Top Industry Trends Set To Shape In 2022

Overview

The past couple of years has brought in a window of paradigm-shifting changes in the world. All industries are innovating quickly with these changes by altering their business models and adopting newer technologies. Deep Tech startups and companies are becoming popular by bringing revolutionary breakthroughs with technological and physical applications (Food alternatives, Fusion energy, Energy storage solutions, quantum computing, synthetic biology etc.) in wide-ranging industries, which will shape their future in the coming years. The future holds many more innovations in its pocket. Here is an account of the latest trends defining the future of 6 key industries in this new year.

BFSI Industry

The pandemic has made it more than necessary to change the existing business models for the financial institutes and upgrade to better technology to give a better experience to the customers. The last couple of years has presented the industry with new challenges.

• Many Institutions faced revenue pressures and, in turn, low profitability and capital inadequacy because of regulatory compliances and lower interest rates. 
• More and more FinTech startups are emerging, making it inevitable for existing service providers to evolve their business models and technology adoption to stay competitive in the technology era. 
• Customers' expectations are immediate, personalised services from the financial service providers requiring the firms to make necessary changes to retain their customer base.
• Cyber security and data breaches are the primary concerns because of the large amount of sensitive data stored online.

These institutions have already started internalising FinTech in their business operations with AI-based solutions such as automated virtual financial assistance, Machine Learning, and predictive analytics to make powerful usage of data for accurate decision-making and to provide uniquely tailored solutions to each customer, super functional applications for delivering faster services to the customers, cloud computing and many more. However, this is just the beginning. The Banking and finance industry is running on the ever-evolving path of innovations. These are some of the changes that we think will change this industry for good in the future.

Trend 1: Blockchain and Decentralised Finance (DeFi)

• Blockchain has changed the process of managing data. It offers cost-effective, transparent, and secure recording of transactions. Many banks and other financial institutions will use blockchain to manage their data. It will make the Defi easier.
• Data management will be changed significantly in the coming years by adopting more secure and decentralised platforms such as blockchain. Many banks will also include cryptocurrency-based transactions in the future as both the customers on the demand side and institutions on the supply side seem to favour the "cryptofication of banks". This will make crypto-based unique digital assets called NFTs (Non-Fungible Tokens) even more secure.
• NFTs will also drive other FinTech trends in the industry, such as alternatives to crypto fundraising techniques such as coin IPOs, financial institutions focusing more on digital assets management etc.

Trend 2: Hyper-Personalisation

• Businesses want to give as best an experience to the customer as possible. In addition to artificial intelligence and machine learning, technologies like AR-VR and Robotic Process Automation (RPA) aid the banks to deliver their services to customers smoothly anytime and anywhere. 
• Innovations like Neo Banks, interactive teller machines, video banking, AI-based digitisation of services such as loan generation and KYC, RPA for personalised solutions and faster processing, advanced Reg-Tech for facial recognition, voice biometrics, and digital signatures to make secure transactions and enhance user experience are going to be adopted by increasing number of institutions in the coming years.

Trend 3: Open Banking System or Banking as a Service (BaaS)

• Open Banking is the system of sharing the data related to consumers''' financial transactions and other banking data by the banks and other non-banking financial institutions to a third-party setup such as FinTech startups or other service providers using Application Programming Interfaces (API). This access and control of data will be helpful in many cases, such as generating a better profile of customers using their financial history, identifying red flags to avoid fraud and many more.

Not only to the banks, but it will also benefit the customers by sharing their data with the institutions more securely and finding out the best possible service for their needs from many options with the help of API. This innovation can potentially change the shape of the BFSI industry.

Retail and CPG Industry

Retail and Consumer Packaging Goods (CPG) is one of the relentless industries growing at a breakneck speed during and post-pandemic times. A few of the biggest challenges that this industry has faced in the last couple of years can be enlisted as follows:

• Limited reach to the customers – Due to global lockdowns, most stores had to be closed, making it difficult for the companies to engage with their customers offline.
• The global supply chain crisis caused delays in deliveries and inadequate in-store supplies of goods. These shortages were a major concern for the companies as they slowed down all operations and affected profitability.

The businesses have adopted the online selling approach, which the customers warmly welcomed because of the obvious reasons for safety and comfort. Even the in-store experiences have changed to provide a more safe environment. The technology has expanded sales numbers and provided a better consumer experience. Examples could be the rise of social commerce and Omnichannel marketing, quick delivery solutions aided by digitisation, and attempts for a personalised shopping experience. Some technology trends will influence this industry in the coming years.

