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Global Tech Markets Trends in 2023
Publication date: 10.08.23
Reading time: 5 minutes
PepsiCo creates chips together with AI, Fortnite offers a virtual venue for events, and the UK will open a virtual hospital.
The tech market research company Innotechnics presents 6 tech market trends in 2023.
1. Applied AI
Applied AI focused R&D aimed at leveraging machine learning in industrial production remains the most substantial trend. The technology helps maximize a company’s potential for progressing from pilot projects to viable products as the firm addresses errors that typically occur in industrial modeling, and removes constraints that rein in its team’s productivity.
Market: IDC analysts expect the AI market to top a $500bn mark in 2023.
Case: PepsiCo is applying AI in an effort to come up with the perfect Cheeto corn snack. The right curvature of a Cheeto arc matters a lot as natural dissimilarities in corn and cheese fabrics may result in faulty production runs and a halt in manufacture. It takes the system just a few nanoseconds to spot the problem and adjust temperature, shape and consistency, while leaving the flow of snacks ultimately unbroken.
2. Web3 and decentralization
Web2 as we know it is a tool that helps create and publish content. Its next iteration, Web3, is a tool that enables ownership of the content and of everything that comes with it, including proceeds, data, etc. Blockchain will grow in weight in 2023 as a sought-after component of the new Web3 Internet concept. One’s ability to own his or her anonymous crypto wallet is already par for the course in the market; smart contract based loans and NFT-related projects may become so very soon.
Investment: according to Bain, Web3 tech projects have raised more than $80bn in private equity investment, of which $48bn came directly into the financial market infrastructure.
Case: Industrial and Commercial Bank of China researches into ways of developing e-CNY, or the ‘digital yuan’, and furthering metaverse-based business models. In a near future, customers may expect to be able to open e-CNY wallets in a virtual business hall.
3. Metaverse components
The metaverse concept is another Web3 element. It is a shared virtual environment with its own economy which never stays idle even if there are no users in the system. Its key ingredients — augmented and virtual reality (AR/VR) — will likely keep taking many sectors by storm. PwC expects AR/VR tech to give the global GDP an impressive $273bn boost next year. By 2026, an estimated quarter of Planet Earth’s entire population may be spending at least an hour each day in the metaverse to do work, shopping or education activity, and socialize and have fun.
Investment: In the past 11 months large technology players, start-ups and VC/PE investment firms shelled out $120+bn for various metaverses, twice the amount invested in 2021.
Case: Epic Games rolled out its Fortnite, now an all-the-rage online video game that ushers the user into a variety of metaverse events. Last year, the Fortnite metaverse hosted the Rift Tour, pop singer Ariana Grande’s spectacular musical show.
4. Digital twins and 3D
This technology is a marriage of multiple source data analysis and 3D visualization. With a digital twin, one can survey with a 360° view a range of targets, such as online and in-store consumer behavior, demographics, payment preferences, or customer service performance.
Investment: likely to top $48bn by 2026.
Case: A digital twin of the Dragon space capsule enables SpaceX operators to control and adjust flight parameters, including trajectories, payloads and other settings, to make sure a mission is safe and efficient.
5. 6G, cloud technology, and the Internet of Things (IoT)
The advent of cloud, 5G and 6G technologies boosts computing power and the throughput capacity of a network, thus paving the way for further innovation. McKinsey estimates that as many as 70% of companies will leverage hybrid or multi-cloud technologies in their business tools and management processes. With 5G, networks are expected to operate at speeds that beat the current 4G LTE performance by a factor of ten. All these technologies are interwoven with an ever-growing number of IoT-enhanced physical objects that are connectable and can exchange data. These are exemplified by smart houses, connected cars, and smart cities. As the COVID-19 pandemic shows no sign of abating, there is growing demand for IoT tech in health care.
Market: by 2023, the global market for IoT-enabled medical devices is expected to reach $267bn.
Case: in 2023, the UK healthcare market may have its first ‘virtual ward’, an IoT-enhanced telemedicine solution that would help physicians and nurses give outpatients the care they need without admitting them to the hospital.
6. Social commerce platforms
The ‘Gen Z’ is coming to swarm markets as new buyers. And industries have to be growing increasingly adaptive to the unorthodox purchasing patterns of the zoomers. In e-commerce, brand owners are progressively setting sights on a novel trend that is crystallizing: social commerce. A ‘newcomer’ from China, the new vogue encourages young buyers to digitally ‘try on’ goods before they buy, paying for them via social media and content creation platforms such as Instagram, TikTok or YouTube Shopping, and to prompt the owners of much-loved brand names to cooperate with the platforms and also bring celebrities on board to actually show how they love the brands. That’s how the brand owners reach out to the emerging army of new consumers.
Market: in 2023, the global market for social retail commerce is expected to grow from this year’s $45.7bn to $56.2bn.
Case 1: Shein, a Chinese brand owner, shook hands with some of Gen Z’s gods and goddesses on their product promotion. Katy Perry, for one, starred in their clothing gala, preceded by the singer performing live at the Shein Together livestream at TikTok to celebrate her new album release.
Case 2: Web3 is on the march across the globe, and some brand owners make the most of its charm by building Web3 literacy among children. For example, Bumper seeks teens who want to learn the ABCs of investing, and offers them a safe environment for experimenting with financial instruments.
About Innotechnics
Innotechnics specializes in tech market analysis, trend forecasting, and startup scouting. Leveraging a proprietary database of over 60,000 tech firms, we deliver insights tailored to your needs. Let's discuss how we can support your vision.
