Thanks to our extensive network and experts onboard, Alatree Ventures has great insights into technology and investment trends. Below is the list of technologies that we believe deserve a close attention this year:
Artificial intelligence (AI)
GlobalData’s 2022 TMT Predictions report sees companies focusing more on practical applications that help their core businesses. The AI market is predicted to be worth $190bn in 2025, up from $67bn in 2021. Businesses are already investing heavily in machine learning, data science, conversational platforms, computer vision AI chips, smart robots, and context-aware computing.
Industries that are particularly interested in applying AI solutions are: banking, healthcare, education, defence, and technology sectors. Big Tech is at the forefront of AI use cases, with the significant advantage of having vast quantities of data and computing power at its disposal, a prerequisite for AI development.
Cloud computing and cybersecurity
According to GlobalData forecasting, the global cloud computing market will be worth $616bn by the end of 2022, (up 13% from 2021). Cloud services are becoming an essential utility for as they increasingly outsource management of data and applications to third-party providers, hence data centre security will become even more important. As a consequence, cybersecurity investments are expected to rise. The Covid-19 situation showed how important disaster recovery is, particularly for critical national infrastructures (healthcare, energy sectors, transportation). Businesses will secure their data and applications for ease of use for remote workers using cloud applications.
The growing stable of highly valued fintech start-ups demonstrates the level of potential disruption to the financial services sector. According to Investment Monitor, the sense of ‘if you can’t beat them join them’ will pervade with old line institutions forming alliances with fintech unicorns. A surge of investment in start-ups has expanded the number of fintech unicorns to 116, with a combined value of $529bn, according to GlobalData.
Despite its volatility, the cryptocurrency market is worth $3trn and the growth will continue, as not only the mainstream is being more and more accepting this new payment method, but also governments and old-line institutions are incorporating crypto into their payment infrastructures and creating their own coins. Currently, there are more than 14,000 types of cryptocurrencies. As global regulators grapple with regulating the sector, cryptocurrencies have the potential to seriously disrupt the world’s financial systems
eGaming is another industry that heavily relies on Cloud-based solutions. The global online gaming market is predicted to grow with a CAGR of 16.9% over the forecast period from 2022-2027. The continuous innovations across various technologies in computers, smartphones, and systems such as processors, graphics, and other hardware, software have led to the growth of the online gaming market. Another factor is the play-to-earn feature creating a new careers like: professional gamer, e-gamers trainers, plus its boost demand for events and tournaments organizers.
Electric vehicles (EVs) and batteries
The annual EVs production will exceed ten million units by 2025, according to GlobalData. The shift towards EVs has been primarily driven by legislative changes to meet environmental, social and corporate governance targets, but momentum is also becoming demand led. Although Europe’s EV fleet grew faster than China’s in 2020, China will continue to dominate the sector. In 2020, 48% of all EVs on the road were in China, more than the combined total for the US and Europe.
This will grow demand for lithium as core battery material.