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EY confident supply chain sustainability will change world

In mid-March, TBR met with EY leaders to learn about their latest efforts around supply chain and sustainability, extending our previous discussions with the firm covering these areas separately. TBR heard from Glenn A. Steinberg, EY’s Global Supply Chain and Operations leader; Velislava Ivanova, EY’s chief sustainability officer and Climate Change and Sustainability Services leader for the Americas; Rae-Anne Alves, EY’s ESG (Environmental, Social and Governance) and Sustainability Supply Chain leader for the Americas; Martin Neuhold, EY’s Europe West Supply Chain & Operations leader; Lauren Rogge, EY’s senior manager of Climate Change and Sustainability Services; and Akshay Honnatti, EY’s U.S. Sustainability Tax leader.

Standing out by understanding the problem, defining it and tackling it head-on

During the hourlong discussion, three key observations emerged. First, the EY leaders’ emphasis on the global nature of supply chain and sustainability echoed the firm’s ongoing efforts to operate more seamlessly across international — and member firm — borders. Steinberg acknowledged EY’s Europe-based supply chain practice has been a leader globally, with more depth and experience than the Americas and APAC practices, but reiterated the globally integrated nature of EY’s approach to supply chain sustainability. Second, EY presented client stories centered primarily on traditional consulting engagements and outcomes, including strategies, road maps and change management. EY’s decision to play to its core strengths and avoid promoting technology for technology’s sake reinforces the firm’s overall strategy and its approach to clients’ business problems. And third, EY presented five themes, detailed below, which appeared to TBR to be split between regulator-driven and client-driven approaches. Given the nascency of supply chain sustainability as an EY practice and a priority for EY clients, TBR believes this five-themed framework can serve as a useful guide for clients, investors, regulators and any interested parties across both supply chain and sustainability. In short, expanding globally, playing to core consulting strengths and crafting a framework that resonates should be a solid formula for sustained growth.

To set the stage for the discussion, the EY team said their firm’s Supply Chain & Operations Consulting Practice is set to reach 30% year-to-year growth in 2021, and upward of 40% growth in the Americas. Among the drivers for that growth, EY mentioned ongoing shipping disruptions, excessive supply concentration risks and expiring legacy on-premises IT systems. As enterprises invest in tackling multiple related supply chain and operations challenges and increasingly tie every aspect of their business to sustainability goals, EY has seen new roles emerge, including a chief sustainability officer. In all, EY painted a picture of continued uncertainty around financial and regulatory pressures compounded by macro trends outside of most enterprises’ control. In other words, a perfect environment for consulting.

5 key trends define the supply chain challenges now, next and beyond

To make sense of the chaos, EY explained its framework for chief supply chain officers, including a version of EY’s customary “Now, Next, Beyond” approach, and then five key trends explaining what actions and investments their clients have undertaken (at EY’s recommendation). To set the framework, EY defined resiliency as the combination of visibility and agility, with clients encouraged to fully understand their supply networks, including their operating models and workforces.

Similarly, EY defined sustainability as the commonly used combination of environmental, social and governance, with the emphasis here more on clients taking an outside-in view of themselves. Rounding out the framework, EY described the “Now” as “cost-optimized, manual, rigid and linear,” the ”Next” as “agile networked ecosystems,” and the “Beyond” as “autonomous.” Within that framework, EY then introduced five key objectives:

  1. Ensure sustainable and diverse sourcing
  2. Enable traceability, visibility and disclosure
  3. Decarbonize the value chain
  4. Introduce circularity into your business model
  5. Assess impact of new taxes and incentives for a sustainable supply chain

In TBR’s view, Nos. 2 and 5 reflect the changing regulatory pressures around sustainability and increasing calls for structured, common reporting requirements (see this TBR assessment of an EY webcast on this exact issue). Nos. 1, 3 and 4 focus on enterprises themselves and the changes needed to meet sustainability goals and ensure enduring results.

