8 Industries to be Disrupted by 3 Tech Trends in 2016
18 Jan 2016
8 minute read
Progress is Inevitable
2016 will see new changes, especially when it comes to Internet of Things (IoT), digital media, mobile technologies, e-commerce, and payments. What follows are some of the predictions for new technological trends of 2016. Let us see just how disruptive some of them may be.
Internet of Things (IoT)
Automotive Industry Disruption
Several industries will feel the IoT impact. One of them is the automotive industry. Later this year, more than two-thirds of all cars in the US alone will connect to the internet, due to high customer demand. This innovation will be a step forward for manufacturers, especially when it comes to car safety.
As predicted by Business Insider, consumers will be able to purchase a user-operated, self-driving car by 2019. In 2016, we will see some new federal laws and regulations created, so that consumers can safely exploit this new technology. California will be the first state in which self-driving cars will become a reality.
Insurance Industry Disruption
The insurance sector is also changing under the influence of IoT. Some companies have started devising a strategy that involves using connected home devices to track their clients’ health and fitness habits. Car insurance is also under a spotlight. An insurance company will be able to analyze how a customer drives their vehicle, and will react with respect to their performance.
Cyber Insurance Policies
Due to a rising number of connected devices, consumers are now becoming wary of hackers. Cyber security is critical when it comes to IoT. That is why customers need cyber insurance. Although insurance companies are still trying to figure out how to assess the risks, cyber insurance will soon be available to users on a global level.
Oil and Gas Industry Disruption
As oil prices continue to plummet, the industry will have to start utilizing the IoT in their oil supply chain. Provided that a company switches to optimization of connected devices, it will see a massive rise in profits. IoT ecosystems are also expected to expand greatly throughout 2016.
Publishing Industry Disruption
Mobile video wars are upon us. Facebook is set to become the go-to platform for short videos. Companies and users will upload more videos to Facebook directly. YouTube will still be a major video player, but it will drive most of its traffic through their YouTube stars. We will also be a witness of SnapChat going public while they continue to create exclusive partnerships with major publishers.
Advertising Industry Disruption
Ad-blockers, especially mobile ad-blockers, are becoming a major threat to international advertisers. We may witness a shift to native advertising, which includes sponsored content, native video and native social. The change will also make clear to the user what digital advertising is and thus render the ad-blocker obsolete.
The advertising industry is forced to pump more money into selling native ads globally. Some successful examples of such form of advertising include branded case studies by the New York Times and the Wall Street Journal. Your approach to publishers will have to change from blatant advertising to providing useful content and paying attention to the readers’ needs. You can find more useful information in this ProOpinion blog post.
TV Industry Disruption
Stand-alone paid services, similar to Hulu, will become more and more popular among cable companies. They have seen a significant drop in the number of consumers, so there is nothing left for them other than to offer premium video content for paid subscribers. Cable companies will also raise the prices of broadband cable due to the disruption caused by digital media.
Wireless Industry Disruption
We will witness a major merger, symbolical of the influence that cable companies have on wireless ones. Cable companies have Wi-Fi networks that can add capacity to wireless networks, thus enabling better coverage indoors. Together with the users’ demand for better viewing and mobile experience, this will force some wireless companies to merge with TV companies. AT&T and Verizon are already on the path to diversifying their services, as both companies now offer broadband as well as wireless services.
Smartphone Industry Disruption
India played a significant role in the smartphone market story of 2016. Its growth was huge. However, another country will take the prize in 2016. Namely, Indonesia has seen a significant rise in smartphone users. Major smartphone companies already started building their factories there. Samsung is constructing their $20 million facilities already. Furthermore, the Indonesian government will invest more than $4 billion in their telematics sector. By the year of 2020, the country will have been the 4th major market for the smartphone industry.
Mobile App and Mobile Security Disruptions
Bring Your own Device (BYOD) is a new trend among businesses. Companies that build enterprise apps will see an increase in their customer base. But this is not all. With the increasing popularity of BYOD come major concerns regarding mobile security. We will definitely witness numerous mergers of enterprise app companies with security companies. Companies are becoming more and more aware of the necessity of cyber security for their businesses. If you are aware of the gaps that can be bridged by great ideas but do not know how to code yet, check out this great blog post from Coder Factory.
So, what does disruptive technology mean for us?
As we have seen, technology is progressing at light speed. Evolution of technology and business, together with consumer demands and preferences, is inevitable. Industries and markets need to be prepared for such changes. They have to be ready to accept the future that is upon us, and realise that the process of adoption can only result in a positive outcome.
Oscar Waterworth is a tech enthusiast and a writer from Sydney. He spends his free time reading and writing about new trends in business and technology. He is a proud father of two kids and blogging is not his day job. If you want to get to know Oscar better, you can follow him on Twitter.
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