Deloitte TMT Predictions 2019

2019 TMT Predicions

5G: The new network arrives.

Make no mistake: 5G is the connectivity technology of the future. Although its adoption may be relatively shallow in the next 12 to 24 months, and it will likely take years for 5G to replicate 4G’s marketplace dominance, many telecommunications operators have a strong incentive to jump on the 5G bandwagon for reasons of speed, latency, penetration, and (especially) capacity. When that happens, we should be living in a much faster world.

Artificial intelligence (AI): From expert-only to everywhere.

Even the most advanced techniques are becoming accessible to organizations with modest in-house AI skills. While enterprise software and cloud-based development platforms can provide effective gateways to AI, they are not a substitute for having at least some technical AI talent in-house. Companies need their own AI experts to develop and customize algorithms using AI development platforms.

Smart speakers: Growth at a discount.

For the smart speaker market to continue growing beyond 2020, the device should have multiple applications beyond just playing music or speaking a weather forecast. It needs to become more useful, more often. It is probable that, over time, people will end up talking to speakers (and other machines) much more than they do today. Voice may never become the dominant user interface with technology, but it is very likely to become a core one.

Does TV sports have a future? Bet on it.

What is new is how important TV sports watching is for 18–34-year-old men, how frequently some of them gamble, and how close the relationship is between gambling frequency and watching more TV sports. It seems probable that this driver of TV watching may make TV watching more resilient than some critics expect. 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. Where will this all lead?

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

The eSports phenomenon is large and growing. It offers traditional broadcasters an opportunity to access a young demographic of digital natives who are less engaged with TV and professional sports than previous generations. When making forays into eSports, broadcast companies should consider how they can minimize production costs to enable more lightweight experimentation and reduce risk exposure.

Radio: Revenue, reach, and resilience.

Radio is not going away, and it should be a big part of the ad mix for those buying advertising. However, the importance of radio in advertising may not be well known.

The most challenging finding is that there is no single, powerful, universal reason that people who listen to radio decide to listen. In a world where digital changes everything, radio may be the exception.

3D printing growth accelerates again.

In today’s increasingly complex production and sustainment environments, more and more organizations are responding to constraints in their supply chain and manufacturing operations by looking to 3D printing. After decades of development, 3D printing has finally reached a period of sustained growth greater than most other manufacturing technologies.

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

China is well-known for being the world’s technology manufacturer; it is now becoming a leading designer of digital products, services, and business models as well. Its world-class communications infrastructure is likely to be a key enabler of this shift. China’s strengths in connectivity should catalyze the development of AI-based applications.

China inside: Chinese semiconductors will power artificial intelligence.

If China meets its goal of growing its domestic chip production, it could significantly impact the global chip market. Leading foundries and chip designers outside China should accelerate their capabilities to remain competitive for Chinese demand. Although China faces considerable uncertainties due to the shifting winds of macroeconomics and the very real challenges at the edge of Moore’s Law - it’s harder now than ever to doubt China’s potential.

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

Quantum- computing is advancing rapidly, and because its impact is likely to be large, business and technology strategists should keep an eye on it starting now.

Large-scale investments will not make sense for most companies for some time. But investments in internal training, R&D partnerships, and strategic planning for a quantum world may pay dividends.