Smart speakers, fifth-generation (5G) networks and cloud-based Artificial Intelligence (AI) are the baselines of increased connectivity and potential for innovation this year, the latest ‘Deloitte Global Technology, Media and Telecommunications (TMT) Predictions’ report shows.
The eighteenth edition of the report forecasts that the smart speakers installed base will surpass 250-million units by year-end, becoming the fastest-growing connected device category and worth $7-billion in 2019.
“Smart speakers are continuing to fly off shelves, selling 164-million units at an average selling price of $43 a unit. Total industry revenues will be up 63%, compared to $4.3-billion in 2018,” said Deloitte TMT Research global head Paul Lee.
“However, the industry will have to overcome looming obstacles to reach its full growth potential. Speech recognition technologies continue to improve, but wider language support will need to be developed for the technology to be inclusive and experience global adoption.”
Meanwhile, the TMT report, released on Monday, predicts an acceleration of 5G networks this year, with about 50 operators expected to offer this as a service by 2020.
“Wireless operators have been pouring resources into 5G network development – in fact, 72 operators are currently testing this offering – and Deloitte forecasts that in 2019, 25 wireless operators will launch 5G services, a figure that will likely double by 2020,” he explained.
More than one-million 5G handsets are expected to be sold this year, increasing to between 15-million and 20-million units by 2020.
Deloitte also predicts that companies will, this year, further accelerate the use of cloud-based AI software and services, with 70% of companies using the technology set to obtain AI capabilities through cloud-based enterprise software and 65% creating AI applications using cloud-based development services.
By 2020, the penetration rate of enterprise software with AI built in and cloud-based AI development services will reach an estimated 87% and 83%, respectively.
“So far, AI’s initial benefits have been predominantly accrued by technology giants with extensive financial resources, strong information technology infrastructure and highly-specialised human capital,” Lee said.
“However, the cloud will power increased efficiencies and better returns on investment, and we expect these benefits to rapidly extend beyond AI’s pioneers to the wider enterprise.”
“[This year] will be defined by how new technologies steadily reshape how we live and work,” said Deloitte Global Telecommunications, Media and Entertainment sector leader Mark Casey.
“From smart speakers to 5G networks, and everywhere in between, accessibility to advanced technologies is quickly improving. As the barriers continue to fall, the potential for greater connectivity and further innovation will increase exponentially.”