Deloitte’s “Technology, Media & Telecommunications (TMT) 2024 Predictions” report, highlights significant trends across these sectors and their implications for businesses and consumers globally. The report focuses on the ascent of Generative AI, the expansion of women’s sports, and the pursuit of profitability in streaming video services, alongside the greening efforts in the chip and network sectors.
Key highlights from Deloitte’s report include:
- Generative AI Drives Market Growth: Generative AI chip sales are anticipated to surpass $50 billion, with software revenue expected to see a $10 billion increase in 2024. Almost every enterprise software company is projected to integrate Generative AI into their products in the coming year.
- Women’s Elite Sports Revenue Surge: For the first time in 2024, women’s elite sports are projected to exceed $1 billion in revenue, triple the levels of 2021, inspiring future generations of female athletes.
- Increased Sustainability in Telecom and Semiconductors: The semiconductor industry is expected to make strides in reducing energy and water consumption, while telecom companies aim to cut carbon emissions by 2% through various sustainability initiatives.
- Streaming Services Opt for Profit-Driven Models: Streaming companies are predicted to diversify their subscription models, ranging from premium, ad-free options to those with more advertisements and less content.
Kevin Westcott, Vice Chair at Deloitte LLP, US TMT and global telecommunications, media and entertainment practice leader, commented, “As we look towards 2024, we see practical innovation aligning with market demand. Generative AI is becoming a crucial technological tool, while sustainability efforts in telecom and semiconductors are making significant reductions in environmental impacts. In the media and entertainment sector, women’s sports are breaking revenue records, and streaming services are reinventing their business models.”
Generative AI’s impact in 2024: Deloitte predicts a transformative impact of Generative AI across multiple industries, with enterprise software companies expected to benefit from a revenue uplift of $10 billion by the end of 2024. The adoption of Generative AI in enterprise software will provide knowledge workers with tools for enhanced efficiency and better decision-making.
Paul Silverglate, Vice Chair at Deloitte LLP and US technology sector leader, said, “Generative AI is set for a breakthrough in 2024, offering substantial improvements in productivity and enterprise engagement.”
Sustainability focus in tech, telecom and semiconductor markets: The telecom sector is anticipated to reduce its carbon footprint by 2% in 2024, equivalent to a decrease of 12 million tons of CO2e. The semiconductor industry, despite increased energy and water usage, expects a year-over-year decrease in resource intensity.
Monetisation across tech sectors: Tech companies are exploring new ways to monetise advanced technologies, particularly Generative AI, while telecom industries are developing innovative strategies beyond traditional service offerings.
Revolution in entertainment with women’s sports and gaming: 2024 is poised to be a landmark year for women’s elite sports, with revenues expected to hit $1.28 billion. The media and entertainment sector is balancing growth with profitability, with streaming video services diversifying their subscription models.
Jana Arbanas, Vice Chair at Deloitte LLP and US telecom, media and entertainment sector leader, added, “The media and entertainment industry in 2024 will focus on delivering what consumers desire. As streaming services strive for profitability, gaming platforms are enabling user-generated content, and the industry explores new ways to engage audiences.”