors, one specializing in exploration for new resources and the other in mining those resources. Mining operations can be grouped into five major categories in terms of their respective resources. These are oil and gas extraction, coal mining, metal ore mining, nonmetallic mineral mining and quarrying, and mining support activities. The global mining industry is forecast to witness excellent growth over the next five years. The industry is estimated to reach US $1,783 billion, with a CAGR of 7.4%. The highly fragmented industry comprises the mining of iron ore, coal, precious metals, diamonds, bauxite, manganese, and base metals. The companies in the industry have adopted new technologies to increase productivity. There are numerous challenges faced by the industry. The mining market mainly deals with the iron ore, coal, and various precious metals. The scarcity of raw materials, minerals, and valuable metals affect the industry growth. The mining market could also be affected by the increasing rate of recycling of various materials.
While not-for-profit organizations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or boards. Many have paid staff including management, while others employ unpaid volunteers and even executives who work with or without compensation (occasionally nominal). Where there is a token fee, in general, it is used to meet legal requirements for establishing a contract between the executive and the organization. Designation as a nonprofit does not mean that the organization does not intend to make a profit, but rather that the organization has no owners and that the funds realized in the operation of the organization will not be used to benefit any owners. The extent to which an NPO can generate surplus revenues may be constrained or use of surplus revenues may be restricted. Some NPOs may also be a charity or service organization; they may be organized as a not-for-profit corporation or as a trust, a cooperative, or they exist informally. A very similar type of organization termed a supporting organization operates like a foundation, but they are more complicated to administer, hold more favorable tax status and are restricted in the public charities they support. Their goal is not to be successful in terms of wealth, but in terms of giving value to the groups of people they administer to. NPOs have a wide diversity of structures and purposes. For legal classification, there are, nevertheless, some elements of importance: Economic activity; Supervision and management provisions; Representation; Accountability and auditing provisions; Provisions for the amendment of the statutes or articles of incorporation; Provisions for the dissolution of the entity; Tax status of corporate and private donors; Tax status of the foundation. Some of the above must be, in most jurisdictions, expressed in the charter of establishment. Others may be provided by the supervising authority at each particular jurisdiction. While affiliations will not affect a legal status, they may be taken into consideration by legal proceedings as an indication of purpose. Most countries have laws which regulate the establishment and management of NPOs, and which require compliance with corporate governance regimes. Most larger organizations are required to publish their financial reports detailing their income and expenditure publicly. In many aspects they are similar to corporate business entities though there are often significant differences. Both not-for-profit and for-profit corporate entities must have board members, steering committee members, or trustees who owe the organization a fiduciary duty of loyalty and trust. A notable exception to this involves churches, which are often not required to disclose finances to anyone, including church members.
The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels of oil per year, with developed nations being the largest consumers. The United States consumes 25% of the oil produced. The production, distribution, refining, and retailing of petroleum taken as a whole represents the world’s largest industry in terms of dollar value. Governments such as the United States government provide a heavy public subsidy to petroleum companies, with major tax breaks at virtually every stage of oil exploration and extraction, including the costs of oil field leases and drilling equipment. The global oil storage industry has seen strong growth due to the increase in oil prices over the last decade. However, oil prices have witnessed a sharp dip due to the global economic crisis. The decline in profit margins due to decreasing oil prices and highly inflated asset values will affect future storage dynamics. The existing storage terminal operators are already experiencing a severe reduction in fresh investments in the market. Regional tax policies are also likely to affect any storage investments. Therefore, new entrants into the storage industry will face tough market conditions due to low profit margins. The rise in oil demand due to economic growth in South East Asia is likely to propel storage industry growth in the region. The lack of robust storage infrastructure in large oil consuming countries such as China is driving the oil storage industry in the region. China is one of the largest oil consumers in the world and in order to secure its future oil needs the country is increasing its crude oil storage capacity. China is building huge storage facilities to increase its oil reserve capacity and aims to set up reserves capable of meeting 90 to 100 days of domestic crude oil consumption. The value of the global oil and gas equipment and services market is deemed to be the revenues accrued by the manufacturers of equipment, including drilling rigs and equipment and providers of supplies and services to companies involved in the drilling, evaluation and completion of oil and gas wells. The global oil & gas equipment & services market has total revenues of $387.8bn, representing a compound annual growth rate (CAGR) of 1.7%. The manufacturers of oil rigs and drilling equipment segment is the market’s most lucrative, with total revenue of $121.2bn, equivalent to 31.3% of the market’s overall value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 9.2% for during the next five years, which is expected to drive the market to a value of $601.4bn.
