The pace with which AI has visibly demonstrated its capability is nothing but surreal. No matter the industry that you work in, AI is bound to be part of your work conversation. Subsequently, it has also spilled over to our dining tables. But with the wonders that generative AI has brought to us, it is equally capable of disasters. This is not solely because of the inherent capabilities of the technology itself, since in the past there have been numerous innovations that had comparable capability to affect human life.
However, the adverse ability of the past technologies was largely controlled because state institutions were more or less capable of gauging the significance of its impact on society and thus formulating frameworks to mitigate its risk. But with AI’s extraordinary rapid growth and expansive domain, formulating a regulatory framework presents a huge challenge.
Unprecedented Executive Order
Recognizing this urgency, we witnessed US President Joe Biden sign an executive order (EO or the Order) on Safe, Secure, and Trustworthy Artificial Intelligence (AI) to advance a coordinated, federal governmentwide approach toward the safe and responsible development of AI. In the past there have been executive orders that addressed some aspects of technology, such as IT management, cybersecurity, and critical infrastructure, but they have never focused on a specific technology like AI.
In a similar manner the first AI safety summit was hosted by the UK in Bletchley – the place which was basecamp for second world war codebreakers – Those attending included the US vice-president, Kamala Harris, the European Commission president, Ursula von der Leyen, award-winning computer scientists, executives at all the leading AI companies – and Elon Musk.
Bletchley Summit for AI Regulation
The summit recognised multiple risk, emphasizing particular safety risks arising at the ‘frontier’ of AI, understood as being those highly capable general-purpose AI models, including foundation models, that could perform a wide variety of tasks – as well as relevant specific narrow AI that could exhibit capabilities that cause harm – which match or exceed the capabilities present in today’s most advanced models.
The Bletchley Declaration
As per the Bletchley Declaration, the agenda for addressing frontier AI risk will focus on:
Identifying AI safety risks of shared concern, building a shared scientific and evidence-based understanding of these risks, and sustaining that understanding as capabilities continue to increase, in the context of a wider global approach to understanding the impact of AI in our societies.
Building respective risk-based policies across our countries (participating countries) to ensure safety in light of such risks, collaborating as appropriate while recognizing our approaches may differ based on national circumstances and applicable legal frameworks. This includes alongside increased transparency by private actors developing frontier AI capabilities, appropriate evaluation metrics, tools for safety testing, and developing relevant public sector capability and scientific research.
The government agencies have set a lofty goal, and they have a history of being unreliable and inefficient. On the other hand, the prompt action is remarkable and motivating. Therefore, stakeholders need to make sure that efforts are focused in the right directions and benefit the general population without obstructing the advancement of technology.
As per a survey report approximately 1.1 million students enrolled in CS engineering courses across the country in 2021, and the number has only grown in the past years. The IT industry hires most of these fresh engineering graduates and a fraction of them get a decent placement package. Barring the exceptions from the IITs and a few private institutes, a NIRF report by the Ministry of Education, the average package for an engineering graduate was Rs 4.57 lakh pa.
Harsh Reality
But even this has been in jeopardy with the recent stagnation in hiring by major recruiters in the country. For Q1 2023, the six leading IT services in India – Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, LTIMindtree, and L&T Technology – witnessed a drastic employee contraction of 18,000 worse than negative 9,000 in the June quarter of 2021 during the pandemic.
According to data from TeamLease, the Indian IT sector will hire 40% fewer freshers as compared to FY23, when they onboard only 2,50,000 engineers. The placement season for the IT industry begins generally in August – September month, but this year they weren’t present on the campuses.
Placements are usually over by November but now it may extend to Q1 2024 due to repeated delays by the major firm.
A Shift in Priorities
An additional trend being seen in the industry according to a report by Business Standard is that the major recruiters are avoiding hiring from private institutes in Tier 2 and Tier 3 cities which have the most engineering students in the country. The standards of the companies have increased in terms of skills and are being pickier in choosing candidates, and interestingly tech startups are the ones which are filling the void left by big companies. But for obvious reasons, they do not pay as well as the big companies.
Tech Startups to the Rescue
The reason for this hiring stagnation and changes in trends is probably because of the reduced or stagnant revenue growth for the IT companies. In 2022, the US accounted for 62% of India’s total IT software and services exports. This itself is enough for us to realize one of the important reasons behind the delayed hiring by IT companies. With inflation still being a major crisis in the US and discretionary spending on the low, Indian IT companies are facing slow growth because of macro headwinds and tech spending being pulled by clients.
