Technological innovations coupled with complementary
public policies have a spillover effect that transcends into new areas of services and manufacturing.
Several dormant and stagnant industries benefit due to such an upward surge in demand of
products and services. There are several segments that have set benchmark with their technological innovation and in turn have opened doors for growth of complementary industries.
1.
Electric
Vehicles
Currently 3% of total vehicles in the world comprise
of electric vehicles (EVs). Governments are encouraging automakers to develop their internal capabilities and put EVs on roads in next 10-15 years. While
this seems like a feasible timeline there are certain factors that are detrimental to such growth plan. First of all OEMs doesn’t have the necessary research and
development (R&D) capabilities to transition from internal combustion
engines to battery powered technology. Further it is plagued by dearth of battery suppliers and inadequate availability of charging stations. However, the road does not
seem gloomy after all, since there are technological giants such as Tesla who
are pioneers of innovation in EV technology. In contrast, auto OEMs would require a joint collaborative effort for synchronizing their
capabilities for achieving desired output.
Spillover effect
will have positive effect on the following
industries:
·
Battery
manufacturers
·
Aluminium sheet
manufacturers to take advantage of light weight auto body
·
Infrastructure
for supporting charging stations
·
Electronics
manufacturers for supplying accessories to charging stations and vehicles
Spillover effect
will have negative effect on the
following industries:
·
Steel
manufacturers
·
IC engine
·
Gas and oil
producers and suppliers
·
OEMs without
dedicated R&D for electric vehicle technology
2.
Artificial Intelligence
Next on our list is artificial intelligence which has made a lot of noise in last five years. The exponential rise of digital data and online consumers has resulted in the use
of AI for several features primarily in areas of NLP, text and speech recognition. However,
it is not just limited to digital media, but has moved into other areas of automation and is fuelling the growth of drones and driver less cars. AI would create jobs for high skilled workers and would transform business from operating mode to controlling mode. This has been one of
the talking points debated in last decade.
Spillover effect
will have positive effect on the following
industries:
·
Automation and
AI driven technologies
·
Supporting
technology such as IoT, Cloud computing etc.
· Change from BPO (Business Process Outsourcing) to BCO (Business Control Outsourcing)
Spillover effect
will have negative effect on the following
industries:
·
Service sector
·
Manual labor
·
Traditional
manufacturing
3.
Blockchain
Blockchain technology has recently become the automatic choice of various industries. This is largely credited to the positive sentiment resulting from its short span success with
cryptocurrencies. It is an old field of distributed systems which came into limelight in last few
years. Decentralized control and in built trust mechanism is built for
ensuring secure transactions, thanks to large computing power and consensus
mechanism. It requires large amount of computation power for securing huge volume of digital transactions and would aid the dormant GPU industry,
who are viewing it as a long term market. Bigger customer base and larger frequency of digital transactions, imposes additional requirement for computing hardware. Well, it is
still early to predict its success, but with emergence of enterprise and public
blockchain platforms, it seems like it might gain general acceptance in near future.
Spillover effect
will have positive effect on the following
industries:
·
GPU
manufacturers
·
Cloud mining
·
Digital
transaction
Spillover effect
will have negative effect on the following
industries:
·
Third party
security
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