A coherent and complete sustainable supply chain and operations framework

To illustrate the importance EY places on the framework, the EY team walked TBR through several use cases, all tied explicitly to one or more of the five objectives. Across the use cases, three points stood out to TBR. First, one of EY’s most compelling use cases has been EY itself. The EY team shared an example of a global retailer seeking EY’s advice on diversity, equity and inclusion (DE&I) improvements based on what the client understood about EY’s own internal DE&I success. Second, EY’s technology integrations appeared to be a seamless component of solving a client’s problem, rather than an attempt to shoehorn technology into an engagement to sell a solution. And third, EY’s ability to bring regulatory expertise, particularly around tax issues, consistently elevated the firm’s value with clients.

EY has not been alone in trumpeting its own internal success, layering technology into consulting engagements and bringing governance, risk and compliance expertise to the table. What may separate EY, in TBR’s view, is the coherence and completeness of EY’s sustainable supply chain and operations framework. Repeatedly, the EY team came back to the trends affecting the firm’s clients and recognizing the opportunities to make fundamental changes, not simply short-term operational cost-takeout measures. One example of this long-term thinking came from Steinberg, when he noted that the “circular economy is one of the main levers to decarbonization.”

In EY’s own estimation, clients looking to “introduce circularity” into their business model will need to grapple with, among other challenges, “consumption of resources faster than regeneration cycles with an over-reliance on resources which don’t replenish themselves fast enough to sustain the ever-growing demand” and “regulatory requirements” which may create “extended producer responsibility, waste reduction regulations and the banning of certain products and materials.” Most enterprises have not planned for resources regeneration cycles and waste reduction regulations, but EY appears to understand most enterprises eventually will, so the smarter clients will start now, with EY’s guidance.

Comes down to measurement: Who decides, who measures, who cares

TBR believes sustainability and supply chain challenges require strategy consulting and change management-led approaches, not technology-driven solutions, which plays to EY’s strengths in the near term. As clients’ own sustainability competencies mature, EY should be well positioned to provide technology-enabled solutions to help clients sustain their decarbonization efforts. EY works with its Alliance Partners including Microsoft, SAP, Enablon, and P&G to develop and deploy new ESG solutions in the market focused on ESG reporting, carbon emissions, decarbonization, supply chain and product transparency. They have also formed a partnership with Nottingham Spirk, a product innovation company, around embedding ESG criteria into product design for its clients.

TBR’s favorable assessment of EY’s potential hinges in large part on EY’s track record for layering both trust and data into the firm’s consulting and technology solutions. The most critical element for sustainability will be measurement, starting with how the enterprises, regulators, employees and investors come to agreement on definitions for “sustainable” and “decarbonization.” If EY can lead that discussion and provide its clients with meaningful answers, the firm will stay ahead of the sustainability curve and continue growing its supply chain and operations practice.

 

Demand for 5G infrastructure is becoming more robust, though commercial deployments will be delayed by supply chain headwinds in the short term

Supply-demand imbalance delays pace of 5G market development

The pandemic has prompted enterprises and governments to pull forward and broaden the scope of their digital transformations, primarily for business resiliency and cost-reduction purposes but also for tapping into new market opportunities. There is significant interest among governments and enterprises across verticals in leveraging 5G and other new technologies such as AI and edge computing, to adapt economies and societies to the new normal. Though demand for 5G infrastructure is becoming more fertile and robust, deployments are being challenged by supply chain limitations.

Though most network vendors successfully navigated supply chain headwinds in 2021 and were nearly able to fully meet demand, 2022 will be more challenging as inventories are now thinner and the shortages of chips, components and labor are impacting the telecom industry more directly. Technological complexity, standards delays and geopolitical encumbrances also threaten to slow the pace of 5G ecosystem development despite broad interest in the technology. There are two primary impacts from the supply chain breakdown: The timing of revenue recognition and cash flow for vendors is altered, and the ability of communication service providers (CSPs) to meet their build-out timelines and participate in market development is hindered.

