Deloitte India announced the Technology, Media, and Telecommunications (TMT) Predictions 2020.
The India report focuses on six key topics
# Robots on the move: Professional service robots set for double-digit growth
# The smartphone multiplier: Toward a trillion-dollar economy
# Private 5G networks: Enterprise untethered
# Coming to a CDN near you: Videos, games, and much, much more
# Ad-supported video: Will the United States follow Asia’s lead?
# Cycling’s technological transformation: Making bicycling faster, easier, and safer
Robots
Due to low penetration of automation in the manufacturing industry, industrial robotics is set to drive the growth and provide reliable automation in the industry. The demand is going to be generated by the automobile and general industry including metal and electronics industry. Professional service robot market in India is yet to take off, but trends project maximum scope of growth which can dominate the robotics sector in India.
India is a growth market for software-based robot assistance like Robotic Process Automation (RPA), cognitive, and AI-driven process automation. More than 50 percent GICs are based out of India; with a large industry footprint in the country, India is an ideal location to drive growth due to factors contributing to it such as process proximity and familiarity and availability of skilled resources.
CDN to be major players in the digital content space
India perhaps is one of the few markets in the world where digital advertising accounts for relatively less – 19 percent of total estimated Adex value of around USD 10 billion, lower than the contribution of Print (29 percent) and Television (39 percent) advertising.
Deloitte predicts the digital advertisement space will grow by 30 percent in 2020 with mobile advertising contributing 70 percent of the digital ad revenue, primarily due to growth in video content consumption and increased awareness of the benefits of programmatic advertising.
Due to existing subsidization, ad – supported platforms will be able to target a larger market and reach larger MAUs. These platforms are in the process of convincing advertisers to shift some of the TV ad budgets to streaming video by placing forward innovative ad models and personalised content.
Over-the-top (OTT) video has seen a rapid growth in both demand and supply. Content development and production, partnerships with OTTs and audio / video on demand players, devices have either developed Content Distribution Networks (CDNs) or have partnered with leading CDNs.
India currently has an audience base of 350 million and is predicted to grow to 500 million in 2020. This will give an expected rise to mobile data traffic at a CGAR of 40 percent to reach 5.5 exabytes per month in 2021 and video is likely to contribute to 75 percent of this data traffic. Out of the 75 percent new video audience, rural India is expected to drive the growth of the digital content.
Convergence of content creators, content providers, CDNs, telecom service providers and device manufacturers to deliver a seamless and personalised experience is bound to hold all participating parties in good stead.
5G ecosystem beyond connectivity
5G private network deployments would be preferred connectivity choice of world’s largest enterprises. These enterprises are very likely to deploy private 5G networks driven largely by ultra-reliable, high speed and low latency connectivity features.
This deployment would act as the largest differentiation from the crowd and provide operators an opportunity to deliver reliable networks to end customers. Private networks application and installation will be adopted across industries like manufacturing, mining, healthcare in large campuses and designated locations.
Adoption of 5G in India will open new doors for innovation leading to the development of inclusive and indigenous technologies by building R&D capabilities, developing home grown intellectual property across the telecom value chain, cross-sector convergence and design-led manufacturing.
Sathish Gopalaiah, partner, Deloitte India said “Telecommunication companies are gearing up to provide private networks to relevant industries and campuses. It is anticipated that penetration of digital content will be growing with the help of 5G technology and will also give rise to new business models and innovation.”
In 2020, it is expected that a few of the largest elements of smartphone multipliers in India are to be hardware accessories, mobile advertising, and financial services. The mobile accessories market is estimated to grow at CAGR of 10.5 percent and the total revenue potential for this sector is pegged at USD 3.6 billion in 2023.
