How Major Tech Innovations are Reshaping Global Economic Landscapes
The year 2024 marks a pivotal point in global markets, heavily influenced by the technological advancements and strategic movements of major tech companies. Insights from Deloitte's Technology, Media & Telecommunications (TMT) Predictions report and S&P Global Market Intelligence's analysis paint a vivid picture of this landscape.
Generative artificial intelligence (gen AI) is a standout trend, moving from an enterprise buzzword to a fundamental business asset. This technology is expected to become an integral part of almost all enterprise software offerings. With a projected gen AI chip market reaching over US$50 billion, the implications for global markets are significant. However, this progress comes with challenges, including navigating the complex regulatory frameworks set to roll out in the European Union, which could influence markets worldwide.
Sustainability is another critical theme, especially in the telecom sector. Efforts to reduce carbon footprints are underway, with initiatives like transitioning to energy-efficient fiber optics and decommissioning power-intensive networks. These moves are likely to reduce the sector's carbon footprint by 2% in 2024, a significant step toward environmental sustainability.
Agricultural technology (AgTech) is also emerging as a key player, with a projected global market value of US $18 billion in 2024. AgTech's potential to revolutionize farming practices aligns with the global imperative for food security and environmental sustainability.
The economic landscape is also being shaped by broader trends, as indicated by the Stanford Institute for Economic Policy Research. Consumer sentiment, impacted by previous years' inflation, is expected to improve if inflation continues to ease. Additionally, the labor market is recovering from the COVID-19 pandemic's disruptions, with a noticeable reduction in excess absences from work.
The remote work (WFH) phenomenon continues to influence the workforce and business operations. Technologies supporting remote work are expected to improve, potentially increasing WFH rates post-2025.