Fast-growing technologies
- Large Language Models (LLMs): LLMs will see a 35% compounded annual growth rate (CAGR) over the next five years, driven by enterprise software spending on LLMs continuing to grow rapidly as proofs of concept mature into scaled deployments embedded across entire companies.
- Data Management Tools: The exponential growth of cutting-edge technologies such as machine learning and generative artificial intelligence (Gen AI) will generate more than $200 billion worth of data management opportunities worldwide by 2029, driven by the emergence of sovereign clouds and the need for better protection of personal and sensitive data.
- Smart Home Devices: Technology offerings for home safety, security, and convenience will see a 14% CAGR through 2029, reaching total shipments of 500 million.
- Smart Glasses: High-value extended reality use cases and novel devices like AI-enabled smart glasses will propel enterprise XR adoption, which will reach 20.23 million shipments by 2029.
- Humanoid Robots: Shipments of life-like robots will pick up pace in 2025, reaching over 180,000 per year by 2030, driven by lowering costs and novelty, as well as buoyed by demand in the near term.
- Security Software and Services: High demand for 5G-based network security software and services will drive a 30% CAGR for software and 35% for services, driven by a dearth of available experts and the need for managed solutions.
- Warehouse Management Systems: Investment will reach $8.6 billion, driven by the introduction of advanced planning and analysis capabilities, as well as the increasing numbers of connected devices and automated material handling solutions requiring orchestration.
- Data Analytics for Overall Equipment Effectiveness (OEE): ABI predicted these solutions will grow at a 13% CAGR, driven by the increasing importance of data utilization and the never-ending goal for complete transparency into factory-floor operations.
Slow- or no-growth areas
- Tablet Computers: Despite a 7% increase in 2024, tablet shipments will decline slowly through 2029, driven by a lack of compelling upgrades and lengthening replacement cycles.
- Smartphones: The market has been maturing, with demand being hampered by economic headwinds, a lack of compelling upgrades, and lengthening replacement cycles. However, adding Gen AI to smartphones could provide a boost.
- Datacenter CPU Chipsets: Declining from a 26% market share to 18% within the next five years.
- Industrial Blockchain: Revenue will fall almost 2% annually, driven by most applications for industrial blockchain having failed to move past the pilot stages into successful commercial offerings.
- Cloud Hyperscalers: By 2029, with 7,800+ data centers globally, cloud hyperscalers face intense competition from colocation data centers as enterprises turn to localized entities, allowing greater control over their data and infrastructure.
- Security Hardware: The CAGR for the next five years will remain modest at 7%, driven by the growing prevalence of software-based alternatives to traditional hardware security tools such as firewalls.
- Robotics Offline Programming Software: Revenue will grow at a modest 8.5% annual rate, resulting in turbulent years for smaller software vendors.
- Tethered and Mobile-based VR Devices: Shipments of these devices will plateau, accounting for only 34% of all shipments by 2029, driven by a lack of compelling upgrades and lengthening replacement cycles.
Conclusion
The future is difficult to predict in the fast-changing technology industry. However, ABI research shows the market favors more intelligent, cost-effective solutions. The researcher’s projections are a guide to where the market will shift.
FAQs
Q: What are the fastest-growing technologies?
A: Large Language Models (LLMs), Data Management Tools, Smart Home Devices, Smart Glasses, Humanoid Robots, Security Software and Services, Warehouse Management Systems, and Data Analytics for Overall Equipment Effectiveness (OEE).
Q: What are the slowest-growing or declining technologies?
A: Tablet Computers, Smartphones, Datacenter CPU Chipsets, Industrial Blockchain, Cloud Hyperscalers, Security Hardware, Robotics Offline Programming Software, and Tethered and Mobile-based VR Devices.
Q: What are the key drivers of growth in LLMs?
A: Enterprise software spending on LLMs continuing to grow rapidly, as proofs of concept mature into scaled deployments embedded across entire companies.
Q: What is the outlook for Data Management Tools?
A: The exponential growth of cutting-edge technologies such as machine learning and generative artificial intelligence (Gen AI) will generate more than $200 billion worth of data management opportunities worldwide by 2029.
