Market Research

Understand your target market and customer segments:

The team conducted detailed research about UX Studio which you can find here.

- Target market - Startups, SMBs, Enterprise

- How are businesses doing? (Zs)
- Financially - Follow news
- Website/product quality

Reports from:
● Ernst and Young
○ Global economic outlook: finding balance in 2024
○ EY European Economic Outlook – January 2024 (new will come out at the end of
July)
○ US economic outlook May 2024
○ US economic outlook June 2024
○ US GDP (Q4 2023 — third estimate)
○ Foreign direct investment in Europe declines for first time since pandemic
○ Foreign direct investment trends in Europe
● PwC
○ Economic outlook 2024
○ US capital markets 2024 midyear outlook
● KPMG
○ Economic Key Facts Germany
○ Global Economic Outlook - KPMG Germany
● Deloitte

https://tradingeconomics.com/germany/manufacturing-pmi

https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/

https://www.coface.com/news-economy-and-insights/business-risk-dashboard/sector-risk-files/wood
Most important indexes
● Purchasing Manager’s Index (Manufacturing PMI)
○ The Purchasing Managers' Index (PMI) is an indicator of the prevailing direction
of economic trends in the manufacturing and service sectors.

It is a diffusion index that summarizes whether market conditions are expanding,

staying the same, or contracting, as viewed by purchasing managers. The
purpose of the PMI is to provide information about current and future business
conditions to company decision-makers, analysts, and investors.

○ PMI is a widely used economic indicator that assesses the health of a country's
manufacturing or services sector.
○ Published monthly, it provides timely insights into current economic conditions,
aiding swift decision-making.
○ A reading above 50 signifies sectoral expansion, while below 50 indicates
contraction, offering a clear snapshot of economic trends.
○ As a leading indicator, PMI often foretells broader economic shifts, helping
anticipate future trends.
○ PMI incorporates various business aspects like new orders, production, and
employment, offering a comprehensive view of sector performance.

○ The Purchasing Managers' Index (PMI) is a measure of the prevailing direction of

economic trends in manufacturing.
○ The PMI is based on a monthly survey of supply chain managers across 19
industries, covering both upstream and downstream activity.
○ The value of the PMI and its movements can provide useful insight to business
decision-makers, market analysts, and investors.
○ The PMI is a leading indicator of overall economic activity in the U.S.

● Ifo Business Climate Index (for Germany)

○ The German Ifo Business Climate Index rates the current German business
climate and measures expectations for the next six months. It is a composite
index based on a survey of manufacturers, builders, wholesalers, and retailers.
The index is compiled by the Ifo Institute for Economic Research.

A higher-than-expected reading should be taken as positive/bullish for the EUR,

while a lower-than-expected reading should be taken as negative/bearish for the
EUR.

○ The Ifo Business Climate Survey measures the state of Germany's business
environment on a monthly basis.
○ Results are based on roughly 9,000 survey respondents from German firms in
manufacturing, construction, the service sector, and trade.
 ○ The companies surveyed are asked to provide feedback on whether their current
business situation is good, satisfactory, or poor as well as assess their
expectations for the next six months as either more favorable, unchanged, or
more unfavorable.

○ The Ifo Business Climate Survey is viewed as a barometer not just of the
German economy but the entire EU's as well. Germany accounts for more
than a quarter of the bloc's output and is the number one trading partner for
many of its European neighbors.

● GDP

ECONOMY

Global

Olajnak lassan megy fel az ára (de nem volatilis)

Faced with interest rate uncertainty and political uncertainty, business leaders remain hesitant to
engage in major investment projects. Consumers are cutting back on major purchases due to
elevated rates, while governments face higher financing costs as debt rolls over at higher
interest rates.

Prospects for 2025 are better, with inflation expected to return towards target and central banks
more confident to cut policy rates from the current restrictive levels. However, the uncertainty
remains around the political shifts, which could see more insular and protectionist economic
policies.

Consumer spending has already slowed in response to higher rates and the lingering burn of
inflation. The situation for consumers is expected to remain strained until inflation further
decelerates and interest rates can be cut more rapidly in 2025.

Consumers are pivoting from big-ticket items, which require financing, into services.

One of the challenges of higher interest rates is that while high rates help rein in inflation in the
short term by bringing down demand, they can paradoxically cause inflationary pressures to
persist for longer by making it more expensive for firms to invest in the capacity to produce more
and relieve supply pressures.

Cost fatigue - it’s a big headwind for the private sector

—> in the US an avg household spends approximately 1500USD more per month for the same
goods and services than pre pandemic. Although wages have also grown but this put a burden
on businesses as well. This puts scrutiny on buying decisions as well as investing, this leads to
more caution.
We’re still in an environment where high interest rates are restraining business decisions and
leading to more scrutiny

Investments in generative AI (GenAI) are rising from a low base. Recent surveys by the Census
Bureau suggest they follow a U-shape and are concentrated in large firms and startups.

(KPMG - Geopolitical uncertainty slowing growth, but GDP rebound forecast for 2025)

US

US - 21.08 peak 63,4 - 23.08 46,3 - szépen lassan felment 50 fölé, 51,6 és nem is várnak
romlást. (náluk a services reziliensebb)
Purchasing Manager’s Index peaked in 2021 august at 63,4 then it dropped in 2023 August to
46,3. The index has slowly risen above 50 (51.6) and is not expected to get any worse

Policy uncertainty acts as a tax on the economy and prompts firms and households to delay big
spending decisions.

Another KPMG survey revealed similar concerns, with 62% of CEOs saying they would delay
investment until after the election.

The uncertainty surrounding the election and its outcome could further surpress investment.
There is considerable uncertainty regarding the fate of expiring tax cuts; corporate tax cuts
could now lapse under both candidates due to a broad lack of trust in corporate America. Small
businesses are viewed much more favorably than large businesses.

The Fed's careful approach to cutting interest rates impacts businesses by keeping borrowing
costs high, which can limit their ability to finance growth and expansion. Higher rates also
reduce consumer spending, potentially lowering sales for businesses. Uncertainty about
economic conditions and political pressures may lead businesses to delay investments and
hiring. However, if the Fed successfully controls inflation, businesses could benefit from more
stable prices and predictable costs.

The economy is slowing. The uncertainty and noise triggered by the election will likely
exacerbate that weakness. The forecast is still for a soft landing but the risks to the downside
are mounting. We have proven remarkably resilient, but that will be tested; risks of a recession
are not inconsequential. The extent to which a candidate stokes or undermines certainty is an
important determinant of how the economy will perform in 2025.

Investments in intellectual property—such as the use of AI and other novel technologies—will

continue to drive growth in the business sector.
As a result of the tariffs and the oil price shock, the Federal Reserve is driven to hike rates twice
in the near term. Even with this action, CPI inflation persists above 3% until the second
quarter of 2025.

The latest Federal Reserve Financial Stability Report4 highlights three near-term risks to the
stability of the financial system: higher-for-longer interest rates; worsening geopolitical conflict
and spillovers; and strains on real-estate markets, particularly for office real estate. In line with
the other assumptions outlined above, we therefore model an increase in stress in the financial
system.

Recent data from the United States Department of Agriculture suggests that the share of
income that households spend on food is now at its highest level in three decades. That
reflects both the fact that food prices have increased faster than other prices, and that
households prioritize essentials when having to make cutbacks due to higher prices. As
price levels stabilize and wages are adjusted for past inflation, this effect may recede. But, in the
meantime, these distributional changes have impacts on the amount of disposable income
households have to spend on other items.

Europe

Q1 24 - While AI attracted the largest share of investment globally, cleantech investment

accounted for many of Europe’s largest deals in Q1’23, including raises by Sweden-based H2
Green Steel ($5.2 billion) and Alternative Energy Equipment ($159 million), Germany-based
Sunfire ($233 million), France-based Electra ($334 million), and Germany-based Ineratec ($129
million).

Q2 24 - VC investment in Europe rose quarter-over-quarter — from $13.9 billion in Q1’24 to

$17.8 billion in Q2’24, driven by a solid uptick in mega-deals, including a $1 billion funding round
by AI autonomous driving technology company Wayve, a $999.6 million raise by consumer
lending platform Abound, a $650.6 million raise by LLM-focused Mistral AI,1 and a $621 million
raise by neobank Monzo.

AI will likely remain a very hot area of investment in the region, in addition to energy and
cleantech. Despite these uncertainties, there is some optimism that the IPO market in Europe
could see some fresh activity heading into Q3’24.

As of January 17, 2025, financial institutions in the EU will be required to comply with the Digital
Operational Resilience Act (DORA). Given the complexities associated with compliance, there
will likely be growing interest in regtechs focused on helping companies comply.

