ABN Amro Bank expects the Technology, Media & Telecom sector to continue growing in 2025 at the same rate as in recent years—namely, by 5%—and by 4% in 2026. The reason for this is the ongoing digitization, cloud migration, and innovations surrounding AI in the Netherlands. This means that the TMI sector is returning to its historical trend. The analysis indicating this expected growth was prepared by sector economist Mario Bersem. In this article, we’ll tell you about all the interesting findings in the analysis!
Impact of the tight labor market on
The tight labor market persists, which naturally also affects the Technology, Media & Telecom sector. Approximately 20% of the people currently working in this sector are self-employed. ICT experts are in high demand across many sectors today, leading to a shortage of ICT specialists within the TMI sector as well. After all, ICT is now a vital component of most businesses. What is also striking is that many experts within the TMI sector work in permanent positions. Flexible work arrangements are therefore rare in this sector.
AI innovations are driving significant growth in the Technology, Media & Telecom sector
One of the driving forces behind the rapid growth of the TMI sector is the wave of recent and planned AI innovations. The AI hype began in 2022, largely with the public release of ChatGPT. Since then, the sector has been actively developing and experimenting with artificial intelligence. In some sectors, AI naturally has a less positive impact, for example due to job losses. You can already see this to some extent in the translation sector. Nevertheless, major breakthroughs in AI are also expected that will actually lead to increased productivity for employees across various sectors. According to the ABN Amro report, 2025 could well be a major turning point for artificial intelligence in the TMI sector. This is mainly because new innovations that have been tested and improved over the past year can now be fully implemented in the business world. For the tech sector, ABN Amro expects economic growth of 7% in 2025 thanks to AI applications!
A lot of competition within the TMI sector
There is currently a lot of competition within the telecommunications sector, particularly when it comes to attracting customers. You’ve probably noticed this. Many telecom companies have started promoting their products and services more aggressively. At the moment, they are focusing primarily on internet plans, as fewer and fewer people are signing up for TV subscriptions. Odido has taken a major step in this direction by starting to support high-speed internet via 5G. In this way, the provider is directly competing with KPN’s fiber-optic service. The battle among telecom companies is manifesting itself in pressure on prices and innovations within the sector. They cannot fall behind the competition, because they would lose their customers in no time. ABN Amro expects the telecom sector to grow by only 1% by 2025. AI also has a significant impact on the sector, as it provides telecom providers with a means to introduce innovations that allow them to differentiate themselves from the competition.