Top 10 Technology Investment Trends That Will Dominate in 2023

♦ The Biggest Technology Trends 2023: Rise of Al, Machine Learning and Robot

♦ Top 10 Career Trends Predicted to Dominate in 2023

The AI market is forecasted to grow from $67 billion in 2021 to $190 billion by 2025

Technology investment has become a prominent and potential trend in recent years. With the outstanding and unlimited development of science, it will be an extremely right decision for investors to use their money in this field.

But what are the prominent trends that investors should keep a close eye on in 2023?

In the digital age, technology becomes a key foundation in almost every process, from management activities to trading and doing business, considering investing in this very field becomes a top priority for us. with entrepreneurs. Let's take a look at 10 outstanding technology trends of 2023 where smart investors can place their coins with confidence.

1.Artificial Intelligence

The press has long reported on a future where artificial intelligence – AI changes the world in a comprehensive way. In 2022, AI is expected to have a practical role in businesses, helping companies focus more on practical applications in their core activities.

Businesses should start investing in one or more aspects of artificial intelligence, including machine learning, data science, conversational platforms, computer AI chips, intelligent robotics, and technology. content-aware computing. The industries with the highest application potential will be Banking, Healthcare and Technology, however businesses may face some difficulties in adopting these new technologies.

2.Metaverse

Metaverse is a virtual world where users share experiences and interact in real time on a sophisticatedly designed virtual world system. According to Bloomberg Intelligence, investment value in Metaverse could reach $800 billion by 2024.

Developer Metaverse – Meta (formerly Facebook) plans to invest $10 billion by the end of 2021 in its actual labs, demonstrating the priority of the field. According to GlobalData, the first members of the Metaverse experience will appear in 2023, with gaming as the ideal starting point and businesses becoming the primary market for Metaverse developers.

3.Quantum Calculator

A quantum computer is a type of computer that uses quantum mechanics to perform complex calculations more efficiently than conventional computers. Next year will be a big year for quantum computing, a field that is on the cusp of commercialization. Important advances in this nascent technology trend have been and are achieving positive results, but the increasing competition of quantum science in staffing for software engineers will continue to be a challenge throughout the coming year.

Quantum computing will enter a consolidation phase in 2023. With a growing scarcity of resources while the field continues to grow, software startups will be targets for M&A deals. , especially those that have partnered with larger tech companies, as predicted by GlobalData.

4.Cloud Computing

Cloud computing is the on-demand delivery of information technology resources over the Internet with a pay-as-you-go policy. Global cloud computing will own a market worth up to 616 billion USD by the end of 2022, according to GlobalData forecast, up 13% over the same period in 2021.

Cloud services will be an essential convenience for businesses in 2023 as they tend to outsource data management to third-party providers. The security of data centers will be more important than ever, as will the need to be redesigned to meet the requirements of a reputable cloud center.

As a result, GlobalData expects investments in cybersecurity to increase, especially in a security-as-a-service approach to preventing cyberattacks. The Covid-19 crisis is a valuable lesson, the event spurs more investment in disaster recovery services, especially in critical national infrastructure such as services. health care and energy.

5.Fintech

According to GlobalData, the spike in investment in startups has expanded the number of fintech “unicorns,” the fancy name used to call excellent startups valued at more than $1 billion, to 116. , with a total value of $529 billion. Also according to this company's forecast, at least 10 other startups in this field will join the ranks of "Unicorns" including Atom Bank, Corvus Insurance and Navi Technologies.

The growing stability of highly regarded fintech startups demonstrates the potential for disruption to the traditional financial services sector. However, being aware of the growth of Fintech, investors are gradually forming the idea of "if you can't beat them join them" with more and more established organizations such as Goldman Sachs and Visa forming. alliance with fintech unicorns.

6.Crypto

GlobalData predicts the cryptocurrency market is worth up to $3 trillion and will continue to grow in 2023, despite its volatility. The sector is slowly garnering mainstream approval from a growing number of countries with businesses including Visa and PayPal incorporating cryptocurrencies into their payment infrastructure.

In addition to Bitcoin, cryptocurrencies have been developing diversely with more than 14,000 different virtual currencies in existence. However, with global regulators grappling with ways to regulate the sector, cryptocurrencies have the potential to cause major disruptions to traditional global financial systems.

7.Electric Car

According to GlobalData, it is forecast that annual electric vehicle (EV) output will exceed 10 million units by 2025, the share of electric vehicles in new light vehicle production will increase from 5% in 2021 to 11% in 2025.

The shift towards electric vehicles is primarily driven by regulatory changes to meet environmental, social and corporate governance goals, but part of the motivation is also driven by customer demand. Although the number of EVs in Europe will grow faster than China's in 2020, China will lead the market, dominating the sector. By 2020, 48% of all EVs on the road will be in China, more than the total number of EVs in the US and Europe combined.

However, in 2023, with a shortage of Lithium supply while increasing demand, as well as other core battery materials, it will become increasingly challenging for manufacturers and investors.

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8.Cloud Games

The cloud gaming market will reach $3 billion in revenue by 2022, up 59% from 2021, according to a forecast by GlobalData. Cloud gaming allows video games to be streamed from the cloud and played using any device with a screen and an internet connection. Cloud gaming has the potential to hit the $221 billion video game industry as companies execute on their growth strategies right. Meanwhile, in 2022, services with exclusive games at reasonable prices will be accepted faster than others.

