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Deloitte TMT Predictions 2020: Previously Hyped Innovations Become a Reality

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Deloitte today released the 19th edition of its “Technology, Media & Telecommunications Predictions,” which looks at three overarching themes: individual technologies are becoming ever more interconnected and interdependent, increasing their impact and value as a result; smartphones, computers, TVs, enterprise data centers and software, and IoT will drive most of the technology, media and telecommunications (TMT) industry’s revenue; and lastly, many previously hyped services and products will finally become a reality in 2020.

“In 2020, we will start to see a canopy effect where industry players will work more closely together as individual technologies like edge artificial intelligence (AI) chips, robots and private 5G become better connected, and promising innovations like low-earth orbit satellites finally come to life,” said Paul Sallomi, vice chairman, Deloitte LLP, global TMT industry leader and U.S. technology sector leader. “This year’s predictions are a helpful guide for TMT business leaders to break through the clutter and understand what to do next in order to help be successful in 2020 and beyond.”

“These disruptive forces will continue to challenge traditional tech, media and telecom companies to keep pace with new-age, digital native companies. Those that can innovate, swiftly bring the latest developments to market and satisfy the demands of increasingly savvy consumers are the ones most likely to be rewarded,” said Sandra Shirai, vice chairman, Deloitte LLP and U.S. technology, media and telecommunications leader.

AI has the edge
A new generation of edge AI chips will reduce frustrations caused by lack of internet connection on smartphones by bringing AI to the device. Deloitte predicts that 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 center — will be sold, and that the edge AI chip market will continue to grow much more quickly than the overall chip market.

Private 5G: Enterprise untethered
Deloitte predicts that more than 100 companies worldwide will begin testing private 5G deployments by the end of 2020, collectively investing a few hundred million dollars in labor and equipment. For many of the world’s largest businesses, private 5G will likely become the preferred choice, especially for industrial environments such as manufacturing plants, logistics centers and ports.

Meet your new colleague, a robot
Of the almost 1 million robots Deloitte expects to be sold for enterprise use in 2020, just over half of them will be professional service robots, generating more than US$16 billion in revenue — 30% more than in 2019. Professional service robots will pass industrial robots in terms of units in 2020 and revenue in 2021.

Can I have an ad with my content?
Deloitte predicts that global revenue from ad-supported video services will reach an estimated US$32 billion in 2020. Asia, including China and India, will lead with $15.5 billion in revenue in 2020, nearly half of the global total. In China, India and throughout the Asia-Pacific region, ad-supported video is the dominant model of delivering streaming video to consumers. By contrast, in the United States, most direct-to-consumer video offerings are pursuing an ad-free subscription model.

“As major networks and studios continue to launch their own direct-to-consumer streaming services in 2020, competitors will likely scramble to offer content libraries broad enough to both attract and retain customers. There is an opportunity for media and entertainment companies to reaggregate their content libraries with a wide array of offerings — from video, music and gaming services to ad-supported content,” said Kevin Westcott, vice chairman, Deloitte LLP and U.S. telecommunications, media & entertainment leader. “For telecom providers, on the other hand, the emergence of 5G will offer unprecedented opportunities for companies to grow and achieve new levels of productivity. However, helping shape (and manage) customer expectation regarding its possibilities will be a big challenge in the coming year.”

Terrestrial TV’s surprising staying power
Antenna TV will thrive in 2020 with at least 1.6 billion people worldwide, representing 450 million households, enjoying some of their TV viewing via an antenna. Antenna TV will help the global TV industry keep growing even in the face of falling TV viewing minutes and, in some markets, increasing numbers of consumers cutting the pay-TV cord.

More insight from Deloitte’s 2020 TMT predictions:

Low-earth orbit satellites soar: By the end of 2020, there will be over 700 satellites in low-earth orbit (LEO) seeking to offer global broadband internet, up from roughly 200 at the end of 2019. These new “mega-constellations” of orbiting broadband stations will potentially add more than 16,000 individual satellites to that count over the coming years.

Give a listen: In 2020, the global audiobook market will grow by 25% to US$5 billion and the global podcasting market will increase by 30% from 2019 to reach US$1.1 billion in 2020, surpassing the US$1 billion mark for the first time.

A smarter smartphone: The smartphone multiplier market (hardware, content, services) will drive US$459 billion of revenue in 2020 alone and will grow between 5 to 10% annually through 2023, lifted by continued robust growth in its largest components. This means that in 2023, the smartphone multiplier market is likely to generate revenues of more than a half-trillion dollars per year.

The workhorse of the internet: Deloitte also predicts the global Content Delivery Network (CDN) market will reach US$14 billion in 2020, up more than 25% from 2019’s estimated US$11 billion. The market will double to US$30 billion by 2025, a compound annual growth rate of more than 16%.

