Deloitte Global Predictions for 2019

25operator

launches of5G networks

1 Gbps

speedsup to

�(�(倞笪騟儘➿

greatercapacity

lowerlatency

faster

The 1st year of 5G in 2019 will look a lot like the 1st yearof 4G in 2010.

2019

5G Phones

5G hotspots, modems,

pucks

5G FixedWireless Access Subs(FWA)

1 millionEACH

20handsetvendors by 2019

100%

50% 50

10

202320190%

As 4G dominates, 5G beginsto emerge

Adoption rate

Deloitte Global Predictions for 2019

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Artificialintelligence➃䊨兰䢵

Mission critical

AI innovation is in the cloud

Average ROI of AI deployments, globallyAverage ROI of AI deployments, globally

16%

more likely to acquire AI via cloud-based services, vs. traditional IT2.6x

Believe AI is critical to their business success

TodayToday

By 2020By 2020 38%10%

Obstacles complicate AI adoption

datadata

integrationintegration

implementationimplementation

68%Report moderate-to-extreme AI skills gap

Use cloud enterprise software with embedded AI

Doing more with less in-house expertise

NowNow

20192019

20202020

58%70%87%

NowNow

20192019

20202020

50%65%83%

Create solutions through cloud-based AI services

Source: Deloitte State of AI in the Enterprise, 2nd Edition, 2018 and Deloitte Flexible Consumption Models Study, 2018.

Deloitte Global Predictions for 2019 Smart speakers兰䢵갉盳

China (urban)China (urban)

USAUSA

22%19%

UKUK 12%GermanyGermany 10%AustraliaAustralia 9%

CanadaCanada 9%

Adoption by country

$4.0

Sales are surging(US dollars, in billions)

Apps beyond musicTop applications of smart speakers other than music

$7.082018

Weather52%

Timer39%

Search39%

Amusement38%

2019

63% units shippedworldwide201967%

164M

Voice assistant usage hasbeen mutedThe majority ofvoice assistantson smartphones,tablets and computers have never been used

Deloitte Global Predictions for 2019

2/3

3/4

Hours of TV sports watchedAmericans of allages and genders(per week)

Who’s betting? And how often?American men age 18–34 who watch TV sports

$Weekly bettersNon-betters

Bet on sportsonce per week or more!

60%40%

Bet on sports

Men age 18–24

Men age 25–34

Hrs

20.410.3

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Deloitte Global Predictions for 2019 Market growth

eSports viewership

is up

Among 18 - 34

year olds

TV viewershipis down 10%since 2016

35%and increasingNorth America

32%Rest of world

South Koreans filled a stadium in Seoul to watch an eSports championship

$1 billion2019 revenues for

global eSports

U.S. video game industry

2019

eSports is only 2.7% today, but only going to increase

one-year growth in one popular eSports communications platform

$36 billion

40k

100million

eSports and Mediaꨶ畹莅㯯넓嚌屣

Deloitte Global Predictions for 2019

High-value listenersRadio䑞久

college gradshigh incomeemployed

US$40Bup 1%

Declining, but slower than TV

Reasons to listen

’14 ’15 ’16 ’17 ’18

-10.8%-3.4%

2001 2018

radio listening(minutes per day)

The beat goes on

9495including 18–34 year oldsPeople listen weekly

enjoy liveexperience

convenience musicdiscovery

90%

Deloitte Global Predictions for 2019

20162015 2017 2018 2019 2020

For prototypes…and, increasingly,final parts

3D printing3D⽫

The growth rate has doubled

The list of 3D-printable materials has doubled in 5 years2x

Faster Bigger More materials2xspeed

billion US dollars

materials

Metals may soon overtake plastics as the most popular material

$3.0+RevenueLarge public companies

5–6% growth per year5–6% growth per year

12–13% growth per year12–13% growth per yearWill stay at this levelWill stay at this level

Deloitte Global Predictions for 2019 China andconnectivity⚥㕜侸⡙㉂噠垸䒭

825,000,000Fixed and mobile Internet users

The world’s largest digital consumer base

4G cell sites

Industries spawned by China’s connectivity

On the horizon

2,000,000

430,000,000subscribersby 2025

200,000

ChinaChina

USAUSA

mobile Internet users800,000,000

Mobile commerce15% growth annually

Mobile payments$12.8 trillion annually

Bike sharing30 billion miles annually

Lorem ipsum

600 million users

Machinevision

Socialcredit

Retailingredefined

550 million users

200 million users

of global AI startupinvestment is in China

48%

Deloitte Global Predictions for 2019 China inside⚥㕜⼱㼬넓

importer of semiconductors

China consumes over ½ of the world’s semiconductors……but produces around 30%

+50%

2018 2020 2025

15%

40%

70%

$200 billionannually

• Baidu• Alibaba• Tencent (BAT)

Made in China 2025 Build more and more homegrown technology

$21.8billion

Government investment in chip production

Driving demandfor chips withAI capabilities

$1 trillioncombined market

capitalization

#1

Deloitte Global Predictions for 2019

Qubitsare coming

Quantum computersꆀ㶩ꨶ舡

60 by 2020

20 today

Quantum computers arethe next supercomputers, but not the next laptops.

Smallrevenues…for now

They work closeto absolute zero They weigh tons They are the

size of a car

2030s2020s

Exponential growth…eventually

Revenue