High-Tech

High-Tech Industry Trends & Challenges

Rapid technological progress means that products often have a relatively short life – around one to three years from market introduction to the peak in sales revenues. Consequently, high-tech companies have to be adaptable and responsive to both changes and advancements in technology and also changes in consumer demands and requirements.

Some of the underlying trends that continue to drive the industry forward include:

  • Automation and Technologies
    • applications for the Internet of Things
    • generative AI
    • XaaS business models
  • Macroeconomic
    • capital investment
  • Supply and Demand
    • Next Generation Automotive
    • semiconductor shortages
  • Sustainability
    • circular economy initiatives.

While some of the challenges facing the industry include:

  • geopolitical tension
  • supply chain volatility
  • raw material shortages
  • emerging regulations
  • environmental pressures
  • cybersecurity

What is the current position of the high-tech industry?

In 2024 cloud computing and artificial intelligence will continue to dominate the high-tech industry, but edge computing will likely grow in importance. Many companies are motivated to move to cloud computing because it can reduce costs, optimize processes, and enhance flexibility.

Edge computing and 5G connectivity create a reusable and versatile platform that supports the full potential of connectivity and computing capabilities for advanced technologies such as AI. This has the capability to deliver value for cases that demand low latency and effective use of limited bandwidth, including:

  • autonomous vehicles
  • offshore oil rigs
  • security and assembly line cameras.

The industry is currently in a period of high investment in infrastructure following the semiconductor shortages induced by the pandemic. However, high-tech plants are extraordinarily expensive and require many years to build and reach peak manufacturing capacity.

Solving this supply issue is a key goal for 2024, given the growing influence of software in not just high-tech, but a whole host of other global industries such as:

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  • Identify differences between the major chemicals sectors.
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  • Recognize the role of various business functions within a typical chemical manufacturing company.
  • Recall key metrics used to measure business performance.
  • Answer questions regarding industry trends and business initiatives.

High-Tech Industry Insights

Cambashi High-Tech Industry Insights offers tactical industry intelligence updated by industry experts, that provides the latest information from across the globe:

  • Tactical industry intelligence updated in real-time by industry experts
  • The latest trends & challenges, business drivers, products & services, and technology
  • Business strategies and initiatives
  • Key players and consumer perspective
  • Industry terminology and metrics
  • Deeper knowledge across a variety of industry subjects

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Value-added

  • Similar to GDP per industry.
  • Shows relative sizes of industry sectors.
  • Reveals economic activity, distribution, and growth drivers.

Engineering Software

  • Indication of R&D spend per industry.
  • Enhances operational efficiency, demonstrating technological sophistication.
  • Crucial understanding of sector uses for optimization and productivity.

Employment

  • Demonstrates industry size by employment.
  • Shows types of employees by occupation.
  • Demonstrates geographical differences by occupation distribution.

Technology

In such a technology-driven industry the success or failure of high-tech companies relies to a large extent on their IT infrastructure and software applications. High-tech companies are often early adopters of new IT technologies, gaining technological, process, and commercial advantages.

High-tech IT investment aims to:

  • improve innovation and efficiency in design, and manufacturing – across the whole supply chain
  • reduce costs across the whole business
  • speed up time-to-market.

Factory automation, the use of robots, flexible production lines, just-in-time production systems, and quality management are core technologies essential to manufacturing performance. 

The industry has also been instrumental in advancing information technologies that support business processes across the value network including Resource Planning (ERP), Supply Chain Management (SCM) and Lifecycle Management (PLM).

Here we can see the relative sizes of the Computer-Aided Technologies (Mechanical CAD, Mechanical CAE, CAM) and PLM software sectors in the global high-tech market. The total is worth over $US 2.8 billion annually. Note how MCAD and MCAE are the largest technology segments, which highlights the importance of design, analysis, and simulation in the high-tech sector.

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Design/Engineering/Manufacturing Software Market Share – High-Tech Industry

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