Menedzser index (50 felett azt jelenti hogy bővül a gazdaság)

IFO business climate index
GDP

Switzerland
Svájc - Manufacturing PMI (purchasing managers’ index) kb azt jelenti hogy mennyire mernek
költeni a vállalatok - ezt jobban érintette az infláció
21 második felében rohamosan csökken ez az index (70-ről lement 38,5re) - most kicsit
stagnálva lassan emelkedik ( 44-en volt júniusban)

Az infláció inkább a termékeket érintette és azon keresztül ment be a szolgáltatásokba (pl több
fizetést kellett adni)

While the hope is that easier financial conditions could spur a rise in investment activity, many
firms are still holding off on future expansion plans waiting for the outlook to normalize.

Germany
Németország - 21 második felétől szintén bezuhant 66-ról 38-ra (23.08). Utána kezdett el
nagyon lassan nőni, stagnálva, most 43,5.

Manufacturing PMI in Germany decreased to 43.50 points in June from 45.40 points in May of
2024. Manufacturing PMI in Germany is expected to be 49.40 points by the end of this quarter,
according to Trading Economics global macro models and analysts expectations. In the
long-term, the Germany Manufacturing PMI is projected to trend around 52.50 points in 2025
and 51.30 points in 2026, according to our econometric models.

After a 0.3 percent decline in economic output in 2023, the economy has now stopped
contracting, but a strong economic upturn is not yet in sight. Private households are still
reluctant to spend significantly, and industry and the construction sector are only recording a
small number of new orders. The German export economy has also cooled down.

Business sentiment in the German economy brightened again in April and is at its best since
May 2023. The “Business Climate Index” has risen for the third consecutive time, showing that
companies are increasingly optimistic about the future. This development could indicate an
economic turning point for the better.

German business confidence averaged 98.12 index points from 1991 until 2019. Now it stands
at 88.6.
Insolvencies at Highest Level Since 2016
The number of corporate insolvencies in Germany increased by almost 30% in the first six
months of the year compared to the previous year due to the weak economy. The credit agency
Creditreform recorded around 11,000 company bankruptcies.

In addition to the economic difficulties, Germany continues to face a variety of structural

challenges, such as a shortage of skilled workers, a high level of bureaucracy and a weak digital
infrastructure. Major current transformation initiatives, such as the transition to renewable and
sustainable energy (“Energiewende”) and further digitalization, offer opportunities for additional
growth. New technologies, such as artificial intelligence (AI) and robotics, also open up
immense opportunities for increasing productivity and developing new products and services.

United Kingdom

UK - 21 második felétől ez is bezuhan 66-ról 43-ig (23.09). Mászik vissza, most 50 felett van, de
valszeg azért mert enyhén függetlenedett az európai gazdaságtól. Ez a kúszás egy fokkal
stabilabbnak tűnik.

From the second half of '21 it also plunges from 66 to 43 (23.09). It is climbing back, now above
50, but probably because it has become slightly unrelated to the European economy. This creep
seems a notch more stable.

Despite their own plans, Manchester was the city outside of London cited most (47%) by
leaders as having the greatest potential to be the UK’s second city for financial services,
followed by Birmingham (20%) and Edinburgh (11%).

The Bank of England will now begin to ease policy slightly later than previously thought – but
interest rates are still expected to drop towards 3% by the end of 2025.

Corporate insolvencies are down on a year ago and there are some tentative signs of a pickup
in M&A (Mergers and acquisitions) activity. While some businesses are still waiting for a cut in
interest rates as a signal of a more sustained easing in financial conditions, the appetite to
invest is there, as evidenced by solid growth in capital expenditure in Q1.

Minden korrelál

50 körül azt jelenti hogy nem növekszik, de nem is húzódik össze. Nincs változás. Lassan
afelé tartunk, hogy több dolgot engedjenek meg maguknak a cégek.

European economy remains in stagnation. Despite the decrease in inflation, prices remain
elevated, keeping real wages well below their peak and limiting growth in consumption. Against
this backdrop consumers, both in Europe and globally, continue to prioritize spending on
services, with resulting weak domestic and external demand for goods curbing manufacturing
activity.
International competitiveness of European producers has been diminished because of the
energy prices.
Energy-intensive and housing-related manufacturing, in particular, has remained in recession,
while most services, including tourism, have continued to grow, though at a slowing pace.
As a result, most Southern European and Balkan countries have continued to outpace those
in manufacturing-heavy Central Europe (Germany, Austria, Czechia). The Nordic countries
have also underperformed due to their high sensitivity to interest rate hikes, fallout from the
war in Ukraine and a slowdown in the pharmaceutical industry.

EY still expects the European economy to recover gradually throughout 2024. The recovery is
expected to reach full speed in 2025, with growth accelerating to 2.1% (vs. a 1.5% forecast in
October).
What is needed for this?
- real incomes to increase
- activity in global manufacturing to normalize
- drag from tight monetary policy slowly to fade with the help of rate cuts

Core inflation is expected to drop to 2.5% in 2024 Q2 from 3.4% in December 2023, but may
linger slightly above 2% until mid-2025, given the persistent pressure on prices in services.

BUSINESSES
Corporates are focused on transactions to accelerate growth and achieve business
transformation. Corporates are operating in a more disruptive, complex and uncertain
environment, with macroeconomic factors, geopolitical issues and technological
disruption—now heightened by AI—all of which create a need for companies to innovate and
reinvent their businesses.

AI could be a catalyst for all sorts of transaction types. AI—particularly generative AI—has the
ability to disrupt companies, from corporate behemoths to startups, as well as sectors and even
entire industries. Although generative AI is still in the early stages, its impact on business and
society is already starting to be significant. AI has the capability to create massive cost
efficiencies, enable new revenue streams, open new channels to customers, and enhance the
value proposition on the one hand and commoditise it on the other. The AI wave is coming, and
we believe the powerful forces at play will require companies to reevaluate their strategies,
business models, markets and competitors.

‘Biggest risks’ to growth for global companies

● Trade policy restrictions: Global trade restrictions have been on the rise, with
approximately 3,000 restrictions imposed, nearly tripling since 2019. This trend of
protectionist trade policies poses challenges for organizations operating in international
markets. Such restrictions can create barriers and hinder economic growth, affecting
supply chains and market access. Organizations should be prepared to navigate these
trade policy restrictions and explore alternative strategies to mitigate potential
disruptions.
● Vulnerability calling for operational resilience: The geopolitical landscape is
characterized by increasing vulnerability, driven by various factors such as rapid
technological advancements, climate change and geopolitical tensions. In 2023, a
staggering 91 countries were involved in some form of conflict, a significant increase
from 58 in 2008. This escalation of conflict has a profound impact on the global
economy, with conflict estimated to have a 12.9 percent impact on global GDP. To
mitigate the risks associated with vulnerability, organizations must prioritize operational
resilience. This involves implementing proactive risk management practices, conducting
scenario planning, diversifying supply chains and strengthening cybersecurity measures.
● AI Governance Gaps: Artificial Intelligence (AI) has become a transformative force
across industries, with investment in AI increasing more than fivefold between 2013 and
2023. While AI presents immense opportunities, it also brings about governance gaps
that organizations must address. Ethical and responsible AI deployment is crucial to
maintain trust among stakeholders. Organizations should prioritize transparency,
accountability, and fairness in their AI systems to mitigate potential risks and ensure its
responsible integration into their operations.
INDUSTRIES
Technology
Telecommunications
Transport & Leisure
Media
Financial
Chemicals
Consumer & Retail
Energy, Natural Resources, & Chemicals

Based on our in-house research I’d focus on these industries:

● Education
● Edtech
● Fintech/Finance
● Streaming/Media
● Healthcare
● Travel & Hospitality & Leisure
● AI
● Technology

Enterprises and complex B2B software

Consumer & Retail

Online Event Ticket Sales in the US

→ Mobile devices have helped propel industry growth
Mobile ticketing apps streamline the concert-going experience by integrating QR codes for fast
entrances and real-time updates leading up to the start of an event. Younger consumers who
prefer this mobile integration have helped revolutionize the nature of ticket sales.

There is a high level of competition among ticketing platforms

Online ticket sales platforms face competition from traditional ticketing systems, like box offices
and physical ticket outlets, in addition to other online ticketing platforms.

Retail
Reasons to be cheerful
- Cost of living - the worst should be over
- Falling inflation and (hopefully) interest rates
- High employment, real wage growth
- National Insurance and other Budget giveaways
- Spending intentions better than last year

Reasons to be fearful
- Inflation falling... but not negative
- More fixed rate mortgages ending; rent inflation
- Employment levels peaked, higher job insecurity
- Polarisation between affluent/less affluent and young/old
- Anaemic spending forecasts

Channel-switching behavior continues to surge

Consumers expect to be able to combine the best of physical and digital channels for the most
efficient shopping experience. Most will browse first in stores. They also look to family and
friends for recommendations.

Then they go online for more research at search engines, digital marketplaces, brand sites and
social media. For comparison shopping, they use stores and online options. Some consumers
even use their smartphones to compare products and prices while in the aisles of stores.

