HomeBusinessDeloitte Unveils Exciting Technology, Media, and Telecom Forecasts for 2024

Deloitte Unveils Exciting Technology, Media, and Telecom Forecasts for 2024

Deloitte Unveils Exciting Technology, Media, and Telecom Forecasts for 2024

Deloitte, a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax, and related services, has launched its Technology, Media and Telecom predictions for 2024.

The predictions are hinged on four pillars – Generative Artificial Intelligence; Sustainability; Media, Entertainment and Sports as well as Technology and Telecom.

AGenerative AI

For Generative AI, the report said the market for specialised chips optimized for generative AI will be valued at over $50 billion in 2024, up from close to nothing in 2022.

It added that 2024 will be a ramp year, and “we predict that enterprise software revenue uplift from gen AI will be at a $10 billion run rate by the end of 2024 — from zero dollars in 2022”.

“That number might be lighter than some of the more optimistic forecasts. Some products are not launching until mid-2024, gen AI chip hardware is in shortage and expensive, and some vendors are not charging for it at first”, the report stated.

It added that more than 70% of companies are experimenting with gen AI, but less than 20% are willing to spend more on it.

Deloitte surveyed the 50 largest enterprise software companies, and all of them offer or plan to offer a software product with gen AI inside.

IT Spending Expected to Hit $1.6trn

Furthermore, the report stated that there are three big-generation AI software markets: productivity suites; broad software verticals like ERP, CRM, document management, etc.; and specialty verticals like chip design and software development tools.

Indeed, IT spending is expected hit $1.6 trillion in 2024, and there are over a billion knowledge workers, adding, “If buyers are willing to pay US$10-30 per user per month (PUPM), the addressable market would be well over US$400 billion. The potential revenue uplift could be transformative”.

What Should Companies Consider?

The report said Gen AI inside enterprise software is likely to be a gateway for many companies.

However, they may not build their hardware at first but could access it through vendors and the cloud.

The bottom line is that “In one study, knowledge workers using gen AI tools did more, faster, and at higher quality than those not using the tools. If that kind of ROI is proven out more widely, $10 billion in 2024 could just be the start of the gen AI revenue uplift”.

Why Does It Matter?

It’s the fastest growing semi-market in history – on the back of US$40,000 chips.

Importantly, Gen AI is seen as a strategic capability where there are multiple geopolitical issues and restrictions about the export of either Gen AI chips or the IP, tools, and equipment, and manufacturing to make them.

BSustainability

For Sustainability, the question was will materials shortages, supply chain challenges threaten tech’s future?

The report stated that by 2025, “we may also start seeing shortages of rare earth elements (REEs) for magnets in electric car motors and more, as well as lithium and cobalt for batteries”.

Also, raw materials shortages have affected the tech industry in the past too; but the question is “What could be unprecedented in 2024 and 2025, is that these shortages could be across dozens of different raw materials at the same time?.

It called for actions to be taken, however, that can help avoid shortages in the near, medium, and long term.

Why Does It Matter?

The report stated that as tech and semi-supply chains are not just about raw materials, holistic strategies such as recycling, DSNs, sustainable manufacturing, and stockpiling could pre-empt future supply chain issues.

What should companies consider?

The report urged companies to work with niche recycling and circular logistics, process, and business model providers that represents the foundation upon which recycling can be built and scaled up further.

The report added that telecommunications firms can reduce their Scope 3 emissions by working with smartphone makers and customers to promote extending the life of phones, reselling used phones, and making sure they are recycled properly.

CMedia, Entertainment and Sports

The report mentioned that interest from fans, broadcasters, and commercial partners is driving rapid growth in the revenues of women’s elite sport, adding, “How can organisations continue to accelerate growth?”

Deloitte predicted that in 2024, revenue generated by women’s elite sports will surpass $1 billion for the first time, with a forecast of $1.3 billion in total revenues.

The largest contributor is expected to be commercial revenue at $696 million, followed by broadcast at $340 million, and matchday at $240 million.

Why Does It Matter?

The report said investment in women’s elite sports organizations could lead to stronger performances and stronger earnings.

Again, the value of sponsorship in women’s elite sport is likely to grow rapidly in 2024, encouraged by impressive recent evidence of returns on investment.

The report mentioned that surpassing the billion-dollar revenue milestone is expected to be significant, especially given the turbulence of recent years for elite sports.

“Women’s elite sport is developing swiftly in stature, but is also still nascent, with many of the major leagues only established in the last decade, and many territories yet to establish a mainstream culture around women’s elite sports”.

What should companies consider?

The report wants women’s elite sport should be developed as a product distinct from men’s elite sport.

“Women’s sport should not simply duplicate men’s sport, but rather adapt and innovate to suit athletes and fans The impending billion-dollar milestone is cause for celebration, but this is only the beginning”, the report stated.

On the bottom line, the report said the impending billion-dollar milestone is cause for celebration, but this is only the beginning, adding, “A virtuous circle is underway. Investment in women’s elite sports is likely to lead to better teams and a better product, which in turn often becomes more valuable. It is important that women’s sports – at elite and grassroots levels – should be nurtured both in 2024 and years to come”.

Entertainment

The report said the television and film industry is caught between declining cable TV viewership (and revenues) and costly streaming video services.

The streamers, it said, have been spending on content and subscriber acquisition but face persistent churn and competition for attention among so many entertainment options.

In 2024, it added streamers are expected to charge more for premium content, fight churn with longer subscriptions, and satisfy bargain hunters with more pricing tiers.

Why Does It Matter?

The report said the streaming video business is at an inflection point, shifting from growth to profitability.

However, this may require streamers to fight churn and diversify revenues – or examine if they’re in the right business.

What should companies consider?

The report said streamers can look to the mechanisms and business models that helped media and entertainment companies become highly profitable before the streaming revolution.

“Streamers may need to make money off every viewer with tiers that offer options for premium subscribers and bargain hunters; contracts and bundles that defer costs; and premium access to premium content”, it pointed.

The report added that raising subscription prices, adding contracts, and focusing on advertising could be disruptive to the streaming business. But it may be the way the business can become more sustainable.

DTelecom and Technology

Deloitte predicted that smartphones are expected to be used to authenticate processes trillions of times in 2024 across a widening range of actions: access to websites, making payments, unlocking cars, and controlling entry to physical buildings.

In 2023, there were an estimated 1.3 trillion two-factor authentication messages sent via telecom networks, generating an estimated US$26 billion from network traffic alone.

The report said the smartphone may also be used increasingly to generate passkeys—likely the medium-term replacement for passwords. Again, the smartphone is also likely to play a growing role in authenticating transactions, both online and in stores.

Why Does It Matter?

Given the widening future scope of the smartphone, the report said it is likely to cement its position as a successful device. This may dampen (but not eradicate) discussions of when it might be toppled by another form factor.

Again, in 2024 and over the coming decades, smartphones could replicate and exceed the functionality of tens of billions of physical authentication tools in use today, including keys, passwords, driving licenses, passports, credit cards, and cash.

 

 

 

Source: Joy News

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