In a report published a few days ago with the title TMT 2023 Predictionsresearches consulting firm Deloitte big tech trends for 2023. Semiconductors, satellites, artificial intelligence, broadcast platforms, etc. What will this new year bring to the world of technology?
The tech sector will have to do more with less according to Deloitte
Rising inflation and interest rates, slowing economies around the world and declining consumer confidence are undoubtedly the elements dominating the debates at the end of the year. vs.The reason is the bad economic conditions e difficulties in the technology industry and an increase in mergers and acquisitions in the field of video games. Indeed, as the valuation of many companies has fallen, the giants are rushing to buy them. Microsoft is a typical example with recovery by Activision Blizzard for 68.5 billion dollars.
According to Deloitte forecasts, the headline for 2023 is: consumers and businesses will have to do more with less as inflation, supply chain issues and other global events continue to cause economic uncertainty. According to Kevin Westcott, Vice President at Deloitte we are going through a very special context. Lusers are looking for more cost-effective ways to be entertained and productive, while businesses are looking for innovation to compete, differentiate and grow revenue “.
He believes Deloitte’s report on emerging trends will happen guide organizations in their future planning and we” their efforts to meet the needs of their customers “. In the study, it can be read for example that in 2023, the number of mergers and acquisitions of video game companies will continue to grow by 25%.
What developments for streaming platforms?
The Deloitte report mentions many technological aspects and provides a number of key pathways and trends. First point: streaming services. With the proliferation of platforms, competition is increasingly fierce. In this regard, Deloitte believes that most platforms will change their offers and propose new, cheaper or even free options with ads.
It is exactly what Netflix wants to do. 2022 has been particularly eventful for the streaming platform. Netflix has especially saw his subscriber count drop. That is why it was time to react. Therefore the company decided to include advertising in a new subscription for 5.99 euros per month to lower the bill for users who are willing to tolerate ads. The Deloitte study shows that “ US streaming service penetration was 37% in 2022 “.
This means that entertainment platforms will have to find new ways to generate revenue by offering attractive offers to users, who have a growing appetite for more engaging and diverse content. As explained Jana Arbanas, vice president at Deloitte and head of the telecommunications, media and entertainment sector in the United States, Theadvertising on video-on-demand platforms, for example, can accomplish both of these objectives “.
The idea is to offer an option tailored to the budget of Internet users with growth prospects by working with advertisers. Platforms are currently trying to determine whether this strategy is viable or not. Discussions take place ABOUT Do you know if Netflix has the right to place ads? or include ad-supported content in original shows produced by the streaming giant, as well as for content that is not an original production, and which only enrich the library of the platform. That is the whole question.
Virtual reality booming
Deloitte predicts that the virtual reality market will generate $7 billion in revenue worldwide in 2023, a 50% increase from $4.7 billion in 2022. Analysts say how virtual reality will gain popularityrevenue will come primarily from helmet-related sales. 14 million units (with an average price of $450) are expected to be sold in 2023. Which could represent 90% of revenue for the market.
Other income will be generated mostly games (who have had a second wind for several months), but also some enterprise applications, which can generate a little more than a billion dollars in revenue. Deloitte believes that in terms of numbers, virtual reality has a long way to go to catch up with other digital devices. Smartphones alone have nearly five billion users worldwide, and billions of people also use computers or tablets. In 2023, experts only expect 22 million headphone users.
If virtual reality really tends to evolve, this technology is here to stay so for now a warm product. After timid beginnings in the 2010s, it seems that Virtual reality games are increasingly being adopted around the world, in particular thanks to Meta Quest 2 and the pandemic Covid-19. This upward trend is expected to continue during the next two years. In total, there will be about 46 million helmets in service.
Now that component shortages are easing, largely due to (or thanks to) the economic downturn, VR companies should be able to to ship more products in 2023 and 2024.
For Deloitte, AI will come to the rescue of the semiconductor industry
A trend seems to be emerging: more and more chip makers are using artificial intelligence to design chips faster and at lower cost. Deloitte predicts that the world’s leading semiconductor companies may spend $300 million on AI tools to improve chip design in 2023, and this number could grow by 20% per year over the next four years to exceed $500 million in 2026.
The impact of artificial intelligence is likely to go beyond this. In fact, this technology will allow manufacturers to pushing the limits of Moore’s Law and save a lot of time and money. In 1965, Gordon Moore, Chairman Emeritus of Intel, predicted that the number of components on a chip could double every two years. For decades, this prediction has been true, bringing about great advances in technology.
Today, experts in the field say that those days are over. Paul Silverglate, Vice President at Deloitte, assures that “ Thethe shortage of semiconductors has shown the need for faster and more efficient production of chips to meet demand “. Design assisted by artificial intelligence can be used to meet this need and even help fill the chip talent gap.
Other developments may also occur at the component level. Indeed, silicon can be substituted for example gallium nitride and silicon carbide, two materials that seem best suited for very high voltages and power levels. They will be too more effective in coping for increasingly common applications such as batteries for electric vehicles, chargers for consumer electronics, powerful solar panels, etc.
CSR at the heart of strategies?
This is a topic that companies can no longer escape: environmental impact. Many organizations want to achieve carbon neutrality. In this regard, the technology industry is very committed. Deloitte’s analysis reveals that technology companies are working harder and faster to influence climate change and are 13% more likely than non-tech companies to aim for carbon neutrality by 2030.
Technology industry leaders feel more and more anxious and are also more likely to act. 37% of executives surveyed said their organization was already faced with “ lack of resources such as water and energy “, an increase of 8% compared to a similar survey conducted eight months ago. 42% said their business has been affected by climate-related disasters or weather events, up 18% from the previous survey.
The Deloitte survey finds that technology executives are more likely than executives in other industries to believe that immediate action can mitigate the worst effects of climate change. 90% of managers surveyed believe that their company’s sustainability initiatives will help mitigate climate change.