TBR sees no easy fix to resolve the supply chain issues; rather, it will be a series of small adjustments over time that will enable the supply side to fully recover and meet demand (e.g., it takes a few years to build new chip factories). This is compounded by a demand environment that is above the historical trendline, which is driven by unprecedented government market support and greater pressure on CSPs to invest in their networks to remain competitive.

Related content:

Webinar: 2022 Predictions: Telecom

Special report: Top 3 Predictions for Telecom in 2022

Top 3 Predictions for Devices in 2022

Devices demand to decelerate in 2022

Devices market will see growth return to pre-pandemic levels throughout 2022

Many thought the initial surge in devices demand would quickly fade after the start of the COVID-19 pandemic, but that has not been the case. Revenue growth across the ecosystem, especially in PCs and tablets, has been much higher in recent quarters than traditional single-digit growth. However, this current elevation is unsustainable.

Over the past two years, the devices market has seen a major industry shift in supply and demand that has reshaped the ecosystem and has led to strong and consistent growth from most device vendors. It began with factory closures that hurt early 2020 supply chains and revenue growth, followed by a major spike in demand for devices used to entertain, work and learn from home during the pandemic. A shortage of components has led to this demand being unmet as of the end of 2021, leaving TBR to question whether vendors will be able to maintain revenue growth, unit sales and average unit revenues in the long term.

TBR expects a drop in demand and revenue growth by the end of 2022 due to these unsustainable conditions; however, other factors will emerge to help stabilize the devices market at pre-pandemic levels. These trends include continued revenue growth, albeit at a decelerated, low-single-digit pace rather than the 20%-plus year-to-year growth seen since mid-2020, as well as vendors’ releases of Windows 11 PCs and additional 5G device enhancements to drive refreshes in the coming year.

2022 devices predictions

  • PC market growth unsustainable, will return to single digits in 2022
  • Tablet market revenue growth set to decelerate in 2022
  • DaaS will lead all PC services in revenue growth through 2022

Learn more in our webinar 2022 Predictions: Devices

Send me a free copy of TBR’s Top 3 Predictions for Devices in 2022

Telecom Business Research’s 2022 Predictions is a special series examining market trends and business changes in key markets. Covered segments include cloud, telecom, devices, data center, and services & digital.

Business ecosystems must invest in massive supply chain pivots

COVID-19 supply chain impact

COVID-19 laid bare the underinvestment in contingency capabilities during the decades-long pursuit of cost optimization. In short, business leaders assumed a certain status quo in business continuity and did not leave sufficient capital tied up in unfinished inventory to provide necessary buffers in supply chain efficiency. Firms had over-rotated on optimization and perhaps assumed their trading partners were on par with them in terms of the technology “twinning” of their activities. COVID-19 exposed the need for agility, and when scale advantage only enabled top-tier firms to have the automated tool sets, working with the vital Tier 3 and Tier 4 suppliers resulted in the cascading pileups now in the news.

Future supply chains have to be embrace open contributions

Uneven technology enablement with supply chain participants certainly has created a network effect, but not the positive force multiplier discussed in third-wave economics papers. Supply chains, by definition, are a collection of ecosystem participants. For there to be a positive network effect, there has to be democratized access to technology innovations. Tier 3 and Tier 4 suppliers lack the funds and the skills to build digitally transformed supply chains on their own. In this sense all enterprises have to learn a lesson from the technology industry in terms of IP contributions to the ecosystem.

Ecosystems have to provide a common platform of nondifferentiable value-add to all participants —value-add in terms of stripping labor and labor mistakes from process flows, and nondifferentiable as it impacts neither ideation nor sales engagement. Open source is how technology has wrung cost of compute out of the model. This is how platform businesses achieve the network effect, as positively espoused in third-wave economics. 

Supply chain has the attention of the boardroom

The value of the interconnected supply chain ecosystems has been gaining boardroom attention and, as EY notes, COVID-19 only accelerates the need. The pandemic was a blindside disruptor and, as enterprises get back up from the blindside hit, the focus shifts from the diminishing return of investing in supply chain for cost optimization and turns back to the double-digit revenue hits enterprises took due to pandemic-fueled disruptions. The board focus is now on gaming out what other events could have a similar impact on business resiliency that the pandemic has had.