Ultimately, more than half (54%) go to a store for the final purchase while 40% use an online
marketplace. Retailers who understand the nuances of customer behavior can provide the type
of omnichannel customer experience that keeps them coming back.

Emerging tech enriches customer experience

From GenAI product advice to virtual customer service interactions, a few diehard enthusiasts
are embracing emerging tech retail help.
And they are brand-loyal: 38% told us brand is a very important factor driving purchasing
decisions (vs 18% of consumers who don’t use tech-assisted shopping). These extended reality
fans spend more than twice the average consumer on entertainment.

Another 20% of consumers told us they may use emtech help in the future while 19% don’t
know enough about it. Take advantage of the opportunity to educate the almost 40% of
consumers who either don’t know enough about emtech options or would consider using them
in the future.

Female consumers power new levels of growth

Female shoppers continue to spend more, extending a trend of boosting the economy that
started in the summer of 2023 with record-breaking attendance at movies, live concerts and
sporting events — often in support of other women.

Build trust and the loyalty will follow

Consumers expect brands to speak to their values; they’re prepared to look elsewhere if they’re
not satisfied. As a new generation of emerging technologies gains wider adoption, seize the
opportunity to build trust by engaging consumers in ways that cement their loyalty.
Consumer Market

Power business model reinvention with digital strategy

As emerging tech efficiencies continue to drive productivity and pique consumer interest, almost
60% of CM leaders will invest in emerging technologies as a strategic priority during the course
of 2024. A sizeable majority (73%) expects to use GenAI to support new business models.

In response to consumer interest for the most convenient combination of physical and digital
options, digital innovation centers can help fast-track new products, experiences and services
while digitized supply chains can deliver them.

To meet the ever-more-demanding expectations of tech-savvy consumers — many of whom

already use emerging tech options to research, compare and buy products and services —
companies are updating legacy systems with the right combination of tech investment and
people power.
Bolster customer loyalty with tech-enabled experiences
Across the customer life cycle, emerging tech has sparked new opportunities to personalize and
enhance customer experiences. Some of these experiences occur at external touchpoints such
as search engines and marketplaces. Regardless, they all serve to build your brand.

Ultimately, consumers define a brand by the entirety of the experience it provides, both physical
and digital. And they have proven time and again that brand loyalty influences purchasing
decisions.

Even more noteworthy, consumers more likely to use emerging tech are more loyal than most.
And many who don’t already use emerging tech told us they’re open to finding out more. Take
advantage of the possibilities offered by AI and GenAI to connect with consumers at a personal
level, further solidifying their loyalty.

Cybersecurity

Digital has transformed business processes, leading TMT organizations to transition from
centralized cybersecurity operating models to deeply embedding cyber across all functions. As
businesses continue to adopt technologies beyond cloud-based services, new security risks are
emerging that require effective resource deployment and the application of AI. Cultivating a
sustainable security culture that prioritizes continuous threat monitoring, clear communication,
trust-building and balancing technical and soft skills is vital.

Key Challenges
Constantly evolving business model – TMT organizations are moving toward a business model
marked by rapid digital transformation and swift innovations. Technology companies are making
significant AI investments, telecommunications organizations are shifting to a tech orientation
and media firms are embracing an all-digital approach. These ongoing changes, coupled with a
reliance on digital systems, increase exposure to dynamic threats.

Compliance and legislation – With the acceleration of creativity comes increased regulatory
compliance. Emerging regulations around data, content, AI and open interfaces have
far-reaching implications. For TMT organizations, ensuring compliance remains a challenge.

Key opportunities
Digital trust – Organizations in this sector now have the opportunity to harness digital trust as a
competitive differentiator, reframing cybersecurity and privacy from being perceived as costs to
value propositions.

Shift-left innovation – With formalized initiatives around emerging technologies, the “shift left”
approach offers opportunities to embed security and privacy measures at the onset of product
design and service delivery.
Global collaboration – International conversations can improve collaboration in digital security,
providing repeatable best practices and enhancing inter-organizational cooperation across
various industries.

Companies in the TMT space are increasingly facing cybersecurity and privacy threats because
of their extensive reliance on digital channels. Unauthorized network access can lead to
substantial financial losses, damage to brand reputation, legal action and erosion of customer
trust.

Privacy threats are also prevalent, as TMT companies collect, store and process large volumes
of personal data. These threats underscore the need for comprehensive data protection and
cybersecurity measures.

→ CYBERSECURITY AS A COMPLEX SOFTWARE, HOW TO MAKE DATE MORE

ACCESSIBLE AND STOREABLE ETCETC?

IN-SCOPE
● Security solutions, such as Cisco Security, SentinelOne, and Check Point Software
Technologies
● Professional and managed cybersecurity services, such as Secureworks, IMB Security
Services, and Rapid7
● Support and deploy, such as CrowdStrike Services, Fortinet Professional Services, and
Symantec Professional Services

The adoption of cybersecurity is expected to grow with the increasing internet penetration
among developing and developed countries. Whilst it was common to dismiss cybersecurity as
a task for the IT department, it is now increasingly becoming the dominant part of top-level
strategic planning.

The COVID-19 crisis led to many organizations facing more cyberattacks due to the security
vulnerability of remote work as well as the shift to virtualized IT environments, such as the
infrastructure, data, and network of cloud computing. The market is expected to continue
showing strong growth, with North America as the dominant region in this market. Cloud
Security is the fastest-developing market.

Finance & Fintech

Given the level of uncertainty in the market in 2023, it was no surprise to see fintech investment
back off substantially from the levels seen over the last two years. While H1’24 is likely to start
off in a very subdued fashion, any downward movement in interest rates could spur some
renewal of deals activity. The exit environment will also be critical to watch as the extended lack
of exits has made investors globally particularly hesitant to make large deals.
Trends for H1 ‘24
M&A activity will pick-up in the payments space and for distressed assets: As valuation
expectations stabilize and the gap closes between buyer and seller expectations, there will likely
be a rebound in M&A activity. This will likely be most noticeable in the payments space where
consolidation at the local, regional, and global levels is already underway. There will likely also
be a pick-up driven by investors looking for opportunities related to distressed assets.

AI will be a critical priority: The enormous interest in AI and generative AI across sectors will
likely permeate the fintech market, with accelerating interest in finding ways to leverage AI
opportunities to their fullest extent. This interest may not translate into direct investment as
fintech market participants embrace AI through alliances and product spend. Key direct
investment opportunities will likely focus around the cybersecurity and regtech spaces.

Enterprise solutions will remain a critical focus for fintechs: Globally, a growing number of
fintechs will likely prioritize enterprise solutions— aiming to support or enhance the activities of
various financial institutions and their ecosystems rather than targeting end customers directly.

Fintechs will increasingly target the SME market: The SME market is expected to increasingly
become a target for fintechs and corporates looking to grow their business or extend their value
to new market segments. Given the size of the SME market segment in many jurisdictions,
related solutions will likely gain significant attention from investors.
As digitalization becomes business-as-usual, some firms are struggling to update legacy
systems, leading to greater regulatory scrutiny. The latest EY/IIF global risk management survey
found that 94% of chief risk officers say they need “some” or “many” new skills and resources to
meet the changing needs of the risk management function, with data science and cyber topping
the list of most desirable skills. 46 In 2024, regulators will continue raising the standard of digital
resilience and tackle increased operational reliance on IT systems, third-party service providers
and innovative technologies, which increases complexity and interconnections within the
financial system and is driven by digital transformation. Firms will be required to reduce
deficiencies in IT outsourcing, IT security or cyber risks and data governance.

IN-SCOPE
● Digital Payments: Mobile POS Payments, Digital Commerce & Digital Remittances
● Online Crowdfunding (equity and reward based)
● Digital Investment, incl. Robo-advisors and Neobrokers
● Marketplace lending (peer-to-peer platforms) for businesses & personal loans
● Neobanking
● Cryptocurrencies
● NFT
● DeFi

ANALYST’S OPINION

The fintech market is rapidly evolving, with digital payments, digital investment, digital capital
raising, digital assets, and neobanking emerging as some of the most significant trends. Digital
payments have seen an unprecedented surge in popularity, with consumers increasingly relying
on mobile payment solutions for their day-to-day transactions. Digital investment platforms are
also gaining traction, with individuals seeking low-cost and easy-to-use investment options.

Additionally, digital capital raising has become an attractive option for startups and SMEs, as it
provides an efficient way to access funding. The rise of digital assets, such as cryptocurrencies
and NFTs, has also created new opportunities for investors and traders. Finally, neobanks have
disrupted the traditional banking industry by providing innovative, customer-centric solutions that
cater to the needs of today's digital-savvy consumers.

