Top 5 tech trends for next 10 years (according to McKinsey) Technology is transforming the world at an unprecedented pace. From automation and artificial intelligence to biotechnology and clean energy, new innovations are reshaping every aspect of our lives and work. But what are the most important technology trends that will shape the next decade? And how can businesses and individuals prepare for them?
In this article, we will summarize the findings of a recent report by McKinsey & Company, which identifies and analyzes the top 10 technology trends that will dominate the coming decade. We will also provide some insights on how these trends will impact various industries and sectors, and what challenges and opportunities they will create.
1. Process automation and virtualization
Process automation and virtualization are the use of digital technologies to automate and optimize various tasks and activities, such as manufacturing, logistics, customer service, and more. By using robots, sensors, software, cloud computing, and other tools, process automation and virtualization can increase efficiency, quality, speed, and flexibility, while reducing costs, errors, and waste.
According to McKinsey, process automation and virtualization will affect around half of all existing work activities in the next few decades. By 2025, more than 50 billion devices will be connected to the Industrial Internet of Things (IIoT), generating around 79.4 zettabytes of data per year. This data can be used to monitor, control, and improve various processes across industries.
Some examples of process automation and virtualization include:
- 3D printing, which can create physical objects from digital models using layers of materials. 3D printing can enable faster prototyping, customization, and on-demand production of various products.
- Digital twins, which are virtual replicas of physical assets, systems, or processes. Digital twins can be used to simulate, test, and optimize various scenarios and outcomes without affecting the real-world counterparts.
- Robotic process automation (RPA), which is the use of software bots to perform repetitive and rule-based tasks, such as data entry, invoicing, or payroll. RPA can free up human workers from mundane and low-value tasks and improve accuracy and compliance.
2. The future of connectivity
The future of connectivity refers to the development and deployment of faster, smarter, and more reliable digital networks that enable seamless communication and data exchange among people, devices, and machines. These networks are powered by technologies such as 5G, Wi-Fi 6E, satellite internet, edge computing, and blockchain.
According to McKinsey, the future of connectivity will unlock significant economic value in the next decade. Implementing faster connections in mobility, healthcare, manufacturing, and retail could increase global GDP by $1.2 trillion to $2 trillion by 2030.
Some examples of the future of connectivity include:
- 5G, which is the fifth generation of mobile network technology that offers ultra-fast speeds (up to 100 times faster than 4G), ultra-low latency (up to 10 times lower than 4G), and ultra-high capacity (up to 100 times more devices than 4G). 5G can enable new applications such as autonomous vehicles, smart cities, telemedicine, virtual reality, and more.
- Internet of Things (IoT), which is the network of physical objects embedded with sensors, software, and connectivity that can collect and exchange data with other devices or systems. IoT can enable smarter homes, factories.
3. Distributed infrastructure
Distributed infrastructure is the decentralization and diversification of the physical and digital systems that support various functions and services, such as computing, storage, networking, energy, and mobility. By using technologies such as cloud computing, edge computing, microgrids, and blockchain, distributed infrastructure can increase resilience, scalability, security, and sustainability.
According to McKinsey, distributed infrastructure will enable new business models and value propositions in the next decade. For example, cloud computing will enable more flexible and cost-effective access to IT resources and services. Edge computing will enable faster and more localized data processing and analytics. Microgrids will enable more reliable and clean energy supply and distribution. Blockchain will enable more transparent and secure transactions and data sharing.
Some examples of distributed infrastructure include:
- Cloud computing, which is the delivery of computing services such as servers, storage, databases, software, analytics, and intelligence over the internet. Cloud computing can reduce IT costs, increase scalability and performance, and enable innovation and collaboration.
- Edge computing, which is the processing of data closer to where it is generated or consumed, such as at the edge of a network or on a device. Edge computing can reduce latency, bandwidth consumption, and privacy risks, and enable real-time insights and actions.
- Microgrids, which are small-scale power grids that can operate independently or in conjunction with the main grid. Microgrids can use renewable energy sources such as solar or wind, and provide backup power in case of grid failures or emergencies.
- Blockchain, which is a distributed ledger technology that records transactions in a secure, transparent, and immutable way. Blockchain can eliminate intermediaries, reduce fraud and errors, and enable trustless collaboration among various parties.
4. Next-generation computing
Next-generation computing is the development and adoption of new paradigms and architectures for computing that go beyond the traditional von Neumann model based on binary logic and sequential processing. These include quantum computing, neuromorphic computing, probabilistic computing, DNA computing, and more.
According to McKinsey, next-generation computing will unlock new possibilities for solving complex problems that are beyond the reach of current computers. These include optimization problems in logistics, finance, and healthcare; simulation problems in chemistry, physics, and biology; machine learning problems in natural language processing, computer vision, and recommendation systems; and cryptography problems in security and privacy.
Some examples of next-generation computing include:
- Quantum computing, which is the use of quantum mechanical phenomena such as superposition and entanglement to perform computations that are exponentially faster than classical computers. Quantum computers can potentially solve problems that are intractable for classical computers, such as factoring large numbers or finding optimal solutions for traveling salesman problems.
- Neuromorphic computing, which is the design of computer systems that mimic the structure and function of biological neural networks. Neuromorphic computers can potentially perform tasks that are difficult for classical computers.
5. Trust architecture
Trust architecture is the design and implementation of systems and protocols that ensure the security, privacy, and integrity of data and transactions in the digital world. By using technologies such as encryption, authentication, verification, and blockchain, trust architecture can protect against cyberattacks, fraud, and identity theft.
According to McKinsey, trust architecture will become more critical and complex in the next decade, as more data and value are exchanged online. The global cost of cybercrime is expected to reach $10.5 trillion by 2025, up from $3 trillion in 2015. The demand for cybersecurity solutions and services will also increase, creating new opportunities for innovation and growth.
Some examples of trust architecture include:
- Encryption, which is the process of transforming data into an unreadable format that can only be decrypted by authorized parties. Encryption can prevent unauthorized access, modification, or leakage of sensitive data.
- Authentication, which is the process of verifying the identity of a user or a device that requests access to a system or a service. Authentication can prevent impersonation, spoofing, or hijacking of accounts or devices.
- Verification, which is the process of confirming the validity or accuracy of a piece of information or a transaction. Verification can prevent falsification, manipulation, or corruption of data or records.
- Blockchain, which is a distributed ledger technology that records transactions in a secure, transparent, and immutable way. Blockchain can eliminate intermediaries, reduce fraud and errors, and enable trustless collaboration among various parties.
