Effects of Digital Convergence on Contemporary Economies

Digital convergence and its importance to contemporary economies is undeniable. What does it mean to be a digital economy? This question is a big challenge to answer digital convergence disseminates new business models and brings about substantial changes across industrial activities worldwide. Convergence is becoming as a hot issue within the Information Technology (IT) industries. Several benefits come from converging communication networks, like increased productivity, reduction of transaction costs and a valuable impact on economic growth. Digital convergence of various industries has created new business opportunities. The net benefit of digitalization on a global basis could surpass $100 trillion by 2030. Industrial digitalization and internet access are projected to experience exponential growth. The digital economy is expected to grow from 15.5% to 24.3% of the global GDP by 2025. Digital technologies' long-term return on investments is 6.7 times more than that of non-digital investments. This study provides a look at digital convergence and its economic implications.