Information

Performance Highlights

Consumer demand for media is steady, but revenue within the Information sector is uneven and driven by trends in technology. Strong expansion is concentrated in online publishing and data processing, stemming from a proliferation of new consumer devices. The COVID-19 pandemic disrupted some subindustries within the sector, leading to temporary revenue dips, but a resurgence in economic activity is driving recovery.

Geographic Distribution

The highest concentrations of businesses are in California, New York, Texas, and Florida due to large populations and economic activity. Urban markets attract numerous competitors, whereas rural markets often have fewer providers.

Industry Outlook

Revenue is expected to grow at a CAGR of 2.2% from 2024 to 2029, reaching $2.7 trillion. Demand for telecommunications services will increase with the rollout of 5G and satellite internet. Technological advancements in AI, cloud computing, and cybersecurity will drive industry growth.

Competitive Forces

The industry is characterized by low concentration and high competition. Barriers to entry are high due to significant legal requirements and start-up costs. Successful businesses must navigate complex regulations, secure a skilled workforce, and adopt new technologies quickly.

Major Companies

Notable players include AT&T Inc. (7.1% market share), Verizon Communications Inc. (5.6% market share), Alphabet Inc. (4.0% market share), Microsoft Corporation (3.4% market share), and Comcast Corporation (3.3% market share).

Revenue

$2.4 trillion

Employees

4 million

Businesses

467,000

Wages

$597.9 billion

Economic and External Factors

The sector benefits from an expanding number of businesses and households, particularly in higher-income quintiles. High levels of vertical integration exist, particularly between TV content creation and distribution. Advertising expenditure is on the rise, reflecting a boost in promotional campaigns to capture consumer spending.