9.5G

5G adoption will increase steadily in 2022 with the main engine being the Asia-Pacific market. North America will have the highest 5G penetration by population in 2022, growing faster than any other region, to 115% by 2025. However, the Asia-Pacific region will lead the way. signed 5G in 2022. 5G fixed wireless access will be rolled out gradually in 2022, especially for consumers in hard-to-reach areas in developing countries, and increasingly for consumers with urban and suburban consumer groups who are getting used to working from home frequently.

10.Robots

According to GlobalData, the robotics industry will reach a value of USD 568 billion by 2030, up from USD 45 billion in 2020. The robotics industry consists of two main areas: industrial robots and service robots. Industrial robots are used in factories to automate parts of the manufacturing process, including Industrial Robots and Cobots. Service robots, on the other hand, assist humans working in non-industrial or indoor environments, and include logistics, medical, agricultural, etc. Although the service robot market is larger compared to industrial robot sector in 2020, but the industrial robot market will grow faster in the next decade.

Xiaomi CyberOne Smart Robot:

3 Investment Trends Will Boom in 2023 - 2024

Investment Trends Will Boom

Technological advancements allow investors to build portfolios in new ways.

1.Passive Investing

Passive investing is an investment strategy to maximize profits by minimizing buying and selling. Accordingly, investors buy stocks in popular indices such as the S&P 500 and hold them for an extended period of time.

For investors who have idle money, want to invest long-term but are busy, and do not have time to monitor the market, passive investment is a suitable choice. It is a convenient form of investment, easy for trading.

Passive investors are often risk averse, they are not interested in profit from temporary fluctuations. A study conducted by the World Pensions Council found that between 15%-20% of investments in large-scale pension funds today are passive investments.

In contrast to active investing (where managers choose stocks), passive funds typically track some type of index or group of stocks. Passive investments still make up about 43% of all US funds (including bonds and other assets).

For passive investment, because investors aim for a long-term strategy, they do not suffer psychological impacts when the market is unstable. Low cost because the number of transactions is not much, they do not implement the form of "quick buy and sell short".

A good example of a passive investment is through an ETF. Worldwide, the number of ETFs has grown to 8,552 by 2021. According to PwC, the number of actively managed mutual funds still exceeds the number of ETFs. But this is expected to change in the next few years.

2.Meme Stock

Over the past year, the phrase "meme stock" has become popular among global stock investors. It refers to stocks that have increased sharply thanks to a viral effect on social networks, which has nothing to do with business. The phenomenon first emerged in January 2021, when shares of US video game retailer GameStop (GME) surged 1,900% in less than a month.

Another example is AMC Entertainment Holdings stock. Within nearly 5 months, from January 14 to June 2, 2021, this stock recorded an increase of 27.7 times, from 2.18 USD/share to 62.55 USD/share.

Since then, the investor community following these stocks has grown. The common feature of GameStop and AMC is that the business has been going down for many years, but it has been bought by Reddit - a forum of individual investors, with two main goals: to push the stock price up in order to increase the share price. profits and forced large funds to give up their stock short bets.

In the end, the crowd of individual investors won, causing many investment funds to lose big. The peak was the Melvin Capital Fund, a fund that manages $12.5 billion in assets that evaporated more than 50% of its NAV in January 2021.

Retail investors have developed a unique “stock meme” investment strategy on their own, leveraging a growing online community and new investment tools to invest in stocks. consumption is small and creates huge challenges for investment institutions. That's why the market believes meme stocks will be an impactful phenomenon.

3.Investing in Environment, Society and Governance (ESG)

Environmental, Social and Governance (ESG)-based investing has been booming in the financial markets over the past few years. This investment trend is growing both in terms of investor perception, asset management funds and companies.

In 2020, there are a total of 400 active sustainable investment funds, an increase of 30% compared to 2019 and nearly 4 times higher than 10 years ago. The same year, US ESG funds added about $51 billion in new capital. This number continued to be increased by 21 billion USD in the first quarter of 2021.

Globally, ESG funds are growing faster than many other asset classes out there. Some experts even predict more than 1 trillion USD will be concentrated in ESG by 2030, the number of funds is also increasing.

Large funds around the world are gradually publicizing their investment in high ESG businesses. Australia's $166 billion Future Fund has the highest-ranking portfolio in terms of ESG scores according to calculations based on data from the top three ranking firms MSCI, Sustainalytics and Refinitiv. The next positions belong to New Zealand's $41 billion NZ Super Fund and Norway's $1.3 billion Norges Bank Investment Management.

Investment decisions based on ESG factors are increasingly popular among investors due to three factors. Firstly, companies with good ESG factors will develop stably in the long term, bringing benefits to investors. Second, investors who pour money into funds are increasingly concerned about environmental, social and regulatory factors, and they require the funds using their money to consider those factors as well. Finally, activist groups, environmental and social politicians are emerging strongly.

Epilogue

Above are 10 technology markets and 3 Investment Trends that should be invested by entrepreneurs and investors in 2023 and 2024.

In the environment of digitization and automation, which has been deeply affecting many aspects of businesses and life, along with increasingly fierce competition in the market, companies need to be sensitive to the trends. potential and novel directions, exploiting the space to bring maximum profit for the collective.

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