Technology, Media and Telecommunications Predictions 2019

The Report

Deloitte recently released the "Technology, Media & Telecommunications (TMT) Predictions 2019". The report explores the top trends and transformative technologies that will impact the way we live and work, and to explain the impact these factors can have over the next 5 years for companies in Technology, Media, Telecommunications, and other industries. The following is a summary of the report:

5G: The new network arrives

• In 2019 and 2020, 5G wireless technology will have three major applications. First, 5G will be used for truly mobile connectivity, mainly by devices such as smartphones. Second, 5G will be used to connect “less mobile” devices. Finally, there will be 5G fixed-wireless access (FWA) devices, with antennas permanently mounted on buildings or in windows, providing a home or business with broadband in place of a wired connection.

Artificial intelligence: From expert-only to everywhere

• Companies will accelerate their usage of cloud-based artificial intelligence (AI) soft­ware and services. By 2020, penetration rates of enterprise software with integrated AI and cloud-based AI platforms will reach an estimated 87 percent and 83 percent, respectively, among com­panies that use AI software. Cloud will drive more full-scale AI implementations, better return on investment (ROI) from AI, and higher AI spending.

Smart speakers: Growth at a discount

• The 63 percent growth rate would make smart speakers the fastest-growing connected device category worldwide in 2019, however, it will represent a deceleration from the prior year. For the market to continue growing beyond then, more applications and better accuracy will likely be key to market growth. In the medium term, one of the key roles that smart speakers may play is to increase people’s familiarity with voice assistants, as well as to help improve voice recognition capabilities.

Does TV sports have a future? Bet on it

• Live TV sports watching motivated by gambling may boost overall TV-watching statistics among younger demographics, either slowing the decline somewhat, or perhaps even providing a floor.

On your marks, get set, game! eSports and the shape of media in 2019

• In 2019, the North American market for eSports will expand by 35 percent, 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.
• Broadcast companies could bring some of game platformers' top media franchises into the games, and roll out digital streaming services on the basis of understanding online video games. Broadcasters could transition more effectively into the new landscape of entertainment through the measures of building more diverse portfolios and taking advantages of a strong data analytics model underneath.

Radio: Revenue, reach, and resilience

• Global radio revenue will reach US$40 billion in 2019, a 1 percent increase over 2018. Combined, nearly 3 billion people worldwide will listen to radio weekly, and radio will continue to perform relatively well with younger demographics.
• In 2019, radio will likely attract about 6 percent of global ad spending. These advertisers know that advertising on radio needs to be part of any ad campaign.

3D printing growth accelerates again

• After decades of development, 3D printing has finally reached a period of sustained growth. The next few years are likely to see 3D printing become much more widely used in all sorts of manufacturing, from robots to rocket ships. The ripple effects on industries even beyond manufacturing may be profound.

China, by design: World-leading connectivity nurtures new digital business models

• China will have world-leading telecommunications networks in 2019, and the world’s largest fiber-to-the premise (FTTP) deployment by a significant margin. It is expected that China will launch 5G on a wide-scale basis by 2020 and to be the leading 5G market, with 430 million subscribers, by 2025.
• China’s world-leading fixed and mobile telecommunications networks, and world’s largest base of internet users should enable the emergence of new mass-market industries including mobile payments and mobile commerce.
• Looking ahead, China’s communications network will likely to be the foundation of several key applications and generate significant revenue (tens of billions of dollars annually). These appli­cations are likely to include machine vision, social credit, and new retail concepts.

China inside: Chinese semiconductors will power artificial intelligence

• Revenues for semiconductors manufactured in China will grow by 25 percent to approximately US$120 billion in 2019.
• China is moving aggressively in its efforts to define the next phase of the digital economy, with its government, manufacturing, and hyperscale digital businesses all working together. The conditions of domestic demand, state sponsorship, growing demand for AI, talents, and chip design and intellectual property (IP) make China's ascent in semiconductors.

Quantum computers: The next supercomputers, but not the next laptops

• The quantum computer market of the future will be about the size of today’s supercomputer market—around US$50 billion, QCs will not be ready for the commercial market any time soon. But because it is advancing rapidly, and its impact is likely to be large, business and technology strategists should keep an eye on quantum computing starting now, investments in internal training, R&D partnerships, and strategic planning for a quantum world may pay dividends.