The growth in the fintech market is driven by several factors. Firstly, the increasing adoption of
smartphones and the internet has made digital solutions more accessible to consumers, leading
to a surge in demand for fintech services. Secondly, the COVID-19 pandemic has accelerated
the shift towards digital payments and investments, as consumers have had to adapt to remote
and contactless transactions. Thirdly, regulatory changes have enabled fintech companies to
compete with traditional financial institutions on a more level playing field. Finally, advancements
in technology, such as AI and blockchain, have opened up new possibilities for fintech
innovation, driving further growth in the market.
The fintech market is expected to continue its rapid growth trajectory, driven by ongoing
technological advancements, changing consumer behavior, and regulatory support. Digital
payments are likely to remain a dominant trend, as consumers increasingly prefer the
convenience and speed of mobile payment solutions. Digital investment platforms are also
expected to grow in popularity, as more individuals seek to manage their finances online.

Additionally, the rise of digital assets and neobanking is likely to continue, as these trends
reshape the financial landscape. Overall, the fintech market is expected to remain dynamic and
innovative, with new solutions and services emerging to meet evolving consumer needs.

Entertainment and media (E&M) industry

The streaming industry is growing, but companies are struggling to get people to pay more for
their services. There are so many streaming options now that it's hard for any single service to
stand out and make more money. By 2028, the number of global streaming subscriptions will
increase significantly, but the average revenue per subscription will barely go up.

Where do we have an opportunity? → The streaming market is becoming saturated with a

growing number of services, making it harder for individual companies to differentiate and attract
higher payments from consumers.

Having exploded onto the scene in the past couple of years, generative AI (GenAI) brings major
implications—including both opportunities and challenges—for companies across E&M. The US
cut of PwC’s most recent CEO Survey shows that nearly half of US CEOs see GenAI boosting
profits this year, with 61% expecting it to improve the quality of their products and services.

Where do we have an opportunity? → Research and workshops on how streaming platforms

can integrate AI? Although PwC says GenAI is currently being used to create content more
efficiently and cost-effectively, especially in areas like sports media. The future potential lies in
using GenAI to develop and refine creative advertising strategies quickly, which could lead to
new revenue streams and greater business growth.

Telecommunication & Media Technology TMT

The technology, media and telecommunications (TMT) sector is leading the way in driving digital
transformation across organizations through its continuous innovation and development of new
technology. This has caused TMT organizations to evolve from previously offering distinct
services to becoming multi-dimensional service providers, adding layers of diversity to their
profiles. This transformation is driven by emerging technologies such as artificial
intelligence (AI), 5G, blockchain/crypto, cloud and virtual reality, among others.

Software's consistent revenue and cash flow remain appealing to buyers and investors, even
with slower growth. Private equity's involvement in software deals slightly decreased from 63%
to 60% between late 2023 and early 2024, though this matches the average over the past five
years. However, the value of these deals dropped significantly. More cybersecurity services
are being offered as subscription-based software, attracting more investment. Big deals
like Cisco buying Splunk for $28 billion and Thoma Bravo's plan to buy Darktrace for $5.3 billion
show continued interest in cybersecurity. Increased regulation and awareness of cyber threats
make this a promising area for future investments.

→ Consumer trends we need to know

Consumers rated wireless devices, GPS/directions apps, computers, streaming services, and
music apps as the top 5 most indispensable technologies
42% do not want to consume movies, TV shows, and music if it was created by AI
59% will not download specific apps due to data privacy concerns
51% prefer to use technology products from sustainable companies
84% plan to use social media the same amount or more over the next year

Notable trends in the TMT deal market in Q1’24 included:

Weak PE deal making: Private equity (PE) deal value dropped 69.6 percent from Q4’23 while
deal count decreased 17.6 percent.
Continuing macroeconomic uncertainty: The persistent strength of inflation and the economy
has raised doubts about how soon and how much interest rates will fall, deterring deal makers.
Rising political risk: The upcoming U.S. presidential election and the future direction of the
next administration’s antitrust policy may be influencing some deal makers to delay M&A.
Yet both corporates and PE firms are sitting on plenty of cash. If the current uncertainty starts to
lift as the year progresses, we believe the momentum for an M&A recovery could quickly gather
steam.

India as a growth hot spot: The increasing interest of dealmakers in India’s growing
entertainment market is fuelled by India’s highly desirable size and scale, along with expected
rapid growth in consumer spending and advertising. In the first half of 2024, Disney’s
announced $8.5bn merger with Reliance Industries and the WWE’s ten-year $5bn deal with
Netflix signal the potential for M&A to serve as a catalyst in the transformation of India’s
hypercompetitive media and entertainment landscape. As the boundaries of the industry
continue to blur, M&A activity becomes a powerful tool for strategic deal makers to improve their
market position, access new audiences and capitalise on emerging trends.

Healthcare - Digital Health

Despite challenges in the market, PwC’s deals outlook for health services remains cautiously
optimistic. Interest rates, valuation gaps and regulatory concerns have impacted the sector, but
record levels of capital and non-traditional deal structures are expected to drive momentum in
2024.

The shift to virtual care is also well underway, accompanied by advances in sophisticated
wearables, robotic surgery, extended reality and other immersive technologies.

AI can play a crucial role in making healthcare more affordable. It’s estimated that AI
applications can cut annual US healthcare costs by $150 billion, according to the National
Library of Medicine. A large part of these cost reductions stem from changing the healthcare
model from a reactive to a proactive approach, focusing on health management rather than
disease treatment.

Germany - Inadequately financed operating costs, an increasing shortage of staff, and the
switch to digital processes are among the current challenges that are causing the mood among
general practitioners, specialists, and medical assistants to remain gloomy. The Digital Act and
Health Data Use Act passed by the Bundestag in December 2023 will significantly advance
digitalization in the healthcare sector, simplifying workflows and optimizing processes in the
future. This will leave more time for the individual treatment and care of patients. However, the
implementation of the measures is associated with additional bureaucratic work for healthcare
facilities, which ties up staff.
→ The largest share of revenue in the healthcare sector is generated by medical services.
However, the sector also includes nursing and therapeutic services, accommodation and
catering, medical goods as well as prevention and health protection.
US - More physician practices are procuring medical supplies online than ever. Online medical
supply sales allow physicians and clinical staff to access the products they need easily.
OPPORTUNITY? Advertise audit or research services to big suppliers to see if their platforms
are supporting orders.

Price ultimately determines where consumers order medical supplies online. A saturated
market, little differentiation and steep healthcare expenses lead consumers to look for a supplier
where they’ll spend the least.

DIGITAL HEALTH

Revenue in the Digital Health market is projected to reach US$171.90bn in 2024.

Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.49%, resulting in a
projected market volume of US$258.30bn by 2029.
The average revenue per user (ARPU) is expected to amount to US$85.56.
In global comparison, most revenue will be generated in the United States (US$47,120.00m in
2024).
The market's largest market will be Digital Treatment & Care with a total revenue value of
US$103.80bn in 2024.

The Digital Health market is divided into three markets:

1. Digital Fitness & Well-Being: This market includes fitness trackers, health and wellness
coaching, and tools that help individuals monitor and improve their health and
well-being.
2. Online Doctor Consultations: This market includes telemedicine and other digital tools
that allow patients to consult with doctors remotely.
3. Digital Treatment & Care: This market includes digital tools that are used to diagnose,
treat, and manage medical conditions. It includes the Connected Biosensors and Digital
Care Management markets.

WCE

Customer preferences: Consumers in Central & Western Europe are increasingly seeking
convenient and efficient healthcare solutions, leading to a growing demand for digital health
services. The preference for remote access to healthcare professionals, personalized fitness
and well-being programs, and digital treatment options is driving the adoption of digital health
technologies in the region.

Trends in the market: In countries like Germany and France, online doctor consultation
platforms are gaining popularity as they offer quick medical advice and reduce the need for
in-person visits to healthcare facilities. Additionally, digital fitness and well-being apps are
seeing a surge in users across the region, with features like virtual workout classes, activity
tracking, and personalized diet plans attracting health-conscious consumers.

Local special circumstances: Central & Western Europe boasts advanced healthcare
infrastructure and high internet penetration rates, creating a conducive environment for the
growth of the digital health market. Moreover, the region's aging population and the increasing
prevalence of chronic diseases are driving the need for innovative healthcare solutions, further
propelling the adoption of digital health technologies.

Underlying macroeconomic factors: The growing focus on healthcare digitization and the rise of
telemedicine are being supported by favorable government regulations and investments in
healthcare technology across Central & Western Europe. Economic stability, increasing
healthcare expenditures, and a tech-savvy population are also contributing to the expansion of
the digital health market in the region.

GERMANY

Trends in the market: In Germany, there is a noticeable trend towards the integration of digital
health tools and platforms into traditional healthcare systems. This integration is aimed at
improving efficiency, enhancing patient outcomes, and reducing healthcare costs. The market is
witnessing a rise in telemedicine services, wearable devices, health apps, and remote
monitoring solutions, catering to the evolving needs of tech-savvy consumers.

