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Technology and media have long shaped our daily lives, but the coming years promise to take these areas to a whole new level. The “Activate Technology & Media Outlook 2025” provides a unique insight into how the landscape of the Internet, media, software, and e-commerce will change. Key trends include the rapid growth of the global market, the e-commerce revolution, the boom in generative AI, and the transformation of video content. Let’s take a closer look at 15 interesting facts from the “Activate Technology & Media Outlook 2025” forecast.
We anticipate that the global technology and media market will grow by $1.1 trillion over the next four years. The global consumer internet and media business will increase from $2.6 trillion in 2024 to $3.0 trillion in 2028, adding more than $400 billion. B2B technology and software revenues will rise from $2.5 trillion to $3.2 trillion, which means an additional $729 billion.
The average American spends more than 13 hours every day using technology and media. By 2028, this figure will increase to 13:17 hours, generating more than $10 billion in annual revenue from consumer internet and media in the U.S.
It’s becoming vital for media companies to find and serve the “super users” – the 24% of adults who spend twice as much time with technology and media as others. This group has a significant impact on spending in e-commerce, video games, music, and video. Super users are the first to test and buy new technologies.
Generative AI is rapidly changing the way people search and discover information, already covering 60% of search queries. Our research shows that 15 million U.S. adults start their searches through generative AI platforms, and we forecast this number to grow to 36 million by 2028. Although traditional search engines are implementing AI in their results, this is unlikely to deter the popularity of specialized AI tools.
The global e-commerce market will grow by more than $3 trillion in four years. Although 60% of the world’s online turnover is generated by the 10 largest companies, other players can still take more than $2 trillion. Consumers of different age groups have become omnichannel shoppers, using various online channels, including platforms with support for generative AI. Retailers are turning into media companies that will receive more than $100 billion in advertising revenue by 2028.
It is expected that by 2028, the number of gamers in the world will exceed 3.5 billion, and video game revenues will reach $200 billion. Mobile games will account for half of this revenue and become the main driver of growth. “Supergamers” (34% of US gamers), who spend almost four hours a day playing games, will be key to the development of the industry. Besides, generative AI will reduce barriers to game creation for both users and developers.
The moment of real breakthrough for spatial computing is near, as the necessary devices, artificial intelligence, and data ecosystem are almost ready to launch. We expect that by 2027, shipments of dedicated devices for edge computing will reach 50 million units. However, the real boom may come with the advent of transparent headsets that combine artificial intelligence and spatial intelligence, backed by a large data network.
We predict that people will spend more time watching social videos over the next four years, reaching almost an hour a day per user. Revenues for the top social video platforms – Instagram, TikTok, YouTube, and Facebook – will accelerate. The main content will continue to be created by creators, providing most of the audience engagement on each platform.
Today there are many streaming services with large audiences. We expect these services to merge in the coming years. Streaming platforms are raising prices for ad-free subscriptions, encouraging users to switch to cheaper advertising plans that generate more revenue per user. At the same time, free streaming services are gaining momentum and will continue to grow. The US TV market will change when broadband-only households surpass traditional cable households by 2028.
Sports has always been a leader in terms of the number of views on television. In this regard, streaming services are actively acquiring the rights to broadcast major sports leagues and events, which will accelerate the transition of sports from television to paid streams. Sports betting will become an important driver of sports fan engagement, and we forecast that total US wagering will reach nearly $200 billion by 2028. Women’s sports are gaining popularity with a fan base of 100 million. Private equity investments in sports teams will increase.
Global consumer spending on live events and experiences will grow to nearly $160 billion by 2028, driven by increased demand for professional sports and live music. New stadiums and arenas will be invested in to meet this demand and enhance the spectator experience. The B2B trade show industry in the US will recover to pre-COVID-19 levels, reaching $15 billion by 2028.
The average user spends approximately 2 hours and 49 minutes listening to music every day. Most audio listeners choose a variety of formats: music, podcasts, and audiobooks. More and more people who listen to music are becoming music creators, using AI-based tools to create and distribute their tracks. However, the ease of creating music with AI can lead to new forms of piracy. We also see an increase in investments in music by private investment funds.
Spending on B2B technologies (software, devices, and services) is expected to grow by $800 billion over the next four years. To attract these funds, technology and software vendors will have to create customized approaches to customers, taking into account the needs of different stakeholders, adapt to shorter sales cycles and contract lengths, focus on product features that customers value most, and offer AI solutions that deliver real return on investment. Investments in this area will continue to grow and are likely to reach new heights.
More than half of global internet and media revenue growth from 2024 to 2028 will come from advertising. Platforms that make the most efficient use of consumer data, such as connected TV and retail media, will be the main drivers of the advertising market growth. Large retailers around the world are expanding their presence in connected TV, integrating their trading processes with an expanded set of media assets. In the future, the advertising industry will be driven by an extensive data ecosystem to determine audience, attribution and results, changing the way advertising is bought and sold.
There is a significant digital divide between generations. While technology and media behavior are becoming more mainstream, Generation Z (18-27 years old) and Millennials (28-43 years old) are much more digitally immersed than Generation X (44-59 years old) and Baby Boomers (60-78 years old). Each generation has its own unique preferences for media activities and services they use. Companies have the opportunity not only to cater to the youngest generations, who are pioneers in the adoption of new technologies, but also to bridge the digital divide with adapted solutions for older generations.