Information Sector Business Trends

The COVID-19 pandemic’s effect on the global economy stunted growth of the information sector. Overall, sector revenue declined during 2020 but is expected to grow in the upcoming years as the worldwide economy begins to recover. Industries that relied on in-person services, such as movie theatres and various venues, suffered the most from the pandemic.

But, increased remote work resulting from the pandemic created a boon for telecommunication services as well as data storage services. The growing acceptance of remote work is projected to further contribute to sector growth due to increased demands for these services.

Recommended: Visit our Business Trends page to explore interactive data for other industries.

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Key Sector Indicators

Market Revenue: $1.9 Trillion
Profit: $267.6 Billion
Profit Margin: 13.8%
Number of Businesses: 469,000
Employment: 4 Million

Sector Revenue Trend

The following graph shows the information sector’s revenue since 2013. Additionally, a projection for the sector’s future revenue through 2026 is given. Market revenue is an important key indicator for understanding how much money is coming into a sector.

(This graph is interactive!)

Major Players and Industry Competition

Major players in the information industry make up roughly 32% of the sector’s total market. AT&T Inc. and Verizon Communications, the two largest players in the industry, account for 16% of the information market. Given the hold that major players have on the information industry, it may be more difficult for new businesses to establish themselves as a competitor in the information industry.

(These graphs are interactive!)

Information Sector Business Formations Trends 2018–2020

Business formation applications measure the number of small businesses and companies entering the industry. The graphs below show the number of business formation applications each month within the information sector. 

Total business applications in this sector:

2018: 72,751

2019: 71,672

2020: 88,852

(These graphs are interactive!)

Business Concentration in the US

Given how the information sector operates, it’s no surprise that the four most populous states, California, Texas, Florida, and New York, make up roughly 37% of the nation’s information industry. Below, you will find sector-specific trends by state.

Click on a state to see:

  • Percent of Total Information Businesses Nationwide: The percentage of US businesses in the information sector within that particular state.
  • Percent of Total Population Nationwide: The percent of adults (18+) within the United State that are residents of that particular state.
  • Population: The number of adults (18+) that are residents of that particular state.
  • Personal Income Per Capita: The amount of money earned per person (found using the state’s income over the state’s population).

(This map is interactive!)

TRUiC's Most Popular Business Ideas in This Sector

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References