After the COVID-19 catastrophe two years ago, the world’s reliance on technology hasn’t slowed down at all. In reality, as indicated by greater investment in emerging technologies, the faster digitalization and development seen during the pandemic have only continued. The COVID-19 situation, however, also brought attention to the extent to which commerce and investment occur around the world, which, together with Russia’s invasion of Ukraine in March 2022 and a worldwide economic slowdown, will pose significant obstacles to technical growth in 2023.
A popular idea that the world’s greatest breakthroughs have arisen at times of enormous economic and political stress is supported by the prediction that technology investment will increase significantly in 2023, notwithstanding political and economic uncertainty. Investment Monitor examines a few of the technology investment sectors to keep an eye on in the upcoming year with this in mind.
According to GlobalData’s 2023 TMT Predictions, the artificial intelligence (AI) business will be worth $93 billion in 2023, an increase of 12% from 2022. One of the most sought-after emerging technologies is artificial intelligence (AI), which has the potential to dramatically advance and speed up a variety of other technologies, such as robots, quantum computing, and the internet of things (IoT). 57% of respondents to a tech mood survey conducted by GlobalData in the third fiscal quarter of 2022 believed that AI would fulfil all of its promises.
Between 2016 and 2022, the US and China registered the most AI patents globally, but the industry faces an imminent danger from an unreliable supply of cutting-edge semiconductor chips. China’s access to high-value chips will be limited until the nation becomes more self-sufficient in high-end chip manufacture, which was not possible before US regulatory restrictions on technology were enforced in 2022. The semiconductor industry’s worldwide supply chain concerns must be resolved for the AI sector to advance. According to GlobalData, the market for AI processors will be worth $23 billion by 2023.
Utilizing the Cloud
According to GlobalData, the global cloud services market will be worth $734 billion by the end of 2023, up 15% from 2022. Businesses will keep outsourcing their IT infrastructure to the cloud in order to save money and have more flexibility. Along with its growing significance for operational processes, cloud computing will be a key enabler of upcoming technologies like robotics and the Internet of Things (IoT), which require constant access to vast amounts of data.
GlobalData predicts that the worldwide cybersecurity market will expand from $125.5 billion in 2020 to $198 billion in 2025, with a 9.5% compound annual growth rate (CAGR), but cyber professionals are nearing breaking point. With escalating cybercrime, a growing need for cybersecurity workers, and ongoing skill shortages, the upcoming year will be difficult. As cyberattacks get more sophisticated, cybersecurity experts will adopt a zero-trust stance toward external data in the coming year. AI will be used more frequently in the combat against cyberattacks, along with harsher recommendations on paying ransoms. The ransomware business model has increased dramatically over the past ten years, and the EU Agency for Cybersecurity predicts that it will cost more than $10 trillion by 2025, up from just $3 trillion in 2015.
According to GlobalData, the metaverse will be worth $376 billion by 2025. Investor excitement for the consumer metaverse will diminish through 2023 as economic conditions worsen, even though it will still be a top trend to monitor in 2023. According to GlobalData’s thematic study, the metaverse’s anticipated transformational effect won’t be realised unless it is controlled, interoperable, and has a standard definition, which won’t happen in 2023. The enterprise metaverse, on the other hand, will develop in 2023 and find value in the idea of digital twinning as a way for businesses to incorporate this technological trend for collaborative efforts, enterprise layout, visualisation of data, product simulation, risk evaluation, predictive maintenance, and process optimization.
Bitcoin And The Blockchain
The $840 billion cryptocurrency market had a difficult year, and the collapse of the top platform FTX in November 2022 shocked the world’s financial system. The US regulatory system, however, is anticipated to make major progress in 2023, allowing the nation to catch up to the EU’s Market in Crypto-Assets legislation. This is because of the FTX crash. The primary focus in 2023 will be on regulating cryptocurrencies to improve customer money protection by forcing them to submit proof of reserves and no asset co-mingling. The cryptocurrency market will experience unprecedented growth and widespread adoption now that crypto-asset regulation is officially in place.
According to a GlobalData study, the robotics sector had a value of $45.3 billion in 2020 and is projected to rise at a CAGR of 29% to $568 billion by 2030. It also notes that the automation revolution is being fueled by growing inflation, supply chain disruptions, and the crisis in the Ukraine. The service robot market will bring in $55.2 billion in revenue by 2023, predicts GlobalData. In 2023 and beyond, warehouse robots, autonomous delivery robots, and commercial drone deliveries will all become common use cases. According to GlobalData, the worldwide drone industry will grow to $24.5 billion in 2023 thanks to legislation, technological advancements like artificial intelligence, and an upsurge in operations that operate outside of the visual line of sight. Rising energy prices and the fragility of the supply chain will be challenges for the industry, which will come as production goals start to increase.
The Internet of Things
According to GlobalData, the worldwide enterprise IoT market will reach $650 billion in 2023, with $315 billion coming from smart cities and $335 billion from the industrial internet. Despite the need for businesses to focus their IoT spending on the devices that offer the best returns on investment due to the current economic climate, the market will continue to develop in 2023. In 2023, the three different consumer IoT markets—connected house, connected car, and wearable technology will account for 27% of worldwide IoT revenue. According to projections from GlobalData, wearable technology will have the most revenue and the fastest rate of growth in 2023, followed by linked vehicles and automated homes.
As per GlobalData, the market for quantum computing will be worth $5 billion by 2025, and commercial quantum computing is anticipated to start in 2027. The market will gain speed in 2023 as quantum computing technology develops and technology standards become more defined. Businesses will probably rely on the expanding quantum as a service (QaaS) models rather than purchasing quantum computers outright. GlobalData says that tech firms, governmental organisations, colleges, and defence firms will buy quantum computers for QaaS commercialization, research and development, and military use.