5G, China, smart speakers and 3D printing: the 2019 forecast
What do these topics have in common? They recently were listed by Deloitte as four of the eight biggest tech trends of 2019.
We recently attended this year’s Deloitte’s TMT Predictions event in Bristol and learned about the latest products and services being developed in the fields of technology, media and telecommunications in 2019 and what this wave of innovation will mean to the UK and the rest of the world. It was a really interesting morning at Bristol’s Engine Shed, listening to Paul Lee, Global Head of Research at Deloitte, talk about the company’s latest research.
Deloitte officially listed eight predictions in their report, which you can read about on their microsite. At the Bristol event, however, they focused on the four main predictions: 5G, China, smart speakers and 3D printing.
We share our notes below on what we learned about the evolution of these four areas in 2019 and beyond.
5G — Key predictions
By the end of this year, 5G should be available on most networks, but the devices’ batteries will take a while to catch up and be able to last whilst on 5G. And, according to Paul Lee, “it’s not just about what mobile operators can do for you, but what you can do to manage your own spectrum.”
5G will still be used for true mobile connectivity, mainly by devices such as smartphones, but it will become a key tool to connect other devices like modems or hotspots. Finally, there will also be “5G fixed-wireless access (FWA) devices, with antennas permanently mounted on buildings or in windows, providing a home or business with broadband in place of a wired connection.” Deloitte predicts that, in the UK, two operators are likely to launch FWA services before the end of 2020.
It may take a while for 5G to become mainstream, but with the concept of speed continuously being redefined, it is without a doubt “the connectivity technology of the future.”
China — Key predictions
The future of the world’s second largest economy includes new technology trends like artificial intelligence (AI) and semiconductors. Deloitte predicts that revenues for semiconductors manufactured in China will grow by 25% to approximately £87 billion in 2019, compared to an estimated £67 billion in 2018.
With the country moving towards the design of intellectual property and the development of industries with higher profits, this increase in the production of semiconductors will allow China to meet the increasing domestic demand for chipsets, partially driven by the growing commercialisation of AI and both old and new markets flourishing through automation. New machines and tools have been creating and adding value to different processes and industries for several decades, and China is taking this principle to the next level.
“The foundation for what China is doing is good connectivity. New business models are emerging and then being sold to other markets.”
With Chinese consumers quickly embracing new technologies — cashless payments and image/video-based search are two good examples — ,the country is looking to answer the growing domestic demand for products like semiconductors by becoming an authority in the industry.
Smart speakers — Key predictions
Deloitte predicts that the smart speaker industry will be worth £5.6 billion in 2019 (selling 164 million units at an average selling price of £34.1), despite smart speaker sales slowing down in 2018.
The UK is expected to become the third largest market for internet-connected speakers with integrated digital assistants this year, after the United States and China. Still, the UK’s share of the market will only represent around 8% of all shipments in 2019.
“Smart speakers have, literally, a world of opportunity for growth in non-English-speaking countries.”
According to Deloitte’s research, at the end of 2017, 95% of sales were catering to English-speaking markets. Throughout 2019, however, these speakers will be spreading their linguistic wings to customers speaking Chinese, French, Spanish, Italian, and Japanese.
“In addition to wider language support, smart speakers are improving in speech recognition accuracy, enhancements that can be applied and amortised across a widening range of devices.” The devices’ complexity and production cost are also declining, “partly due to a reduction in the number of microphones required per device.”
“Historically there has been resistance to using voice assistants, mostly due to inaccuracy. Over time, this will improve and voice recognition will get better, allowing for exciting applications to industries like healthcare.”
Research shows that smart speakers could make operations safer and more precise such as hospitals, theatres, factories, chemical labs, restaurant kitchens, and many other places. “We believe that in the long term, the number of smart speakers in the workplace might exceed that in homes, and the value of the tasks they do may be orders of magnitude greater than playing music or checking the weather.”
3D printing — Key predictions
Deloitte believes that 3D printing is likely to return to the spotlight this year. Although it’s unlikely that it will be able to take over traditional manufacturing anytime soon, it’s currently the perfect solution for niche products like prosthetic limbs.
“There are likely to be multiple, specialised areas where 3D printing is highly competitive and suited to needs. One such example is bionic prosthetic limbs for children.”
The company predicts that 3D printing sales by large public companies — including enterprise 3D printers, materials, and services — will surpass £2.1 billion in 2019 and £2.4 billion in 2020. This area is poised to grow at approximately 12.5% in each of those years, more than double its growth rate just a few years ago.
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