Security and AI are at the top of corporate spending as companies look for effective improvements
- The GSMA report claims that cybersecurity spending will increase by the end of the decade
- Unsurprisingly, 5G will generate 2.5x more investment than 4G by 2030
- Telcos must help companies undergo digital transformations
Most companies are not responding to the difficult economic conditions by making cuts, but are trying to increase their revenues, new research shows.
A new GSMA report shows that three-fifths of companies are now prioritizing revenue growth, customer experience and competitiveness to help grow their business, rather than making reactive decisions to reduce costs.
But the research also shows that cybersecurity is at the top of the list for many companies, and investment will continue to grow in the long term.
Companies invest in future growth
The report notes that companies plan to spend a significant 9% of their revenue on cybersecurity over the 2024-2026 period, with that figure increasing by two percentage points to 11% over the 2027-2030 period.
In addition to increasing security, companies have also expressed their commitment to investing in artificial intelligence and improving their connectivity.
Most (85%) now see 5G networks and connectivity as important, with an average of 21% of digital transformation budgets set to be for connectivity – 13% for mobile and 5G and 8% for fixed and Wi-Fi. Between 2024 and 2030, investment in 5G is expected to be 2.5 times greater than in 4G, with high-mobility sectors such as automotive, transport, logistics and warehousing driving much of this investment.
Finally, AI spending will continue as companies look for productivity and efficiency improvements. It already accounts for 14% of enterprise technology spend, with 90% of companies having integrated the technology in some form. However, the room for growth is enormous as only a third are using it in ‘advanced’ ways.
“Telco companies need to go beyond just offering network services, as companies are increasingly looking for partners who can help them throughout their entire digital transformation journey, combining technologies such as 5G, AI, IoT and cloud to improve efficiency, security and increase revenues,” said Pablo Iacopino, head of research at GSMA Intelligence.