NEW YORK, Dec. 11, 2018 /PRNewswire/ -- Deloitte forecasts smart speakers will be worth $7 billion in 2019, becoming the fastest-growing connected device category in history, selling 164 million units at an average selling price of US$43. Total industry revenues will be up 63 percent, compared to $4.3 billion in 2018.
In its 18th edition of "Technology, Media & Telecommunications Predictions," Deloitte also predicts that fifth-generation (5G) wireless networks will arrive at scale, providing faster connections for consumers and enterprises, and opening new revenue opportunities for telecommunication companies. Furthermore, cloud-based artificial intelligence (AI) software and services will make it easier for companies to benefit from AI, accelerating AI's adoption and enabling enterprises of all sizes to experience its benefits.
"2019 will see massive improvements in a wide range of technologies, pushing once-novel innovations into the mainstreams of our lives and work," said Sandra Shirai, vice chairman, Deloitte LLP; and U.S. technology, media and telecommunications leader. "Emerging technologies are blurring traditional industry lines, impacting people and organizations; as a society, we'll be smarter, more productive and more deeply engaged with the world around us."
The democratization of AI
Deloitte predicts that in 2019 companies will further accelerate usage of cloud-based AI software and services. Among companies using AI, over 70 percent will obtain
AI capabilities through cloud-based enterprise software and 65 percent will create AI applications using cloud-based development services. 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.
"So far, AI's initial benefits have been predominantly accrued by 'tech giants' with extensive financial resources, strong IT infrastructure and highly-specialized human capital," said Paul Sallomi, vice chairman, Deloitte LLP, global TMT industry leader and U.S. technology sector leader. "However, the cloud will power increased efficiencies and better returns on investment, and we expect these benefits to rapidly extend beyond AI's pioneers to the wider enterprise."
The new network arrives
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 1 million 5G handsets are expected to be sold in 2019, and that number should expand to 15 to 20 million units by 2020. A further one million 5G modems/pucks are also predicted to sell in 2019.
"It won't happen overnight, but 5G will profoundly change our interactions and experiences, which is good news for consumers as they demand better performance and more access to content," said Kevin Westcott, vice chairman and U.S. telecommunications, media and entertainment sector leader, Deloitte LLP. "Higher speeds and lower latency will enable new and innovative consumer experiences in areas from augmented reality to entertainment to medicine and smart cities."
Additional topics from Deloitte's 2019 TMT Predictions include:
"The next wave of technological transformation is reaching the shore. Artificial intelligence is evolving rapidly from the domain of 'experts only' to 'every company,'" said Dr. Jeff Loucks, executive director, Deloitte Center for Technology, Media and Telecommunications, Deloitte LLP. "3D printing enables businesses to quickly design new products with innovative materials, in ways that weren't possible before. eSports is growing fast by combining the familiar ? sports leagues ? with video game platforms that foster competition and engagement among millions of players. And it's all brought together by advanced semiconductor designs and next-generation data networks that are getting faster and smarter."
Now in its 18th year, Deloitte's annual TMT Predictions provides an outlook on key trends in the technology, media and telecommunications industry sectors worldwide. Visit Deloitte.com/predictions to learn more and connect with us on Twitter: @DeloitteTMT, @SandyShirai, @PaulSallomi, @kwestcott911, @Jeff_Loucks and #DeloittePredicts.
About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including more than 85 percent of the Fortune 500 and more than 6,000 private and middle market companies. Our people work across more than 20 industry sectors to make an impact that matters ? delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthy society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them.
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SOURCE Deloitte
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