The coronavirus pandemic significantly impacted the tech industry for the past few years. Although the use of technology increased in many areas, such as videoconferencing platforms, it also decreased in other areas, such as the Internet of Things (IoT).
Understanding the tech industry outlook for 2023 provides insight into how your industry and company may be affected. This lets you strategically plan and hire employees in line with your expectations.
Learn about the tech industry outlook for 2023 and how your company may be impacted.
Internet of Things
IoT Analytics estimates there will be 30 billion IoT device connections by 2025. This averages out to be four IoT devices per person.
International Data Corporation’s 2020 Worldwide Internet of Things Spending Guide estimates global IoT spending will attain a compound annual growth rate of 11.3% during the 2020 to 2024 forecast period. This data indicates the steadily growing use of IoT.
IoT devices are popular in the form of connected lights, smart refrigerators, and other items in smart homes. Smart glass, activity trackers, and other wearable technologies also use IoT applications. Urban safety monitoring, traffic and waste management, and water distribution in smart cities use IoT technologies as well.
Security is the top concern for IoT-connected devices. Hacks, data breaches, information leakage, and other attacks are common. Because IoT-connected devices do not come with security features, these features must be added.
5G networks offer faster transmission speed than almost all home broadband. As a result, what used to be done only through computers can now be done with smart devices.
IoT devices can interconnect more smoothly using 5G networks than 4G networks. Also, 5G networks let drones, autonomous cars, and smart cities carry out more complex operations than 4G networks.
Currently, 5G networks are available only in certain countries and areas. Also, greater bandwidth means less coverage and more signal drops. Additional cells must be built to support the network’s high speed. Plus, the networks may be unable to penetrate walls and other materials.
Chatbots simulate conversations with humans. These bots use artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) to provide customer service for companies.
Chatbots are being used by more businesses than before. These bots serve as responsive, intelligent, conversational agents. They significantly decrease the amount of time and money spent on answering questions and filling customer requests.
Chatbot development is impacted by developments in NLP. As a result, customers may become frustrated when chatbots give limited or repetitive answers.
Chatbots with robust and complex functionalities are costly. Therefore, companies may not have the budget to use them as customer service tools.
The IT Labor Market Will Be Tight
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