Coronavirus and Technology Sector – 5 Affects on Tech Industry in 2020
31 March 2020
The telecommunications and consumer technology are the
biggest markets in the world. It continues to feel the impact of the
coronavirus. China, which holds more than half of the technology market is
feeling the pain as initial outbreak of Covid-19 disrupted the global supply
chains. Coronavirus has grown into a global pandemic and is spreading rapidly
around the world with over 100 countries affected, thousands dead and lakhs of
confirmed cases. Now the consequences have become even more far-reaching and
less predictable. How technology industry will be in 2020? Let’s see 5 major
ways the coronavirus will affect the connectivity and tech industry in 2020.
According to Export
Genius global trade data, total goods under technology industry valued US$
2,744 billion were exported and US$ 2,972 billion were imported by world
countries in 2018. Both in terms of imports and exports of tech products, China
remained on top with trade value of US$ 1,166 billion.
Here are five ways we expect the coronavirus will
affect telecommunications and consumer technology industry in 2020…
1.
Major
Disruption to Supply Chains
China, which is the world’s largest marketplace of technology products, was hit hard by coronavirus outbreak. The disease originated from China has led to partial and full shutdowns of plants and factories, some of which were being used by prominent technology companies to manufacture their goods. For instance, Apple experienced shortages on its iPhone supply. As a result, company’s primary manufacturer, Foxconn has shut down much of its production in China.
2.
Global Tech Conferences Cancelled
Due to ban of
large gatherings and stop spreading coronavirus, many global tech conferenced
were cancelled. The popular Mobile World Congress (MWC), which was scheduled to
take place Feb 24-27 in Barcelona, was cancelled. This event brings together
the most important companies in the space to network, share innovations and
forge new business partnerships.
Other cancelled global tech conferences and events are
Facebook’s F8 Developer Conference & Global Marketing Summit and IBM’s
conference on developers. Google shifted its Google Cloud Next event online
only. According to a research report, major tech events have incurred more than
$1 billion in direct economic losses.
3.
The Need of 5G Technology Rises
In order to connect with remote areas amid the
coronavirus pandemic, the need of 5G technology is rising, potentially
accelerating adoption in the long term. 5G’s lightning-fast speeds, increased
connection density and near-instantaneous are required for remote interactions
in this difficult situation.
Basically, there are two key areas – telehealth and
teleconferencing, which are becoming critical for enterprise operations amid
the pandemic. Telehealth is the new standard technology, which empowers physicians
to diagnose, treat and operate on patients without the need to be physically
near them. It was designed by ZTE and China Telecom as a 5G-powered system in
January 2020. Teleconferencing is a popular tool for employees to work in a
situation of public health concerns. Now the 5G connection will be able to
provide real-time and uninterrupted communication that’s not possible with the
most wired connections today.
4.
More Use of Virtual Reality (VR) Boosting Technology’s
Uptake
Due to coronavirus outbreak in the world, most of the
companies have adopted work from home option by themselves or is asked by the
government. Big tech companies including Google, Apple and Microsoft have let
their employees to work from home due to fear of Covid-19. So, the companies
have been identified VR as a tool to improve employee training, but the
coronavirus could prove that VR is an effective way to work from home. For
instance, technicians can practice repairing industrial equipment without leaving
their home.
5.
Smart City Technology Solution in Crisis Management
Cities around the world are utilizing smart city
technology in attempts to control the impact of coronavirus. For instance,
police in China are using drones with thermal sensors to identify people with
fever. And the South Korean government has developed a smartphone app that puts
self-quarantined individuals in touch with caseworkers.
Therefore, the smart city technology is proving to be
worthwhile investment in crisis management. According to market analysts, the
smart city investment will reach $295 billion by 2025, up from $131 billion in
2020.
Although supply chain is affected due to coronavirus,
technology industry would still get boosted in 2020 when things will become
normal.