ICT & Media Sector Surging Forward: A Comprehensive Industry Outlook for Q4 2023

The ICT (Information and Communication Technology) and media industry is a dynamic and sector that plays a crucial role in shaping our digital world. In a digital landscape, it serves as the architect of connectivity, enabling seamless communication, dynamic content delivery, and cutting-edge technological innovation. According to Allied Market Research, several significant developments have taken place in the fourth quarter of 2023, ranging from mergers and acquisitions to groundbreaking technological advancements, innovative partnerships, and collaborations. This industry outlook provides an in-depth analysis of key developments and trends that are shaping the industry, highlighting the impact on the sector’s growth and future trajectory.

Mergers & Acquisitions: Shaping the Industry Landscape

• In October 2023, Advanced Micro Devices (AMD), a leading semiconductor company, announced its acquisition of Nod.ai, an AI software startup, aiming to catch up with industry leader NVIDIA in the AI market. This strategic move positions AMD as a formidable player in the AI space and sets the stage for intense competition. With this acquisition AMD.O plans to invest heavily in the critical software necessary for the company’s advanced AI chips. With more such developments in the field, by 2032, the global artificial intelligence chip market is projected to reach $383.7 billion.
• In October 2023, Springer Nature, the global academic publisher, expanded its AI capability by acquiring Slimmer AI's Science division. This collaboration leverages emerging technology to enhance the publishing process, including identifying appropriate editors, increasing reviewer acceptance rates, and automating the identification of potential problems with scientific papers.
• In November 2023, Airbnb, the renowned hospitality marketplace, acquired AI startup Gameplanner.ai. This move strengthens Airbnb’s AI capabilities, enhancing customer experiences and personalization in the travel and hospitality industry. The startup will add to Airbnb’s existing set of AI technologies that include computer vision models, large language models, and machine learning. Analysis states that the global computer vision market is projected to grow at a CAGR of 18.7% from 2023 to 2032.
• In November 2023, Adobe made a significant foray into the AI video space by acquiring Rephrase.ai, a Bengaluru-based company renowned for its artificial intelligence (AI)-based video creation platform. This acquisition enables Adobe to leverage AI technology for video editing, revolutionizing the way content creators produce and edit videos.

Product/Service Launches and Technological Advancements: Elevating Industry Horizons

• In October 2023, Xreal, the Chinese augmented reality (AR) firm, launched the Xreal Air 2 AR glasses, challenging industry giants like Meta and Apple. These cutting-edge AR glasses offer immersive experiences and present new opportunities in various sectors, including gaming, entertainment, and productivity. The Xreal Air 2 and Xreal Air 2 Pro are lightweight glasses that are appealing to a wider array of consumers looking for an easy-to-wear product. As per analysis, by 2027, the global AR/VR smart glasses market is expected to garner $33.16 billion in revenue.
• In November 2023, Zee Entertainment Enterprises Limited (ZEEL) partnered with NASSCO, the premier trade body and chamber of commerce of the Tech industry in India, to develop generative AI solutions for India’s burgeoning media and entertainment sector. The partnership is part of NASSCOM's recently launched Generative AI Foundry programme, which aims to foster innovation and growth in the start-up ecosystem.
• In December 2023, Terra Quantum, the quantum software company, launched the TQ42 Quantum-as-a-Service platform, revolutionizing high-performance computing. This platform provides access to quantum computing resources, fueling advancements in scientific research, data analysis, and problem-solving.

Innovations, Partnerships, and Collaborations: Forging the Future

• In November 2023, Kyndryl, the world’s largest IT infrastructure services provider, signed a multi-year strategic collaboration agreement with Amazon Web Services (AWS) to accelerate customer adoption of generative AI solutions. By 2032, the global generative AI market is projected to reach $191.8 billion, increasing from $10.5 billion in 2022. This partnership combines Kyndryl's expertise in AI with AWS's robust infrastructure, empowering businesses to leverage AI for enhanced operational efficiency and decision-making.
• In December 2023, Augmedix, a healthcare technology company, partnered with Google Cloud to integrate newly introduced MedLM technology into ambient documentation. This collaboration streamlines the healthcare documentation process, enabling healthcare providers to focus more on patient care.
• In December 2023, Classiq, a leading quantum software company, and Oxford Quantum Circuits (OQC), a pioneering quantum computing hardware company, announced their partnership to explore the convergence of quantum computers and data centers. This collaboration aims to unlock the potential of quantum computing for solving complex problems and driving innovation across industries.

Exploring Other Notable Developments

• In October 2023, The Finnish Defense Forces entered into an automation services agreement with Digital Workforce Services, a leading business automation services company, valued at 1.2 million euros. This contract encompasses RPA and Artificial Intelligence solutions along with related professional services. This partnership enables the Finnish Defense Forces to leverage automation to enhance operational efficiency and effectiveness. Analysis states that the global robotic process automation (RPA) market is projected to reach at $19,534 million by 2027.
• In November 2023, Google expressed its interest in investing $4 million in Indian AI homegrown AI startup, Corover AI. This investment showcases Google’s commitment to fostering innovation in India's AI ecosystem. As a ‘strategic partner’, Google provides credits to Corover to access cloud computing.
• In December 2023, Digital Workforce Services PLC, a global provider of business process automation services and technology, and Robocorp, a provider of advanced AI-native Python automation technology, extended their partnership with a new 3-year agreement for advanced automation solutions. This collaboration aims to drive digital transformation by leveraging automation technologies.

ICT & Media: Shaping the Digital World

The fourth quarter of 2023 was a transformative period for the ICT & media sector. The industry experienced significant mergers and acquisitions, with companies strategically positioning themselves to compete in the AI and technology markets. Launches and technological advancements, such as AR glasses and quantum computing platforms, revolutionized various sectors. Innovative partnerships and collaborations drove the development of generative AI solutions and pushed the boundaries of what was possible in content creation, healthcare, and data centers. These events highlighted the industry’s commitment to innovation and its relentless pursuit of enhancing user experiences and operational efficiency. The future of the ICT & Media sector holds immense promise as it continues to shape our digital world. Explore the sector’s nuances with AMR insights. Get in touch with us.