The pharmaceutical industry develops, produces, and markets drugs or pharmaceuticals licensed for use as medications. Pharmaceutical companies are allowed to deal in generic or brand medications and medical devices. They are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. Drug companies are like other companies in that they manufacture products that must be sold for a profit in order for the company to survive and grow. They are different from some companies because the drug business is very risky. For instance, only one out of every ten thousand discovered compounds actually becomes an approved drug for sale. Much expense is incurred in the early phases of development of compounds that will not become approved drugs. In addition, it takes about 7 to 10 years and only 3 out of every 20 approved drugs bring in sufficient revenue to cover their developmental costs, and only 1 out of every 3 approved drugs generates enough money to cover the development costs of previous failures. This means that for a drug company to survive, it needs to discover a blockbuster (billion-dollar drug) every few years. Industry-wide research and investment has reached a record $65.3 billion. While the cost of research in the U.S. is about $34.2 billion, revenues rose by $200.4 billion. A study by the consulting firm Bain & Company reported that the cost for discovering, developing and launching (which factored in marketing and other business expenses) a new drug (along with the prospective drugs that fail) rose over the last five years to nearly $1.7 billion. According to Forbes, development costs are between $4 billion to $11 billion per drug. The United States accounts for more than a third of the global pharmaceutical market, with $340 billion in annual sales followed by the EU and Japan. Emerging markets such as China, Russia, South Korea and Mexico outpaced that market, growing a huge 81 percent. According to IMS the global pharmaceutical industry is estimated at US$1.1 trillion.
The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. The major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment, or intangible, as is the case with patents and trademarks. This sector also includes establishments primarily engaged in managing real estate for others, selling, renting and/or buying real estate for others, and appraising real estate. These activities are closely related to this sector’s main activity, and it was felt that from a production basis they would best be included here. In addition, a substantial proportion of property management is self-performed by lessors. The main components of this sector are the real estate lessors industries (including equity real estate investment trusts (REITs); equipment lessors industries (including motor vehicles, computers, and consumer goods); and lessors of non-financial intangible assets (except copyrighted works). After years of decline in the wake of the sub-prime mortgage crisis, the credit crunch and the Great Recession, the Real Estate Sales and Brokerage industry is finally beginning to recover. Although revenue remains below its pre-recession peak at the height of the housing bubble, during the next five years, industry revenue is expected to increase at an annualized rate of 3.4% to reach $114.0 billion.
The global restaurant industry has been forecast to reach a value of $2.1 trillion, driven by increasing preference for eating out and waxing demand for take away foods among modern time crunched consumers. Robust growth in the number of franchise restaurants, especially exotic fast food restaurants, cafés and snack bars will translate into increased revenues in the industry in the upcoming years. In this age of busy lifestyles, where people are left with little time to spend on preparing food at home, eating out at restaurants has become a common practice. Preference for restaurant food is even higher among younger consumers with high disposable incomes but very little time to spare. This scenario provides an opportunity for restaurateurs to offer food service options in morning breakfast, brunch, meals and dinner. Franchising of restaurants, food joints, and even food products and ingredients has helped boost overall growth in the global restaurant industry in recent years. There are about 8 million restaurants in the world and some 300,000 restaurant companies. The world fast-food industry is expected to generate almost $240 billion, representing a 19% increase over five years. The market is predicted to reach a volume of almost 249 billion transactions. Quick-service restaurants represent the leading market segment, with 71% of overall market value. The Americas represent almost half of the global market share. Fast food had been thought to be largely recession proof, and indeed the industry did not suffer nearly as much as other discretionary spending sectors. In fact, there was some increase in consumer visits as people choose cheaper fast food options over fast casual or traditional restaurant choices. But overall, the recession hurt spending, and consumers overall purchased less with each trip. Fast food franchises fared reasonably well but still felt some pain. The restaurant world is growing beyond the usual suspects like Brazil Russian India and China – the “BRICs” get a lot of attention from the media, but there are untold stories of other emerging markets that food service executives should be considering. There are approximately 15 million restaurants in the world and approximately 1/3 of them are in China. Of course, the majority of those 5 million Chinese restaurants are street stalls, independently owned/operated and/or small chains by American standards. The number one “chain restaurant” market in the world is still the USA, but the largest population centers in the world are India and China. It is forecast that as consumers in China (and India and other emerging markets) continue to grow wealthier and enjoy more buying power, that big-budget Western brands will go in and win not just a share of the growth in these markets but also claw-away share of the existing market; edging out less sophisticated and well-funded incumbent enterprises.
