Deloitte recently published its "AI Trend Report," offering insights into the future of cutting-edge technologies such as artificial intelligence and augmented reality (AR). The report highlights how these innovations are shaping industries and consumer behavior. According to Deloitte, over 1 billion smartphone users are expected to engage in at least one AR content creation experience by 2018. By 2020, direct revenues from AR are projected to reach $1 billion—ten times the amount generated in 2018.
Before 2018, AR was primarily used for simple applications like face filters in selfies. However, as the technology has advanced, users can now interact with virtual elements in more immersive ways, such as joining a chorus with celebrities, interacting with animated animals, or even playing games with digital stars. These experiences offer a more realistic and engaging form of entertainment.
By the end of 2023, Deloitte predicts that smartphone penetration among adults in developed countries will reach 90%, up from 85% in 2018. Global smartphone sales are expected to hit 1.85 billion units by 2023, a 19% increase compared to 2018. The average selling price of smartphones is forecasted to rise to $350, an 8% increase from 2017. Additionally, 180 million smartphones priced above $1,000 are expected to be sold globally in 2023.
Smartphone upgrades will not only focus on hardware but also on improvements in connectivity, processors, cameras, software, AI integration, memory, and sensors. These advancements will enhance user experience and support more complex applications.
In 2018, 45% of global adult smartphone users expressed concerns about excessive phone usage, while two-thirds of those aged 18–24 believed they spent too much time on their devices. Despite this, only 3% of people were considered truly addicted, based on data showing that individuals checked their phones about 50 times a day in 2017.
Deloitte also forecasts significant growth in the machine learning chip market. Sales for data centers are expected to jump from 100,000 units in 2016 to 800,000 in 2018. As machine learning becomes more prevalent, these chips will play a critical role in powering next-generation applications.
The adoption of machine learning is expected to grow rapidly, with more large and medium-sized companies implementing it. By 2020, deployment is projected to quadruple compared to 2018. However, challenges such as a shortage of skilled workers, limited tools, and data accessibility may slow widespread adoption.
In the entertainment sector, Deloitte estimates that live events and broadcasts will generate over $545 billion in direct revenue in 2018, with 98.5% coming from traditional industries and the remainder from live streaming and e-sports.
Looking ahead, Deloitte predicts that global digital subscriptions will reach 680 million by 2020, with an average monthly cost of less than $10. This includes 375 million video-on-demand subscriptions, 150 million music subscriptions, 35 million game subscriptions, and 20 million news subscriptions.
Ad-blocking tools are also gaining traction, especially in North America, where 80% of adults use at least one ad blocker, and 50% use two or more. This trend poses a growing challenge for online advertisers.
Traditional TV viewing is expected to decline by 5% to 15% in the U.S., Canada, and the U.K. in 2018 and 2019, continuing a long-term trend observed over the past seven years.
With the rollout of 5G technology, mobile internet is set to become the preferred choice for more users. In 2018, 20% of North American households are expected to access all internet data through mobile networks.
Finally, Deloitte anticipates that 1 billion passengers will fly on Internet-connected aircraft in 2018, a 20% increase from 2017. About 10% of passengers are willing to pay for in-flight connectivity, which could generate around $1 billion in revenue for airlines.
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