GP Bullhound reveals 10 tech trends for 2019
GP Bullhound has predicted that 2019 will see tech disrupters break up existing monopolies across industries including advertising, apps and banking.
According to the global investment bank's annual report into the technological trends that will shape the next 12 months, Google and Facebook are expected to lose out to Amazon in the battle for ad-tech spend.
In 'Technology Predictions 2019', GP Bullhound predicts that Amazon will "further disrupt the stronghold on the ad-tech market" that Google and Facebook currently command.
Earlier this year, the eCommerce giant became the third largest digital advertising platform in the US. It will increase its share of digital advertising spending from 4 per cent this year to 7 per cent by 2020.
GP Bullhound also expects Apple and Google's grip on app distribution to "noticeably slip", as developers like Netflix and Spotify bypass the App Store and Google Play in favour of their own platforms.
The report also predicts that digital banks will continue to flourish in 2019 as greater investment, better regulation and increased innovation allow them to steal a greater share of the consumer banking pie.
"Our report reveals that newcomers in the tech industry will radically reshape sectors that have for a long time been dominated by one or two key players," said GP Bullhound partner Alec Dafferner (pictured above).
"We hold a steadfast belief at GP Bullhound that technology is a force for good – and we commend the entrepreneurs and the ideas that are fuelling this disruption, and ultimately delivering better solutions for the world's consumers."
The other predictions are:
Retail tech gets smarter
"Technology is set to radically reshape the bricks and mortar retail sector in the coming year – despite the rise of e-commerce, traditional retail still accounts for 88 per cent of all global retail purchases. 2019 will see the development of disruptions and innovations to the physical retail experience – from AI Chatbot systems, to the elimination of cashier checkouts, a new age of retail is set to emerge which combines innovative technology with the social dimension of traditional retail."
Employee engagement goes high tech
"AI and machine learning can be adopted to streamline human decision in relation to HR functions – from performance reviews to gender diversity. This has driven an increase in M&A activity in the HCM sector, where median deal size has already increased by more than ten times – from $28m in 2015 to $300m in 2018 – and this is set to continue."
Last mile delivery will go the distance
"56 per cent of millennial shoppers expect same-day shipping to be an option when shopping online, but last mile delivery accounts for 53 per cent of total transportation costs. To marry the two, retailers are turning to innovation to protect their margins and accelerate delivery times."
Institutional money flows into crypto
"Bitcoin may have had its ups and downs, including an implosion in 2018 after reaching an overall market cap of over $800bn. But as the traditional financial institutions increase blockchain activity, 2019 is set to be the year that institutional capital finally flows into cryptocurrency."
AI not the end of life
"Rather than mourning the end of the white-collar workforce, AI is set to have a huge positive impact on working conditions and flexible working. With 31 per cent of companies expected to add AI over the next year, AI will reduce the need for humans to take on time-consuming menial tasks."
Subscriptions to eclipse advertising
"Consumer subscriptions are set to eclipse advertising. As consumers' concerns about data misuse and content quality increase, paid subscription services provide a reliable alternative. Meanwhile, the growth of the digital ad market is predicted to slow down from 17.7 per cent in 2018, to 8.6 per cent in 2022."
End of the boys club
"Female founders and executives are breaking down barriers to entry for other women seeking to enter the tech sector, by improving access to mentorship, funding, business relationships and job opportunities."