Does the boardroom see value in ecosystems yet?

Boards generally are populated by mature executives well versed in the current ways of working. Ecosystem business models are not a legacy best practice with which TBR would expect many board members to be familiar. They are too new. The idea of taking huge sunk investment costs and donating them to a buyer/supplier consortium will likely be anathema to many boards, but, as technology has proven time and again, open-source communities accelerate innovation. Linux/Red Hat represents just one illustration of that value creation in technology.

Advisory firms have permission to play to educate boards on ecosystem business model best practices

TBR hears a constant refrain in its discussions with services firms that people and process are the constraints and not the technology itself. This rings true with large enterprises but not necessarily with the small businesses comprising many of the Tier 3 and Tier 4 suppliers in enterprise supply chains. Outlining the value of a resilient supply chain will be an easy boardroom sell based on the current pandemic-related constraints being felt throughout the global economy. Convincing the board to contribute sunk IP investments to a consortium will be a harder sell. If any services entities can convince the boards of this efficacy, it will be the tax and audit advisory partners who have been providing business guidance to enterprises for centuries.

TBR’s recently published November 2021 Digital Transformation: Voice of the Customer Research bears out these notions. Based on survey data, respondents allocate 13% of their digital transformation services budget to business advisory services, another 16% to IT advisory services and an impressive 43% for managed services. TBR believes these managed services will more frequently flow from the advisory-led firms rather than the technology-led firms given the advisory firms’ advantage in knowing the business rules and business risks to digitization more than how to get the technology plumbing to work seamlessly.

Figure 1

From a straight technology perspective, firms invest in cloud computing, cybersecurity, IoT and analytics for digital transformation. Cloud localizes the activity where the firm wants it, cyber mitigates risk, IoT allows for more workflow automation, and analytics tells the business leaders what is important from the frictionless business flows. Cloud similarly was brought to the fore during the pandemic given the need to accommodate remote workers and reduce the amount of on-premises IT equipment requiring on-site staff.

Figure 2

Of course, all of these statements hinge on having IT platform plumbing built correctly and then transforming the business workflows that sit atop the IT platform. Figure 3 highlights the need for this gradual rollout strategy. Right now, improving IT operations management dominates the list of respondents’ digital transformation objectives. In two years, however, there will be a string of different business workflows on the customer docket. Workflows are automating business processes that often engage with other corporate entities and customers. This is where the deep knowledge of business rules and business risks come into play, and where tax and audit firms have clear market distinction.

Figure 3

Technology-led firms, hyperscale cloud companies and equipment manufacturers will certainly all play roles in moving industries further along the path of digitization. But just as business is turning to ecosystems, so too must the technology-based firms move to ecosystem offers where advisory-led firms will increasingly take the leadership role to advise boards in formulating business risk and resiliency policies that drag the tech stack participants along as the derived decision from the C-Suite aspirations.

Supply chain is the current example where tech innovations, business rules and employee training will give businesses competitive advantage providedthose ecosystems extend the IP value to the Tier 3 and Tier 4 suppliers. Like a chain only being as strong as the weakest link, ecosystem networks are only as strong as the weakest participant.

The statement stands for all business ecosystems. Other aspects of the business value chain come to the fore as different events trigger different reactions and technological choke points in need of modernization and remediation.

Supply chain disruption: For EY, just another day in the office and another problem to solve

Know thyself and thy supply chain … or go to the board for more funding  

In early November 2021, and in reaction to the deluge of news and analysis around supply chain disruptions worldwide, TBR met with key members of EY’s supply chain to discuss their firm’s overall response to the current crisis as well as EY’s capabilities and offerings around supply chain management. Al Mendoza, Americas and US-Central Supply Chain leader, and his Europe-based and Shanghai-based counterparts, Matthew Burton and Rodrigo Cambiaghi, respectively, shared their insights on the now, next and beyond for supply chains, including a look at long-range, tectonic changes coming for global enterprises.  

