Mega Trends Driving Internet &
E-commerce Growth
Q1 2020

Mega Trends

  • Consumer Trends: The Biggest Opportunity
  • Mobile Phones: High Speed Internet Adoption
  • Worldwide E-commerce Growth

What’s Driving Mega Trends

  • Global Advertising Trends: Digital vs. Traditional
  • Are You not Entertained? Top Companies in Digital Entertainment
  • Top Companies in Cloud Application Services (SaaS)

Investing in Internet Technology & E-commerce, ETF: OGIG

  • OGIG: Investing in over 60 Fast Growing Internet Giants in One ETF

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Mega Trends

Long-term, transformative forces that can influence or shape business, economies and cultures. Internet and e-commerce mega trends may have a profound impact on the way consumers and companies conduct business, communicate and consume entertainment.

Mega Trends

Long-term, transformative forces that can influence or shape business, economies and cultures. Internet and e-commerce mega trends may have a profound impact on the way consumers and companies conduct business, communicate and consume entertainment.

Mobile Phone Industry: High Speed Internet Adoption

The advent of 4G mobile network technology and subsequently 5G, meant that compromise in speed between mobile and fixed broadband was no longer one consumers had to make. Internet download and upload speeds are now as fast, if not faster than fixed broadband connections that require hard lines in homes.

4G stands for ‘fourth generation’ and refers to the fourth installment of mobile network technology that allows for faster internet connectivity. 4G allows compatible phones to load webpages quicker, download content and stream video and music without buffering. Consumers can now transact and consume information on their phones as quickly as they can on their desktop PCs. 5G is the ‘fifth generation’ of mobile network technology and is expected to be nearly 100 times faster than 4G.

In 2014, ~64% of mobile phones were equipped with 4G connectivity. As of 2019, 4G and 5G accounted for over 98%. Effectively all mobile phones, now have access to high speed internet comparable to desktop PCs.

High speed internet access on mobile phones is one of the key reasons why mobile apps are now an approximate $100 billion industry and growing.

Over 98% of Global Mobile Phone Market is 4G and 5G Enabled

Source: Bloomberg Finance L.P., data as of 12/31/2019 and The big differences between 4G and 5G.

Worldwide E-commerce Growth

Global E-commerce is experiencing robust growth. Sales totaled over $3.5 trillion in 2019 and are forecasted to reach over $6 trillion by 2023, representing a growth rate of ~85%.

E-commerce as a percent of total retail sales was ~10% in 2017 and is forecasted to double by 2023 to over 20%.

The U.S. accounted for an estimated 17% of the market in 2019, with China and Rest of World at an estimated 54% and 29%, respectively.

Source: Data as of 12/31/2019. Global Ecommerce 2019.
The above chart is for informational purposes only, includes the estimated growth of a certain sector and does not represent the O’Shares ETFs. It is impossible to predict future growth and actual results may vary.

Worldwide E-commerce Growth

Global E-commerce is experiencing robust growth. Sales totaled over $3.5 trillion in 2019 and are forecasted to reach over $6 trillion by 2023, representing a growth rate of ~85%.

E-commerce as a percent of total retail sales was ~10% in 2017 and is forecasted to double by 2023 to over 20%.

The U.S. accounted for an estimated 17% of the market in 2019, with China and Rest of World at an estimated 54% and 29%, respectively.

Source: Data as of 12/31/2019. Global Ecommerce 2019.
The above chart is for informational purposes only, includes the estimated growth of a certain sector and does not represent the O’Shares ETFs. It is impossible to predict future growth and actual results may vary.

Are You Not Entertained? Top Companies in Digital Entertainment

What is digital entertainment? Broadly speaking, it can be broken down into 4 main categories: video games, video-on-demand, ePublishing and digital music. Digital entertainment revenue totaled an estimated $153 billion in 2019 and is forecasted to grow to ~$183 billion by 2024. Video games are the largest category at over $80 billion, followed by video-on-demand at over $30 billion, ePublishing at over $20 billion and digital music at over $13 billion.

Atop each of the digital entertainment pillars, sits 4 Internet companies. Chinese social media giant, Tencent, leads video games with an estimated $15 billion in revenue from the category. This accounts for approximately one fifth of the category’s sales. Video-on-demand is led by the streaming service, Netflix. At nearly $20 billion in revenue, Netflix makes up over half of the video-on-demand category revenue. Online retail giant, Amazon, leads ePublishing. In the U.S. it is estimated to account for over 80% of the ebook market. Music streaming service, Spotify, leads digital music with over $7 billion in revenue accounting for over half of the global market.

Digital Entertainment Category Revenue from: Statista. All Other revenue data from Bloomberg; Category revenue data estimates as of the last fiscal year. Amazon E-book staistics from: Publish Drive: “Amazon Ebook Market Share 2019 – is it big enough?”
It is impossible to predict future growth and actual results may vary. The potential growth or decline of any sector or company does not represent the performance of the Fund.

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