Technology, Media, and
Telecommunications
Predictions 2023Deloitte’s Technology, Media & Telecommunications (TMT) industry group brings together one of
the world’s largest pools of industry experts—respected for helping companies of all shapes and
sizes thrive in a digital world. Deloitte’s TMT specialists can help companies take advantage of
the ever-changing industry through a broad array of services designed to meet companies
wherever they are, across the value chain and around the globe. Contact the authors for more
information or read more on deloitte.Contents
Foreword 3
Telecoms 4
Too congested before we’re connected? Broadband satellites will
need to navigate a crowded sky 5
Accessible is possible: Introducing the US$99 5G smartphone 12
5G’s promised land finally arrives: 5G standalone networks can
transform enterprise connectivity18
Semiconductors 24
AI in chip design: Semiconductor companies are using AI to design
better chips faster, cheaper, and more efficiently 25
Supercharged semiconductors: Chips made of newer materials
surge ahead, handling the volts that would fry silicon chips 32
That’s just rad! Radiation-hardened chips take space tech and
nuclear energy to new heights 39
Screens and media 45
Everyone’s watching: AVOD finds an increasingly receptive audience 46
Live sports: The next arena for the streaming wars 53
Virtual production gets real: Bringing real-time visual effects
onto the set 59
As seen in your feed: Shopping goes social, trending past US$1 trillion
in annual sales65
Will VR go from niche to mainstream? It all depends on compelling
VR content71Technology 77
Battle for the Enterprise Edge: Providers prepare to pounce on the
emerging enterprise edge computing market 78
Tech’s climate commitment: Organizational and personal impacts
are pushing tech leaders toward faster climate action 85
Mergers and acquisitions95
Let’s make a deal—in gaming! Gaming M&A is growing on the back of
consolidation, portfolio plays, and game tech96
TMT divestitures make a comeback: 2023 deal values in tech, media,
and telecom may bounce back strongly 101 Foreword
Foreword
TMT Predictions 2023
Doing more with less—economic and other factors shift both consumer and
enterprise spending in new directions
ISING INFLATION AND interest rates, slowingto hit the market sooner than many people think.
economies, and plunging consumer The chip industry needs to make chips faster and
Rconfidence have dominated discourses this with fewer people, and that’s where new kinds of
year. The ripples they generated have heavily artificial intelligence tools for chip design emerge.
influenced the theme for TMT Predictions 2023. Making blockbuster video for all those AVOD
Technological innovation and sustainability remain viewers takes a lot of time and money… but less time
themes, but this year is unusually influenced byand money if virtual production technologies are
external forces. used. Meanwhile, retailers are trying to kickstart
moribund consumers with social commerce—the
Rising fuel, utilities, and food costs are forcing many multibillion-dollar market you might not know
consumers to rethink discretionary spendingabout, but your kids do.
choices they made during the pandemic. Consumers
who were already churning subscription video-on-Not everything orbits the economy, of course. We’re
demand (SVOD) services last year are eagerly calling for over 5,000 low Earth orbit satellites by
shifting to cheaper, ad-supported AVOD services, to the end of the year, and growth in radiation-
the point where we are predicting that all majorhardened chips in higher orbits. Back down on
SVOD services have an AVOD tier by the end of theEarth, tech companies are leading other industries
year. Meanwhile, higher prices at the pumps are in trying to save the planet with many targeting
making battery electric cars more attractive, driving carbon neutrality by 2030.
demand for high-power silicon carbide chips.
Economics always matters, of course. It is not yet
Economic conditions are driving a rebound in techclear if we’re heading for the hoped-for soft landing,
divestitures and growth in M&A activity around with economic recovery by 2024, if not sooner. Or a
gaming as many targets are much cheaper than a longer-term period of weakness or stagnation. We
year ago. 5G smartphones with a price tag of morelook forward to a TMT Predictions 2024 that is not
than US$1000 aren’t quite setting the sales counter dominated by these issues and returns to an
on fire; 5G phones for under US$100 are expectedinnovation agenda.
Ariane BucailleGillian CrossanKevin Westcott
Global Technology, Media &Global Technology Global Telecommunications,
Telecommunications industrysector leader Media & Entertainment
leader sector leader
3