Roll to work: Tens of billions of additional bicycle trips per year will take place in 2022. The increase in bicycling will double the number of regular bicycle users in many major cities around the world where cycling to work is still uncommon. Deloitte predicts a 1 percentage point rise in the proportion of people who bike to work during the three years from 2019 to 2022. Between 2020 and 2023, more than 130 million e-bikes (using all battery technologies) are expected to be sold.

“The rising competition for consumers’ attention across technology, media and entertainment industries means companies that serve these consumers should focus on what matters most in order to succeed,” concluded Dr. Jeff Loucks, managing director, Deloitte LLP and executive director, Deloitte Center for Technology, Media and Telecommunications. “Whether it’s delivering on 5G, offering a streaming service that entertains and does not overwhelm or fulfilling the promise of AI in 2020, consumers will look to companies that demonstrate an understanding of their desires and an urgency for making those desires a reality.”

Now in its 19th year, Deloitte’s annual TMT Predictions provides an outlook on key trends in the technology, media and telecommunications industry sectors worldwide.

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First-of-Its-Kind Blueprint for Data Policy Adopted by City of Helsinki

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The World Economic Forum today released Empowered Data Societies: A Human-centric Approach to Data Relationships. The framework put forth in the white paper ensures that data is used in responsible and innovative ways to create progress while respecting, valuing and empowering people and communities.

As part of a year-long partnership with the City of Helsinki, the World Economic Forum convened a global community of technologists, anthropologists and policy and data experts to develop a new way to create data policy oriented around the values, needs and expectations of people.

By leading with the interests of those generating data or most impacted by resulting insights, this approach mitigates the trade-offs between innovation and privacy.

The Forum worked with a dedicated team of data practitioners and policy-makers with the City of Helsinki to apply this new methodology to develop a dedicated anonymization pipeline for complex personal data that will allow for maximal data utilisation anchored in respect for individuals and their privacy. New pathways, processes and tools were also created to document a best practice blueprint for human-centric proactive services, which Helsinki will open-source for future expanded use and improvement.

“Throughout this year-long partnership we were motivated by the principle that human-centricity is neither a ‘nice to have’ nor a ‘deluxe’ approach to data. Human-centricity can and should be the foundation upon which to build empowered data societies. With the release of this paper, we aim to share frameworks, insights and best practices so policy-makers around the world can adopt and build systems that use data in responsible and innovative ways to create progress that legitimately serves people and communities,” said Sheila Warren, Deputy Head of the Centre for the Fourth Industrial Revolution Network, World Economic Forum.

The City of Helsinki created several tools to enable efficient utilization of extremely sensitive data. The main principle behind the blueprint is that the storage, anonymization and processing of data are separated and that different individuals perform each task.

Forging a way to create entirely new data analytics capabilities for Helsinki has resulted in a new technical environment for treating sensitive personal data with the highest ethical, data protection and cybersecurity standards. This environment will be used as the city continues accelerating its use of data to provide more personalized and timely services for its residents and visitors.

“Helsinki’s commitment to serving its citizens requires going beyond traditional service provision and tapping into the full potential of data to deliver the best quality services in the most efficient way possible. Using data responsibly requires the development and implementation of new practices that are human-centric – those that assure citizens’ interests are respected and prioritized at all times, empower citizens to improve their own lives through data, and increase participation in the overall ecosystem by building trustworthy data relationships,” said Jan Vapaavuori, Urban Activist and Mayor of Helsinki (2017-2021).

Much of the data needed to tackle the world’s most pressing challenges is siloed in public and private sources. Even for social good, the various regulatory, commercial and social risks prevent data sharing. The Shaping the Future of Technology Governance: Data Policy Platform works with partners from all sectors, regions and industries to develop agile and innovative approaches to accelerate the responsible use of data and empower stakeholders across the entire data ecosystem.

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Digital billboards bring real-time air pollution data to Nairobi

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Image source: UN Environment

Digital billboards around the Kenyan capital today started to live stream Nairobi’s real-time air pollution in an effort to increase air quality awareness among the city’s 4.7 million inhabitants.

The initiative – by the UN Environment Programme (UNEP), in collaboration with IQAir, a Swiss air quality technology company, Safaricom, a telecommunications provider in Kenya, Alpha and Jam Ltd and Metropolitan Star Lite Ltd,  Out Of Home (OOH) media – provides real-time air quality information for some of the most harmful type of air pollution, fine airborne particles, known as PM2.5. The pilot aims to engage the public by streaming real-time air pollution information to digital billboards at 4 critical locations in the city: Moi Avenue, University Way, Mbagathi Way and Jomo Kenyatta International Airport.

PM2.5causes serious health issues, including asthma, lung cancer, and heart disease. Exposure to PM2.5has also been associated with low birth weight, increased acute respiratory infections, and stroke.

“Real time air quality monitoring will help us with the issuance of health advisories as well as for formulation of smart traffic controls that minimize congestion,” said Lawrence Mwangi, Assistant Director of Environment in charge of pollution control at the Nairobi County Government. “Dynamic advisories demonstrated through this collaboration will help people limit their exposure to harmful pollutants.”