The tech market research company Innotechnics presents 6 tech market trends in 2023.
1. Applied AI
Applied AI focused R&D aimed at leveraging machine learning in industrial production remains the most substantial trend. The technology helps maximize a company’s potential for progressing from pilot projects to viable products as the firm addresses errors that typically occur in industrial modeling, and removes constraints that rein in its team’s productivity.
Market: IDC analysts expect the AI market to top a $500bn mark in 2023.
Case: PepsiCo is applying AI in an effort to come up with the perfect Cheeto corn snack. The right curvature of a Cheeto arc matters a lot as natural dissimilarities in corn and cheese fabrics may result in faulty production runs and a halt in manufacture. It takes the system just a few nanoseconds to spot the problem and adjust temperature, shape and consistency, while leaving the flow of snacks ultimately unbroken.
2. Web3 and decentralization
Web2 as we know it is a tool that helps create and publish content. Its next iteration, Web3, is a tool that enables ownership of the content and of everything that comes with it, including proceeds, data, etc. Blockchain will grow in weight in 2023 as a sought-after component of the new Web3 Internet concept. One’s ability to own his or her anonymous crypto wallet is already par for the course in the market; smart contract based loans and NFT-related projects may become so very soon.
Investment: according to Bain, Web3 tech projects have raised more than $80bn in private equity investment, of which $48bn came directly into the financial market infrastructure.
Case: Industrial and Commercial Bank of China researches into ways of developing e-CNY, or the ‘digital yuan’, and furthering metaverse-based business models. In a near future, customers may expect to be able to open e-CNY wallets in a virtual business hall.
3. Metaverse components
The metaverse concept is another Web3 element. It is a shared virtual environment with its own economy which never stays idle even if there are no users in the system. Its key ingredients — augmented and virtual reality (AR/VR) — will likely keep taking many sectors by storm. PwC expects AR/VR tech to give the global GDP an impressive $273bn boost next year. By 2026, an estimated quarter of Planet Earth’s entire population may be spending at least an hour each day in the metaverse to do work, shopping or education activity, and socialize and have fun.
Investment: In the past 11 months large technology players, start-ups and VC/PE investment firms shelled out $120+bn for various metaverses, twice the amount invested in 2021.
Case: Epic Games rolled out its Fortnite, now an all-the-rage online video game that ushers the user into a variety of metaverse events. Last year, the Fortnite metaverse hosted the Rift Tour, pop singer Ariana Grande’s spectacular musical show.
4. Digital twins and 3D
This technology is a marriage of multiple source data analysis and 3D visualization. With a digital twin, one can survey with a 360° view a range of targets, such as online and in-store consumer behavior, demographics, payment preferences, or customer service performance.
Investment: likely to top $48bn by 2026.
Case: A digital twin of the Dragon space capsule enables SpaceX operators to control and adjust flight parameters, including trajectories, payloads and other settings, to make sure a mission is safe and efficient.
5. 6G, cloud technology, and the Internet of Things (IoT)
The advent of cloud, 5G and 6G technologies boosts computing power and the throughput capacity of a network, thus paving the way for further innovation. McKinsey estimates that as many as 70% of companies will leverage hybrid or multi-cloud technologies in their business tools and management processes. With 5G, networks are expected to operate at speeds that beat the current 4G LTE performance by a factor of ten. All these technologies are interwoven with an ever-growing number of IoT-enhanced physical objects that are connectable and can exchange data. These are exemplified by smart houses, connected cars, and smart cities. As the COVID-19 pandemic shows no sign of abating, there is growing demand for IoT tech in health care.
Market: by 2023, the global market for IoT-enabled medical devices is expected to reach $267bn.
Case: in 2023, the UK healthcare market may have its first ‘virtual ward’, an IoT-enhanced telemedicine solution that would help physicians and nurses give outpatients the care they need without admitting them to the hospital.
6. Social commerce platforms
The ‘Gen Z’ is coming to swarm markets as new buyers. And industries have to be growing increasingly adaptive to the unorthodox purchasing patterns of the zoomers. In e-commerce, brand owners are progressively setting sights on a novel trend that is crystallizing: social commerce. A ‘newcomer’ from China, the new vogue encourages young buyers to digitally ‘try on’ goods before they buy, paying for them via social media and content creation platforms such as Instagram, TikTok or YouTube Shopping, and to prompt the owners of much-loved brand names to cooperate with the platforms and also bring celebrities on board to actually show how they love the brands. That’s how the brand owners reach out to the emerging army of new consumers.
Market: in 2023, the global market for social retail commerce is expected to grow from this year’s $45.7bn to $56.2bn.
Case 1: Shein, a Chinese brand owner, shook hands with some of Gen Z’s gods and goddesses on their product promotion. Katy Perry, for one, starred in their clothing gala, preceded by the singer performing live at the Shein Together livestream at TikTok to celebrate her new album release.
Case 2: Web3 is on the march across the globe, and some brand owners make the most of its charm by building Web3 literacy among children. For example, Bumper seeks teens who want to learn the ABCs of investing, and offers them a safe environment for experimenting with financial instruments.
About Innotechnics
Innotechnics specializes in tech market analysis, trend forecasting, and startup scouting. Leveraging a proprietary database of over 60,000 tech firms, we deliver insights tailored to your needs. Let's discuss how we can support your vision.