As a result of Industry 4.0, production, improvement, and distribution processes are seeing radical changes. Changes in technology, industry, techniques, and cultural norms have started to happen, especially during the last two decades. It has enabled different industries to make use of cutting-edge tools and technologies, giving them a competitive edge in a dynamic market through enhanced connectivity and better automation.
So, what does this mean for the future of the industrial sector? In this post, we’ll talk about some of the recent changes that will happen in the top industries because of the digital transformation and how these changes will affect the future of these industries as well:
Healthcare
Due to overcrowding and the risk of contamination in hospitals, both patients and medical professionals have been forced to quickly embrace telehealth consultation services and remote health monitoring. Telehealth promoters have been presenting their case to the industry for some years, claiming the method’s potential to reduce healthcare spending, relieve pressure on already-stretched healthcare systems, and expand access to medical treatment in neglected and rural regions. Still, a hybrid approach to working out at home is likely to stay popular in 2023 because virtual fitness is becoming more popular and digital courses are cheaper than those in fitness studios.
Banking
The digital transformation for banking has been a little slow in arriving. Contactless payments, phone banking services, and technological developments in the domains of loans and insurance have been on the rise for some years now and will continue to rise in 2023 and beyond. Grocery shops, restaurants, and similar businesses are rapidly implementing contactless payment solutions to better meet consumer demand. But there’s more: In addition to developed economies, emerging markets are also seeing an increase in the use of online banking. Also, the outbreak in the last two years has shown how important and useful parametric insurance is. This type of insurance is likely to grow even more in 2023.
Education
The edtech sector is expected to reach a $350 billion market capitalization by 2025, thanks to years of investment by schools and universities in modernizing infrastructure to accommodate digital substitutes to the classroom. The peak of the pandemic was covered by remote learning technologies and online courses, but the general comeback to in-person learning suggests that distant learning will mostly remain a backup option. The big technology firms will also make efforts to prove their products’ worth to schools and teachers. Several e-learning platforms will also see a significant increase in demand for their services in 2023.
Manufacturing
The healthcare equipment industry, which has witnessed a dramatic growth in the demand for essential items like face masks, respirators, and testing swabs, is the most glaring example of digital transformation. The 3D printing industry has stepped forward to fill in the blanks. Manufacturers will likely take precautions to protect themselves against unforeseen events. An increase in investment in adaptable, modular, automated systems that minimize the sector’s reliance on human labor and aid manufacturers in responding to fluctuating demand is a possible option. In 2023, this trend is likely to speed up with the arrival of 3D printing and other forms of industrial automation.
Entertainment
Before 2020, live events like concerts, sports tournaments, and food fairs were still popular, despite the rise of OTT entertainment services. With physical venues closed and mass gatherings got banned for some time, many people have resorted to digital substitutes. This new phase will bring a huge number of new customers into nascent domains like virtual reality and e-sports in 2023, resulting in a rise in demand that is unlikely to halt for at least a decade. There has been a dramatic increase in the ambition level of event planners considering how to host huge online events. Online events that used to be unthinkable are happening more and more often, and this trend is likely to keep going.
Food Services
Even before the pandemic, the sit-down restaurant industry was beginning to unbundle. The recent rise in the number of people ordering food online simply adds to the trend. When this transition happened “instantly,” it might now take a decade or more as more and more restaurants switch to delivery exclusively. Industrial kitchens and delivery-first restaurants seem set to arise as winners on the contrary side as more food companies aim to adopt a made-for-delivery strategy in the coming years. Last-mile food delivery services have also been a constant topic of discussion in the media.
The Bottom Line
Although we believe that the numerous trends we’ve mentioned will continue to find momentum in 2023, there is always the risk of a sudden change in consumer preferences and a revolt against the standards. But one thing is evident: digitization is likely to stay for decades and will continue to grow over time.
