Companies that invest in the right themes become success stories, while those that miss the big themes end up as failures, according to GlobalData. The leading data and analytics company’s brand new report, ‘Tech, Media & Telecom Predictions 2022’, identifies the thirty themes GlobalData predicts will cause the most disruption in 2022. Below, analysts at the Thematic Research team at GlobalData offer their views on five of these themes: the metaverse, batteries, cryptocurrency, space economy and environment, social and governance (ESG) issues.
Q3 2021 hedge fund letters, conferences and more
The Metaverse
Emma Taylor, Thematic Analyst at GlobalData, comments: “While the metaverse won’t be realized for several years yet, early prototypes and use cases will begin to emerge as early as next year as tech titans battle for early market dominance. The variety of use cases is already becoming apparent, ranging from Facebook and Microsoft’s enterprise focus to Epic Games and Roblox’s gaming ambitions.
“China is a potentially lucrative metaverse market due to its massive and affluent user base. Leading Chinese tech companies such as Tencent and Alibaba will continue to file for metaverse-related trademarks. However, the ongoing regulatory crackdown on China’s tech sector will hinder their progress.”
Batteries
Daniel Clarke, Thematic Analyst, comments: “Batteries are the oil barrels of the 21st century – they will underpin many of the core technologies needed in the climate transition. The US and Europe have finally woken up to Chinese dominance of the battery supply chain, which represents a significant chokepoint for advanced Western economies trying to reach net-zero. Furthermore, the battery metals supply and demand gap is a core issue in the batteries theme.
“GlobalData predicts that companies will invest in alternative battery chemistries due to lithium supply constraints. In addition, Western countries will invest in building battery supply chains to offset China's dominance, while the increasing cost of lithium batteries will force several automakers to raise electric vehicle (EV) prices.”
Cryptocurrency
Amna Mujahid, Thematic Analyst, comments: “Decentralized finance (DeFi) — a fully open financial system that uses blockchain-powered smart contracts instead of relying on centralized entities like banks and brokerages — will disrupt traditional financial institutions with its promise to remove any sneaky intermediaries from transactions.
“Start-up companies will lead the bulk of DeFi innovations as they compete to create more sophisticated platforms. Traditional financial bodies will work hard to catch up with the DeFi trend, introducing central bank digital currencies (CBDCs) and using stablecoins. Only a proactive response will keep traditional institutions relevant, and many — such as Goldman Sachs, Citi, and UBS — have already taken the plunge by entering the DeFi landscape.”
Space Economy
Thematic Analyst Francesca Gregory, comments: “The expansion of satellite networks will provide up to 70% of the space economy’s growth in the near term. This short-term growth will pave the way for larger aspirations.
“Following the announcement of plans for space business parks from Blue Origin, Voyager Space Holdings, and Lockheed Martin, commercial actors will have a more sustained presence in space, signaling a commercial infrastructure boom in the longer term.”
ESG
Rachel Foster Jones, Thematic Analyst, comments: “ESG is the most important theme discussed in boardrooms, and disclosing ESG will become the norm in 2022. Companies that fail to demonstrate their commitment to ESG will face a backlash from their stakeholders.
“Companies are flooding to sign the Climate Pledge. As its targets can be achieved through carbon offset schemes, there will be increasing pressure for the voluntary carbon market to be regulated. However, companies should be careful as committing to non-credible net-zero targets through offset schemes will cause reputational damage.”
About GlobalData
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.
