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GP Bullhound Unveils Top Tech Trends for 2019

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GP Bullhound has today announced the top ten trends and innovations that will shape the technology industry in the coming year – revealing that 2019 will see disruptors succeed in breaking up incumbent monopolies across industries including advertising, app distribution and consumer banking.

The new report – Technology Predictions 2019 – predicts that Amazon will further disrupt the stronghold on the ad-tech market that Google and Facebook currently command. Earlier this year, Amazon became the third largest digital advertising platform in the US, with advertisers spending $4.6 billion on Amazon’s platform. It will increase its share of digital advertising spending from 4% this year, to 7% by 2020.

2019 will also become the year that Apple and Google’s grip on app distribution will noticeably slip, as increasing numbers of developers – such as Netflix and Spotify – bypass the App Store and Google Play in favour of their own platforms. Apple’s App Store and Google Play, which charge commissions of up to 30% on every sale in the first year and decreasing to 15% in subsequent years, dominate the market. But in 2019, we expect more developers to look for alternative ways around these distribution platforms.

Digital banks will flourish in 2019, as greater investment, better regulation and increased innovation enable them to steal a greater share of the consumer banking pie. The growth of innovative fintech solutions that challenge traditional banks will be powered by a rapid growth of start-ups, fuelled by venture capitalists keen to invest in fintech, and millennial demand – 91% of whom prefer using mobile banking apps over a physical branch.

Alec Dafferner, Partner at GP Bullhound, commented:

“Our report reveals that newcomers in the tech industry will radically reshape sectors that have for a long time been dominated by one or two key players. We hold a steadfast belief at GP Bullhound that technology is a force for good – and we commend the entrepreneurs and the ideas that are fuelling this disruption, and ultimately delivering better solutions for the world’s consumers.”

The GP Bullhound 2019 report also predicts:

  • Retail Technology Gets Smarter: Technology is set to radically reshape the bricks and mortar retail sector in the coming year – despite the rise of e-commerce, traditional retail still accounts for 88% of all global retail purchases. 2019 will see the development of disruptions and innovations to the physical retail experience – from AI Chatbot systems, to the elimination of cashier checkouts, a new age of retail is set to emerge which combines innovative technology with the social dimension of traditional retail.
  • Employee Engagement Goes High Tech:AI and machine learning can be adopted to streamline human decision in relation to HR functions – from performance reviews to gender diversity. This has driven an increase in M&A activity in the HCM sector, where median deal size has already increased by more than ten times – from $28m in 2015 to $300m in 2018 – and this is set to continue.
  • Last Mile Delivery Will Go the Distance: 56% of millennial shoppers expect same-day shipping to be an option when shopping online, but last mile delivery accounts for 53% of total transportation costs. To marry the two, retailers are turning to innovation to protect their margins and accelerate delivery times.
  • Professional Capital Sources:Scouting for Entry Points into Blockchain: Bitcoin may have had its ups and downs, including an implosion in 2018 after reaching an overall market cap of over $800bn. But as the traditional financial institutions increase blockchain activity, 2019 is set to be the year that institutional capital finally flows into cryptocurrency.
  • Artificial Intelligence Is the End of Repetition, Not the End of Life: Rather than mourning the end of the white-collar workforce, AI is set to have a huge positive impact on working conditions and flexible working. With 31% of companies expected to add AI over the next year, AI will reduce the need for humans to take on time-consuming menial tasks.
  • Consumer Subscriptions Set to Eclipse Advertising:Consumer subscriptions are set to eclipse advertising. As consumers’ concerns about data misuse and content quality increase, paid subscription services provide a reliable alternative. Meanwhile, the growth of the digital ad market is predicted to slow down from 17.7% in 2018, to 8.6% in 2022.
  • End of the Boys Club: Female founders and executives are breaking down barriers to entry for other women seeking to enter the tech sector, by improving access to mentorship, funding, business relationships, and job opportunities.

For the past twelve years, GP Bullhound, the leading technology advisory and investment firm, has identified the ten trends and innovations that will drive the growth and direction of technology globally.

The research is compiled through analysis of global investment data alongside the expert insights of GP Bullhound’s worldwide team, leading investors, and entrepreneurs.

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During Nathan’s early career, he gained considerable experience from across many industries including Sales, Teaching and Retail, however more recently Nathan has delved into the world Digital Marketing and Publishing. Drawing on his past experiences, Nathan brings all aspects of his knowledge into Recruitment Buzz, possessing great research and social media skills.

Born and bred in Wales, Nathan is as Welsh as they come – living in the heart of the Valleys, Nathan proudly takes place as our resident Welsh speaker. However, Nathan’s knowledge of global understanding exceeds the Welsh borders, having lived in London, parts of the US and Ecuador.

Nathan is a self-proclaimed geek, having gained a degree in Natural Science via the Open University in Wales. In addition to his passion for science, he has a love for technology, nature, art and of course football!

 

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