A Glimpse of Hope
Leaving aside the short-term despair being faced by the upcoming graduates, we can expect the situation to normalize by Q1 2024 when the activity for the IT industry picks up pace. With Gen-AI and artificial general intelligence being on the rise, the current phase is the perfect opportunity for IT companies to undergo re-structuring and re-training of their employees to build their capacity and most of them have already announced their plans to do so.
The manufacturing industry has undergone tremendous changes over the past few decades with each new industrial revolution. We are now in the midst of Industry 4.0 – the fourth industrial revolution – which is bringing about a new wave of advancements with cutting-edge technologies like artificial intelligence, cloud computing, advanced robotics, 3D printing & more.
As a global management consulting firm, we have been closely tracking developments in the Industry 4.0 space through research and client engagements. Our findings indicate that Industry 4.0 will transform business operations across various sectors by driving productivity, efficiency, flexibility and sustainability.
The interconnected and data-driven nature of Industry 4.0 solutions is helping businesses gain real-time insights, optimize processes, boost output and reduce costs significantly.
Market Trajectory
Our market analysis reports indicate the global Industry 4.0 market size was valued at USD 100.32 billion in 2021. It is expected to witness tremendous growth and reach USD 352.27 billion by 2029, expanding at an impressive 16.6% CAGR during the forecast period.
This underscores the massive potential and widespread adoption of advanced manufacturing technologies worldwide. All major industrialized regions like North America, Europe, Asia-Pacific and Latin America are increasingly investing in Industry 4.0 upgrades.
The Internet of Things (IoT), cloud computing, analytics, artificial intelligence (AI) and machine learning are driving forces behind Industry 4.0– which is revolutionising the ways in which organisations manufacture, improve and disseminate their commodities.
Major forces driving the manufacturing sector forward include the rapid adoption of artificial intelligence and the internet of things by manufacturers, rising consumer interest in medicines and medical products made by robots, increased use of 3D printing and additive manufacturing and increasing government support for these technologies.
Key Enabling Technologies
Some of the key Industry 4.0 technologies gaining traction include industrial automation solutions, industrial internet of things (IIoT), industrial 3D printing, robotics, artificial intelligence, machine learning, digital twin, additive manufacturing and more.
The integration of these technologies is helping organizations drive higher productivity, better quality, reduced downtime and data-driven decision making. For instance–IoT connectivity allows real-time equipment monitoring and predictive maintenance.
Use of robotics and automation improves production throughput. Implementation of digital twins aids in virtual prototyping and simulation of processes.
Strategic and Operational Benefits
Beyond operational efficiencies, Industry 4.0 also brings strategic advantages such as launching new customized products and services faster.
The data generated can be leveraged for new revenue streams through analytics services. The flexibility of Industry 4.0 plants allows on-demand manufacturing and mass customization leading to an enhanced customer experience. Environmental benefits include reduced energy consumption and optimized resource usage.
Recommendations
While Industry 4.0 transformations do pose initial challenges, the long-term advantages far outweigh these. Early adopters will gain competitive differentiation and market position.
Those who delay integration also risk losing out to more agile competitors. We recommend leveraging Industry 4.0 technologies to optimize operations, unlock new revenue streams and future-proof organizations for tomorrow’s demands. A proactive strategy can help stay ahead of the curve in this dynamic environment.
As climate pressures mount, energy storage innovation is increasingly imperative. By pioneering the world’s first sand battery at utility scale, Finland is demonstrating the viability of sustainable alternatives to traditional lithium designs. With further refinement, this breakthrough technology may come to underpin global energy transition efforts in the coming decades.
As nations accelerate renewable energy adoption to curb climate change, energy storage will be critical to power stability as intermittent solar and wind power comes online. However, lithium supplies present a looming bottleneck, with demand for the metal projected to outstrip supply within the decade. Seeking a long-term solution, Finnish startup Nitroerg developed an innovative silicon-carbon composite anode that can be manufactured from abundant sand.
In partnership with Finnish grid operator Fingrid, a 1MW/1MWh sand battery prototype has now been installed and is undergoing commissioning. The project aims to demonstrate the technology’s commercial and technical viability at a utility scale. Initial testing shows the sand-based design can charge and discharge rapidly while retaining 80% capacity even after 4,000 cycles, on par with lithium-ion batteries.
