Despite geopolitical instability and economic challenges in 2023, technology investments continued to grow substantially, reinforcing the idea that some of the world’s most significant innovations emerge during times of political and economic stress. With this in mind, we explore some of the top technology investment trends to follow in 2024.
Artificial Intelligence (AI)
AI dominated the technology investment landscape in 2023 and is expected to maintain its momentum in 2024. According to research firm GlobalData, the AI market is projected to reach $908.7 billion by 2030. The rapid rise of generative AI (GenAI) in 2023 is set to continue, reshaping industries across the board. GlobalData’s Thematic Intelligence 2024 TMT Predictions estimate the GenAI market will grow from $1.8 billion in 2022 to $33 billion by 2027, representing an impressive compound annual growth rate (CAGR) of 80%. Of all advanced AI technologies, GenAI is expected to be the fastest growing, accounting for 10.2% of the overall AI market by 2027.
Cloud Computing
The cloud computing market is projected to reach $1.4 trillion by 2027, growing at a CAGR of 17% between 2022 and 2027, according to GlobalData. Software-as-a-service (SaaS) will continue to dominate the cloud services sector, accounting for 63% of cloud revenue in 2023. The platform-as-a-service (PaaS) sector will see the fastest growth, expanding at a CAGR of 21% from 2022 to 2027. As businesses increasingly move IT infrastructure to the cloud for cost reduction and flexibility, cloud computing, alongside AI, will be a key enabler of emerging technologies like robotics and IoT, which rely on continuous access to large datasets.
Cybersecurity
The rise of generative AI will increase the risk of social engineering attacks, with employees facing heightened threats from spear-phishing and AI-driven social engineering tactics. GlobalData’s 2024 TMT Predictions highlight the pressure that cybersecurity professionals will face as cyber-attacks become more sophisticated amid a growing cyber-skills gap. The EU’s Agency for Cybersecurity predicts that ransomware attacks could cost businesses over $10 trillion by 2025, up from $3 trillion in 2015. To counter these threats, investment in cybersecurity will need to increase, with global cybersecurity revenues forecast to reach $344 billion by 2030.
Robotics
AI and cloud computing are both playing a critical role in the growth of the robotics sector. The global robotics market, valued at $63 billion in 2022, is expected to grow at a CAGR of 17%, reaching $218 billion by 2030. The service robot market is expected to hit $67.1 billion by 2024, a 28% increase from 2023, with this segment driving much of the growth in robotics. Drones, particularly in commercial delivery, will also be key contributors in 2024. However, GlobalData forecasts the exoskeleton market will experience the highest growth, followed by advancements in logistics. Exoskeletons, wearable devices that enhance limb movement and strength, are increasingly being used in healthcare, defense, and manufacturing.
Enterprise Internet of Things (IoT)
The global enterprise IoT market is expected to generate $1.2 trillion in revenue by 2027. This market is divided into two primary segments: the industrial internet and smart cities. The industrial internet, which uses connected sensors to manage and monitor machinery, is forecast to grow at a CAGR of 15.1%, from $374 billion in 2022 to $756 billion by 2027. Meanwhile, the smart cities market, driven by the use of sensors to improve urban services like energy, transportation, and utilities, is expected to expand from $234 billion in 2022 to $470 billion by 2027, at a CAGR of 15%.
