Whoever experienced the technology drill of 2022, its boom and low points, and its increased integration of advanced technologies and innovations in our everyday lives across the world will be quick to agree that the world has embraced technology more than before. For entrepreneurs, investors, tech professionals, and emerging tech talents, 2022 was not a fantastic year.
Regardless, major successes were recorded. There was the high integration of “deep fakes” technology – a hyper-augmented reality and expansion of global internet and satellite reach. The positive improvements bring continents like Africa to the forefront of benefiting from these innovations. For instance, in Nigeria,2022 was a year of great investment in startups and a creative infusion of Mixed reality and virtual reality in every sector of the economy.
The following are enough reasons to be excited about 2023.
Predictions for The Nigerian Tech Industry
The tech industry in Nigeria in 2023 is likely to continue growing rapidly due to increasing access to technology, a growing population, and budding, tech-savvy entrepreneurs. The Nigerian government is likely to play an active role in promoting the tech industry through initiatives and policies, such as investment in infrastructure, more support for startups, and the listing of some startups on the Nigerian Stock Exchange to encourage innovation, entrepreneurship, and funding. Overall, the future looks bright for the Nigerian tech industry, with many opportunities for growth and innovation.
Adoption of Artificial Intelligence and Machine Learning
The hunger for artificial intelligence (AI) and machine learning (ML) will skyrocket in various industries, enabling businesses to improve their operations by offering more personalised services to their customers. These technologies have the potential to revolutionise various sectors, such as healthcare, agriculture, and transportation. More investments will likely be seen in these areas and the development of innovative solutions that leverage these technologies. The increasing availability of high-speed internet and the use of mobile devices will drive the growth of e-commerce, AI, ML and fintech in Nigeria.
5G and Blockchain Technology
The increasing adoption of 5G technology will open new possibilities for businesses in areas like telemedicine and the Internet of Things in 2023.
We’ll see an increase in the availability and reliability of 5G networks when it is eventually rolled out across the country.
Blockchain technology found its path to the Nigerian space, and its potential role in data security and transparency in transactions places it as a big need going forward.
People realised it’s not solely about Cryptocurrency as it has opened a whole host of new possibilities for businesses and individuals alike due to its robust security measures and privacy-enhancing capabilities.
Aside from penetrating the core sectors, these technologies will empower Nigerian tech companies to solve one of the country’s most pressing problems, such as poverty and unemployment.
Listing of Nigerian Startups on Nigerian Stock Exchange
Although the macroeconomic slide in 2022 concerning Initial Public Offerings for startups globally, Nigeria, at the end of the previous year, announced the government’s interest in having Nigerian and African tech startups listed on the Nigerian Stock Exchange. This will go a long way in opening alternative channels for startups and companies to raise funds for their businesses. Even though this listing may not directly affect all the startups or companies in Nigeria, it will serve as a breath of fresh air and hope for emerging tech startups and companies in the new year.
Increase in Alternative Fintech Solutions
Presently, Africa is at the forefront of the creation of fintech solutions. Many of these alternative fintech solutions have become drivers of major African countries’ economies. The growth potential of this market will be about $230 billion in 2025, and as such, it is expected that more related solutions will litter African nations by 2023.
In Nigeria, even though the proptech revolution is relatively new in Nigeria, it is expanding at a rapid pace considering the number of investors showing interest in the sector. There will be an upspring of a lot of proptech businesses this year.
There will also be a sharp rise in fintech solutions, most of which will spread beyond offering banking-centered solutions to penetrating core sectors like agriculture, health, gaming, education, and lots more.
Increase in E-commerce, Online Marketplaces
A major trend that we will see in Nigeria is the growth of e-commerce and online marketplaces. Many consumers will continue to turn to the internet for their shopping needs. More businesses will be forced to adapt and offer online products and services. This will lead to an increase in competition, as well as provide opportunities for new players to enter the market. Technology entrepreneurs in Nigeria will need to build strong teams, develop innovative products and services, and find ways to access new markets and customers.
The Metaverse, Here to Stay
The metaverse and NFTs will be strong actors in the drive for immersive technology innovations going forward. This is owing to the gradual success and acceptability they received in 2022. It has been described as the next level of the internet. Also, the increasing adoption of digital payments and online banking will widen the population of startups and established companies launching innovative solutions to make financial transactions easier and more efficient. Many of these innovations will not only satisfy local consumers but also aim to solve global payment challenges via the complimentary use of advanced technologies.