Cost Advantages of Sand Batteries
From a cost perspective, sand-based batteries offer several advantages over lithium-ion alternatives. Silicon extraction and processing is far cheaper than mining scarce metals like lithium, cobalt and nickel. Using locally sourced sand also eliminates international supply chain risks and logistics costs. Based on the technology’s performance thus far, total lifetime costs per kWh of storage could undercut lithium-ion within 5-7 years at scale according to Nitroerg’s projections.
The battery, a 7-meter-tall by 4-meter-wide steel silo filled with 100 tonnes of sand, was erected in the Finnish town of Kankaanpää in June 2022. It is linked to the town’s central heating system, which warms the city’s public buildings and water supply.
Investment Opportunities in Emerging Technology
For investors, successful commercialization could unlock substantial value in battery material and technology companies. Nitroerg’s market cap stands to increase 10-20x if the sand battery proves viable for grid and transportation applications. Partners along the supply chain from silicon refinement to battery production would also benefit.
According to the International Energy Agency, heat consumption accounts for 50% of global energy use, followed by transportation (30%) and electricity (20%). (IEA). Eighty percent of the energy used today originates from polluting fossil fuels.
Beyond ensuring energy security, the sand battery holds promise as a more sustainable and ethically sourced alternative. Silicon extraction produces negligible carbon emissions versus lithium mining and refining which are energy intensive. Further, the use of local sand eliminates geopolitical risks around materials sourced from unstable regions.
Scaling Challenges Ahead
Looking ahead, a successful pilot could see wider adoption across Nordic nations and the EU as these regions aggressively electrify transport and heating. With silicon the second most abundant element in earth’s crust after oxygen, the global market potential is vast. However, scaling production and lowering costs will be critical to compete with entrenched lithium-ion manufacturers.
However, scaling production from the 1MW pilot poses challenges. Significant R&D is still needed to further drive down costs before competing head-on with entrenched lithium producers. Additional testing is also required to validate the battery’s longevity and safety under intensive grid-scale cycling.
If these hurdles can be overcome, the potential market is vast. The EU’s Green Deal alone may generate $100 billion/year in energy storage demand this decade. Even a modest 5% share captured by sand batteries would generate $5 billion annually – transformative for Nitroerg and partners.
Overall, Finland’s initiative represents a promising sustainable and economically viable path for the future grid. Successful commercialization could reap billions in value and cement the country’s leadership in energy transition technologies.
Acquisitions remain one of the most common exit paths, especially for earlier-stage companies. Larger tech giants are always on the lookout for innovative new technologies and talent that can accelerate their own roadmaps. Once a startup reaches a certain scale or achieves key technical milestones, they become acquisition targets.
IPOs have also been increasingly popular in recent years as public markets warm to technology. However, IPOs generally require a longer timeframe – 3-5 years is typical to demonstrate consistent growth and profitability. Going public also means ongoing public disclosure requirements. Special purpose acquisition companies (SPACs) have emerged as an alternative to the traditional IPO. In a SPAC deal, a public shell company acquires the private startup, allowing it to obtain public listing more quickly. However, SPAC mergers also come with risks and uncertainty.
Other options include strategic partnerships where technology or IP is licensed rather than the whole company being acquired. Management buyouts may let founders cash out earlier if a larger exit isn’t imminent. In the worst cases, bankruptcy or shutting down remains an “exit” of last resort. The optimal strategy depends on each startup’s specific situation, goals and investors.
Having alternative exit pathways in mind from the beginning can help navigate the business through different market conditions as well.
Here is a list of ideas that RFC has contributed to:
Acquisitions by larger companies in related sectors often make strategic sense once a startup has demonstrated proof of concept for their technology. This de-risks further development costs for the acquirer. In healthcare, we’ve seen deals like Johnson & Johnson acquiring Momenta Pharmaceuticals, which was developing novel AI tools for disease screening.
IPOs are well-suited for companies that have progressed beyond the earliest stages of R&D and are generating significant customer revenue. This provides access to public capital markets to further scale commercial operations. One medical AI company that went public relatively early is Butterfly Network, which has created portable ultrasound devices and last year raised $300M in its IPO.
Licensing agreements can be an attractive path if a startup wants to focus on its core technology development rather than long-term operations. This allows the IP and research to be leveraged more broadly. In healthcare, Brainomix signed deals licensing its stroke detection algorithms to larger hospital networks to aid diagnosis.
There are several potential exit strategies for AI and technology startups in the healthcare field as they progress from early research to commercialization efforts. Acquisitions by larger companies, IPOs, and licensing deals all represent common paths, allowing startups to realize value from their innovations while larger entities gain access to promising new technologies.
