From planet Earth to outer space and beyond the Metaverse, today’s technologies are shaping a new tomorrow. In our study, TMT Predictions 2023, we explain the impact that the top 15 trends and predictions in technology, media and telecommunications could have on businesses and consumers around the world.
Rising inflation and interest rates, slowing economies and falling consumer confidence have been major talking points this year. The impact it has produced has influenced many of the issues we will be addressing in our study this year. Technological innovation and sustainability remain important themes, but this year the analysis is largely influenced by external forces.
The rising cost of fuel, utilities and food is forcing many consumers to reconsider discretionary spending made during the pandemic. Consumers who have been using subscription video (streaming) services since last year are making a radical shift to affordable, advertising-supported AVOD (Advertised Video on Demand) services, to the extent that we expect all Streaming major streaming services will have an AVOD option by the end of this year. Meanwhile, higher gasoline prices are making electric cars more attractive and driving demand for high-power silicon carbide chips.
Economic conditions are driving a rebound in tech divestment. 5G smartphones priced above a thousand dollars are not selling as expected, and on the contrary, 5G phones priced below US$100 are expected to hit the market very soon. Such devices will obviously have different components—a low-end display, single-lens camera, low-power processor and modest storage capacity—but they make 5G accessible to nearly all consumers in nearly all markets. . Aside from the low-end components, it is most likely that, to begin with, these devices receive some sort of subsidy from the companies. For example, a smartphone retailer may charge third-party developers to preload their apps on the device and place barriers on the device to prevent downloads from competitors. or include advertising of any kind.
Changes in consumer behavior have prompted retailers to evolve and strongly pursue social commerce. Influencers, or creators, are driving much of this growth, using their platform to promote, advertise and sell products to their captivated audience. Social media users have proven to be a receptive audience for these sales tactics. One-third of US consumers say that social media influencers influence their purchasing decisions. With billions of social media users around the world, the social commerce market is on the rise and shows no signs of slowing down. At Deloitte, we estimate that the global social commerce market will exceed $1 trillion by 2023.
However, not everything revolves around the economy. We estimate that before the end of the year there will be over 5,000 satellites in Low Earth Orbit (LEO) with the goal of bringing high-speed internet to every corner of the globe.
The chip industry is always in constant change and now it needs to be faster, more efficient and keep up with new needs. To meet the new requirements, innovative artificial intelligence tools have emerged. We believe the world’s leading semiconductor companies will spend $300 million on in-house and third-party AI tools for chip design by 2023. Consumer electronics, and battery electric cars, have become more common. In addition to innovative materials, advances in technology and space exploration, as well as the development of nuclear power, have stimulated the development of radiation-resistant chips. Ionizing radiation, whether in space or in nuclear reactors on Earth, is harmful to chips.
In the technology, media and telecommunications industry, environmental sustainability has become increasingly important. Despite changing market conditions and today’s global situation, technology companies are moving forward to save the planet, with targets for carbon neutrality by 2030. At Deloitte, we are hopeful and confident that operational efficiencies, sustainable products and technological innovation can help you get there earlier than expected.