Nothing about the current global supply chain disruption, which has paralyzed ports, slowed manufacturing lines and contributed to growing inflation, surprised EY. The firm’s supply chain professionals saw the deeper and more broadly felt repercussions from COVID-19 as a tsunami that woke up many enterprises to the third- and fourth-level risks they were running in their highly networked and global supply chains.

For EY, which has been working for years with clients on supply chain transformations, the supply chains that have suffered the most during the pandemic — from the peak until now — are those that, according to Mendoza, “don’t understand themselves.” These overwhelmed enterprises did not have the talent, technology or processes in place to manage a massive disruption like the pandemic, even if their suppliers did. EY expects the supply chain ecosystem to shift substantially in the near term, as enterprises learn from the chaos caused by COVID-19 and implement the people, process and technology changes demanded by corporate boards, suppliers and clients.  

In reviewing the current state of the supply chain management market, Burton described traditional supply chains as “woefully inadequate” and said too many enterprises maintain a “linear mindset” and are comfortable with two-week timelines to adequately report on and assess existing supply chains. These enterprises, stuck with an old technology batch mentality, must invest in technology to decrease risk and derive value from their supply chains. Luckily for supply chain officers, the entire supply chain discussion has moved to the board level. In Burton’s assessment, a supply chain officer can “say ‘supply chain’ and you get funding,” as enterprises increasingly expect supply chain management to move from a cost center to differentiation across the value chain. Burton added that boards “were cost-driven and are now resilience-driven.”

TBR has repeatedly heard supply chain issues have reached board levels, but Burton’s explicit connection between disruptions and funding brought clarity and underscores one of the challenges consultancies such as EY face in working with large-scale clients: Every transformational challenge is a boardroom issue and demands funding, even as funding streams remain finite. In TBR’s view, EY’s close relationships with C-Suites and boards likely provide the firm with openings to anticipate, understand and benefit from shifting budgetary priorities around supply chain and other transformational issues.  

Now: Not enough talent and inadequate technology — an age-old story 

For EY’s clients, taking that boardroom directive and investing in technology, people and process improvements cannot happen quickly enough, in part because some enterprises continue managing their supply chains with what Cambiaghi described as “primitive technology.” Notably, primitive technologies have been made more inefficient by a lack of skilled supply chain management practitioners, inadequate training and insufficient change management. Mendoza expanded on the talent challenge, explaining that EY has three advantages over both competitors and clients, which also compete for supply chain talent.

First, as Mendoza said, EY has made a “huge investment” in training recent years, echoing comments TBR has heard from other EY leaders and professionals. Second, the firm assimilates new talent quickly and has been a net importer of talent because of the firm’s growth and culture, sentiments also echoed by other EY leaders. And third, Mendoza said EY’s supply chain practice is led by experts in supply chain, not consulting professionals with other skills brought in to manage supply chain as an offering. Mendoza, Burton and Cambiaghi made clear their passion for supply chain reflected a sense of mission, not simply another EY capability. In TBR’s Management Consulting Benchmark, EY has the second largest Supply Chain Management revenue, when compared to its Big Four peers, behind only PwC.  

PwC Procurement on Demand Services: Making procurement less painful

A proven strategy: Start, test, build, evolve internally

In early November, TBR spoke with PwC’s Procurement on Demand Services team, including Scott Boruff, Becky Mackin, Michael Giguere and John Fafian, to better understand how their offering has evolved and what challenges they are facing as 2022 approaches. According to Boruff, PwC’s internal procurement professionals implemented a version of the firm’s procurement solution over five years ago, then continually refined it before rolling the solution out to clients over the last 18 months. In TBR’s view, numerous PwC peers have successfully deployed this customer zero approach, particularly as consultancies and IT services vendors have drifted into the software space.