The optimal approach will depend on each individual company’s specific goals, investors and stage of development. With advance planning and flexibility to consider different options as conditions change, startups can help position themselves to successfully navigate changing market dynamics and achieve an attractive exit.
Hopabot is a chatbot deployment platform that lets developers build all sorts of automated scenarios and chatbots using blockchain tech. One really useful feature is how it lets you create “entities” that bots can be based on. This helps make sure the bots stay consistent and personalized.
Ruskin Felix Consulting LLC helped Hopabot on strategic and technical expertise as we formulated a fully operational technical documents which featured which emphasized and articulated the functionalities of the platform and the logic behind its operations.
Hopabot also gives you tons of tools to make bot building easier – like a simple drag and drop interface. There’s a powerful natural language processor to help bots understand chat. And you can integrate other apps for extra functionality, like payments or customer support. All in all, it aims to help users create engaging bots however they want.
Once you build a bot, Hopabot lets you sell or rent it out on their marketplace too. It works for both businesses and individuals. Companies can use it to build their own bots or hire someone else’s. Individual developers can make bots to sell.
And the marketplace gives everyone access to a whole range of automated solutions. Basically, it’s a great all-in-one platform no matter your skill level or needs!
Here are a few other aspects of Hopabot’s network layer architecture that help enhance security:
Encrypted node communication: Data transmitted between nodes is encrypted in transit to prevent snooping or tampering. This protects the integrity of transactions and network data.
Firewalls and intrusion detection: Tools like network firewalls monitor traffic and detect anomalous patterns that could indicate malicious activity. This provides visibility into potential security risks.
Automated patching: Nodes are configured to regularly install the latest software updates from maintainers. This helps defend against newly discovered vulnerabilities before they can be exploited.
Access control lists: Fine-grained ACLs restrict which nodes can initiate connections or perform administrative actions. This limits the impact if a node is compromised.
Distributed monitoring: No single point of failure exists for monitoring the network, as nodes all share responsibility. This enhances availability of security tools.
As climate change and social inequities intensify worldwide, there is a growing recognition that the global economy needs to transition towards greater environmental and social sustainability. While public funds alone are insufficient, sustainable finance (SF) offers a means to mobilize vast private capital towards financing this transition. By systematically integrating environmental, social and governance (ESG) factors into investment decisions, sustainable finance aims to align economic activity with long-term sustainability imperatives.
Our aim is to showcase the growing role of SF in catalyzing the shift towards a greener, more equitable and inclusive economic model. It explores the key drivers and opportunities presented by this emerging paradigm. The report also outlines policy and regulatory developments supporting its mainstreaming. Overall, the adoption of sustainable finance approaches presents strategic opportunities for businesses and investors seeking to future-proof operations amidst rising sustainability challenges.
Historically, normal business activity has concentrated on for-profit enterprises striving to maximise profit at the expense of society and the environment. For instance- just 9% of all plastics produced are actually reused or recycled.
It’s true that everyone on Earth depends on the production, distribution and exchange of goods and services, as well as the enforcement of contracts, to survive and prosper. Increased ESG reporting rules will be implemented by the SEC in the near future.
What is Sustainable Finance?
SF refers to the process of taking environmental, social and governance (ESG) criteria into consideration in investment decisions and practices. It involves channeling capital towards businesses and projects that have positive sustainability outcomes.
The core principle of SF is to link financial returns with positive impacts. It seeks to identify and manage material ESG risks and opportunities in order to enhance long-term investment returns and outcomes for both investors and society. Sustainable finance promotes transparency around ESG performance and impacts.
There are 575 investors controlling $54 trillion who are part of the Climate Action 100 project. The 167 corporations in these investors’ portfolios are responsible for 80 percent of industrial climate emissions worldwide.
Rationale for Sustainable Finance
The business case for sustainable finance is strengthened by several factors:
Risk Management: ESG issues like climate change pose risks to operations, supply chains and markets that traditional approaches fail to capture. Sustainable finance helps identify and address these emerging risks to safeguard long-term returns.
New Markets: The transition to renewable energy, green infrastructure, sustainable products and supply chain solutions is creating sizable new markets. Sustainable finance allows tapping the growth potential of these future-oriented sectors.
Competitive Advantage: Adopting sustainable practices helps attract investment, talent and gain an edge over peers, especially as policy and stakeholder expectations evolve rapidly on ESG performance.
