It’s been a good year for the Tech, Media, & Telecom (TMT) industry. But that doesn’t mean industry executives can rest on their laurels and ignore predictions for the sector for 2022.
Companies that invest in the right themes become success stories; those that miss the big themes end up as failures. For example, look at the rapid development of artificial intelligence (AI), electric vehicles (EVs), and cybersecurity over the past 10 years. Given that so many themes are disruptive, it is very easy to be blindsided by industry outsiders who could enter any sector. To help businesses stay ahead of the competition and understand what 2022 will hold, thematic analysts for leading analytics firm GlobalData have produced the TMT Predictions 2022 report.
As Verdict recently covered, most M&A deals recorded by GlobalData in the third quarter (Q3) of 2021 came largely supported by the TMT sector, representing over a third of the total 8,650 M&A deals and contributing to 22% of total transaction value. The total M&A value in TMT amounted to $324bn in Q3.
For 2022, GlobalData’s report identifies the top 30 themes that will impact TMT next year. For each theme, analysts offer a series of predictions, identify winners and losers, and point insiders to further reading.
The top tech themes to have an impact on TMT next year are: artificial intelligence (AI), cybersecurity, metaverse, augmented reality (AR), quantum computing, cloud computing, software defined everything (SDE), 5G, space economy, robotics, Industry 4.0, consumer Internet of Things (consumer IoT), smart cities, ambient commerce, fintech, cryptocurrency, batteries, future mobility, healthtech, edtech, social media, cloud gaming and streaming.
GlobalData’s top macroeconomic themes in 2022 are: ESG, COVID-19, the future of work, geopolitics, China, and M&A. Its top regulatory theme impacting the TMT industry meanwhile is data privacy.
TMT predictions 2022: From ESG to DeFi
In ESG, 2022 will see an increase in signatories to The Climate Pledge. As its targets can be achieved through carbon offset schemes, there will be increasing pressure for the voluntary carbon market to be regulated. Companies with implausible net-zero targets risk harming their reputation.
Though the metaverse may not yet be fully realized, early prototypes and use cases will emerge as tech companies strengthen their metaverse capabilities and start-ups develop solutions around data visualization, collaboration, and training.
Decentralized finance (DeFi) will disrupt traditional financial institutions and is set to be the killer use case of cryptocurrency. Start-ups will lead DeFi platform innovations, with retail investors as the primary targets. Institutional bodies will catch up with the trend through the introduction of Central Bank Digital Currencies (CBDCs) and the adoption of stablecoins.
Supply chain disruptions and rising labour costs are de-emphasizing the cost advantage of offshoring. US manufacturers in the transportation equipment, electronics, and chemicals industries will reshore production due to concerns over EV battery production and domestic semiconductor supply.
The cybersecurity industry will develop quantum-resistant encryption before RSA codes are broken. However, future quantum computers could break secure communications captured today. Therefore, companies will implement quantum security solutions in 2022.
The expansion of satellite networks will provide almost 70% of the space economy’s growth in the near term, facilitating larger aspirations. Plans for space business parks from aerospace leaders will see commercial actors have a more sustained presence in space, signalling a commercial infrastructure boom in the longer term.
More on the TMT Predictions Report 2022
Using the report, companies can position themselves for future success by investing in the most important tech, regulatory and macroeconomic themes in the TMT industry. Informed by GlobalData’s TMT predictions for 2022, recommendations are provided on the actions insiders should take in each theme to improve their standing.
The report will aid execs in sourcing the leading vendors for the most disruptive themes in the TMT industry from our winners’ lists and shortlist potential partners based on their areas of expertise.
Readers will also quickly identify attractive investment targets by understanding which companies are the most advanced in the themes that will determine future success in the TMT industry.
They will also be able to quantify the global sales opportunity for disruptive tech services by accessing GlobalData’s market size and forecasts, produced by technology, healthcare, automotive, retail, banking, aerospace, defense and security analysts.
Finally, these predictions for 2022 will give a competitive advantage in the future of the TMT industry in conjunction with another multi-theme report, Tech, Media, & Telecom Themes 2022, which is organised by sector.