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The next five years are set to bring some unexpected shifts in the technology landscape. From the rise of language models to the decline of traditional tablets, new trends will shape the tech industry. ABI Research, in its latest forecast, has outlined the key technologies expected to flourish and those poised for a decline, offering insights into the technologies that will dominate and those that may struggle. Let’s dive into the details of this forecast and explore what it means for the tech industry.
Key Technologies Set for Growth
ABI Research’s forecast for the next five years highlights several technologies that are expected to experience significant growth.
1. Large Language Models (LLMs):
Large Language Models (LLMs) like GPT and their enterprise applications are forecasted to see a massive 35% annual growth rate. As businesses continue to scale AI-powered applications, LLMs will be embedded in enterprise software, driving their integration into various sectors.
2. Data Management Solutions:
Data management tools will be in high demand due to the increasing need for handling complex datasets generated by machine learning and generative AI technologies. By 2029, these tools are projected to create opportunities worth over $200 billion, particularly with the rise of sovereign clouds and the need for secure data protection.
3. Smart Home Devices:
The market for smart home devices, driven by security and convenience, will see a 14% annual growth rate through 2029. ABI predicts shipments will reach 500 million units, reflecting the growing adoption of these devices across households globally.
4. Smart Glasses and Extended Reality (XR):
Smart glasses will emerge as key players in the extended reality space. As the demand for enterprise XR solutions grows, ABI expects shipments of AI-enabled smart glasses to reach 20.23 million by 2029, fueling further adoption of XR in professional environments.
5. Humanoid Robots:
Despite technological challenges, humanoid robots are set to see strong growth, with ABI predicting over 180,000 shipments per year by 2030. The novelty factor and decreasing costs are expected to drive demand for robots in the service, hospitality, and entertainment sectors.
6. Network Security Software and Services:
As cybersecurity remains a critical concern, ABI forecasts a 30% compound annual growth rate (CAGR) for network security software and a 35% growth for security services, driven by the increasing need for robust protection in the age of 5G networks.
7. Warehouse Management Systems (WMS):
Investment in warehouse management technologies is expected to surge, with ABI projecting an $8.6 billion market by 2029. WMS will grow in importance as more automated systems are integrated into global supply chains, making data-driven decision-making vital.
8. Data Analytics for Equipment Efficiency:
In the industrial sector, data analytics tools for overall equipment effectiveness (OEE) will continue to grow, driven by the increasing need for transparency and efficiency on factory floors. These solutions will see a 13% annual growth rate as manufacturers look for more precise ways to optimize operations.
Technologies Facing Decline
While some technologies are set to soar, others are facing stagnation or decline over the next five years.
1. Tablets:
The tablet market will experience slow decline, despite a brief increase in shipments in 2024. While tablets might see new features like AI integration and foldable displays, overall demand is expected to decrease due to longer replacement cycles and the increasing dominance of smartphones.
2. Smartphones:
Although smartphone shipments are expected to total 1.39 billion units, the market is maturing. With fewer groundbreaking innovations and economic headwinds, smartphone growth will be sluggish, though the of generative AI in devices could help spur demand.
3. Datacenter CPU Chipsets:
Datacenter CPU chipsets will lose market share over the next five years, dropping from 26% to 18%. This decline is attributed to the rising popularity of alternative computing solutions and specialized chips optimized for AI applications.
4. Industrial Blockchain:
Despite initial interest, the industrial blockchain market is forecast to see nearly a 2% annual decline. Many blockchain applications in industries have failed to advance beyond pilot phases due to limitations in providing a compelling use case when compared to alternatives like private networks and cloud solutions.
5. Cloud Hyperscalers:
Cloud hyperscalers, such as Amazon Web Services (AWS) and Microsoft Azure, will face intense competition from colocation data centers, which allow enterprises greater control over local data. By 2029, these hyperscalers could see a shift in market dynamics as enterprises seek localized options.
6. Security Hardware:
The market for security hardware is expected to grow at a modest 7% CAGR, driven largely by the rise of software-based security solutions, which are becoming more cost-effective and widely adopted.
7. Robotics Offline Programming Software:
The growth in robotics offline programming software will be slow, as demand remains constrained by cost concerns and the need for simple, low-cost solutions in automation.
8. Tethered and Mobile VR Devices:
The virtual reality (VR) market will see slower growth, with tethered and mobile VR devices becoming less popular as standalone VR devices continue to gain momentum. By 2029, the share of tethered VR devices in the market will shrink, reflecting a broader trend toward more flexible and accessible VR experiences.
What Undercode Says:
The ABI Research forecast reveals some intriguing insights about the future of technology, especially as enterprises look to adopt cutting-edge solutions while navigating economic challenges. A few of the standout trends include:
- Generative AI and Large Language Models: As businesses continue to integrate LLMs into their operations, we can expect these technologies to become an integral part of enterprise software. This trend is no surprise, given the growing reliance on automation and AI in various industries. From customer service chatbots to AI-driven content creation tools, LLMs will increasingly influence how businesses operate and interact with customers.
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Data Management Solutions: With more data being generated than ever before, companies must manage vast amounts of information securely and efficiently. Data management tools, particularly those supporting sovereign clouds, will see rising demand. This trend points to an increasingly complex data landscape, where businesses will need to safeguard sensitive information while maximizing the utility of their data.
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Declining Tablet and Smartphone Markets: The forecasted slow growth in tablet shipments is a sign of shifting consumer preferences. Many users are opting for smartphones with larger screens and more features, while tablets struggle to differentiate themselves. Likewise, smartphone growth will be hampered by longer replacement cycles and the challenge of delivering truly revolutionary features.
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Rise of Humanoid Robots: Humanoid robots are predicted to become a major player in industries like hospitality and entertainment. While their practical applications may still be limited, the novelty and cost reductions will drive significant interest in this area. In the next few years, humanoid robots could become more ubiquitous in consumer-facing industries.
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Competition for Cloud Hyperscalers: The forecast points to a growing competition between hyperscalers and colocation data centers, as businesses prioritize local solutions that provide more control over their infrastructure. This competition will drive innovation in the cloud space, with companies looking to offer more flexible, localized options to meet diverse customer needs.
Fact Checker Results:
1.
- The decline in tablet sales and the slow growth of smartphones aligns with current market trends, where consumer demand for new devices has slowed down.
- Humanoid robots’ market expansion is largely driven by cost reductions and novelty, though their practical utility remains to be fully tested in real-world applications.
References:
Reported By: https://www.zdnet.com/article/this-5-year-tech-industry-forecast-predicts-some-surprising-winners-and-losers/
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