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. An increasing amount of retailing is done using online websites, electronic payment, and then delivered via a courier or via other services. Rising GDP growth, burgeoning population, greater disposable income, and increasing consumer spending are combining to drive the Global Retail industry and opportunities for retail segment players. The market is forecast to reach an estimated $20,002 billion with a CAGR of 3.9% over the next five years. The retail industry comprises establishments engaged in selling merchandise or commodities for personal or household consumption, mainly consisting of apparel and accessories, technology, food and beverages, home improvement, specialty, pharmaceuticals, and others. Recently, as developed nations begin to emerge from recession, their economies recover, and unemployment rates begin to fall, the market segments are experiencing some renewed growth. The retail industry is highly fragmented and is dependent on macroeconomic factors such as GDP, disposable income, and consumer spending. Asia Pacific (APAC) dominates the industry, representing 35% of the global market. The APAC retail industry is expected to drive the market and grow at the highest rate among all regions. The global economic recession, inflation, and high unemployment rates are some of the challenges that are negatively affecting the retail industry. Conversely, some factors that are likely to boost sales in the industry include urbanization, technological growth, increase in product demand and selection, and the continued popularity of online purchasing. A combination of factors such as demographics and consumer spending habits impacts market dynamics significantly.
Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise. The business value of information technology lies in the automation of business processes, provision of information for decision making, connecting businesses with their customers, and the provision of productivity tools to increase efficiency. The global IT Services industry holds significant opportunities for industry players due to increasing IT spending in the healthcare, retail, and transportation sectors, among others. The market is forecast to reach an estimated US $1,147 billion with a CAGR of more than 5%. The global IT services industry comprises services related to the application of business and technical expertise to enable organizations to create, manage, optimize, and access information and business processes. The industry’s scope includes product support services such as hardware and software maintenance and professional services such as IT consulting, development, and integration services. North America, with 42% of the global market share, dominates the highly fragmented global IT services industry. Outsourcing locations such as India, China, Vietnam, and the Philippines are anticipated to be key drivers because of their low-cost labor and skilled talent pools. The APAC IT services industry is expected to register the highest growth rate among all regions during the forecast period and lead the industry. Government-backed reforms are expected to contribute to significant increases in spending for IT investments. In addition, by generating new opportunities for IT vendors globally, cloud computing is expected to reshape the industry. It is anticipated to offer immense opportunity to penetrate in the small and medium business sector. High volatility in currency exchange rates, a shrinking talent pool, and high labor costs in developed countries are some of the major challenges for the IT services industry. The increasing global demand for systems, software, and services, as well as IT spending by governments, and the banking and financial sectors are likely to boost the IT services market. The industry is highly correlated with economic cycles as IT services are project based and often represent discretionary spending.
Telecommunication is communication at a distance by technological means, particularly through electrical signals or electromagnetic waves. Due to the many different technologies involved, the word is often used in a plural form, as telecommunications. Increased demand for high speed internet access and bandwidth in an untapped emerging market were the major drivers for the growth of the industry. The telecommunication services industry experienced good growth during the last five years and is expected to continue its growth momentum, reaching approximately US$1,776.7billion with a CAGR of 3.8% over the next five years. The global telecommunication services industry is expected to witness good growth as an increase in demand of social portals such as Facebook and Yahoo are expected to boost mobile VoIP applications for increased usage of wireless services through smart phones. High demand of network technologies such as HSPA/LTE would provide capacity, speed, and cost efficiency and enable mobile broadband development. Companies driven by innovations in technologies are expected to gain market share globally. Wireless and broadband are attractive growth avenues in the forecasted period. After the US credit crunch and increased sub-prime lending, the global economy rebounded due to increased disposable income and spending growth in advanced technologies, industry push by government stimulus packages, and foreign direct investment boosted the industry growth. Increasing disposable income, demand for high volumes of data application, increasing demand of 3G, edge, and 4G technologies, convergence of services, and competition for access in homes and businesses are the major drivers for the industry. The industry is expected to face certain challenges such as increased regulatory compliance, rapid deployment of new service bundles, high customer demand for innovative products and services, customer acquisition and retention, and increased network traffic. The global telecommunication equipment industry is expected to witness modest growth and reach an estimated $214.5 billion with 2.7% CAGR over the next five years. Asia Pacific (APAC), followed by North America and Europe, witnessed growth propelled by the demand of advanced technological products and video conferencing equipment. Over the next five years, North America is expected to experience the highest growth. Due to the acute competition in the industry, the equipment makers are opting for mergers and acquisitions to maintain propitious market position. Expanding liberalization is one of the major factors instigating a strong market competition. Some of the more attractive opportunities are focused on 3G wireless technologies and emerging 4G technologies.
