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TMT Predictions 2020
What does the future hold for technology, media, and telecommunications?
In 2020 and beyond, technologies will continue to offer transformation and growth opportunities to enterprises worldwide, fundamentally changing the way we live and work. This year’s predictions are a helpful guide for TMT business leaders to break through the clutter and understand what to do next in order to be successful in 2020 and beyond.
The future is here
Deloitte’s 2020 TMT Predictions report focuses on three overarching themes:
- Individual technologies are becoming ever more interconnected and interdependent, increasing their impact and value as a result.
- Smartphones, computers, TVs, enterprise data centers and software, and IoT will drive most of the TMT industry’s revenue.
- Many previously hyped services and products will finally become a reality in 2020.
This trio of trends may make predicting more predictable! An interconnected ecosystem with a limited number of significant players should allow us to foresee trends with greater accuracy and more confidence. Indeed, it may be time to retire the old joke: “It's tough to make predictions, especially about the future.” In the near future, maybe it won’t be as tough.
Read all predictions by downloading the TMT Predictions report and watch the video below to learn more about what #DeloittePredicts.
Technologies that have been “just around the corner” are finally turning that corner. Discover with #DeloittePredicts.
Explore Deloitte's 10 predictions for 2020
1. Edge AI chips
A new generation of edge artificial intelligence (AI) chips will reduce frustrations caused by lack of internet connection on smartphones by bringing AI to the device. Deloitte predicts that in 2020, more than 750 million edge AI chips—chips or parts of chips that perform or accelerate machine learning tasks on-device, rather than in a remote data center—will be sold, and that the edge AI chip market will continue to grow much more quickly than the overall chip market.
Of the almost one million robots Deloitte expects to be sold for enterprise use in 2020, just over half will be professional service robots. The professional service robot sector is dominated by logistics. Just under half of the roughly 360,000 professional service robots sold to enterprises in 2019 went to logistics companies, with inspection and defense companies the next largest buyers.
3. Private 5G Networks
Deloitte predicts that more than 100 companies worldwide will begin testing private 5G deployments* by the end of 2020, collectively investing a few hundred million dollars in labour and equipment. For many of the world’s largest businesses, private 5G will likely become the preferred choice, especially for industrial environments such as manufacturing plants, logistics centers and ports.
Private 5G networks: Enterprise untethered
4. Satellite Broadband
By the end of 2020, there will be over 700 satellites in low-earth orbit (LEO) seeking to offer global broadband internet, up from roughly 200 at the end of 2019. These new “mega-constellations” of orbiting broadband stations will potentially add more than 16,000 individual satellites to that count over the coming years.
5. Smartphone Multiplier
The smartphone multiplier market (hardware, content, services) will drive US$459 billion of revenue in 2020 alone and will grow between five to 10 percent annually through 2023, lifted by continued robust growth in its largest components. This means that in 2023, the smartphone multiplier market is likely to generate revenues of more than half a trillion dollars per year.
6. Terrestrial Television
Antenna TV will thrive in 2020 with at least 1.6 billion people worldwide, representing 450 million households, enjoying some of their TV viewing via an antenna. Antenna TV will help the global TV industry to keep growing even in the face of falling TV viewing minutes and, in some markets, increasing numbers of consumers cutting the pay-TV cord.
7. Content Delivery Networks
Deloitte also predicts the global Content Delivery Network (CDN) market will reach US$14 billion in 2020, up more than 25 percent from 2019’s estimated US$11 billion. The market will double to US$30 billion by 2025, a compound annual growth rate of more than 16 percent. This growth is being driven primarily by increasing consumer hunger for streaming video over the internet.
8. Ad-Supported Video
Global revenue from ad-supported video services will reach an estimated US$32 billion in 2020, Deloitte predicts. Asia, including China and India, will lead with US$15.5 billion in revenue in 2020, nearly half of the global total. In China, India, and throughout the Asia-Pacific region, ad-supported video is the dominant model of delivering streaming video to consumers. By contrast, in the United States, most direct-to-consumer video offerings are pursuing an ad-free subscription model.
9. Audiobooks & Podcasts
In 2020, the global audiobook market will grow by 25 percent to US$3.5 billion and the global podcasting market will increase by 30 percent from 2019 to reach US$1.1 billion in 2020, surpassing the US$1 billion mark for the first time. In Belgium, more and more podcasts are being created, but not everyone is familiar with this medium. The majority of listeners are young people.
10. Bikes & e-Bikes
Tens of billions of additional bicycle trips per year will take place in 2022. The increase in bicycling will double the number of regular bicycle users in many major cities around the world where cycling to work is still uncommon. Deloitte predicts a 1 percentage point rise in the proportion of people who bike to work during the three years from 2019 to 2022. Between 2020 and 2023, more than 130 million e-bikes (using all battery technologies) are expected to be sold.
About the 2020 TMT Predictions
To ensure sustained business growth, it is critical that organizations address the increasing disruption posed by emerging technologies. Deloitte’s Technology, Media & Telecommunications (TMT) industry practice brings together thought leaders and trusted specialists to shape many of the world’s most recognized brands in these fields. Through its work, the TMT team aids clients in creating competitive advantage and helps them succeed in an increasingly digital world. Deloitte Global’s annual TMT predictions serve as guideposts for future business strategy by providing a 1-3 year outlook on key trends in the global technology, media, and telecommunication industry sectors. The trends are based on a global analysis of figures and developments for each topic and help identify key challenges and areas of focus for the world’s TMT brands as they navigate the impact of new technologies shaping the future of industry.