Deloitte: 6 global tech, media and telecoms trends for 2022
Deloitte has revealed its predictions in 2022 for technology, media and telecommunications sectors.
As well as an increase in chip investment, Deloitte predicts a doubling of NFT transactions for sports media, a 10% increase in the games console market, and a big rise in health and wellness wearable devices.
Along with this, Deloitte forecasts an increase in CO2 emissions generated by smartphones, a further decrease in viewing of broadcast TV, and high churn levels in paid subscription streaming platforms.
1. NFTs for sports media to generate more than US$2 billion in transactions in 2022
The prediction: Deloitte predicts that non-fungible tokens (NFTs), unique digital identifiers that use blockchain to record ownership of an asset, will generate more than US$2bn in transactions for sports media in 2022, double that of 2021. And that 4 to 5 million sports fans globally will purchase or receive an NFT sports collectible as a gift in 2022.
Deloitte says: “The 2021–2022 season could be the first in which NFTs start to make a major mark from a revenue perspective and by 2023 it is likely that most major football leagues in Europe will have launched multiple NFT related products. NFTs have added rarity to sporting moments and, in the future, every game of every season could generate a new matchday moment solely available to the highest bidder via an NFT. Theo Ajadi, consultant in the Sports Business Group at Deloitte
2. Games consoles market will top US$80 billion as device turns 50 years old
The prediction: Deloitte predicts that the games console market will generate US$80bn in 2022, up 10% from 2021, and that console owners will have more than 200 million multiplayer and games subscriptions. These subscriptions will likely generate more than US$10.8bn in revenue globally by 2025, nearly double that in 2020. By the start of 2022, and the 50th anniversary of the games console, it’s forecast there will be 900 million console players worldwide. Each will bring an average US$91 of revenue per gamer to the industry, quite a bit more than the projected US$22 per PC gamer and US$49 per mobile gamer.
Deloitte says: “2022 marks the 50th birthday of the games console with the device now a veteran of the technology industry, outlasting camcorders and CD players, among others. We saw usage of consoles spike during lockdown, with many using their devices as a way to socialise when restrictions prevented people from meeting in person. Usage has remained high as, for many gamers, leaving the game may mean disconnecting from friends.” Paul Lee, global head of technology, media and telecommunications research at Deloitte
3. VC firms to supersize chip start-up investment in 2022
The prediction: Deloitte predicts that VC firms globally will invest more than US$6bn in semiconductor start-up companies in 2022, more than three times larger than it was every year between 2000 and 2016; albeit a slight decrease in investments estimated to have been made into semiconductor start-ups in 2021 (US$8bn). This means that while semiconductor shortage will endure throughout 2022, it will be less severe than in the last 16 months, will not affect all chips, and by the end of 2022 lead times will be closer to 10-20 weeks reaching equilibrium by early 2023.
Deloitte says: “As VC investment in semiconductors remains at elevated levels, there will be a wider benefit brought to digital transformation ambitions. At a high level, heavy VC investment will in turn grow new kinds of innovative chips and thus, computing capabilities, potentially leading to digital transformation of the like we’ve never seen before.” Paul Lee, global head of technology, media and telecommunications research at Deloitte
4. Wearables to run rings around other digital device purchasing
The prediction: Deloitte predicts that 320 million consumer health and wellness wearable devices will ship worldwide in 2022, rising to 440 million units by 2024. This follows the biggest increase in ownership of wearable devices, more than any other technology, in the UK in 2021. This comes as consumers are increasingly using smartwatches and fitness trackers alongside smartphones to track their health and wellbeing, with smart patches also becoming available off the shelf and via prescriptions.
Deloitte says: “As usage of wearable devices and smart patches continues to grow, so will awareness of the benefits the devices bring to consumer health, wellbeing and potentially the care that they receive. As a result, we’re likely to see Big Tech companies, as well as healthcare professionals and start-ups, focus fiercely on wearable device innovation and investment in the two-years ahead.” Karen Taylor, research director of the Centre for Health Solutions at Deloitte
5. Smartphones will generate 146 million tons of CO2 globally in 2022
The prediction: Deloitte predicts that smartphones will generate 146 million tons of CO2 or equivalent emissions (CO2e) globally in 2022. The bulk of these emissions, 83% of the total, will come from the manufacturing, shipping, and first-year usage of the 1.4 billion new smartphones forecast to be sold in 2022. Usage-related emissions from the other 3.1 billion smartphones in use during 2022 will generate an additional 11%, and the remainder will come from refurbishing existing smartphones (4%) and end-of-life processes (1%), including recycling.
Deloitte says: “With sustainability now firmly on the boardroom agenda, businesses across all sectors are striving to understand the impact of their industry and products on their carbon footprint. The smartphone industry will need to balance product innovation with educating consumers on how best to recycle and prolong use of current and old devices.” Rafi Addlestone, associate director in Deloitte’s sustainability practice
6. Average number of streaming platform subscriptions per person will rise
The prediction: While Deloitte predicts that at least 150 million paid subscriptions to subscription video-on-demand services (SVOD) will be cancelled worldwide in 2022, with churn rates of up to 30% per market, they forecast that more subscriptions will be added than cancelled as the average number of subscriptions per person will rise. In markets with the highest churn, many of those cancelling may resubscribe to a service that they had previously left. This is expected to heighten competition between streaming platforms, with Deloitte predicting that platforms may spend up to US$200 on marketing its subscription to an individual.
Deloitte says: “Following blockbuster growth during the pandemic, the growth in new SVOD households is likely to slow across the UK, US and Europe. SVOD providers will use various plays to make their subscribers stay. They can team up with telcos to offer discounted bundles; they could offer additional types of content, from podcasts to mobile games; and they can release episodes of the most valued tentpole content weekly.” Paul Lee, global head of technology, media and telecommunications research at Deloitte.
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