Skip to main content

TMT Predictions 2024

What’s in store for technology, media and telecommunications?

Each year Deloitte Insights dives into the latest global developments in technology, media and telecommunication (TMT) so you can plan your next strategic move. This year’s study dove into 19 sub-topics spanning generative AI; sustainability; media, entertainment, and sports; and telecom. Below you will find the highlights we found most relevant for the Luxembourg market.

Booming generative AI and sustainability imperatives demand your attention.

2023 was notable; we saw the hottest year recorded in history and watched in awe as artificial intelligence centered itself firmly in its new generative era. From buzzy hot topic to top business priority, companies are now busy identifying internal use cases and transforming the tech into their next integral business asset—foreshadowing a profound shift in the future of work.

These impressive advances set against a backdrop of other looming concerns begs the question: Is it possible for the TMT industry positively impact society while also bringing in revenue? While there are certainly some obstacles and unknowns, a world of potential could be realized in the not-so-distant future.


Seven things you should know:
 

  1. Enterprise software enhanced with gen AI expected to take center stage. Businesses want to leverage generative AI on their own pre-trained data to enhance productivity, optimize costs and unlock complex insights. As gen AI becomes integral to enterprise software, revenue could uplift at a run rate of US$10 billion by the end of 2024.

  2. Competitive pricing of enterprise software will be key differentiator. More than 70% of companies surveyed are experimenting with gen AI, but less than 20% want to spend more on it. From explicit to implicit (or a hybrid of the two), the pricing model will matter.

  3. Sweeping AI regulations across the EU could facilitate investment. Key regulations like GDPR and the AI Act will seek to balance compliance and regulation. These could help address consent, bias mitigation and copyright concerns for more clarity and consumer confidence.

  4. The telco industry can condense its carbon footprint even further with a few tweaks. While not the worst offender in terms of CO2 emissions, telcos could reduce their annual CO2 output by the megaton by switching from copper to fiber optic networks, decommissioning power-intensive 3G networks, electrifying service field service fleets and “snoozing” 5G radios when not in use.

  5. ESG reporting software is expected to soar. Motivated by investors, regulators and employee values, more companies will begin to automate ESG tracking and reporting with standardized software tools. A compound annual growth rate of 19% to 30% over the next five years is expected, with revenues projected to exceed US$1 billion in 2024.

  6. Agricultural technology aims to make farming more sustainable. AgTech is helping farmers adjust to increasing demands for more sustainable practices. This intersection of tech and sustainability promises food production with less pesticides and less resources for increased efficiency, improved farm yields and easier livestock management.

  7. Signals from space could increase coverage and revenue. As the abundance of satellite-enabled smart phones increases, satellite and terrestrial mobile networks can collaborate to strengthen services for consumers, enterprises and government while unlocking revenue across satellite, semiconductor, and telecom industries.

Seven things you should know:

Enterprise software enhanced with gen AI expected to take center stage. Businesses want to leverage generative AI on their own pre-trained data to enhance productivity, optimize costs and unlock complex insights. As gen AI becomes integral to enterprise software, revenue could uplift at a run rate of US$10 billion by the end of 2024.

Competitive pricing of enterprise software will be key differentiator. More than 70% of companies surveyed are experimenting with gen AI, but less than 20% want to spend more on it. From explicit to implicit (or a hybrid of the two), the pricing model will matter.

Sweeping AI regulations across the EU could facilitate investment. Key regulations like GDPR and the AI Act will seek to balance compliance and regulation. These could help address consent, bias mitigation and copyright concerns for more clarity and consumer confidence.

The telco industry can condense its carbon footprint even further with a few tweaks. While not the worst offender in terms of CO2 emissions, telcos could reduce their annual CO2 output by the megaton by switching from copper to fiber optic networks, decommissioning power-intensive 3G networks, electrifying service field service fleets and “snoozing” 5G radios when not in use.

ESG reporting software is expected to soar. Motivated by investors, regulators and employee values, more companies will begin to automate ESG tracking and reporting with standardized software tools. A compound annual growth rate of 19% to 30% over the next five years is expected, with revenues projected to exceed US$1 billion in 2024.

Agricultural technology aims to make farming more sustainable. AgTech is helping farmers adjust to increasing demands for more sustainable practices. This intersection of tech and sustainability promises food production with less pesticides and less resources for increased efficiency, improved farm yields and easier livestock management.

Signals from space could increase coverage and revenue. As the abundance of satellite-enabled smart phones increases, satellite and terrestrial mobile networks can collaborate to strengthen services for consumers, enterprises and government while unlocking revenue across satellite, semiconductor, and telecom industries.

Telecom

Semiconductors

Screens and media

Technology

Mergers and acquisitions