The global transportation services industry is expected to witness modest growth and reach an estimated US $2,735 billion with a CAGR of 2.5% over the next five years. Growth is expected to be driven by government infrastructure investments, improved economic conditions, rise in industrial production, and mining activities. The global transportation services industry consists of revenues generated from freight transportation by road, rail, air, and marine modes. The industry is capital-intensive and demand is driven by macroeconomic trends in global imports and exports. The intensity of competition varies depending on the specific industry; the road transport sector for example, usually experiences the highest level of rivalry, while railways, as natural monopolies, suffer less from direct competition. North America dominates this market and is forecast to witness the highest growth over the next five years. A strong economy is expected to fuel the demand for freight growth in Canada and other nations. Marine Freight transportation services are forecast to register the highest growth over the next five years. Tightening infrastructure capacity and increased fuel prices, decline in import and export activity, slowdown of global trade, and vehicle regulations are key challenges for the industry. Resumption of growth in the worldwide merchandise trade is likely to create more demand for freight transportation services. The global road freight transportation services industry experienced good growth over the last five years and is expected to continue that momentum to reach approximately US $2,021 billion. The industry is anticipated to have a CAGR of 2.4% over next five years. The global road freight transportation services industry is fragmented. The North American region dominates this market as improvements in the shipping supply chain are driving the growth of the road freight market in that region. A combination of factors, including high fuel costs, government regulations, and increasing road congestion, impact industry dynamics significantly. Despite a decline during the recession, the market witnessed considerable growth in the following years. Driving growth were government incentives to adopt green technologies that are strengthening the business case for hybrid power train systems and increasing demand for road freight, driven by modest economic growth. Retaining drivers, a shortage of drivers, high cost of truck downtime, and highway funding are among the biggest challenges for the industry. Investment in transport infrastructure, increasing global trade activity, high demand for import and export of goods, increase in consumer demand for goods, and expanded mining activities are expected to boost the industry in the future. Asia Pacific and Rest of the World markets are expected to grow rapidly over the next 10 years due to the presence of high growth potential markets such as China, India, Vietnam, and others.
Tourism is travel for recreational, leisure, or business purposes, usually of a limited duration. Tourism is commonly associated with trans-national travel, but may also refer to travel to another location within the same country. The World Tourism Organization defines tourists as people “traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”. The direct contribution of Travel & Tourism to the world economy has grown by 3.1%, contributing US$2.2 trillion to world gross domestic product (GDP) and 101 million jobs. Taking its wider supply chain impacts into account, Travel & Tourism’s total contribution to global GDP has grown by 3.0%, faster than overall economic growth and outperforming other global sectors such as manufacturing, retail and distribution, public services and financial and business services. Travel & Tourism represents US$7.0 trillion, 266 million jobs, US$754 billion in investment and US$1.3 trillion in exports. 1.4 million additional jobs have been generated directly in the sector, and in total, 4.7 million new jobs have been created as a result of tourism activity. The total contribution of Travel & Tourism to employment has grown by 1.8%. Travel & Tourism’s contribution equates to 9.5% of total economy GDP, 1 in 11 of the world’s total jobs, 4.4% of total investment and 5.4% of world exports.
A public utility is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies. The term utilities can also refer to the set of services provided by these organizations consumed by the public: electricity, natural gas, water, and sewage. Telephone services may occasionally be included within the definition. In the United States of America, public utilities are often natural monopolies because the infrastructure required to produce and deliver a product such as electricity or water is very expensive to build and maintain. As a result, they are often government monopolies, or if privately owned, the sectors are specially regulated by a public utilities commission. The European region currently dominates the global utilities industry, but Asia Pacific (APAC) is expected to lead the industry. The overall market is estimated to reach US $4,372 billion with a CAGR of 3.9% over the next five years. The global utilities sector provides services such as electric power, natural gas, and water supply as well as sewage removal through a permanent infrastructure of lines, mains, and pipes. The industry is fragmented with many players. The sector consists of electricity, natural gas, and water utilities. Electric utilities are the main segment of the global utilities industry. Population and economic growth, particularly in developing countries, are driving the demand for utilities. Improving economic conditions, especially in emerging economic regions such as APAC, are expected to have a major impact on the industry. APAC is expected to be the fastest-growing consumption market based on its continued rapid economic growth. China and India are likely to play significant roles in rising energy demand globally. Decaying infrastructure creates a major obstacle that can contribute catastrophic increases in power failure rates, and enormous maintenance and replacement costs. Additionally, aging pipelines cause water loss through leakage and other operational issues. A mature work force presents another major challenge, as utilities companies require skilled labor.