TMT Predictions 2019
What does the future hold for tech, media and telecommunications?
Our annual TMT Predictions combines the best of Deloitte Global thinking and original and secondary research with perspectives from hundreds of conversations with industry leaders, as well as the aggregated opinions of tens of thousands of consumers across the globe. Together, they inform what we believe to be the major TMT trends over the next one to five years.
Will eSports become the next phenomenon? How will cloud-based AI affect the enterprise? What does the future hold for smart speakers? How much do you need to know about Quantum Computing?
5G: The new network arrives
Deloitte predicts that globally, 2019 will be the year in which fifth-generation (5G) wireless networks arrive at scale. We expect 25 operators worldwide to launch 5G services in 2019, and another 26 at least in 2020. By the end of 2020, 5G handset sales will represent approximately 1% of all smartphone sales, with retail sales taking off in 2021.
Artificial intelligence: From expert-only to everywhere
Deloitte predicts that in 2019, companies globally will accelerate their use of cloud-based Artificial Intelligence (AI) software and services. We'll see the democratisation of AI capabilities - and benefits that were previously the preserve of AI early adopters. Among companies that adopt AI technologies, 70% will obtain AI capabilities through cloud-based enterprise software, and 65% will create AI applications using cloud-based development services. Cloud will drive more full-scale AI implementations, better return on investment from AI, and higher AI spending.
On your marks, get set, game!? eSports and the shape of media in 2019
Deloitte Global predicts that in 2019, the North American market for eSports (competitive tournaments of video games) will expand by 35%, driven by advertising, broadcast licensing, and franchise sales. The global eSports market will grow a bit more slowly due to the maturity of Asian leagues and uncertainty in China's growing regulatory response. Overall, analysts expect reported revenues from the global eSports market to reach US$1 billion in 2019, driven by advertising, broadcast rights, and league expansion.
Smart speakers: Growth at a discount
Deloitte predicts that the industry for smart speakers (internet-connected speakers with integrated digital assistants) will be worth US$7 billion in 2019, selling 164 million units at an average selling price of US$43. This 63% growth rate would make smart speakers the fastest-growing connected device category worldwide in 2019, and lead to an installed base of more than 250 million units by year-end. Robust sales performance in 2019, although high, will represent a deceleration from the prior year: In Q2 of 2018, smart speaker sales were up 187% year over year. Much of that opportunity for growth comes from expansion into non-English speaking countries.
Radio: Revenue, reach, and resilience
Globally, radio's weekly reach will remain nearly ubiquitous, with a 1% increase in global radio revenue to US$40 billion in 2019. Combined, nearly 3 billion people worldwide will listen to radio weekly, with over 85% of the adult population listening to radio at least weekly in the developed world (the same proportion as in 2018). Adults globally will listen to an average of 90 minutes of radio a day, and unlike some other forms of traditional media, radio will continue to perform relatively well with younger demographics.
Quantum computers - The next supercomputers, but not the next laptops
While quantum computing is still a swiftly-developing field with limited current applications, it is a key area to watch for developments. This is both because of the significant implications quantum computing has for solving classical cryptography and because it will be one of the greatest 'new' technology revenue opportunities to emerge over the next decade.