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Deloitte Issues 2023 TMT Predictions Report

Author: Marc Auxenfants

Technology, media, and telecommunications trends that may disrupt and transform the business and consumer ecosystems worldwide, will be influenced by external forces (inflation, high interest rates, slowing economies, low consumer confidence), the document foresees.

Deloitte has recently unveiled its “Technology, Media, and Telecommunications Predictions 2023” report (TMT). The document analyses trends that may disrupt and transform the business and consumer ecosystems worldwide

“Rising inflation and interest rates, slowing economies, and plunging consumer confidence have dominated discourses this year. The ripples they generated have heavily influenced the theme for TMT predictions 2023,”

Deloitte says, adding:

“Technological innovation and sustainability remain themes, but this year is unusually influenced by external forces.”

Among the key findings of the report, 5G networks will transform enterprise connectivity. According to Deloitte, by introducing virtualised cloud-centric capabilities, 5G standalone (SA) networks are inspired to drive disruptive change.

“The coming migration to 5G standalone core networks is expected to allow for increased device density, reliability, and latency, opening the door to advanced enterprise applications,” the report details.

Hence, Deloitte expects the number of mobile network operators (MNOs) investing in 5G SA networks to increase by the end of 2023, unlocking 5G’s benefits and opening the door to disruptive use cases that can boost productivity, enhance operational efficiency, and increase cost optimisation.

Crowded sky

Moreover, Deloitte predicts that 5G phones under US$100 are set to bring advanced wireless services to consumers worldwide with software, ads, and content driving profits.

“Billions of people around the world lack access to any kind of smartphone at all, let alone one with 5G. For many, cost has been the major barrier—until now,” the TMT document notes.

Broadband satellites will need to navigate a crowded sky: Deloitte foresees that Low-Earth Orbit (LEO) satellites could bring high speed Internet to every corner of the world – if they can stay out of each other’s way. Fortunately, adjacent industries are gearing up to help.

Hence, its report envisions that more than 5,000 broadband satellites could be in LEO by the end of 2023. It forecasts two working constellations providing high-speed internet to nearly a million subscribers on all parts of the planet, no matter how remote.

“Are LEO satellite constellations a revolution or a bunch of space junk?”

Deloitte asks.

“With lots of players in the game and lots of launches to come, the potential for both outcomes still exist – perhaps simultaneously.”

Semiconductor companies turn to AI and high-power materials to design future chips: Artificial intelligence (AI) is fast becoming a powerful aid to human chip engineers in the extremely complex task of semiconductor conductor design.

According to Deloitte the world’s leading semiconductor companies could spend $300 million on internal and third-party AI tools for designing chips in 2023, and that number may grow by 20% annually for the next four years to surpass $500 million in 2026.

New frontier of digital transformation

“That is not a lot of money in the context of 2023’s anticipated $660 million billion global semiconductor market. But it’s significant for the outsized return on investment, the TMT report adds.

Deloitte also sees that AI design tools are enabling chip makers to push the boundaries of Moore’s Law. “Save time and money, alleviate the talent shortage, and even drag older, chip designs into the modern era. At the same time, these tools can increase supply chain security and help mitigate the next chip shortage,” its report details.

“Put another way, although a single seat licence for the AI software tools required to design a chip may cost mere tens of thousands of dollars, the chips designed by such tools could be worth billions.”

Growth in the emerging enterprise edge computing market: Cloud, telco, equipment, and platform companies are vying for a share of enterprise investments in edge services and products that make computing faster and cheaper, TMT 2023 forecasts.

According to Deloitte, the enterprise market for edge computing will grow 22% this year compared to 4% growth in spending on enterprise networking equipment and 6% on overall enterprise IT for the same year.

“The enterprise edge is fast becoming the new frontier of digital transformation, and the size of the prize is sending companies of all types–public cloud hyperscalers, communication service providers, infrastructure equipment manufacturers, management platform providers, and others–scrambling for a piece of the growing pie,” the report explains. “While enterprise spending on edge computing is gaining traction, it is off a relatively small base”.

However, while the market for edge computing products and services is potentially huge, providers may have to wait a while for customers to catch up: “Many enterprises and other organisations are rethinking their cloud, data center, and network strategies for how best to take advantage of new edge computing capabilities,” Deloitte says. “In doing so, they are evaluating where to best place workloads in a hybrid cloud/edge model–and how they can secure and access data in a data center that exists at the core, cloud, and edge.”

Will VR go from niche to mainstream? “It all depends on compelling VR content,” Deloitte answers. “Applications that capitalise on virtual reality’s unique capabilities will be key to enabling VR to enjoy a significant growth rate.”

Hence for the TMT report encouraging greater usage, especially among consumers, relies on both the quality and the quantity of VR content. Devices such as smartphones, tablets, and connected TVs have thrived on the availability of millions of apps. For VR to thrive, dedicated VR apps will need to see greater amounts of innovation.

As of mid 22, VR apps only numbered in the low thousands. Moreover, consumer VR today competes for attention with phones, tablets, consoles, and PCs, further demanding high quality innovation from VR developers.

“For enterprises, leaders should be very clear about which applications are uniquely for or best suited to each device, bearing in mind that the scope of business applications is likely to be limited in the near term,” Deloitte suggests. “Therefore, enterprises should carefully track the success of their VR deployments and identify which applications gain traction versus those that employees abandon after a few uses.”

Article courtesy of our content Partner Silicon Luxembourg


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