2020 Predictions
It’s a new year and a new decade. Here are some of the trends, technologies, travels and treatments that could emerge as opportunities for investors over the next 10 years.
The Information Superhighway. Even though the Fifth generation (5G) wireless technology is at the centre of controversy with various Governments wondering whether this latest advancement in telecommunications poses a threat to their national security – 5G networks have already begun to roll out in countries around the world and will have far-reaching implications for investors over the next several years. 5G will potentially impact 16 different industries globally and is expected to generate over US$13.2 trillion in sales by 2035. Investment opportunities will include builders of network towers and equipment, semiconductor chip makers, smartphone manufactures, video game creators and telecom companies.
Personalized Medicine. Advances in genetic testing may soon result in a new therapy for cancer patients; for instance, tissue biopsies will be replaced by the prick of a needle to determine a tumour’s unique protein biomarker and therefore determine the most suitable drug for treatment.
A simple draw of blood can also be used to detect the recurrence of certain cancers much faster than the current methods used. By some estimates, these advances have a potential market value of almost US$21 billion.
Commercial Space Travel. The recent public offering of Virgin Galactic sheds light on its ‘once-in-a-life-time’ spaceflight ambitions that will offer this luxury experience to the rich. The company believes its target market will reach 2.3 million people by 2023. The company predicts 270 annual flights with 1,565 passengers at $250,000 per ticket – which results in $590 million in revenue. The commercial space age will introduce reusable spacecrafts, hybrid rocket motors, improved re-entry mechanisms and miniaturisations of electronics.
Fashion Recycled. The next big wave in disruption may be the RE-Commerce or resale of items like apparel and accessories. Thrift has become sheik for consumers whose incomes can’t keep up with “influencers” that have expensive taste. We as a generation buy, sell and rent things like no other generation before; whether it’s hailing a ride, renting a vacation home or buying/selling used clothing. Sustainability is the second trend emerging as focus on climate change has entered the mainstream. At least two thirds of Generation Z shoppers have made an eco-friendly purchase over the past year. As a result, big fashion brands facing backlash for excess consumption are now offering clothing recycling to maintain relevance with this younger consumer.
Artificial Intelligence. AI and related technologies such as machine learning, speech recognition and natural language and image processing has become more and more advanced. Machines are not at the point of replacing us, but they can now perform very specific tasks better and much faster than humans. These technologies will re-shape transportation, manufacturing, healthcare and investment industries for years to come. By 2025, the market for AI is expected to reach US$209 billion, up 36% from 2018’s market value of US$24 billion.
The Energy Transition. As the fight for climate change intensifies momentum is gaining for swift action to reduce the world’s carbon emissions. A major energy transition is required to reduce emissions while still satisfying the ever-rising global demand for energy. This transition will require billions of dollars invested into renewable energy, electrical infrastructure, battery technology, carbon capture and storage, and other potential solutions over the coming decades.
Hope you found this interesting.
Happy New Year!
Tracey
Source: Article originally posted on AGF.com by Grace Huang, Carmen Tang, Auritro Kundu, Maksim Piskunov, Stewart Boxall, and Dillon Culhane