Despite geopolitical turmoil and economic uncertainty in 2023, technology investment continued to grow significantly, underlining a common belief that the world’s greatest innovations have been born in times of great economic and political stress. With this in mind, Verdict looks at some of the top technology investment trends to watch in 2024.
Artificial intelligence (AI) was the most talked about technology investment trend of 2023 and will continue to attract investment throughout the coming year. Research company GlobalData estimates the total AI market will be worth $908.7bn in 2030. In particular, the rapid adoption of generative AI (GenAI) throughout 2023 is set to continue and impact every industry. According GlobalData’s Thematic Intelligence 2024 TMT Predictions, the GenAI market will grow from $1.8bn in 2022 to $33bn by 2027, implying a spectacular compound annual growth rate (CAGR) of 80% during this period. Of the five advanced AI technologies, GlobalData cites GenAI as the fastest growing, accounting for 10.2% of the overall AI market by 2027.
The cloud computing market will be worth $1.4trn by 2027, growing at a CAGR of 17% between 2022 and 2027, according to GlobalData forecasts. Software-as-a-service will continue to dominate, comprising 63% of cloud services revenue in 2023. Platform-as-a-service will be the fastest-growing cloud service growing at a CAGR of 21% between 2022 and 2027. Businesses will continue to outsource IT infrastructure to the cloud for cost reduction and greater flexibility. As well as its growing importance to enterprise operations, cloud computing will be a significant driver, coupled with AI, for emerging technologies such as robotics and IoT, which require continuous access to large swathes of data.
Rapidly increasing adoption of GenAI will increase the risk of social engineering attacks and employees will face a greater risk of spear-phishing attacks aimed at gaining access to an organisation’s systems through AI-powered social engineering, according to GlobalData’s Thematic Intelligence 2024 TMT Predictions. The coming year will place chief information security officers worldwide under extreme pressure as cyber-attacks become increasingly sophisticated against the backdrop of a widening cyber-skills gap. According to the EU’s Agency for Cybersecurity, the ransomware business model has grown exponentially in the past decade and is projected to cost businesses more than $10trn by 2025, up from $3trn in 2015. Addressing the challenge will require increased investment and GlobalData forecasts that cybersecurity revenues will reach $344bn worldwide by 2030.
AI and cloud computing are both driving the development and adoption of the robotics industry. According to GlobalData forecasts, the global robotics market was valued at $63bn in 2022, and will grow at a CAGR of 17% to reach $218bn by 2030. The service robot market will reach $67.1bn by 2024, according to GlobalData, up 28% from 2023 and will be the biggest factor driving the growth of robotics in 2024, according to the research company. The drone market will play a key role with commercial drone delivery becoming more widespread in 2024. However, GlobalData expects the exoskeleton market to see the highest growth rate, followed by logistics. Exoskeletons are wearable mobile machines that allow for limb movement with increased strength and endurance. The main use cases are in healthcare, defence, and manufacturing.
Enterprise internet of things (IoT)
The global enterprise IoT market will generate $1.2trn in revenue by 2027, according to GlobalData. The enterprise IoT market comprises two key segments: Industrial Internet and smart cities. The industrial Internet refers to using connected sensors and actuators to control and monitor the industrial machinery environment, according to GlobalData. The Industrial Internet market will grow at a CAGR of 15.1%, from $374bn in 2022 to $756bn by 2027, according to GlobalData forecasts. Smart cities are urban areas that use connected sensors to enhance the quality and performance of urban services such as energy, transport, and utilities. The smart cities market is expected to grow from $234bn in 2022 to $470bn by 2027 at a CAGR of 15%.
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