Technology is becoming so much of our lives that the term “tech” as a separate discipline almost seems redundant. Small businesses rely on cloud computing and AI to get tasks done more efficiently and stay ahead of the competition.
A technological edge is often a bullish indication for stock. When a CEO in a quarterly earnings report speaks of increased efficiency and a decrease in costs resulting from implementing new technology, stock prices tend to see an uptick. For this reason, companies are continually implementing innovative solutions.
The following are not necessarily new technologies, but they are likely to impact company performance and stock prices in 2022 significantly. Moreover, many of them continue on existing trends that can have as much impact and often more than introducing new technology.
Here is a partial list of the technological trends that are likely to impact stocks in the year ahead:
- Sustainability
- Online Higher Education
- Device and Nanotechnology
- Internet of Things
- Cloud Computing
- Hyperautomation
- Cybersecurity Mesh
Sustainability
It wasn’t long ago that there was a tension between environmental concerns and commerce, but many companies and governments have realized that green can also symbolize money. With increasingly dire predictions about climate change and the future of the planet and corporations working together with governments to meet emissions targets, sustainability will be an essential key to profitability.
According to a survey, 45% of consumers said they were interested in actively looking for companies and products that made sustainability a major priority, and 44% said they preferred recycled products. In addition, companies are increasingly adopting new technologies that will increase efficiency and reuse materials, and lessen their carbon footprint.
Online Higher Education
The “Great Resignation” that has encouraged many Americans to avoid returning to their old jobs under former conditions may also cause students to rethink higher education. During the COVID-19 crisis, students had to learn at home through Zoom classes and internet courses. This has encouraged many to look at university in a different light.
Although there are many social advantages of four-year colleges and universities, the specter of student debt and the lack of job security afterward has led to a mass reappraisal of assumptions that college education in a physical school is necessary to get ahead in life.
The younger generation enjoys the convenience of learning at home, and as a result, demand for online learning will pick up. This is good news for online education, which was a healthy sector in 2020 and 2021, and the trend should continue into 2022.
Devices and Nanotechnology
MEMs and nanoparticles are the keys to solving myriad problems and can cut costs and increase efficiency. For example, tiny sensors can assist with quality control, reduce waste and ensure that everything on the production level is functioning correctly. Nanotechnology can also give materials new features such as making leather waterproof, for instance.
In an increasingly competitive market, feature marketing is a smart strategy that can give specific products an edge over similar items on the market. Nanotechnology can help businesses engineer unique, specialty features and products that can make them competitive.
Internet of Things
The world is getting smarter. This may not have to do with human brainpower or knowledge, but more objects in our world are online. The internet of things or IoT has been around for a few years, and the trends for IoT in 2022 will be in security, machine learning, and healthcare. In addition, cities are considering implementing IoT for traffic lights, utilities, and parking meters. IoT can also improve customer service, which can drive revenues from existing customers.
Cloud Computing
Cloud computing is hardly new, but what is new is that it is becoming almost universal. Not only are government offices fully digitized, but they are seeking the transition onto the cloud. This is good news for SaaS companies who seek lucrative and long-term government contracts. As hybrid cloud combines the public and the private and companies envision a serverless technology, cloud computing is adapting to the needs of public and private entities.
Hyperautomation
Hyperautomation refers to the practice of businesses to automate as many processes as they can more quickly and thoroughly. As a result, companies have realized the cost savings and increased efficiency of hyper-automation, and the trend will continue in 2022.
According to Gartner, the hyper-automation market in the US is expected to be $532 billion by the end of 2021 and reach $596 billion in 2022. Companies are seeing the advantages of increased IT and more business process automation and understanding that these changes are necessary for their survival. Increasingly popular solutions include virtual assistance, robotic process automation, and artificial intelligence.
Cybersecurity Mesh
Everyone knows why cybersecurity is essential, but the COVID-19 crisis signaled specific vulnerabilities that require innovative solutions. As the result of lockdowns and more employees working at home, businesses faced new threats since they could not control cyber security on devices outside a certain perimeter. As employees were working on unsecured networks and dealing with sensitive information on devices that were not optimally protected, companies sought cybersecurity mesh systems.
Cybersecurity mesh technology changes the emphasis of cybersecurity from focusing on location and protecting many devices and data in a network to securing individual components in the network to improve overall security. As many employees say they prefer to work at home for the long term, cybersecurity mesh solutions will be in demand for 2022.
Tech Disruption in 2022
Analyzing the top trends for 2022, many of which were analyzed in detail in the Garner report, it is clear that trends that began as a result of the COVID-19 pandemic are still with us even as economies open back up. With increasing numbers of workers opting to stay in remote offices or not to return to their former jobs, cybersecurity mesh, automation, and cloud computing are trends that will continue to be strong in 2022.
