A $60 Billion Market in the Next Five Years


Hackers, algorithms and robots.

Get used to hearing these three words. They’re three giant pillars in the relentless march of technology.

As an investor, you simply have to keep pace with what’s happening here.

They’re the most astonishing, disruptive trends across the entire world — and they’re gaining momentum.

We’ll focus on cyber security in today’s article.

Sam Volkering, over at Revolutionary Tech Investor, calls it the biggest growth industry of the 21st century. He may very well be right.

Take Chinese President Xi Jinpeng’s first state visit to the United States last week. President Obama’s top item on his agenda was getting Xi to agree to a ‘common understanding’ to stop cyber espionage and stop the theft of US industrial and trade secrets.

Something tells me that this discussion has the same good faith as the non-aggression pact between Hitler and Stalin.

As part of the visit, Xi Jinpeng toured airplane manufacturer Boeing’s factory in Seattle. During the visit, Boeing said Chinese orders for 300 planes are worth a total of US$38 billion.

Boeing estimates that Chinese airliner orders could total US$1 trillion over the next 20 years.

Our colleague Byron King said the joke going around is that Xi couldn’t have learned anything he didn’t already know about Boeing’s internal workings. That gives you an idea to the depth and duration of Chinese industrial espionage.

Consider the recent case of a diplomatic email attachment. It contained photos showing Thai personnel capturing Vietnamese fishermen and holding them at gunpoint.

Here’s the deal. It was a con job. The Wall Street Journal reported:

The attachment was a decoy: Anyone who opened it inadvertently downloaded software that searched their computers for sensitive information and sent it to an obscure corner of the Internet. Manning that corner, according to a new report from U.S. security researchers, was Ge Xing, a member of a Chinese military reconnaissance unit.’

But is pinning the blame on a Chinese operative fake as well? I don’t know.

What I DO know is that email is vulnerable and can be exploited. Radicati Group estimate around 100 billion emails are sent around the world per day. According to Sam, the insecure nature of email means that’s 100 billion opportunities for hackers every day.

So how do companies, government agencies and you and I beat the hackers?

Edward Snowden knows a thing or two about how to secure (and break into) information. He appeared via video link at a conference in Austin, Texas last year and told everyone the answer.

You encrypt the information. He called it ‘Defence Against the Dark Arts’.

That’s where the market is going to take this trend.

That brings us to the latest opportunity Sam’s identified to his readers in Revolutionary Tech Investor. The technology driving this company not only uses encryption, it could end email communication as we know it.

Instead we have a content and collaboration system based in the cloud.

Sam writes,

Markets & Markets estimate the enterprise content management sector to be worth around US$59.87 billion within the next five years…

It’s nearly impossible to pin down just how big a market they play in. Any forecasts for market size are really just a stab in the dark.

The sheer speed and growth across all these markets is intense. The world is only just starting to accept working in and from the cloud.’

It’s not quite a direct comparison, but you can see the potential for following this trend by looking at Aconex [ASX:ACX]. It provides a cloud collaboration platform for the global construction industry.

Check out the chart…

Source: STEX

This is going to come to other industries in a major way. Security will be paramount for all of them.

For more on Sam’s latest opportunity, start here.


Callum Newman,

Associate Editor, Cycles, Trends and Forecasts

Ed Note: The above is an extract of an article first published in Port Phillip Insider.

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Callum Newman

Callum Newman

Callum Newman is the editor of The Daily Reckoning and Associate Editor of Cycles, Trends and Forecasts. He also hosts The Daily Reckoning Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to The Daily Reckoning here.

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