Trend 1: Better in-store experience

The brand aims to provide customers with the best shopping experience in-store to increase brand loyalty. Although it was difficult to adjust the physical stores in coherence with the safety concerns and smooth shopping experience, the businesses have come a long way to fulfil this purpose by adopting various innovations such as self-checkouts aligned with online payments, increasing the use of smart carts, and implementing design specific changes like separating entry and exit points to reduce customer traffic. 

• Many innovations are gradually gaining popularity and will be omnipresent in the coming years. These include delivering an immersive shopping experience to the customers through AR/VR-enabled virtual Try-Outs to see how the outfit looks before buying. 
• Two-way QR codes will send purchase data to the database. After scanning, they will show the product specifications to the customer and show recommended products based on previous purchases.
• AR navigators can help the customer navigate desired product shelves easily. 

Trend 2: Supply Chain Management Digitized

A significant part of running the retail business is maintaining the supply of products. It is tedious to keep track of all the inventories, ensure timely deliveries, and manage the whole warehouse. Businesses have already started using AI and machine learning to ensure efficiency in the whole process. Adapting such innovative applications can help streamline and automate the whole process by maintaining proper records, timely ordering of stock based on forecasted demand through predictive analysis and keeping track of deliveries. 

• Digital shelves (mainly AI-enabled) will simplify inventory management and restocking. 
• Blockchain is also to be used for digitising supply chain operations. It will make the inventory management process transparent, and it will be easier to track the origin of a particular product and reduce supply chain thefts.

Trends 3: Greater Customer Engagement

• Customers are becoming more informed and conscious of the environment and sustainability. In response, the brands are also becoming more inclusive and sustainable. The coming years will benefit such businesses adapting to this shift in consumer attitude as this factor influences customer engagement. 
• Using big data and Artificial intelligence to gather more accurate customer data and generate insights for making personalised suggestions to each customer is one of the best ways to build loyal customers. Reaching customers has become easy through various online channels (social media, websites, applications etc.). Livestreaming has also become very popular. Data can also help build much-needed decision intelligence, which helps make more data-driven business decisions. 

AI also enables adaptive homepage, voice/image search, visual curation and interactive chatbots that help engage with the customers in the best possible ways. 

Healthcare Sector

The healthcare industry was the most affected in the Covid times, and it has emerged even stronger post that. The kind of intense challenges that it faced can be summarised as follows:

• Labour shortages – Amidst the rising number of cases, all the hospitals and health care service providers faced a staff shortage. Many volunteer organisations joined the forces but could not fill the skilled staff.
• Shortage of medical supplies, oxygen supply and beds was another concern for the healthcare sector. There was a dire need for this medical equipment, which resulted in deaths.
• Collection and management of biohazardous wastes was a rising concern for the institutions.

The coming years will witness many innovative solutions for healthcare service providers and related sectors such as life sciences, biotechs and pharmaceuticals. Here are some of the tech innovations and trends that we can expect will shape the future of the healthcare sector.

Trend 1: Telemedicine and Digitization of healthcare services

The past couple of years have shown immense growth in telemedicine, and we believe it will grow even more this year and beyond, given that it is cost-effective and more accessible to people leaving in remote areas. It significantly improves the engagement of patients with the health care service providers. 

• The digitisation of other healthcare services, such as remote patient monitoring, Electric Health Reports (EHR), digital prescriptions and digital therapeutics etc., will truly complement telemedicine in delivering quality services to patients at their doorsteps.
• A few startups are making Rural Health Centers (RHCs) hosts for telemedicine visits or for patients to avail remote medical assistance. It will bridge the physical distance and the technological gap as the workers at RHC can guide them in taking smart medical exams and receiving help from remote doctors virtually.

Trend 2: AI in Healthcare 

• Apart from the obvious applications combined with the Internet of Medical Things (IoMT), such as better data management, virtual nurse assistance, and chatbots for symptoms assessment, AI will have increased usage in developing and adopting AI-based identity verification solutions for KYP compliances, software for face recognitions with masks, automatic report generation, smart organ care technology and many more. 
• Machine learning can enhance the organ care system to help determine whether the preserved organ is suitable for transplant. 
• AI can also have great futuristic applications in biotech innovations such as 3D bioprinting organs, drug development and testing etc. AI-based smart tools can help in remote patient monitoring.
• Technologies of AR/VR will have increasingly higher applications in this sector. Examples could be AR-enabled headsets for surgeons to perform unpredictable surgery in an informed manner and VR in therapy for patients with phobias and other issues.
• Many companies are working to develop robotic arms guided by technologies like AR/VR for performing medical surgeries with the help of a surgeon who is in some remote areas. Hence remote surgeries will become feasible in the coming years, reducing the costs that patients must face in travelling for medical treatments without compromising their desired quality.

