Transformative technologies lead to shifts in how enterprises function and how individuals live everyday life.
From the potential of 5G, to the power of artificial intelligence (AI), our connected lives are being shaped by the convergence of transformative technologies. For its latest white paper, “The Top Trends of 2019: Powered by Transformative Technology,” leading analysts from business information provider IHS Markit explore how these technologies are coming together in new and powerful ways, fundamentally changing how we interact with the world, how we do business and how we communicate with each other.
IHS Markit analysts identified the following three key trends expected to have a major effect on both commercial and consumer markets in the coming year:
1. Video everywhere
The increasing ubiquity of video is forcing significant industry change, as a growing number of players vie for consumer attention and revenue and as businesses adapt to cope with the rising demand. In fact, online video subscriptions from over-the-top (OTT) and traditional media players alone will more than double between 2017 and 2022, by which time they will approach the one billion mark. While TV, home entertainment, social media, video games and other media sectors are at the heart of the video everywhere trend, other industries – including security, education, and healthcare – are also becoming increasingly reliant on video technology.
2. Edge computing
The edge is already transforming the way networks are deployed and devices are built. It enables new revenue streams, as compute resources are made available closer to the end consumer. Service providers, cloud providers and internet of things (IoT) companies are particularly central to the edge discussion, as it affects the entire value chain – from semiconductor providers, through manufacturers, to media, security, gaming and other segments.
The main obstacle to effective edge deployment is the large bandwidth required, while the most significant issue is the need to reduce upstream traffic via analytics, in order to manipulate and refine data at the edge. In a recent survey of 14 edge thought leaders and market movers the top edge application was video content delivery, which 92 percent of respondents identified as an area of impact and concern.
3. Artificial intelligence
The speed of development in AI has aided its adoption in several industries, including consumer electronics, healthcare, industrial, and automotive. By 2025, in the automotive sector alone, more than 170 million AI systems are expected to be implemented.
The development of new algorithms and methods to enhance efficiency and problem-solving capabilities are driven by the high complexity of several applications and the prevalence of big data. For AI to fully develop, there remain many components and driving forces that must mature, advance, and succeed.
The white paper also explores technology insights in the following areas:
- 5G: According to the IHS Markit “Evolution from 4G to 5G: Service Provider Survey,” eight out of 10 mobile operators are already busy with trials and testing of 5G technology.
- Blockchain demonstrates especially significant potential in the financial industry, with the potential to impact other sectors such as supply chain and logistics, identity management, retail and e-commerce and healthcare.
- The human-machine interface (HMI) is another area Google, Samsung, Apple and other technology companies will focus more attention on in the coming year, investing heavily to provide best-in-class performance in virtual assistants, natural voice recognition and other applications.
- Next-generation cloud gaming now has the necessary market and technological conditions aligned to make it successful, and with commercial services from Google and Microsoft predicted to launch in 2019, IHS Markit expects the technology to make a meaningful impact on the $145 billion games market this year.
- IoT: While AEP vendors initially focused on providing the features and functions common across all IoT applications, many vendors are extending their offerings into specific vertical solutions, especially for connected cars, smart cities, and industrial automation. From 2017 to 2022, IHS Markit forecasts a 38 percent compound annual growth rate in the cumulative number of IoT devices under management by an AEP, rising to 6.7 billion devices under management by 2022.