Telecommunications technology and infrastructure will continue to evolve as the data age progresses, according to a new report from strategic consultancy Bain & Co, which suggests that a new wave of content creation, technology and innovation will emerge around the Metaverse and Web3.
The firm indicates that, with exceptional investments made by Microsoft, Meta, Google, Apple and Tencent, there are already thousands of companies in the ecosystem and more than $80,000 million (about 82,400 million euros) of initial funding from venture capital. Hedge funds, private equity and other investors. “With Web3’s innovation and metaverse in the market, there are possibilities in the fields of video games, physical engines, twinning and digital simulation, parallel computing hardware and commercial uses for training, collaboration and productivity,” he says.
With regard to the industry as a whole, the report noted that high-growth technology companies have been most affected by recent market changes, however, “70% of companies are expected to increase or keep technology budgets in 2023.”
The consultancy says the increase in the distance between the world’s two largest economies is faster, wider and deeper than expected. Thus, he points out that, while the US intensifies regulation and supervision of Chinese companies, China has committed to allocating $1.4 trillion over five years to build strategic digital technologies and infrastructure at the national level. “This comes at a time when the Chinese Internet is moving away from global networks to develop its own local version,” he says.
Regarding global chip shortages, Bain & Co. points out that while some companies have started to see improvements this year, others will have to wait until 2024 or more for a fix. But despite recent investments and signs of improvement, the return period is expected to be uneven and dependent on various circumstances beyond management’s control.