Trend 3: Data, Privacy and Blockchain

• The data used for analysis will increase rapidly with the increasing use of the above-mentioned technologies. A greater benefit will be that healthcare will shift to providing preventive medicines based on predictions. 
• However, with large data comes the responsibility of maintaining the security and privacy of the patients. That is why it is expected that there will be more technologies combining cyber security with health care in the coming years. 
• Greater use of biometrics, Multi-Factor Authentication (MFA), and network segmentation are expected to increase the medical sector's'' cyber security.
• Medical institutions will rely more on blockchain to maintain more transparent and secure data, minimising thwacking threats in data breaches. 

CleanTech Industry

With rising concerns regarding the environment and sustainability, innovations in the Cleantech industry are going to define the future of technologies in not only this area but also bring changes in a wide array of industries such as automobile, manufacturing, construction and many more by providing more sustainable solutions for productions and overall operations. The worldwide pandemic boosted this industry as more and more startups devoted their time to developing newer technologies. Some of the trending innovations in various facets of Cleantech that may shape its future and bring the world closer to sustainability are as follows:

Trend 1: Renewable Energy

• Apart from using solar, wind, and wave power as the energy source, startups are constantly searching for newer renewable energy sources.
• There is little evidence of using Geothermal energy for controlling the temperature of large indoor space areas. It can be expected that this source will find wide-ranging applications shortly.

Trend 2: Carbon Capture

• Carbon Capture and usage are effective, innovative solutions for reducing carbon emissions. Many startups are working on developing newer technologies for carbon capture.
• Some examples of such innovation are making artificial photosynthesis possible with the help of bio-solar leaves, molecular sponges for absorbing carbon emissions, and direct air capture technology for catching emissions directly from the air.
• 2022 (and beyond) will see more such developments in these areas and wide usage across industries.

Trend 3: Waste Management

• With growing production rates globally, managing the massive amounts of different kinds of waste generated is one of the biggest areas wanting attention. Many startups and other players are developing smart waste management solutions with the help of technology. These developments could be robotic trash cans, robot recyclers, and others.
• This year will bring innovations one step ahead in circular waste management (Transforming waste into energy). The government of India is talking about utilising agricultural waste to generate fuel and power.
• Apart from agricultural waste, startups are also involved in the smart and safe management of other kinds of waste, such as biohazardous waste from the healthcare industry and industrial waste from manufacturing. More technological innovations for waste management and energy generation await us soon.

Trend 4: Green Hydrogen and Energy Analytics

• Green Hydrogen is one of the major advancements for making a big step toward sustainable and environmentally friendly products.
• More than the need for innovation, the challenge is its mass adoption for applications in wide-ranging areas. This year could bring a surge in the applications of green hydrogen. 
• Apart from that, many startups are involved in energy analytics that provides technologies to install in the company's energy system. They collect data on energy consumption and generation and, with the help of data analytics and AI, provide energy analytics data and suggestive solutions to organisations for reducing wasteful consumption and better energy management.

Automotive Industry

During the Global pandemic, the automotive industry was hit hard by specific challenges other than shutdowns.

• Global Chip Shortages and semi-conductor Crisis – Automobile manufacturers' understated demand for microchips caused a global shortage as chip manufacturers diverted their supplies to other industries, such as electronics, and struggled to generate more supply to meet the rising demand.
• Shortages of skilled labour were another concern because of the work-from-home phenomenon and employees changing careers or opting for voluntary retirements.

Companies will have to put in efforts to work their way out of these crises in this coming year. There is a dire need for innovations, technological and manufacturing processes and supplier relations in the automotive sector. At the same time, this year also comes with prospects regarding newer technologies and innovations in the automobile sector. Below is an account of a few of them:

Trend 1: Future of driving – Hybrid and Electric Cars (EVs)

The concepts of hybrid and electric cars have been around for now. They offer advantages in terms of sustainability and efficiency. However, companies always develop innovative technologies to improve cost efficiency and more environment-friendly solutions.