Foreseeable Challenges in 2023
One challenge the industry is facing and will continue to face is the lack of reliable infrastructure and access to electricity, which will limit and frustrate the growth of some businesses. Another challenge will be the high demand for skilled workers as the industry continues to shed older use technologies for newer ones. To solve this, business owners will have to invest more in renewable energy sources to power their companies and infrastructures.
An aggressive approach to training and developing the emerging workforce population is crucial to the survival and continuity of many tech organisations. This is because the young ones are going to take over from experts who are presently leaving the country in search of greener pastures.
Predictions FOR THE Global Tech Industry
On the global scene, 2023 will certainly be a cautious year wherein tech companies will be on edge to achieve more with fewer funds, strategically overlap value with innovations, and make sure every investment is geared towards high-yielding ideas and solutions. Below are major predictions for the global tech industry.
Collaborative Technology Application
Despite the wave of various technology trends in 2022, what counts to stakeholders is the collaboration and use of these innovations to solve critical problems in the sector and country. Industry experts and investors have concluded that the new year is filled with uncertainty. This uncertainty breeds new possibilities that foster growth, adaptation, high productivity, profitability, and a real-time solution to unforeseen challenges that may arise. A good example is the collaborative technologies adopted in new electric car production. That is, a combination of cloud and edge computing, applied AI and ML driving mechanisms, use of sustainable consumption and energy filtering technologies in creating vehicle electrification through lighter composites and advanced battery capabilities. The goal of this optimal use of technology is to align electrification, independence, intelligence, and connectivity in redefining possible human mobility.
Massive Adoption of AI, Cloud Computing
The massive adoption of AI, cloud computing and integration foretell a drastic outlook for more metaphysical interconnectedness. Many tech companies are seriously rooting to have most of their IT environments on cloud as others have stretched themselves into adopting one or more AI solutions to their daily business lives.
Many companies will integrate AI into their products and services, which may draw out a stricter IT budget for the year. But tactical players will recognise the potential of this necessary shift. These players understand that investments in automation, data foundations, erasing tech debts, and incessant IT infrastructures increase their chances with modern technologies.
Impact of Tech Layoffs in 2022
Another thing to look out for is the effect of 2022 layoffs on the industry’s performance and productivity chain. Even though 2022 revealed to many tech companies that have a booming fit is never an eternal reality, the call to the tech industry globally is to get going with less – have a culture of spending less to achieve more. A typical example is what Elon Musk did with Twitter when he realised the company was not making enough profit despite its large workforce strength. He immediately shrunk the workforce and monetised the verification icon on Twitter.
Furthermore, another method to achieve this is by drastically maximising the talent pool. There is a clear distinction of roles for tech experts. Allow experts to spend more time on actual developmental functions. Also, the increase of top talent injections into the marketspace is a readiness alert for companies to prepare for a massive talent harvest if they are ready to acculturate regular advancement of their facilities. A perfect sample for this is companies wielding their strength to build solid cloud foundations, allowing their talents to develop appropriate multi-facet application sequences and economically install major cloud capacities.
Decentralised AI innovation
2022 recorded one of the biggest uses of decentralised AI innovations. Unlike what was obtainable before then, decentralisation was just in the hands of limited players. The boom in access to these advanced technologies has endeared more end consumers to AI. The practical reality is seen in the disruptive power of the ChatGPT product. ChatGPT is an AGI (Artificial General Intelligence) product that uses human intellectual sensory models to perform functions like compositions, summary, paraphrasing, and software code adjustment. This increased access has empowered many persons to connect with deep learning and a higher productivity rate globally. 2023 foreshadows a more decentralised tech space where more access will spread across limited big datasets like health, entertainment, agriculture, media, and more. But companies that refuse to jump on this trend might have themselves to blame in the next phase of global advancement signalled by the year 2023.
The Super App Factor
There is a high possibility that 2023 will experience a surge in “super app” startups and organisations. A super-app is a mobile or web application that can provide multiple services, including payment and financial transaction processing.
Many businesses will be driven by the need to integrate vertically into the cyclic revenue streams to cut down on developmental implications. A good example of this is what is happening with Twitter, wherein Elon Musk is working hard to turn the app into a super app called ‘X’. This change will allow it to make payments, play games, onboard e-commerce, and live stream events. There will be more “do everything or super apps” in 2023.
In conclusion,2023 will be a year of foreseeable technological innovations and advancements. Many will redefine and transition into the new phase of human relationships with technology.