Local special circumstances: Germany has a well-established healthcare system with a strong
focus on quality care and patient safety. The country also has a high level of digital infrastructure
and internet penetration, which facilitates the widespread adoption of digital health solutions.
Additionally, the regulatory environment in Germany is supportive of digital health innovations,
providing a conducive market landscape for companies operating in the sector.

UK

Customer preferences: Consumers in the United Kingdom are increasingly seeking convenience and
accessibility in healthcare services, leading to a growing preference for digital solutions such as online
doctor consultations and digital fitness platforms. The demand for remote monitoring and personalized
health management tools is also on the rise as individuals prioritize proactive wellness and preventive
care.

Trends in the market: One of the notable trends in the Digital Health market in the United Kingdom is the
integration of artificial intelligence and data analytics in healthcare platforms to provide personalized
recommendations and predictive insights. This trend is shaping the way healthcare services are
delivered, making them more efficient and tailored to individual needs. Additionally, the adoption of
wearable devices and health tracking apps is becoming more prevalent, allowing users to monitor their
health metrics in real-time and make informed decisions about their well-being.

Local special circumstances: The National Health Service (NHS) plays a significant role in shaping the
Digital Health market in the United Kingdom. The integration of digital health solutions within the NHS
framework is driving innovation and collaboration between traditional healthcare providers and technology
companies. This unique partnership is fostering the development of advanced telemedicine services and
digital treatment options, expanding access to quality healthcare for a larger population.

USA

Trends are the same as in the UK

Local special circumstances: The United States has a well-established healthcare system with a strong
focus on technology and innovation. This environment fosters the development and adoption of digital
health solutions, making it easier for new entrants and existing players to introduce cutting-edge
technologies to the market. Additionally, the diverse and tech-savvy population in the U. S. is open to
trying new digital health tools and services, creating a conducive environment for growth and expansion in
the market.

Education
IN-SCOPE
● University designed and delivered courses and credentials such as public/private
universities, Harvard Business Online
● Online learning platform courses and credentials such as Coursera, Udemy, Babbel
● Professional certification offered through institutes and study prep companies such as
PMI, Kaplan.
WCE

WCE is not in the top 5 regions driving revenue from digital education platforms.

Customer preferences: Customers in Central & Western Europe are increasingly turning to
online education as a convenient and flexible way to learn new skills and acquire knowledge.
The rise of digital technology and internet connectivity has made online education accessible to
a larger population, allowing individuals to learn at their own pace and from the comfort of their
own homes. Additionally, the COVID-19 pandemic has accelerated the adoption of online
education, as traditional educational institutions have shifted to remote learning models.

Trends in the market: One of the key trends in the online education market in Central & Western
Europe is the increasing demand for professional development courses. Individuals are seeking
to enhance their skills and stay competitive in the job market, leading to a growing demand for
online courses that offer certifications and credentials. This trend is particularly evident in
industries such as technology, finance, and healthcare, where continuous learning and upskilling
are essential. Another trend in the market is the rise of online language learning. Central &
Western Europe is a region with diverse languages, and individuals are increasingly turning to
online platforms to learn new languages or improve their language proficiency. Online language
learning offers personalized learning experiences, interactive tools, and the ability to connect
with native speakers, making it an attractive option for language learners.
Local special circumstances: Central & Western Europe is home to a highly educated population
that values lifelong learning. The region has a strong tradition of education and a culture that
emphasizes the importance of continuous learning and self-improvement. This cultural mindset,
combined with the convenience and flexibility of online education, has contributed to the growth
of the market. Furthermore, the region has a high level of internet penetration and access to
digital technology. This infrastructure enables individuals to easily access online education
platforms and participate in virtual classrooms. The widespread use of smartphones and tablets
also contributes to the popularity of online education, as individuals can learn on-the-go and fit
learning into their busy schedules.

Underlying macroeconomic factors: The online education market in Central & Western Europe is
also influenced by macroeconomic factors. The region has a strong economy and a high level of
disposable income, which allows individuals to invest in their education and personal
development. Additionally, the job market in Central & Western Europe is highly competitive,
and individuals see online education as a way to gain a competitive edge and increase their
employability. In conclusion, the Online Education market in Central & Western Europe is
experiencing growth due to customer preferences for convenience and flexibility, the demand for
professional development and language learning, local special circumstances such as a highly
educated population and advanced digital infrastructure, and underlying macroeconomic factors
such as a strong economy and competitive job market. This market is expected to continue to
expand as more individuals recognize the benefits of online education and the value it brings to
their personal and professional lives.

Statista anticipates that most of the revenue will come from Online University Education in the
WCE region. Also we can see a peak during COVID but revenue from online learning platforms
will decrease as the years pass by.
GERMANY

UK
Customer preferences: One of the key reasons for the growth of the Online Education market in
United Kingdom is the increasing preference of customers for flexible and convenient learning
options. With the advancements in technology and the widespread availability of high-speed
internet, more and more people are opting for online education as it allows them to learn at their
own pace and from the comfort of their own homes. Additionally, online education offers a wide
range of courses and programs, allowing customers to choose subjects that are relevant to their
interests and career goals.

Trends in the market: One of the major trends in the Online Education market in United
Kingdom is the rise of Massive Open Online Courses (MOOCs). MOOCs are online courses that
are open to anyone and can be accessed for free or at a low cost. These courses are offered by
top universities and institutions from around the world, making high-quality education accessible
to a larger audience. The popularity of MOOCs has been increasing in United Kingdom as they
provide a flexible and affordable way to acquire new skills and knowledge. Another trend in the
Online Education market in United Kingdom is the increasing adoption of online learning
platforms by traditional educational institutions. Many universities and colleges in United
Kingdom are now offering online courses and degree programs to cater to the growing demand
for flexible learning options. This trend is driven by the recognition that online education can
complement traditional classroom-based learning and provide students with a more
personalized and interactive learning experience.
Local special circumstances: The Online Education market in United Kingdom is also influenced
by local special circumstances. One of the key factors is the high level of internet penetration in
the country. United Kingdom has one of the highest internet penetration rates in Europe, with a
large percentage of the population having access to high-speed internet. This has made it
easier for people in United Kingdom to access online education platforms and participate in
online courses. Another special circumstance in United Kingdom is the presence of a strong
higher education sector. United Kingdom is home to some of the world's top universities and
colleges, which attract students from around the world. The reputation of these institutions has
also contributed to the growth of the Online Education market in United Kingdom, as they have
started offering online courses and degree programs to cater to the demand from domestic and
international students.

Underlying macroeconomic factors: The growth of the Online Education market in United
Kingdom is also influenced by underlying macroeconomic factors. The changing nature of work
and the increasing demand for skills in emerging industries such as technology and data
analysis have created a need for continuous learning and upskilling. Online education provides
a flexible and cost-effective way for individuals to acquire new skills and stay relevant in the job
market. Furthermore, the COVID-19 pandemic has accelerated the adoption of online education
in United Kingdom. With the closure of schools and universities, many students and
professionals turned to online learning platforms to continue their education and professional
development. This increased awareness and acceptance of online education is expected to
have a long-lasting impact on the market, even after the pandemic subsides. In conclusion, the
Online Education market in United Kingdom is experiencing significant growth due to the
increasing preference for flexible learning options, the rise of MOOCs, the adoption of online
learning platforms by traditional educational institutions, local special circumstances such as
high internet penetration and a strong higher education sector, and underlying macroeconomic
factors such as the changing nature of work and the impact of the COVID-19 pandemic.

eCommerce - eServices

eServices includes the event ticketing market, which covers the sale of tickets for sporting
events, music concerts, and cinema showings. The dating services market includes online
dating platforms, matchmaking services, and casual dating sites. The online education market
encompasses the provision of university education, online learning platforms, and professional
certification programs. Lastly, the online gambling market which covers online sports betting,
online casinos, and online lotteries.
IN-SCOPE

● Online booked and digitally issued event tickets for sports events, music events, and cinemas
such as Ticketmaster, StubHub, or CTS eventim
● Online dating services, including matchmaking, online dating, and casual datings such as Tinder,
Bumble, or Badoo
● Online Education, including universities, platforms and professional certificates such as Udem,
Coursera, or EdX

WORLDWIDE

The eServices market Worldwide is experiencing significant growth and development. Customer
preferences are shifting towards online and digital services, leading to increased demand for
eServices across various industries. This trend is driven by several factors, including
convenience, cost-effectiveness, and the increasing penetration of smartphones and internet
access.

Customer preferences: Customers are increasingly seeking convenience in their daily lives, and
eServices provide a solution to fulfill this need. Online shopping, food delivery, and ride-hailing
services are gaining popularity as they offer the convenience of ordering products or services
from the comfort of one's home. Additionally, the COVID-19 pandemic has accelerated the
adoption of eServices as people look for contactless alternatives to traditional services.

