Information Industry in the United States

Industry Code: NAICS 51

Report Date: June 2025

Analyst: Grok Research Team

Executive Summary

The Information Industry in the United States, encompassing media, telecommunications, data processing, and software publishing, has experienced robust growth over the past five years, driven by digital transformation and increased demand for cloud services, 5G, and online content. Industry revenue is estimated at $1.8 trillion in 2025, growing at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2025. Key drivers include rising household and business subscriptions to digital services, fueled by remote work, online learning, and entertainment streaming. However, challenges such as shifting consumer preferences away from traditional cable and high competition in content delivery pose risks. The industry is expected to grow at a CAGR of 4.8% through 2030, supported by advancements in AI, 5G expansion, and enterprise software adoption, though regulatory pressures and cybersecurity concerns may temper gains.

About This Industry

Industry Definition

The Information Industry (NAICS 51) includes establishments that create, manage, and distribute information and cultural products. Subsectors include:

1. Publishing Industries (NAICS 511): Newspapers, books, and software publishing.
2. Motion Picture and Sound Recording (NAICS 512): Film production, music, and streaming platforms.
3. Broadcasting (NAICS 515): Television and radio broadcasting.
4. Telecommunications (NAICS 517): Wired, wireless, and satellite services.
5. Data Processing, Hosting, and Related Services (NAICS 518): Cloud computing, web hosting, and data analytics.
6. Other Information Services (NAICS 519): News syndicates, libraries, and internet publishing.

The industry serves households, businesses, and government, delivering content via digital platforms, physical media, and communication networks.

Products and Services

1. Content Creation and Publishing: News, books, software, and streaming media (e.g., Netflix, Spotify).
2. Telecommunications Services: Mobile, broadband, and VoIP services (e.g., AT&T, Verizon).
3. Data Services: Cloud storage, web hosting, and analytics (e.g., AWS, Google Cloud).
4. Advertising: Revenue from digital and traditional media ads, accounting for ~25% of industry revenue.

Major Markets

1. Households: Subscriptions to streaming, broadband, and mobile services (60% of revenue).
2. Businesses: Enterprise software, cloud services, and telecom infrastructure (30%).
3. Government: Data processing and communication services (5%).
4. Exports: Software and content licensing to international markets (5%).

Major Players

1. AT&T Inc.: Leading in telecommunications and media (market share: ~8%).
2. Verizon Communications Inc.: Dominant in wireless and broadband (~7%).
3. Alphabet Inc. (Google): Leader in online advertising and cloud services (~6%).
4. Amazon.com Inc. (AWS): Top provider of cloud computing (~5%).
5. Netflix Inc.: Major player in streaming media (~3%).

Industry Performance

Historical Performance (2020–2025)

The Information Industry has grown steadily, with revenue rising from $1.4 trillion in 2020 to $1.8 trillion in 2025 (CAGR: 5.2%). Key trends include:

1. Digital Transformation: The shift to remote work and online learning during 2020–2022 boosted demand for cloud services and broadband, with internet providers benefiting from 5G rollout.
2. Streaming Growth: Subscription-based streaming platforms (e.g., Netflix, Disney+) gained traction, offsetting declines in traditional cable subscriptions.
3. Advertising Revenue: Digital advertising grew, driven by platforms like Google and Meta, though traditional media (e.g., newspapers) continued to decline.
4. Employment: The industry employs ~3.5 million workers in 2025, up 2% annually, with growth in tech roles offsetting losses in legacy media.
5. Profit Margins: Average margins stabilized at 12%, supported by high-margin software and cloud services but pressured by telecom infrastructure costs.

Key Statistics:

1. Revenue (2025): $1.8 trillion
2. Employment: 3.5 million
3. Businesses: ~150,000
4. Profit Margin: 12%
5. Exports: $90 billion

Current Performance (2024–2025)

In 2025, the industry faces mixed dynamics:

1. Growth Drivers: Increased adoption of AI-driven analytics, 5G expansion, and enterprise software (e.g., ERP, CRM) sustains revenue growth.
2. Challenges: Younger households are abandoning cable packages, forcing telecoms to pivot to mobile and fiber-optic services. High competition in streaming and advertising limits pricing power.
3. Volatility: The industry exhibits moderate volatility, tied to consumer spending and corporate investment cycles.