• Hydrogen hybrid is a newly emerging concept in hybrid cars, which is hydrogen cell-based hybrid cars. Companies like Ford and Eaton Corporation are developing Hydraulic Powered Assist (HPA) regenerative braking systems.
• Expanded Foam Components are another innovative solution that, paired with battery systems in hybrid cars, help reduce emissions by lowering vehicle weight and promoting shock absorption.
• The newer trend is to make automotive battery insulation and shock management systems from recyclable materials. 
• In the Electric vehicle segment, more companies are focusing on developing more cost-effective, efficient, and environmentally advantageous battery and charging systems. 
• Companies are innovating wireless charging for vehicles. E.g. Mercedes Benz is working on making organic batteries using graphene, water-based electrolyte, and organic cell chemistry. Wallbox has introduced bidirectional chargers as its product. These chargers transfer electricity from plug to vehicle and vehicle to plug. 

Trend 2: Overcoming Supply Chain Challenges

This is one of the biggest challenges that this industry must overcome. Improving the relations between OEMs and suppliers is an obvious first step since the companies have paid less attention to their backward relations in the past. However, taking reference from electronic companies and players like Tesla, automobile companies will positively stir their relations with suppliers. Startups are emerging to provide services to fill this gap.

• Data interchange through various means such as electronic (EDI), web or VAN will be helpful to ensure clear data exchange between the company and supplier. Some startups are providing these services exclusively. 
• Technological innovations such as internet-connected vehicles, AI for supply chain optimisation, and the possibility of using blockchain technology to help prevent fraud cases and get real-time insights to increase supply chain visibility could help resolve the issues greatly.

Development and usage of autonomous vehicles (such as self-driven trucks) by logistic companies can be expected soon.

Manufacturing Sector

On a global scale and in India, the manufacturing sector was faced with significant issues described below:

• Labour shortages – Similar to the automotive industry, the manufacturing sector worldwide faced labour shortages in these years.
• Supply Chain Crisis – Because the plants shut down, a heavy influx of cargo ships caused huge traffic at the docks, a shortage of drivers for transportation, and several other factors increased the delays and mismanagement of the supplies.

Overall, the industry is evolving to achieve higher productivity with a reduced workforce with increased adoption of smart sensors, immersive technologies, high-tech gadgets and wearables that reduce the need for physical presence and use sustainable materials and green energy sources to produce environment-friendly production processes and outcomes. Below are some of the advancements in this industry that we can expect this year and beyond.

Trend 1: Making the Business More Agile

• Agility in the business is critical for the players to operate through the volatile environments they must face. Flexible working is becoming popular among workers.
• Many workers opt for voluntary retirement; others change their career choices and plans.
• Among these changes, the organisation can thrive by moving flexibility to the workplace beyond offices and exploring other ways to increase agility in terms of working hours, shifts, opportunities etc. 

Trend 2: Industrial Automation

We expect newer technological applications towards industrial automation to larger scale:

• They can make the manufacturing plant and production more automated, faster and accurate by utilising collaborative assembly robots, AI and 3D vision-based robots for shop floor logistics.
• 3D metal printing is an advancement in the additive manufacturing segment and is used for producing high-performance end-use parts. Nemetz, a Swiss startup, is an example of its company.
• Immersive technologies like AR and VR can play a great role in improving the quality of the workers. It can digitise the instruction manuals and overlay them on the machines to guide the worker to identify and rectify potential errors. It can also help the skilled worker conduct maintenance remotely, removing the distance barriers for the skilled workforce. The purpose would be to shift the workflow interaction in manufacturing plants from humans to humans + AI to improve speed, quality and productivity.
• With the effective usage of AI, Data Analytics, ML, and the Industrial Internet of Things (IIoT), mass customisation can be made possible for a company catering to more than one target audience. More companies will be thinking in this direction in the coming years.

Trend 3: Green Manufacturing

• Like every other industry, companies in the manufacturing sector are also adopting various solutions and methods to reduce carbon emissions and become more sustainable. Adopting a carbon-neutral manufacturing system is one such example.
• The circular economy will witness a boom in the coming years as extending product life to meet The future is brimming with innovative ideas waiting to be realised across various industries such as BFSI, Retail and CPG, Health Tech, Cleantech, and Automotive. These sectors are set to define the latest trends for the new year. Net-zero goals will become essential.
• More businesses will focus on smart manufacturing processes that minimise waste and recycle materials for further use.