spike circle

Analysis

Technology, media, and telecommunications M&A update: Q1 2024

The revenue management segment continues to experience growth and investment from investors, underscoring the growing recognition of its critical role in optimizing business profitability.

Technology, media, and telecommunications trends

  • Software: Automation and data analytics
    Global robotic process automation (RPA) software spend is projected to increase 31.1% year over year in 2024, driven largely by businesses seeking to enhance operational efficiency and resilience amid economic uncertainty and heightened investor scrutiny.1 
  • Software: Experience, MarTech, and revenue management
    Proliferation of AI and machine learning within legacy marketing platforms is forcing business leaders to adapt and implement integration strategies, with 47% of MarTech leaders currently employing Generative AI to enhance customer experience and drive revenue growth.2
  • Software: E-commerce and retail
    Underpinned by favorable tailwinds surrounding the adoption of social media, global e-commerce sales are expected to grow at a CAGR of 9.8% from 2024 to 2028, led by the United States at 11.8%.3
  • IT services: Global IT services
    The global IT services market is estimated to grow at a CAGR of 9.7% through 2030, driven in the near term by accelerations in Generative AI adoption and momentum in cloud migrations.4
  • Media and entertainment: Advertising and publishing
    News publishers are facing rising churn rates—from 3.0% to 5.5% since 2021—and news avoidance despite 73% of digital leaders reporting increased digital subscriptions in 2023.5
  • Media and entertainment: Film and television broadcasting, distribution, and production
    Despite significant gains in the domestic box office total since 2022, results still lag more than 20% compared to the pre-pandemic period; this is largely due to an overreliance on consumer fatigue related to long-running franchises and fewer new releases from major studios.6

Technology, media, and telecommunications quarterly update: Q1 2024

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References

1. Petrolac Taylor, “Amount of data created, consumed, and stored 2010–2020, with forecasts to 2025,” Statista, November 16, 2023.
2. Gartner, “Gartner survey reveals 87% of marketers are concerned about technology replacing jobs in their industry,” press release, February 27, 2024.
3. Statista, “Retail e-commerce sales compound annual growth rate (CAGR) from 2024 to 2028, by country,” accessed March 31, 2024.
4. Grand View Research, IT services market size, share & trends analysis report, accessed March 31, 2024.
5. Amalie Nash, “Digital subscriptions: Trends for 2024 and what publishers can do to grow,” Local Media Association, January 24, 2024.
6. Box Office Mojo, “Domestic yearly box office,” accessed March 31, 2024.

 

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