When pressed if implementing a solution internally resonates with clients, Boruff, Giguere and Fafian confirmed that PwC’s clients appreciate this approach and that the firm included former PwC procurement professionals in the Procurement on Demand Services team. Fafian noted that the range of spend categories within PwC’s procurement team — for example professional services, facilities management, software and hardware — reassured clients PwC’s solution could withstand massively scaled deployments.

In explaining why PwC launched Procurement on Demand Services, Boruff noted that the COVID-19 pandemic highlighted long-standing tensions between procurement officers seeking the best quality and conditions and internal customers, who often bring different priorities to a procurement process. Solving the people problem — the dissatisfaction with each other and with the process — requires developing, cementing and sustaining trust across an entire enterprise, a theme that resonates with PwC’s overall strategic shift.

In addition, by leveraging PwC’s products and accelerators for its clients, Boruff said his team has “the people and the technology” to help clients “jump the line” on turning around their procurement processes, improve outcomes and satisfaction, and drive hard value to the bottom line. An enterprise trying to transform its procurement function, in Boruff’s assessment, would need 12 months to find qualified staff and 12 more months to build the technology, before finally realizing the value — an overall timeline Boruff said PwC could reduce to three months. In TBR’s view, the combination of a pandemic-induced appreciation for procurement challenges and a robust, tested solution currently operated globally by PwC made for excellent timing. As we discuss below, execution becomes the new challenge.

Meeting the vast variety of clients’ needs requires PwC flexibility

Detailing the PwC offering, Boruff explained that PwC’s clients look for three kinds of services: 1) curated tech enabled-services in a specific functional area that support upskilling and progression of maturity of the entire procurement function; 2) managed services, with PwC taking full responsibility for category management, analytics and any ongoing procurement issues; and, 3) enhanced staff augmentation, typically around a specific spend category, an acquisition assimilation or a major sourcing event.

Across those three areas, according to Boruff, PwC can bring the right procurement subject matter experts, particularly for specific spend categories, and scale up to meet clients’ demands. In addition, PwC’s flexibility around the consulting business model allows the firm to bring a blend of services, including procurement strategy, project management, contract negotiations, metrics and reporting, risk management, and even a SaaS procurement platform. In TBR’s view, while this offering does not sit within PwC Products, the evolution through internal development and deployment and the approach to bringing this to clients reflect the firm’s commitment to PwC Products and to a full pivot to business models that more fully support their clients’ transformation needs.

While PwC’s Procurement on Demand Services offering currently exists in the “walk” stage across the crawl-walk-run spectrum, the firm has begun exploring what comes next, beyond simply greater scale. Mackin noted the current procurement analytics package within some clients’ deployments allows PwC to anticipate and explore opportunities for additional client savings through enhanced procurement strategies and services. In TBR’s view, as more managed services clients permit PwC to monitor existing deployments and analyze trends, the firm will develop an increasingly robust procurement offering, accelerating the flywheels of value to clients and revenue for PwC. Looking further ahead, Boruff called blockchain “aspirational” in the procurement space, noting that too many client contracts have not been digitized from paper. Boruff also acknowledged the firm may need to complement existing talent and capabilities with acquisitions of both intellectual property and procurement-trained professionals to meet PwC’s internal growth targets over the next few years.

Hyperscalers begin to shift capex from central cloud build-outs to edge cloud build-outs

Hyperscalers’ focus is on creating value from distributed computing

Hyperscalers are at the cusp of scaling out their edge computing deployments as they focus on creating value from distributed computing, which is a key foundational aspect of their digital ecosystem initiatives. They must pivot from centralized data center build-outs to building out the edge to achieve the latency and quality of service that new network use cases will require.

TBR believes the world’s largest hyperscalers are all likely to extend their cloud footprints closer to endpoints through this decade and expects hyperscaler capex will shift significantly from central cloud to edge cloud over the next five years. The Big Nine hyperscalers will drive significant innovation in the edge space, contributing design references, technology standards, and best practices to facilitate ecosystem development.