Around 3 billion people cook and heat their homes using open fires and simple stoves burning biomass (wood, animal dung and crop waste) and coal. More than 50% of premature deaths due to pneumonia among children under 5 are caused by the particulate matter (soot) inhaled from household air pollution.  Outdoor air pollution in both cities and rural areas was estimated to cause 3 million premature deaths worldwide in 2012 with 88% of those premature deaths occurring in low- and middle-income countries.

Policies and investments supporting cleaner transport, energy-efficient housing, power generation, industry and better municipal waste management would reduce key sources of urban outdoor air pollution.  Most residents of the city do not have access to real-time air quality data and consequently, are often unaware of the harmful levels of air they breathe.

“Action on air pollution, which is responsible for millions of premature deaths a year, is critical – efforts should focus on high-risk communities, such as people living in informal urban settlements,” said Inger Andersen, Executive Director of UNEP. “Innovations to reach and engage the local community and decision-makers alike, can only elevate the understanding of the impacts of air quality and help create an enabling environment improve human and ecosystem health.”

“We recognize that some of the world’s most vulnerable communities are disproportionately affected by poor air quality,” said IQAir CEO Frank Hammes.  “Through our partnership with UNEP, we are able to leverage real-time air quality monitoring data, machine learning and data visualization to help identify those that are most affected by global air pollution. The real-time visibility of the impact of air pollution on mankind, combined with the outreach and support that the UNEP offers, can help governments and communities around the world take actions that lead to cleaner, healthier air.”

The Nairobi air quality awareness demonstration project is the result of a unique collaboration between the UN, the private sector, academia, non-governmental and local governmental organizations and is expected to accelerate efforts to change how transport, waste management and other services are managed in cities so that air pollution from these activities is significantly reduced, if not eliminated.

“This partnership lies very much at the heart of our sustainability agenda that seeks to address environmental issues such as air pollution which remains a major challenge especially in urban centres. We intend to use our digital platforms and expansive network infrastructure to support the air quality monitoring project to expand across more urban areas in Kenya. We will also foster partnerships with other stakeholders including regulators, relevant ministries and private organizations to help build a compressive and sustainable air quality monitoring system in the long run”, said Peter Ndegwa, CEO, Safaricom.

The demonstration project comes as the world celebrates the 2nd International Day for Clean Air and blue skies on 7 September, this year held under the theme, Healthy Air, Healthy Planet. The Day calls for increased international cooperation at the global, regional and sub-regional levels. It provides a platform for strengthening global solidarity as well as political momentum for action against air pollution and climate change, including the increased collection of air quality data, carrying out joint research, developing new technologies and sharing best practices.

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Artel to strengthen position as a leading innovator in Central Asia

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Artel Electronics LLC (Artel), Central Asia’s leading home appliance and electronics manufacturer and one of Uzbekistan’s largest companies, continues to strengthen its Research and Development (R&D) position to bring new, innovative products to its customers.

Artel’s custom R&D center in Tashkent is one of the most extensive manufacturing research facilities in Central Asia. The center’s designers, engineers and technicians develop new technologies to advance the next generation of contemporary products for the modern home.

The expansion of Artel’s R&D center is at the heart of the company’s forward-looking strategy. In the near future, the company will strengthen its in-house expertise through employing over 100 additional specialists and by attracting leading international talent. The center will also establish a number of departments dedicated to research priorities, including in automation and robotics. Moreover, to capitalize on international trends, Artel is exploring establishing branches of the R&D center overseas, including in Turkey and China, and partnership opportunities with technical universities worldwide.

The R&D center also plays a central role in the identification and training of the next generation of Uzbek technicians, designers and engineers. The R&D center has had long lasting cooperation with the Department of Mechatronics and Robotics at the Islam Karimov Tashkent State Technical University, and a branch of the center focusing on automation and robotization of production operates on site. Since establishment, the Center has provided state-of-the-art training to over 250 young specialists who now work throughout Artel’s operations. By investing in and nurturing homegrown talent, Artel channels expertise, ideas and creativity into its operations.

Rustem Lenurovich, Director of the R&D Center, said: “At Artel, we know that the constant development of new, sophisticated products and processes is fundamental to our business and growth. Through our hard work and innovation, and by investing in energetic young talent, we will continue to deliver the most advanced appliances and electronics to our customers. We look forward to strengthening our R&D position even further in the coming years.”

Artel’s R&D facility was established in 2016, and the main center was opened in 2017. The center’s team of specialists develop technologies to continuously refresh the company’s product portfolio and optimize production processes. The onsite VR laboratory and pilot production facilities are used to create and test prototypes. In the first half of 2021 alone, the center initiated over 30 projects. The center has also recently partnered with Gree company on the development of washing machine and air conditioner technologies.

Artel Electronics LLC manufactures a wide range of household appliances and electronics, and operates in all regions of Uzbekistan. The company currently exports its products to over 20 countries throughout the CIS and the Middle East, and is also the regional partner of Samsung and Viessmann.

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