Deloitte Global releases TMT Predictions 2019

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Smart speakers and cloud-based AI surge with the aim to increase connectivity and potential for innovation, but 5G takes the lead in Luxembourg.

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19/12/2018 |
  • David Osville

    David Osville, TMT Leader at Deloitte Luxembourg

At the beginning of last week, Deloitte Global published this year’s TMT Predictions. The eighteenth edition sees a spotlight shone on the upcoming 5G networks, cloud based artificial intelligence (AI), and the boom in smart speaker acquisition.

Smart speakers continue to sell at an increased rate, with the predictions indicating 164 million units exchanged at an average selling price of US$43 per unit. Total industry revenues will be up 63 percent, compared to US$4.3 billion in 2018. 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.

Deloitte also predicts that in 2019 companies will further accelerate usage of cloud-based artificial intelligence (AI) software and services. Among companies using AI, 70 percent will obtain AI capabilities through cloud-based enterprise software, 65 percent will create AI applications using cloud-based development services, and 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 percent respectively.

A new generation of wireless network
Fifth generation (5G) wireless networks are set to arrive in Luxembourg in the coming months, promising faster connection for costumers and businesses. The European Commission in collaboration with a major telecommunications company in Luxembourg, has already begun the deployment of 5G connectivity within Luxembourg in the context of the research project, 5GCroCo. The 5GCroCo project studies 5G technology to ensure digital connectivity that allows cross-border communication.

The successful adoption of 5G will not happen overnight, but 2019 will welcome the beginning of this immense and beneficial change for the wireless industry. The generation upgrade holds much potential in terms of increased traffic capacity and network efficiency, we must now ensure that we have the right provisions in place to leverage on these future gains” explains David Osville, TMT Leader at Deloitte Luxembourg.

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 service, a figure that will likely double by 2020. In total, over one million 5G handsets are expected to be sold in 2019, and that number should expand to 15-20 million units by 2020. A further million 5G ‘pucks’/modems are also predicted to sell in 2019.  

Read more about Deloitte Global’s TMT Predictions here: https://www2.deloitte.com/lu/en/pages/technology-media-and-telecommunications/articles/tmt-predictions.html

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