Member Article

Deloitte predicts TMT sector trends for 2018

• In 2018, one billion airline passenger journeys globally will be carried out on planes fitted with in-flight connectivity;
• The impact of machine learning applications – from machine vision to voice recognition – will be massively enhanced via the deployment of 800,000 machine learning centric chips in data centres this year, roughly quadruple the volume in 2016;
• The resurgence of paid media content: half of UK adults will have at least two online-only media subscriptions (mostly TV, music, news or video games) by the end of 2018 and four by the end of 2020;
• Findings come from Deloitte UK’s TMT Predictions 2018 report, published today

The technology, media and telecommunications (TMT) practice business advisory firm Deloitte, has today announced its predictions for the TMT sector in 2018 at a launch event held at The Stollers Hall, Manchester. This event marks the eighth consecutive year the UK announcement of the predictions has been hosted in the city.

The news comes following the launch of the seventeenth edition of TMT Predictions 2018.

In-flight connectivity takes off

Deloitte predicts that globally, one billion air passenger journeys – a quarter of all passengers – are expected to be on planes fitted with in-flight connectivity (IFC) in 2018. This is a 20% increase from the previous year. Deloitte expects that the technology will generate ancillary airline revenues close to $1bn in 2018.

While IFC has been available for many years in markets such as North America, it should be more popular and lucrative than ever in 2018, thanks to the rising number of routes covered, higher connection speeds and greater data capacity per flight.

UK airlines will increasingly adopt the technology from 2018, with IFC being commonly available by the end of the decade. This trend implies that within a few years, the airplane may no longer be one of the last remaining connectivity-free zones – in any part of the world.

Claire Jolly, head of TMT at Deloitte in the North West, comments: “For three-quarters of air travellers at present, being on a plane means disconnection from the world, whether or not they want that.

“In 2018, the airline industry will commence a significant step-change. Newer aircraft and improved telecommunications technology will mean that connectivity will not only improve, but it will also become cheaper. As a result, IFC is likely to become standard, enabling travelers to work, interact with social media and surf the web from 35,000ft in the air.”

Machine learning: bargaining chips

A surge in deployment of FPGAs (field programmable gate arrays) and ASICs (application-specific integrated circuits) - will be a core driver in the use of machine learning. FPGAs and ASICs will represent between a quarter and a third of all machine learning chips deployed this year.

David Halstead, lead partner for technology at Deloitte, commented: “The rise in use of FPGAs and ASICs should dramatically increase the role of machine learning, which has previously been reliant on the often slower or more power hungry GPU chips (graphics processing units).”

Jolly continued: “Machine learning is already being adopted in many sectors to automate and streamline processes. These capabilities, together with data reduction and advanced training is likely to facilitate the take up of this technology by making it easier, cheaper and faster for businesses to implement and take advantage of. In 2018, we expect that machine learning will become increasingly mainstream, although it will likely evolve further in years to come.”

The subscription prescription

Deloitte also predicts that demand for paid-for online media content will continue to grow: by the end of 2018, half of adults in developed countries will have at least two online-only media subscriptions, doubling to four by 2020.

2018 will see 350 million digital-only subscribers globally, with around 580 million subscriptions to services that can include video on demand, music, gaming or news and magazines. In the UK, Deloitte estimates there are about 26 million media online-only subscriptions.

Jolly added: “The subscription model is not new but it is being continually refreshed and refined in order to meet the demands of the digital consumer, with great success. The increasing popularity of digital-only subscriptions is clear evidence that consumers are willing to pay for online content, whether that be music, TV or film, rather than rely on more traditional ad-funded media.

“The growing capability of online delivery – from robust and scalable hosting to rapid broadband speeds – is making digital media more convenient, accessible and ever more compelling than traditional alternatives.”

This was posted in Bdaily's Members' News section by Louise Blanch .