The Key Changes To Expect From The Technology Sector In 2020

  • Jan 10, 2020 GMT
  • Team Kalkine
The Key Changes To Expect From The Technology Sector In 2020
Technology Trends in the UK from the past

UK Technology sector has been punching above its waist for the past few years, with new companies, pursuing extremely unique ideas in various areas of the sector, both in terms of engineering as well as software. In 2018, total venture capital investment in the United Kingdom tech companies stood at a value of around £6.3 billion, crossing the threshold of £6 billion for the first time, and the highest among all the other European countries. This is a representation of significant growth in the UK’s tech chapter. Around 80 per cent of this investment was made in the high value scale-up firms, which make up for a majority in the technology economy. As per some media reports, in terms of the number of investments made during 2018, United Kingdom was on 4th, behind the likes of the United States of America, China and India.

There were some important technologies which hogged the limelight in 2019 in the United Kingdom, and it is important to have a look at them:

  • Blockchain – Blockchain is sometimes also referred to as Distributed Ledger Technology (DLT), because its primary function is the distribution of an asset, making it unchangeable and transparent, by pursuing a cryptographic hashtag. This technology is decentralised and allows 24*7 access real-time. The technology is primarily used in cryptocurrency, because of which, it faltered terribly in 2018 after the fall of the bitcoin. 2019 was a year of revival for the technology, primarily driven by the surge in crypto prices as well as because of the realisation of the usage of the technology in other areas, which contributed to its growth.
  • Artificial Intelligence – Artificial Intelligence (or AI) has become the backbone of the technology industry with some of the biggest companies making an investment in this area, which are proving to be a source of convenience for the customers. Consumers are moving towards a period of automatic decision making, and the idea of smart machines, being backed by the AI technology taking the driving seat in 2019, leading the way for the growth of this technology. This also led to ethical factors coming into the picture so that the technology doesn’t get out of control of the human hands.
  • Smarter Phones – Smartphones year on year has seen technological advancements that have never been seen before, coming out of the need for the consumers to have more convenience. This has led to Smartphone giants such as Huawei and Motorola to come out with foldable phones, as well as the advent and research around the 5G telecommunications technology, which will allow 100 times faster speeds as compared to the current scenario.
What To Expect From The Sector In 2020?

2019 was a successful year in terms of launching new technologies and making them be adopted by the consumers. The companies attracted a lot of capital for the purpose of research, development as well as bringing the products to market. In 2020, it is expected that some of these technologies will come to the forefront and be the drivers of growth for this sector, as well as the United Kingdom’s economy. It will be important to focus on some of this, to understand where the sector is heading.

  • 5G on Telecommunications – Even though the ultrafast internet and communication providing technology have already started rolling out in some parts of United Kingdom, 2020 will be a true test, as major commercialisation of this will start happening, across a wider spectrum of mobile phones, such as Samsung, Google, Apple and OnePlus. The interesting part about this technology spread would be the pricing at which 5G technology gets rolled out to the wider population and how will the public respond to this.
  • Virtual and Augmented Reality – Even though the virtual reality tech has existed for a long time, there has not been any excitement around this. The product was falling out on favour with the consumers, but by the end of 2019, the interest started ascending and 2020 could be a huge boost for this technology. This will primarily be driven by the video game industry, which is on the rise like never before, because of a large number of video game competitions happening around the world as well as anticipation towards newer consoles and games that will support virtual reality.
  • Big Data Analytics – Data and information businesses are on the ascent and this is not something that will slow down in 2020 either. Analytics will continue to be an important part of these businesses, which could provide a major boost to other businesses and to the economy as a whole in the United Kingdom.
  • Gaming Technology – There have been no major changes in the video gaming industry in the last 4 or 5 years primarily because of the fact that no console company, especially Sony’s PlayStation and Microsoft’s Xbox have not brought new consoles to the market. With the Advent of game producers coming out with the new in-game technologies, it was imperative for the console producers to do the same so that they could up with their pace. Hence, 2020 will be a big year in terms of New gaming products which will be a major attraction, especially towards the “Millennials”.
  • Tesla Cybertruck and eVehicles – 2020 is expected to be a huge year in terms of Electric vehicles, especially with all the countries under the Paris Climate Agreement, under pressure to do their part to brace from Climate change. A major boost in this area has been the advent of Electric Vehicles, and this year will be very important in terms of a global rollout of such products. This will also be important for the United Kingdom as this will be a major step towards the launching of Gigafactories that would boost up the infrastructural development of the economy.
  • Digital Healthcare Services – Wearables have been an important innovation, as customers have been really attracted towards the features of the products that enable them to keep a 24*7 check on their health. In the healthcare technology space, another innovation that we will be looking at in 2020 will be advent of other digital healthcare services, which might include the likes of delivery of healthcare products, digital tracking of severe ailments, platform-based treatments, as well as not in the near future, we will also be looking at a commercialisation of heavy biotech products for the Patient Care domestically, rather than in hospitals. We might also see some changes in Animal healthcare technology.
Stock price performance of two key Technology Stocks

Sage Group Plc Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 10-January-20, prior to the closing of the London Stock Exchange

As on 10th January 2020, at 12:10 P.M Greenwich Mean Time, by the time of writing, Sage Group Plc’s share price was reported to be trading at GBX 744.20 per share on the LSE, an increase in the value of 0.24 per cent or GBX 1.80 per share, in comparison to the previous day’s closing price, which was reported at GBX 742.40 per share. The company’s market capitalisation stood at a value of GBP 8.100 billion with regards to the current share price.

At the time of reporting, the annual dividend yield of the share was 2.30 per cent. The Annual dividend was reported to be at GBX 16.91.

The beta of the share of the company has been reported at 0.86. From this, we can infer that the movement in the value of Sage Group Plc share, is less fickle as against the movement of the benchmark index in the last twelve months.

Aveva Plc Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 10-January-20, prior to the closing of the London Stock Exchange

As on 10th January 2020, at 12:20 P.M Greenwich Mean Time, by the time of writing, Aveva Group Plc’s share price was reported to be trading at GBX 4766.00 per share on the LSE, a decline in the value of 0.13 per cent or GBX 6.00 per share, in comparison to the previous day’s closing price, which was reported at GBX 4772.00 per share. The company’s market capitalisation stood at GBP 7.707 billion with regards to the current share price.

At the time of reporting, the annual dividend yield of the share was 0.94 per cent. The Annual dividend was reported to be at GBX 44.50.

The beta of the share of the company has been reported to stand at 1.42. From this, we can infer that the movement in the value of Aveva Group Plc share, is fickle as against the movement of the benchmark index in the last twelve months.

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