Candid tip #15: Exploring the rising tech trends in 2023
Which tech trends matter the most in 2023?
In this week’s newsletter, we will be exploring some fo the emerging trends in tech and their impact on today’s market.
Let’s dig in!
Rising trends in tech - 2023
After a very chaotic 2022 for tech companies in terms of investment and growth, we’ve seen a rise in enthusiasm about tech’s potential to catalyze progress in business and society.
While Generative AI has been a huge catalyst for this revival, there are some additional tech trends that have not only enabled billions of dollars in investments, but have also generated a ton of job opportunities with a rising demand,
15 tech trends you should look out for in 2023
1. Applied AI
With AI capabilities such as machine learning, computer vision, and natural-language processing, companies are now using their data more efficiently to derive insights, automate processes, and make more informed decisions.
In fact, in 2022 alone, this technology managed to raise $104 billion in investments.
Coming to the talent market, jobs in Applied AI have seen more than a 3x jump since 2018. Demand for data scientists and software engineers have been growing moderately with a 6% increase in job postings since 2021-22.
2. Industrializing Machine Learning
Industrializing Machine Learning (commonly known as MLOps) refers to the engineering practices required to scale and sustain ML applications in huge enterprises.
MLOps helps companies transition from MVPs to viable business products, speed up the scaling process, identify and resolve issues in production, and boost teams’ productivity.
Key roles needed to implement industrialized technology such as data scientists, software engineers, data engineers, and ML engineers saw a 23% increase in demand from 2021 to 2022.
3. Generative AI
The rise of Generative AI has redefined the concept of creation as a whole.
In a business context, Generative AI not only helps in unlocking novel use cases but also assists in scaling existing use cases for the organization. They have also enabled the development of new products and revenue streams for a lot of organizations.
While Generative AI is predicted to add $4.4 trillion in economic value, it has also helped create a lot of new opportunities. In fact, there has been a 44% raise in Generative AI related jobs in 2022 when compared to 2021.
4. Next-generation software development
Next-generation technologies such as AI pair programmers, low-code/no-code platforms, automated integration, deployment, and testing are transforming the capabilities of engineers at every stage of the software development lifecycle.
In fact, Next-generation software development has seen the most dramatic growth in hiring demand with job postings increasing by 6x since 2018.
5. Trust architectures and digital identity
With digital-trust technologies, companies are now able to manage technology and data risks more efficiently while accelerating innovation and protecting their assets with tech like zero-trust architecture (ZTAs), digital-identity systems, and privacy engineering in the forefront.
As of 2022, this domain has seen $47 billion dollars in equity investments and 16% more demand for security analysts, network engineers, and software engineers since 2021.
6. Web3
If the first thing that came to your mind as soon as you read this was cryptocurrency, then you’re very mistaken.
Web3 goes beyond this and more significantly refers to a future model of the internet that decentralizes authority and distributes it to the users, giving them more power over how their personal info is monetized and stronger ownership of digital assets.
As of 2022, Web3 has seen $62 billion in equity investments and the number of Web3 jobs has increased by 4x since 2018.
7. Advanced connectivity
Companies nowadays are rapidly adopting advanced connectivity technologies that help them improve user experience and increase productivity. The largest impact of this can be seen in industries such as mobility, healthcare, and manufacturing.
In 2022, Advanced connectivity technologies have seen $118 Billion in equity investments, and the demand for roles like network and spectrum design, network engineering, and network maintenance has seen a 7% increase since 2021.
8. Immersive-reality technologies
Immersive-reality technologies, with the power of spatial computing, help enable interactions in the virtual worlds with various levels of immersion using Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR).
The total job postings for immersive-reality have more than doubled since 2020 and the emergence of the metaverse predicts a value-generation of over $5 Trillion by 2023.
9. Cloud & Edge computing
With Edge computing, companies are now more flexible and efficient with their data processing, function on ultra-low latency, and are able to achieve data sovereignty and enhanced data privacy which have unlocked a ton of new use cases. Between 2018 & 2022, Cloud & Edge computing have become core technologies for a lot of digital companies and have managed to raise over $84 billion in equity investments.
Thanks to this increased adoption, Cloud & Edge computing have led to a 12% increase in job postings for software engineers and network engineers.
10. Quantum technologies
Quantum technologies, with the power of quantum mechanics, has the capability of creating simulations and solving complex problems leading to major innovations across industries such as aerospace and defense, automotive, chemicals, finance, and pharmaceuticals.
As of 2022, Quantum technologies have seen $2 Billion in equity investments and have increased the demand for data scientists, data engineers, software engineers, and more by 4x since 2018.
11. Mobility
Mobility or automobiles, are seeing a huge shift with vehicles becoming EV-operated, AI-enabled, and even (in some cases) self-driven. This technology has seen a steady increase in adoption in the past decade and is estimated to generate a revenue of over $400 billion by 2035.
With vehicles becoming more tech-driven, there has been a 15% rise in job postings by these companies seeking software developers and systems.
12. Bioengineering
With the rapid innovation happening in bioengineering, studies predict exponential growth for this tech and is expected to generate yearly revenue of $4 Trillion by 2030.
With the spike of COVID-19 in 2020, the demand for folks in the domain of bioengineering has doubled and has seen a rise in job postings for software developers, data scientists, system engineers, process engineers, and more.
13. Space technology
Space technology is currently on a spree of innovation with a focus on decreasing technology costs and making space travel more affordable. These innovations have opened up new capabilities and are making applications more accessible.
These innovations have not only helped with $8 Billion in equity investments (in 2022), but have also led to 16% more job postings (seeking space engineers, system engineers, software engineers, and more).
14. Electrification and renewables
Electrification and renewables help drive towards net-zero commitments and include solar, wind, and hydro-powered renewables, nuclear energy, sustainable fuels and more.
As of 2022, electrification and renewables saw $288 billion in equity investments and a 27% increase in job postings since 2021.
15. Climate Technologies
Climate technologies such as carbon capture, utilization, and storage (CCUS), carbon removal, natural climate solutions, and more have seen a sharp rise in adoption over the past few years.
In fact, this technology has seen $86 billion in equity investments and has seen an 8% increase in job postings since 2021.
This report was originally published by McKinsey & co. on July 20, 2023. You can read the full report here.
That’s all for the updates from this week. See you in the next newsletter with more exciting updates!