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Friday, Feb 28th

Deloitte's 2020 predictions: From private 5G to e-bikes

Deloitte's 2020 predictions: From private 5G to e-bikes

Deloitte shared its annual technology, media and telecommunications predictions with clients and media in Johannesburg this morning.

The predictions are based on Deloitte Global's research - the 2020 Technology, Media and Telecommunications Predictions Report.

Delloite says the research aims to provide insight into the smart future – technology and trends that offer growth and transformation opportunities across the business landscape, such as edge computing, private 5G, AI, content delivery and consumption trends.

Paul Lee, global TMT head of research at Deloitte, talked the audience though the 2020 predictions, which range from the expected 5G and AI to somewhat surprising rise of cycling.

1. Edge AI chips come into their own

In 2020, more than 750 million edge AI chips – chips or parts of chips that perform or accelerate machine learning tasks on-device rather than in a remote data centre – will be sold.

It's likely that the market for these chips will grow twice as quickly as the overall chip market as they find their way into an increasing number of consumer devices and enterprise devices, Deloitte Global predicts.

2. Professional service robots set for double digit growth

Of the almost 1 million robots forecast to be sold for enterprise use in 2020, Deloitte Global expects that just over half will be professional service robots, generating more than US$16 billion in revenue, or 30% more than 2019.

3. Private 5G networks

Deloitte Global expects that more than 100 companies worldwide will have begun testing private 5G deployments by the end of 2020.

Over the next decade hundreds of thousands of companies are likely to deploy private cellular networks. Regulation is changing to allow use of certain bands privately, noted Lee.

4. High speed from low orbit

Getting into orbit and manufacturing satellites has become less expensive, while the demand for connectivity has increased in every part of the world.

Deloitte Global predicts that by the end of 2020, there will be more than 700 satellites in low-earth orbit seeking to offer global broadband Internet – up from roughly 200 at the end of 2019.

5. The smartphone multiplier

The sale of products and services that depend on smartphone ownership - the so-called smartphone multiplier – will be three times that of smartphone market itself.

Deloitte Global predicts that the smartphone multiplier will drive US$459 billion of revenue in 2020, and expects that market to grow between 5 and 10 % annually through 2023.

The three largest elements of the smartphone multiplier are: mobile advertising, apps and hardware accessories.

6. Antennae: terrestrial TV's surprising staying power

At least 1.6 billion people worldwide, representing 450 million households, will get some of their TV from an antenna.

TV may not be growing at the rate it did 20 years ago, but neither is it collapsing, and both advertisers and broadcasters need to take note of that, according to Deloitte Global.

7. Content delivery networks: Video, games, and more

Content delivery networks (CDN)s) are designed to improve media quality, speed and reliability by bringing content physically closer to the user.

Deloitte predicts that the global CDN market will reach US$14 billion in 2020 and that the market will more than double by 2025, driven by increasing consumer hunger for streaming video over the Internet.

By 2022, CDNs are expected to carry 72% of all Internet traffic.

8. Ad-supported video

Revenue from ad-supported video services will reach an estimated US$32 billion in 2020, Deloitte predicts.

Asia will lead with US$15.5 billion revenue, nearly half of the global total. Over a billion people in Asia watch ad-supported video services, thanks to the advent of affordable 4G connectivity, low-cost smartphones and business models that offer free content in exchange for watching ads.

Ad-supported videos could be the latest Asian import to the US, Delloite predicts.

9. The rise of audiobooks, podcasts

The global audiobook market will grow by 25 % to US$3.5billion, while the podcasting market will increase by 30% and surpass the US$1 billion mark for the first time, according to the Deloitte report.

10. Making cycling faster, easier and safer

More cyclists are taking to the road and tech innovations are making cycling more appealing: safer, faster, more convenient, and easier to track and measure.

E-bikes, which use batteries to assist pedalling, stand out for their potential to boost cycling growth, says Deloitte.

It predicts that by 2023 the number of e-bikes globally should reach 300m, a 50% increase over 2019.

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