Hyperscalers have been experimenting with ways to make it more economically feasible to deploy distributed edge network resources at scale. The commercial model will likely see hyperscalers partner with ecosystem stakeholders, such as tower companies and data center real estate investment trusts, to offset the financial burden of deploying, owning and operating edge compute environments. For example, a hyperscaler could partner with tower companies to site micro data centers at the base of cell sites and plug directly into the access and backhaul network.

Models such as this would help defray the cost and complexity of building and managing many sites. TBR also believes telco sites, such as central offices and aggregation hubs, are logical locations for edge compute resources. These facilities are usually strategically located, are owned and controlled by the operator, have access to power and cooling, have fiber readily available, offer secure access, and are ruggedized to withstand the elements.

Total CSP Edge Compute Spend 2020-2025E

Telcos are divesting their tower assets, which limits their opportunities and market leverage in the edge compute space; supply issues delay rollouts

Telcos relinquishing control over network sites opens door for hyperscalers

Hyperscalers are likely to continue their encroachment of network ownership as they build out their distributed computing platforms. Network access sites, particularly cell sites such as towers, are of unique strategic importance as hyperscalers aim to extend their platforms closer to data origination sources. The ultimate shift toward open virtual RAN and the radio intelligent controller will also spur significant innovation at the access layer of the network, which will prove to be an area of keen interest to hyperscalers that are looking at how to capitalize on new opportunities presented by edge computing, 5G and AI.

TBR believes it is highly likely that hyperscalers will become key customers of shared infrastructure owners, particularly towercos, during this decade as their reach extends beyond their central clouds.

Supply chain constraints will delay peak telecom edge compute spend growth rate to at least 2023

Delays in chipset availability — partly due to the COVID-19 pandemic and partly due to geopolitical factors and technological complexity — will slow the pace at which the vendor ecosystem can meet customer demand for edge compute infrastructure through at least 1H22. Supply chains should be able to meet demand by 2H22, setting the stage for projected 66.7% year-to-year growth in the market in 2023.

Shipping constraints are another headwind to meeting demand. Even if products can be manufactured, there are chronic problems with exporting and importing those products and bringing them to customer sites. This too will push out build timelines.

TBR’s Telecom Edge Compute Market Forecast, which is global in scope, details edge compute spending trends among communication service providers, which include telecom operators, cable operators and hyperscalers. This research includes current-year market sizing and a five-year forecast by multiple edge compute market segments and geographies. TBR’s Telecom Edge Compute Market Landscape, also global in scope, deep dives into the edge compute-related initiatives of stakeholders in the telecom market, including telecom operators, cable operators, hyperscalers and vendors that supply the telecom market.

Commercial IoT market continues to grow during pandemic as demand for automation and security increases

Commercial IoT market continues to grow during pandemic as demand for automation and security increases

3Q20 vertical takeaways

Global organizations are battling supply chain issues due to COVID-19. IoT will continue to play a role in enhancing supply chains to help increase long-term resilience in the event of future pandemics or other disruptions. Automation in manufacturing and other verticals continues to be a major trend. Although some companies may have previously been reluctant to use robots due to concerns over the threat to people’s jobs, the pandemic has required businesses to find ways to maintain supply chains and productivity with less human interaction.

The healthcare vertical will continue to rapidly adopt IoT devices and solutions during the pandemic to help medical systems cope with the high volume of patients. Telehealth solutions remain in high demand, as do IoT solutions that are capable of monitoring changes in patient medical data as part of preventive medical treatments and otherwise delivering more efficient patient care.

Smart cities continue to look to IoT to increase public safety and assist with various public operations, including first responders and traffic equipment. However, smart cities increasingly need an overarching main IoT platform to better manage all the IoT sensor and camera deployments, which will help improve the real-time data analysis.

The Commercial IoT Market Landscape delivers overall market and top vertical insights, including identifying key use cases as well as trends in technology and buyer behavior. The landscape also captures the top public deals within those verticals and the lead vendors associated with them.