Trends in the market: The eServices market is witnessing a surge in the demand for online
entertainment and streaming platforms. With the proliferation of high-speed internet and the
availability of affordable smartphones, consumers are turning to digital platforms for
entertainment purposes. Streaming services such as Netflix and Amazon Prime Video have
seen a significant increase in subscribers, and the trend is expected to continue. Another
emerging trend in the eServices market is the rise of online education and e-learning platforms.
With the closure of schools and universities during the pandemic, students and professionals
have turned to online platforms to continue their education and skill development. This trend is
likely to continue even after the pandemic, as online learning offers flexibility and accessibility to
a wide range of courses and resources.

Local special circumstances: In some countries, the eServices market is further fueled by
specific local circumstances. For example, in countries with a large unbanked population,
mobile payment services have gained traction as they provide a convenient and secure way to
make financial transactions. In other regions, the lack of physical infrastructure and access to
basic services has led to the rapid adoption of eServices, such as online healthcare
consultations and telemedicine.

Underlying macroeconomic factors: The growth of the eServices market is also influenced by
underlying macroeconomic factors. Rising internet penetration, particularly in developing
countries, is a key driver of eServices adoption. As more people gain access to the internet, the
potential customer base for eServices expands. Additionally, the increasing disposable income
and changing lifestyles of consumers contribute to the growth of the eServices market. In
conclusion, the eServices market in Worldwide is experiencing significant growth and
development driven by changing customer preferences, technological advancements, and
underlying macroeconomic factors. The convenience and cost-effectiveness of eServices,
coupled with the increasing penetration of smartphones and internet access, are fueling the
demand for online and digital services across various industries. As the market continues to
evolve, it is crucial for businesses to adapt and innovate to meet the changing needs and
expectations of customers.

WCE

● The eServices market in Central & Western Europe is projected to reach a revenue of
US$114.40bn in 2024.
● This market is expected to show a steady annual growth rate (CAGR 2024-2029) of
8.67%, resulting in a projected market volume of US$173.40bn by 2029.
● The Online Food Delivery market is anticipated to experience a revenue growth of 15.9%
in 2025.
○ On the other hand, the market is projected to have a market volume of
US$98.48bn in 2024.
○ The Online Food Delivery market is projected to have an average revenue per
user (ARPU) of US$510.90 in 2024.
○ The number of users is anticipated to reach 237.2m users by 2029.
○ The user penetration is expected to be at 57.5% in 2024.
● In Central & Western Europe, Germany leads the eServices market with a strong
focus on digital banking and online payment solutions.

The eServices market in Central & Western Europe has been experiencing significant growth in
recent years. This can be attributed to several key factors, including changing customer
preferences, emerging trends in the market, local special circumstances, and underlying
macroeconomic factors.

Customer preferences in Central & Western Europe have shifted towards convenience and
efficiency, driving the demand for eServices. Customers are increasingly seeking digital
solutions that allow them to access services and make transactions online, saving time and
effort. This preference for convenience has been further fueled by the widespread adoption of
smartphones and other mobile devices, which enable customers to access eServices anytime
and anywhere.

Trends in the eServices market in Central & Western Europe have also contributed to its
development. One notable trend is the rise of online shopping and e-commerce. With the
convenience of online shopping, customers are increasingly turning to e-commerce platforms to
purchase goods and services. This trend has been further accelerated by the COVID-19
pandemic, as more people have turned to online shopping due to lockdowns and social
distancing measures. Another trend in the eServices market is the increasing popularity of
digital payment solutions. Customers are now more comfortable using digital payment methods
such as mobile wallets, contactless payments, and online banking. This trend has been driven
by the convenience and security offered by digital payment solutions, as well as the increasing
acceptance of these methods by merchants and service providers.
Local special circumstances in Central & Western Europe have also played a role in the
development of the eServices market. For example, the region has a high level of internet
penetration and digital literacy, which has facilitated the adoption of eServices. Additionally,
Central & Western Europe has a strong infrastructure for eServices, with reliable internet
connectivity and a well-developed digital ecosystem.

Underlying macroeconomic factors have also contributed to the growth of the eServices market
in Central & Western Europe. The region has a strong and stable economy, which has provided
a favorable environment for businesses to invest in eServices. Additionally, government
initiatives and policies promoting digitalization have further supported the development of the
eServices market. In conclusion, the eServices market in Central & Western Europe is
experiencing significant growth due to changing customer preferences, emerging trends, local
special circumstances, and underlying macroeconomic factors. As customers increasingly seek
convenience and efficiency, the demand for eServices continues to rise. This trend is further
supported by the rise of online shopping, the popularity of digital payment solutions, and the
region's strong infrastructure for eServices. With a favorable economic environment and
government support, the eServices market in Central & Western Europe is expected to continue
its growth trajectory in the coming years.

GERMANY

Customer preferences: German consumers have shown a strong preference for online platforms
and digital services. This can be seen in the increasing popularity of e-commerce websites,
online banking, and digital entertainment platforms. The convenience of being able to access
these services from anywhere and at any time has greatly contributed to their popularity.
Additionally, the ability to compare prices and read reviews online has made it easier for
consumers to make informed purchasing decisions.

Trends in the market: One of the key trends in the eServices market in Germany is the growth of
e-commerce. Online shopping has become increasingly popular among German consumers,
with a wide range of products and services available online. This trend is driven by factors such
as the convenience of shopping from home, the availability of a wider range of products, and the
ability to compare prices easily. As a result, e-commerce platforms have seen significant growth
in Germany, with both domestic and international companies expanding their online presence.
Another trend in the eServices market is the increasing adoption of digital payment solutions.
German consumers are increasingly using digital payment methods such as mobile wallets,
contactless payments, and online banking. This shift towards digital payments is driven by
factors such as convenience, security, and the growing acceptance of digital payment solutions
by merchants. As a result, digital payment providers and fintech companies have seen rapid
growth in Germany.

Local special circumstances: Germany has a strong regulatory framework for eServices, which
has helped to build trust among consumers. The country has strict data protection laws and
regulations, which ensure the privacy and security of consumer information. This has been a
key factor in the adoption of eServices, as consumers feel confident in using online platforms
and sharing their personal information. Additionally, Germany has a high level of digital literacy
among its population. The country has invested heavily in digital infrastructure and education,
which has resulted in a tech-savvy population that is comfortable using digital services. This has
further fueled the growth of the eServices market in Germany.

Underlying macroeconomic factors: The growth of the eServices market in Germany can also be
attributed to underlying macroeconomic factors. The country has a strong economy and a high
standard of living, which has led to increased disposable income among consumers. This has
resulted in higher spending on eServices, such as online shopping and digital entertainment.
Furthermore, Germany has a large population of internet users, with a high internet penetration
rate. This has created a large potential customer base for eServices providers, leading to
increased competition and innovation in the market.

In conclusion, the eServices market in Germany is experiencing significant growth due to

changing customer preferences, including a shift towards online platforms and digital services.
This trend is driven by factors such as convenience, accessibility, and the growing digital literacy
among consumers. The market is characterized by trends such as the growth of e-commerce
and the increasing adoption of digital payment solutions. Germany's strong regulatory
framework, high level of digital literacy, and underlying macroeconomic factors have contributed
to the growth of the eServices market in the country.

UK

The eServices market in United Kingdom has been experiencing significant growth in recent
years. Customer preferences, trends in the market, local special circumstances, and underlying
macroeconomic factors have all contributed to this development.

Customer preferences in the United Kingdom have shifted towards digital services, leading to a
rise in demand for eServices. Consumers are increasingly seeking convenience and efficiency
in their daily lives, and eServices provide a solution to meet these needs. The ease of access
and ability to complete tasks online has made eServices a preferred choice for many
individuals. Additionally, the COVID-19 pandemic has accelerated the adoption of eServices, as
people have turned to digital platforms for various activities such as shopping, banking, and
entertainment.

Trends in the eServices market in the United Kingdom reflect the changing consumer behavior.
Online shopping has seen a significant surge, with more people opting to purchase goods and
services online. This trend is driven by factors such as the convenience of home delivery, wider
product selection, and competitive pricing offered by online retailers. E-commerce platforms
have also capitalized on this trend by improving their user interfaces and offering personalized
recommendations to enhance the online shopping experience. Another notable trend in the
eServices market is the growth of digital banking. Traditional brick-and-mortar banks are
facing increasing competition from digital-only banks, which offer a range of services
such as online account opening, mobile banking apps, and instant money transfers.
These digital banking services have gained popularity due to their convenience, accessibility,
and often lower fees compared to traditional banks.

Local special circumstances in the United Kingdom have further fueled the growth of the
eServices market. The country has a high internet penetration rate, with a large percentage of
the population having access to the internet. This widespread connectivity has created a
conducive environment for the adoption of eServices. Additionally, the United Kingdom has a
well-developed infrastructure and a mature digital ecosystem, which has facilitated the growth of
eServices.

Underlying macroeconomic factors have also played a role in the development of the eServices
market in the United Kingdom. The country has a strong economy and a high disposable
income, which has enabled consumers to spend on eServices. Furthermore, the government
has been supportive of digital transformation initiatives, providing incentives and regulations to
promote the growth of eServices.

