Emerging technologies are redefining the digital world and becoming a business imperative for businesses around the world. National Association of Software and Services Companies (NASSCOM) and Boston Consulting Group (BCG) released a report titled “The Sandbox to the Future: Decoding Technology’s Biggest Bets” on the sidelines of NASTech 2022 in Bangalore. The report aims to uncover and develop insights on high-bet technologies that have the potential to disrupt markets over the next 3-5 years.
Spending on technology by enterprises is expected to reach $4.2 billion by 2026 globally, among which technology service companies represent the largest segment and are expected to reach $1.7 billion by 2026 with a CAGR of 8.1%. As part of the study, 28 emerging technology themes from 11 technology families were identified – across all markets and verticals – with the potential to disrupt markets, current technology spending, growth potential, technology maturity innovation and funding dynamics. Among these 12 emerging technologieswith high funding momentum and focus on R&D, have become the “biggest bets”, including, Autonomous analytics, AR and VR, autonomous driving, computer vision, deep learning, distributed ledger, edge computing, sensor technology, smart robots, space technology, sustainability technology and 5G/6G.
As the need for targeted use cases emerges and multiple technologies converge to cause disruption, these 12 technologies will unfold in a variety of ways, leaving room for big regional and vertical bets. While buyers in North America and Europe are betting on technologies like Autonomous Analytics, APAC is expected to focus more on 5G/6G, Sensor Tech and Smart Robotics. Overall, technology buyers expect investments in emerging technologies to account for 70-80% of their technology spend by 2030.
Within APAC, India has the highest growth in private technology funding at 31% compared to the whole of APAC at 11%. Healthcare and transport became the most funded verticals, followed by technology, BFSI and telecommunications.
NASSCOM also conducted a survey of over 120 technology buyers and interviewed over 30 Indian technology vendors (CEOs/leaders of Indian technology companies) to assess their priorities in key technologies. According to survey responses, technology buyers expect the share of emerging technologies to increase 3x in the next 4-6 years, driven by increased efficiency, improved customer experience and a accelerated product development. Interestingly, key technologies such as Autonomous Analytics, Edge Computing, 5G/6G and Deep Learning have emerged as the top 5 business priorities for technology buyers. However, for technology vendors, vendor priorities differ across technologies and regions. Large companies are diversifying their bets by focusing both on technologies with established use cases (5G/6G), and investing in emerging technologies to gain a leadership position (deep learning and computer vision), while mid-size companies and digital companies are selective about big bets, either focusing on a few emerging areas or going deeper into certain technologies.
Alignment of technology buyers and providers will create the momentum for adoption as investments and technologies mature over time. It will also create an array of opportunities for buyers as well as suppliers across the maturity curve, and in specific regions and verticals. “Emerging technologies have evolved to become the core of businesses in all segments. It has helped them meet the unprecedented challenges of the digital age while enabling them to gain a competitive advantage,” said Debjani Ghosh, President, NASSCOM. “Going forward, it will be interesting to see how companies will bet on emerging technologies and how they will get ahead of the technological revolution for the greater good of society..”
Glimpse the new era
To continue to thrive and succeed, technology companies need to reassess their current positioning and define a winning strategy. Businesses need to act quickly because taking the right strategy can lead to windfall gains, but late action can prove detrimental to growth. By focusing on defining where and how to prioritize resources and acquisitions to accelerate access and fill capacity gaps, critical capacity building to support future direction and debottlenecking constraints will ensue so that companies are realizing the greatest potential of these technologies in the future.
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