Industry Outlook (2026–2030)

The Information Industry is forecast to grow at a CAGR of 4.8%, reaching $2.3 trillion by 2030. Key factors include:

1. Technological Advancements: AI integration in content creation, data analytics, and telecom networks will drive efficiency and new services.
2. 5G and IoT Expansion: Widespread 5G adoption will support IoT applications, boosting telecom and data processing demand.
3. Regulatory Risks: Potential regulations on data privacy (e.g., CCPA, GDPR-like laws) and antitrust actions against tech giants may increase compliance costs.
4. Global Opportunities: Exports of software and digital content to emerging markets (e.g., India, Southeast Asia) will rise.

Forecasted Metrics:

1. Revenue (2030): $2.3 trillion
2. Employment: 3.8 million
3. Profit Margin: 11.5%

Competitive Landscape

Market Share Concentration

The industry is moderately concentrated, with the top four players (AT&T, Verizon, Alphabet, Amazon) holding ~26% of market share. The remaining market is fragmented, with thousands of small publishers, broadcasters, and tech startups.

Barriers to Entry

1. High: Significant capital is required for telecom infrastructure (e.g., 5G towers, fiber networks) and cloud data centers.
2. Moderate: Content creation and software publishing have lower barriers, but brand recognition and scale are critical for success.
3. Regulatory: Licensing for broadcasting and telecom, plus compliance with data privacy laws, poses challenges.

Basis of Competition

1. Price: Streaming and telecom providers compete on subscription costs and bundling (e.g., Disney+ with Hulu).
2. Innovation: Rapid development of AI, 5G, and cloud solutions differentiates leaders like AWS and Google.
3. Content Delivery: Speed and accessibility of digital content (e.g., low-latency streaming) are key.
4. Advertising: Platforms with targeted ad capabilities (e.g., Google Ads) dominate.

Substitutes

1. Open-Source Content: Free online resources (e.g., Wikipedia, YouTube) compete with paid media.
2. Alternative Networks: Satellite internet (e.g., Starlink) challenges traditional telecom providers.
3. In-House Solutions: Businesses developing proprietary software reduce demand for external providers.

Operating Conditions

Key External Drivers

1. Household Formation: More households increase subscriptions to telecom and media services.
2. Consumer Spending: Higher disposable income boosts demand for discretionary entertainment (e.g., streaming).
3. Corporate Investment: Business spending on cloud and software drives data processing growth.
4. Technology Adoption: Rapid uptake of 5G, AI, and IoT shapes industry innovation.
5. Regulatory Environment: Data privacy and antitrust regulations impact operating costs.

Industry Life Cycle

The Information Industry is in the mature phase, characterized by:

1. Stable revenue growth driven by established markets (e.g., telecom, cloud).
2. High innovation in subsectors like software and streaming, with new entrants challenging incumbents.
3. Consolidation in telecom and media (e.g., mergers like Warner Bros. Discovery).

Regulation and Policy

1. FCC Oversight: Regulates telecommunications and broadcasting, including net neutrality and spectrum allocation.
2. Data Privacy: Laws like CCPA and potential federal privacy legislation increase compliance costs.
3. Antitrust: Ongoing scrutiny of tech giants (e.g., Google, Amazon) may lead to structural changes.

SWOT Analysis

Strengths

1. Strong demand for digital services, driven by 5G and cloud adoption.
2. Diverse revenue streams (advertising, subscriptions, enterprise services).
3. High innovation from major players like Alphabet and Amazon.

Weaknesses

1. Declining traditional media (e.g., cable, newspapers) reduces revenue in legacy subsectors.
2. High capital costs for telecom and data infrastructure limit smaller players.
3. Dependence on consumer spending, vulnerable to economic downturns.

Opportunities

1. Expansion of AI-driven services (e.g., personalized content, analytics).
2. Growth in emerging markets for software and content exports.
3. Integration of IoT with 5G, creating new service categories.

Threats

1. Regulatory pressures on data privacy and antitrust.
2. Intense competition from low-cost substitutes (e.g., free content platforms).
3. Cybersecurity risks impacting consumer trust and costs.

Key Statistics

Sources

1. U.S. Census Bureau, Bureau of Labor Statistics
2. Industry trends from web sources
3. Analyst estimates based on market patterns