In conclusion, the eServices market in the United Kingdom is experiencing significant growth
due to changing customer preferences, emerging trends, local special circumstances, and
underlying macroeconomic factors. The shift towards digital services, fueled by convenience
and efficiency, has driven the demand for eServices. Online shopping and digital banking are
among the key trends in the market. The United Kingdom's high internet penetration rate,
well-developed infrastructure, and supportive government initiatives have further contributed to
the growth of the eServices market.

US

​The eServices market in United States has seen significant growth in recent years, driven by
changing customer preferences and advancements in technology.

Customer preferences: Customers in the United States have increasingly turned to eServices
for convenience and efficiency. The rise of smartphones and the availability of high-speed
internet have made it easier for consumers to access online services from anywhere at any
time. This has led to a shift in customer preferences towards digital platforms for a wide range of
services, including shopping, banking, entertainment, and communication.

Trends in the market: One major trend in the eServices market in United States is the growth of
e-commerce. Online shopping has become the preferred method for many consumers, with a
wide variety of products and services available at their fingertips. This trend has been further
accelerated by the COVID-19 pandemic, as more people have turned to online shopping to
avoid physical stores and reduce the risk of exposure to the virus. As a result, e-commerce
platforms have experienced significant growth in the United States, with companies investing
heavily in digital infrastructure and logistics to meet the increasing demand. Another trend in the
eServices market is the rise of digital payment solutions. Traditional payment methods, such as
cash and credit cards, are being replaced by digital wallets and mobile payment apps. This
trend is driven by the convenience and security offered by digital payments, as well as the
increasing acceptance of these methods by merchants. The adoption of digital payment
solutions has been further accelerated by the COVID-19 pandemic, as consumers and
businesses seek contactless payment options to reduce the risk of transmission.

Local special circumstances: The United States has a highly developed digital infrastructure,
with widespread access to high-speed internet and mobile networks. This has created a
conducive environment for the growth of eServices, as consumers and businesses are able to
connect and transact online with ease. Additionally, the United States has a large population of
tech-savvy consumers who are early adopters of new technologies. This has further fueled the
growth of eServices in the country.

Underlying macroeconomic factors: The eServices market in United States is also influenced by
underlying macroeconomic factors. The country has a strong economy, with high levels of
disposable income and consumer spending. This provides a favorable environment for the
growth of eServices, as consumers have the financial means to engage in online transactions.
Additionally, the United States has a highly competitive business environment, with a large
number of companies operating in the eServices sector. This competition has led to innovation
and investment in digital technologies, driving the growth of the market. In conclusion, the
eServices market in United States has experienced significant growth due to changing customer
preferences, advancements in technology, and favorable macroeconomic factors. The rise of
e-commerce and digital payment solutions, coupled with the country's developed digital
infrastructure and tech-savvy population, has created a thriving market for online services. The
COVID-19 pandemic has further accelerated the adoption of eServices, as consumers and
businesses seek convenience and safety in their transactions.

Technology

This is not to downplay the challenges. Notably, 67 percent of technology leaders say they are
now expected to do more with smaller budgets than they were last year: 72 percent and 69
percent of AsiaPacifc (ASPAC) and Americas businesses respectively say this, while 61 percent
of those in EMA feel the same. Also, coordination issues between technology functions and the
rest of the business frequently derail digital transformation progress. But despite these
pressures, organisations must rise to the challenge and continue to fnd ways to digitally
transform to avoid falling behind the competition.

KPMG global tech report 2023

Customer engagement and cyber security stand firm as popular focus areas for digital
transformation projects
Consistent with what was observed in 2022’s report, digital innovation projects are primarily
focused on achieving performance uplifts around cyber security and customer engagement.
A desire for improved customer centricity, for instance, is a common trigger for digital
transformation:
● 57 percent of respondents say improving upselling and cross-selling opportunities is a
leading driver for their digital transformation efforts
● 51 percent say that the need to do a better job of converting prospects into customers is
a trigger of transformation

Software
IN-SCOPE
● Productivity software, such as Microsoft, Adobe, and Zoom
● Enterprise software, such as Oracle, SAP, and ServiceNow
● Application development software, such as Amazon Web Services (AWS), Squarespace,
and Visual Studio
 ● System Infrastructure Software, such as Cisco, Gen Digital, and McAfee

WORLDWIDE
The software market has been experiencing significant growth worldwide due to the increasing
demand for digital transformation across various industries.

Customer preferences: Customers are increasingly looking for software solutions that can help
them streamline their business processes, reduce costs, and improve efficiency. Cloud-based
software solutions have become increasingly popular due to their flexibility, scalability, and
cost-effectiveness. Additionally, customers are also looking for software solutions that can help
them comply with data privacy regulations and improve cybersecurity.

Trends in the market: In the United States, the software market is dominated by large players
such as Microsoft, Oracle, and IBM. These companies offer a wide range of software solutions
to customers across various industries. However, there has been a trend towards the adoption
of open-source software solutions, which offer greater flexibility and cost-effectiveness.
Additionally, there has been an increasing demand for software solutions that can help
companies automate their business processes and improve customer experience.In Europe, the
software market is highly fragmented, with a large number of small and medium-sized software
companies offering specialized solutions to customers in different industries. There has been a
trend towards the adoption of cloud-based software solutions, which offer greater flexibility and
scalability. Additionally, there has been an increasing demand for software solutions that can
help companies comply with the General Data Protection Regulation (GDPR) and improve
cybersecurity.In Asia, the software market is dominated by companies such as Tencent, Alibaba,
and Baidu, which offer a wide range of software solutions to customers across various
industries. There has been a trend towards the adoption of mobile-first software solutions, as
more customers in the region access the internet via mobile devices. Additionally, there has
been an increasing demand for software solutions that can help companies improve supply
chain management and logistics.

Local special circumstances: In Latin America, the software market is still in its early stages of
development. However, there has been a trend towards the adoption of software solutions that
can help companies improve customer experience and comply with data privacy regulations.
Additionally, there has been an increasing demand for software solutions that can help
companies improve financial management and reduce costs.In Africa, the software market is
also in its early stages of development. However, there has been a trend towards the adoption
of software solutions that can help companies improve healthcare delivery, education, and
agriculture. Additionally, there has been an increasing demand for software solutions that can
help companies improve financial inclusion and reduce poverty.

Underlying macroeconomic factors: The growth of the software market worldwide is being driven
by several macroeconomic factors, including the increasing adoption of digital technologies, the
growing demand for cloud-based solutions, and the need for companies to improve efficiency
and reduce costs. Additionally, the increasing focus on data privacy and cybersecurity is driving
the adoption of software solutions that can help companies comply with regulations and protect
their data. The COVID-19 pandemic has also accelerated the adoption of digital technologies,
as more companies shift towards remote work and online business models. As a result, the
software market is expected to continue growing in the coming years, driven by the increasing
demand for digital transformation across various industries.

WCE
The demand for software in Central & Western Europe has been on the rise in recent years,
with several factors contributing to this trend.

Customer preferences: The increasing adoption of cloud computing and mobile devices has led
to a growing demand for software solutions that can be accessed from anywhere and on any
device. Customers are also looking for software that is user-friendly and customizable to their
specific needs.

Trends in the market: Germany, France, and the UK are the largest software markets in Central
& Western Europe. In Germany, the software market is dominated by enterprise software, with a
focus on automation and digitalization. In France, there is a growing demand for software in the
healthcare and financial sectors. The UK has a strong software industry, with a focus on fintech
and e-commerce.

Local special circumstances: Central & Western Europe is a diverse region with varying levels of
technological infrastructure and digital maturity. Countries such as Germany and the UK have
well-established tech industries, while others are still catching up. Additionally, there are varying
levels of government support for the tech industry across the region.

Underlying macroeconomic factors: The strong economic growth in Central & Western Europe
has led to increased investment in technology and innovation. Additionally, the region's highly
skilled workforce and favorable business environment have attracted tech companies from
around the world. However, the ongoing uncertainty surrounding Brexit and the COVID-19
pandemic have created some challenges for the software market in the region.Overall, the
software market in Central & Western Europe is expected to continue growing in the coming
years, driven by increasing demand for cloud-based and mobile software solutions. However,
companies operating in the region will need to navigate the unique challenges and opportunities
presented by each individual country.

GERMANY
Germany, known for its engineering prowess, is also a major player in the software market.

Customer preferences: German customers have a strong preference for software solutions that
are reliable, secure, and customizable. They value software that is user-friendly and that can be
integrated seamlessly with existing systems. Additionally, German customers place a high
emphasis on data privacy and security, which has led to a growing demand for software
solutions that comply with the EU's General Data Protection Regulation (GDPR).

