The pandemic has changed the world, and the future is uncertain. COVID-19 has transformed our lives forever. Technology will play a vital role as the global economy recovers from the pandemic. Businesses must push ahead with digital transformation projects to survive.

Within the TMT sector, the best performing sectors over the last two years were semiconductors, gaming, telecom infrastructure and enterprise security.

What are the key themes involved in tech, media, and telecoms industry?

Artificial Intelligence: AI gives machines the ability to learn and improve from data, and it is one of consumer IoT’s primary enablers AI is becoming increasingly important in the hearables market, thanks to the integration of conversational platforms and enabling features such as sound enhancement, which improves sound quality and assists hard-of hearing users. In 2022, AI in IT infrastructure will get more comprehensive and more embedded in infrastructure operations. More AI suggestions on actions to correct faults and automation will also come to IT infrastructure.

The future of work:

The COVID-19 pandemic has given businesses an unprecedented opportunity to implement profound changes to the way they work. After disrupting supply chains, COVID-19 marked a point of no return for manufacturing. Technology will play an increasingly prominent role in building resilience. Technologies that are likely to receive increased investment include robotics, cloud and edge computing, 3D printing, and digital twins. The future of work will shape factories and offices—both will be more connected and use various digital technologies. COVID19 has accelerated this transition, and many workspaces now include technologies such as cloud, collaboration tools, robotics, robotic process automation (RPA), augmented reality (AR), virtual reality (VR), and wearable devices.

Digital media:

In the short term, consumer electronics will continue to be highly influenced by the digital media industry, which provides the content that we consume on electronic devices. 2022 will see a growing debate about what exactly the metaverse is and when it will develop to become the ultimate experience and a diversion from a stressful and limited nonvirtual world. Developments in subscription video on demand (SVOD), gaming, and music streaming are critical to the consumer electronics sector. The trend towards moving content online and to the cloud is not going anywhere. Audio and video streaming are unlikely to change dramatically in the coming years. Social media is now fueled by sharing and interacting with digital media. 

Environmental, social and governance (ESG):

COVID-19 has been a catalyst for ESG, and many ecommerce companies are taking action, especially on environmental concerns. Investment in sustainable practices not only addresses climate change but could also help companies cut costs, for example, by reducing single-use packaging. As Generation Hashtag rises through the ranks of the global workforce, their influence will only increase, forcing ecommerce companies to be more aware of their outward facing behavior and develop efforts to meet ESG goals. All three ESG factors have a major impact on consumer electronics, not least environmental sustainability, because of its high carbon footprint. Companies like Alphabet, Microsoft, and Sony are exploring renewable energy alternatives to fossil fuel-based electricity used in their data centers. 

Demographics:

Anyone born between 1991 and 2005 is a member of Generation Hashtag, the social media generation. This demographic are digital natives, connected via online environments for all aspects of daily life. Of all of the major events that have taken place since this generation was born, the COVID-19 pandemic is likely to be the defining experience that shapes how they view the world, pursue opportunities, and confront obstacles.

Regulation:

Regulations are a constant threat to game companies worldwide. Changes in policies for approving new games and limiting playtime for minors are major threats to gaming companies in Asian markets. In the West, in-app revenue models frequently attract regulatory scrutiny, as they tend to blur the gap between gaming and gambling Regulation will continue to be a disruptive threat to gaming companies for the foreseeable future. All gaming companies are at risk of being impacted by upcoming regulations around in-app monetization.

With companies storing vast amounts of personal data, cyberattacks and data breaches pose a huge threat to modern businesses. Europe’s General Data Protection Regulation (GDPR) is perhaps the best-known example. The US is following Europe’s lead, introducing regulations like the California Consumer Privacy Act (CCPA). 

Connectivity:

Workers in industrial settings already commonly use eye protection, to which connectivity and features such as augmented reality (AR) can be added. Enterprises continue to move applications to the cloud, with remote working accelerating connectivity to cloud infrastructure. Cloud security has kept up with cloud developments. An increase in 5G adoption has created growing opportunities around smart manufacturing. For low latency connectivity, a key technology is multi-access edge computing (MEC), which converges network, computing, storage, security, and application capabilities and delivers them seamlessly at the edge.

Future Mobility:

According to Infineon, an electric vehicle (EV) carries, on average, $834 of silicon content compared to half that for an internal combustion engine vehicle (ICE). In 2022, EV Battery Ownership Model (BOM) costs will increase as higher semiconductor prices meet higher battery prices due to a surge in battery material prices. This could raise EV prices and marginally affect consumer demand.

Autonomous vehicles will disrupt the consumer electronics sector because they can increase infotainment consumption. Automobile makers and tech companies have been increasing efforts to develop self-driving cars. However, autonomous vehicles (AVs) are a prime target for cybercriminals with malicious intent. 2022 will see further work done to prevent attacks on autonomous vehicles.

IT Infrastructure:

IT Infrastructure vendors have been buffeted by the winds of change from COVID-19-related supply chain woes, climate change, and geopolitical concerns. Additionally, the pace of technological change has continued to ramp up, with AI, new security concerns, and edge computing. The programmability of IT infrastructure is growing, from the burgeoning high-performance computing market down to the average data center. The need is two-pronged, with programmability to enable software definition and agility of IT infrastructure and enable control by AI for operations and security. In 2022, AI in IT infrastructure will get more comprehensive and more embedded in infrastructure operations.

Internet of Things:

IoT is a broad category, and IT infrastructure vendor participation is largely based around edge computing security, and networking. Enterprises need to ensure that IoT devices are accounted for and apply appropriate security. Over the next few years, tens of billions of embedded, connected computers will create the next internet. The IoT will morph into the AI-powered internet of everything. The IoT will change the shape and dynamics of the semiconductor industry. IoT relates directly to two fast-growing consumer electronics segments, wearable tech and automated home, but its impact is felt across the entire industry. That is because IoT relies on scale; the more connected devices there are and the more they interact with each other, the more beneficial adoption becomes. IoT expansion in consumer electronics is directly linked to how the industry addresses security and lack of interoperability.

This report is a thematic analysis of the top themes in tech, media, and telecoms industry. It provides:

• This report is the most concise reference guide to tech that you will read in 2022. Written by some of the world’s leading tech experts, GlobalData’s TMT Themes 2022 will help you look credible when talking about tech in your industry. Inside, we tell you everything you need to know about disruptive tech themes and which companies are best placed to help you digitally transform your business.
• This report covers 16 TMT sectors, divide into four categories: hardware, software and services, internet and media, and telecoms. For each sector, we provide the cumulative share price performance since the beginning of the pandemic of a selection of companies that we believe are bellwethers for this sector, along with our thematic scorecards. These scorecards are made up of four screens: the company screen, thematic screen, valuation screen, and risk screen.

Reasons to Buy

• Position yourself for future success by understanding the most important tech, regulatory, and macroeconomic themes in the TMT industry. Informed by GlobalData’s analysts, we provide analysis that will help you look credible when talking about tech in your industry.
• 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.
• Gain a competitive advantage in the future of the TMT industry by reading this report in conjunction with another multi-theme report, Tech, Media, & Telecom Predictions 2022, which is organized by theme.