Trends in the market: The software market in Germany is experiencing significant growth, driven
by a number of key trends. Firstly, the increasing adoption of cloud computing is driving demand
for cloud-based software solutions. Secondly, the rise of Industry 4.0 is fueling demand for
software that can support the automation and digitalization of manufacturing processes. Thirdly,
the growing importance of data analytics is driving demand for software that can help
companies make sense of their data and gain insights into their business operations.

Local special circumstances: Germany has a highly skilled workforce and a strong tradition of
innovation, which has helped to drive the growth of the software market. The country is also
home to a number of world-class research institutions and technology hubs, which are helping
to foster innovation and drive the development of new software solutions. Additionally, the
German government has been supportive of the software industry, providing funding and
support for research and development.

Underlying macroeconomic factors: Germany has a strong and stable economy, which has
helped to create a favorable environment for software companies. The country is home to many
large corporations, which are major buyers of software solutions. Additionally, the country has a
highly educated workforce and a strong tradition of innovation, which has helped to drive the
growth of the software market. Finally, Germany's central location in Europe makes it an
attractive location for companies looking to expand into the European market.

UK
The United Kingdom is one of the leading countries in the technology industry, with a thriving
software market that is constantly evolving.

Customer preferences: UK customers have a strong preference for software that is user-friendly,
efficient, and cost-effective. They are also increasingly concerned with security and data
protection, which has led to a rise in demand for cybersecurity software. Cloud-based software
is also becoming more popular, as it allows for greater flexibility and scalability.

Trends in the market: One of the major trends in the UK software market is the shift towards
Software as a Service (SaaS) models. This has been driven by the need for greater flexibility
and cost-effectiveness, as well as the increasing availability of cloud-based technologies.
Another trend is the rise of open-source software, which is becoming more popular due to its
lower cost and greater flexibility.

Local special circumstances: The UK software market is highly competitive, with a large number
of small and medium-sized enterprises (SMEs) competing with larger multinational companies.
This has led to a focus on innovation and differentiation, with companies looking to develop
unique software solutions that meet the specific needs of their customers. The UK government
has also supported the growth of the software industry through initiatives such as the Tech
Nation programme, which provides funding and support for tech startups.

Underlying macroeconomic factors: The UK software market is influenced by a range of

macroeconomic factors, including economic growth, consumer spending, and government
policies. The UK economy has been growing steadily in recent years, which has led to
increased investment in the technology industry. Consumer spending has also been strong,
which has supported the growth of the software market. Government policies, such as the
introduction of the General Data Protection Regulation (GDPR), have also had an impact on the
market by increasing demand for cybersecurity software. Overall, the UK software market is
expected to continue to grow in the coming years, driven by ongoing technological innovation
and increasing demand for cloud-based and cybersecurity software.

US

The demand for software in the United States has been growing at a rapid pace in recent years,
driven by various factors such as the increasing adoption of cloud computing, the rise of mobile
devices, and the growing importance of data analytics.

Customer preferences: Customers in the United States are increasingly looking for software
solutions that can help them streamline their operations, improve efficiency, and reduce costs.
Cloud-based software solutions have become particularly popular, as they offer greater
flexibility, scalability, and cost-effectiveness compared to traditional on-premise software.Another
key customer preference in the United States is the need for software that is easy to use and
integrates seamlessly with existing systems. As such, vendors that offer user-friendly interfaces
and robust integration capabilities are likely to be more successful in the US market.

Trends in the market: One major trend in the software market in the United States is the
growing importance of data analytics. With the rise of big data, businesses are
increasingly looking for software solutions that can help them make sense of the vast
amounts of data they generate. This has led to the emergence of new software categories
such as business intelligence and analytics tools, which are designed to help businesses gain
insights from their data. Another key trend in the US software market is the increasing adoption
of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are
being used to automate a wide range of business processes, from customer service to supply
chain management. As such, vendors that offer AI and ML capabilities are likely to be in high
demand in the US market.

Local special circumstances: The United States is home to a large number of technology
companies, including some of the world's largest software vendors. This has created a highly
competitive market, with vendors competing on factors such as price, features, and customer
service.Another unique aspect of the US software market is the regulatory environment. The US
has a complex and ever-changing regulatory landscape, which can make it difficult for software
vendors to navigate. As such, vendors that are able to stay up-to-date with the latest regulations
and compliance requirements are likely to be more successful in the US market.

Underlying macroeconomic factors: The US software market is being driven by a number of

macroeconomic factors, including the growing importance of technology in business, the
increasing adoption of cloud computing, and the rise of mobile devices. Additionally, the US
economy has been growing steadily in recent years, which has led to increased investment in
technology and software solutions.Another key macroeconomic factor driving the US software
market is the shift towards a more service-based economy. As businesses increasingly rely on
software and technology to drive their operations, the demand for software solutions is likely to
continue to grow.

AI
IN-SCOPE
● Natural language processing tools, such as chatbots and speech recognition
● Computer vision applications, such as object detection or face recognition
● Machine learning tools, such as trained algorithms.

One of the current trends in the artificial intelligence industry is the increasing use of artificial
intelligence (AI) in healthcare, particularly in areas such as disease diagnosis, drug
development, and personalized medicine.

Another trend is the use of AI to improve customer service and support, such as through
chatbots and virtual assistants. The development of AI chips and edge computing is also a
growing trend, enabling more efficient and powerful processing of AI applications.

Finally, the integration of AI with other technologies, such as blockchain and the Internet of
Things (IoT), is expected to continue to drive innovation and growth in the AI industry.

Several factors are contributing to the growth of the AI industry.

First, the increasing availability of big data is providing more opportunities for AI applications, as
AI algorithms require substantial amounts of data to learn and improve.
Second, advancements in computing power and cloud computing infrastructure are enabling
more efficient and powerful processing of AI applications.
Third, the growing demand for automation and optimization in various industries, such as
manufacturing, finance, and transportation, is driving the adoption of AI technologies.
Fourth, the increasing use of AI in consumer-facing applications, such as virtual
assistants and chatbots, is expanding the market for AI technologies.
Finally, the growing investments and partnerships among technology companies, research
institutions, and governments are fueling innovation and driving growth in the AI industry.

The Artificial Intelligence (AI) market is expected to continue to experience significant growth
and development until 2030, driven by increasing adoption of AI technologies across industries,
advancements in AI algorithms and infrastructure, and growing investment in AI research and
development. The market is expected to see continued innovation and expansion, with AI
becoming an increasingly integral part of business operations and consumer-facing
applications.

The EU AI act
The Act seeks to standardize regulations surrounding AI development, market placement,
adoption and use, while addressing the social, ethical, and security challenges posed by the
technology through a three-tier categorization system.

The EU AI Act prohibits some AI uses outright and implements strict governance, risk
management and transparency requirements for others.

SECTORS
​The S&P 500 Index is a stock market index that measures the performance of 500 of the largest
publicly traded companies in the United States. It is widely regarded as one of the best
indicators of the overall health and performance of the U.S. stock market and the economy.

hát mondjuk olyan szempontból fontos lehet hogy mennyien fektettek be, hogy mennyire bíznak
abban a tevékenységben amibe befektetnek
Energy

Financial Services

Healthcare

Technology

Market Cap: The total market capitalization of the Technology sector is $17.379 trillion.
Market Weight: Technology makes up 28.41% of the total market, indicating its significant
influence.
Industries and Companies: The sector comprises 12 industries and 806 companies.

Over the past five years, the Technology sector has significantly outperformed the S&P 500,
with a return of 177.75% compared to the S&P 500's 79.36%.
The graph shows a strong upward trend for the Technology sector, especially notable from
mid-2020 onwards, likely driven by increased digitalization and reliance on technology during
the COVID-19 pandemic.
The sector has experienced more volatility compared to the S&P 500, with sharper peaks and
troughs.

Communication Services
Competitor Analysis

Competitors with Researchers without Development

- Excited! (Ukraine) - Small team, mainly product designers, more focus on UX and
research, small/mid projects (webflow development)
- Adam Fard (Germany/US) - Small team, focus on UX and research, they have mainly
fintech, ai, saas, edtech projects.

Competitors with Researchers and Development

- Flying Bisons - End-to-end, professional, strong research110+ people
- Mobee Dick - Professional research, consultancy, educational aspect
- Impressive clients, they have dev, branding, marketing service as well. Very similar
teamsize to us.
- The Story - Heavy on dev, but have Product strategy and UX research
- Blink UX (US) - they have dedicated researchers and allegedly worked with big
companies such as Amazon, Apple, Nike, and Microsoft.

Competitors without Researchers and Development

- Eleken - B2B SaaS (allegedly they ONLY work with them)
- The Gradient - no dev, but branding, strategy, business, many MENA clients

Competitors with Development but without Researchers

- Angle2 - Small and med SaaSDesign + Dev (no branding or marketing) - have some
research as well.
- Adchitects - Strong dev dept., all services / End-to-end - not only UX, but branding,
development with a large stack (frontend and backend as well), maintenance,
optimization (even SEO).