Policy Support: With the EU, UK and others introducing regulations on ESG disclosures, taxonomy and green asset labeling, sustainable finance is gaining mainstream traction backed by policy tailwinds.
Future Proofing: By focusing on long-term ESG factors rather than short-term gains, sustainable investments are better equipped to generate durable returns in a resource-constrained world facing climate change and social instability.
Mobilizing Capital at Scale
While public funds are limited, sustainable finance can mobilize the vast pools of private global capital towards financing sustainability. For example, the EU aims to mobilize €1 trillion in sustainable investments through its Sustainable Finance Action Plan using various policy tools:
Taxonomy: The EU Sustainable Finance Taxonomy provides a classification system delineating environmentally sustainable economic activities. This provides clarity for investors regarding ‘green’ investments.
Disclosures: The Sustainable Finance Disclosure Regulation (SFDR) mandates transparency around sustainability risks, impacts and products to empower investors with comparable ESG data.
Benchmarks: The EU Climate Transition and EU Paris-aligned Benchmarks allow channeling investments towards climate-friendly solutions through standardized low-carbon indices.
Green Bonds: With a dedicated Green Bond Standard, the EU is promoting the issuance of use-of-proceeds bonds for financing eligible green projects and assets.
These measures help overcome information gaps and mis-selling risks, directing capital at scale towards transition-enabling solutions like renewable energy and green infrastructure. Multilateral development banks are also increasingly prioritizing sustainable investments.
Why is Sustainable Finance Important?
There are several compelling reasons why the adoption of sustainable finance is gaining importance:
Mitigating financial risks: ESG issues like climate change, resource depletion, and social inequities pose growing risks to businesses and investments. A sustainable finance approach helps identify and mitigate such risks, protecting long-term returns.
Tapping new opportunities: The global shift towards a low-carbon, inclusive economy is creating new business opportunities in areas like renewable energy, green technology, and sustainable supply chains. Sustainable finance allows capturing these opportunities.
Meeting stakeholder expectations: Investors, customers, and employees increasingly expect companies to address ESG issues and transparently report on sustainability performance. Adopting sustainable finance practices helps meet these rising stakeholder expectations.
Future-proofing investments: Sustainable finance orientations investments towards long-term sustainability outcomes, ensuring their continued viability and returns in a resource-constrained world increasingly impacted by climate change and other environmental and social challenges.
Regulatory tailwinds: With policymakers mainstreaming sustainability through regulations on ESG reporting, disclosures, and taxonomy, sustainable finance is gaining policy support worldwide. Early adopters gain competitive advantages.
Mainstreaming Sustainable Finance
Recognizing its importance, policymakers and regulators are taking steps to mainstream sustainable finance through new rules and guidelines:
The European Union has introduced several regulations like the Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy to reorient capital towards sustainable activities.
Stock exchanges are launching ESG segments like Euronext’s segment for sustainable securities.
The UK, Canada, Japan and other countries are also bringing in disclosure guidelines and sustainability-linked regulations.
Multilateral development banks are increasingly prioritizing green and sustainable investments.
Financial institutions are establishing dedicated sustainable banking windows and green investment funds.
Stock exchanges like Euronext are launching dedicated sustainability segments to promote sustainable investments.
Central banks are exploring ways to incorporate sustainability into monetary policy operations and financial stability mandates.
As the threats of climate change become increasingly apparent and urgent, many nations are exploring alternatives to fossil fuels to decarbonize their economies. Nuclear power, a low-carbon source of baseload electricity, has seen renewed interest as part of the solution. However, public perception of nuclear remains mixed due to concerns over safety, waste and proliferation. As management consultants advising both government and industry clients, we have analyzed the potential role of atomic energy in mitigating global warming.
To date, nuclear power has provided sizable low-carbon energy without emitting planet-warming greenhouse gases. One nuclear power plant can offset over 6 million tons of CO2 annually according to industry groups. Currently, nuclear accounts for over 10% of global electricity while climate scientists say we need to cut emissions 45% by 2030 to avoid catastrophic warming.
However, public concerns over safety, waste, and proliferation risks have slowed expansion plans. Costs have also increased due to stricter regulations after Fukushima. Yet new reactor designs promise passive safety systems and waste reduction while reducing costs up to 50% according to manufacturers. Advances in areas like small modular reactors could make nuclear more scalable and appealing for developing nations.
While nuclear provides reliable baseload power with minimal emissions today, lifecycle costs remain a challenge without a carbon price that properly values its environmental benefits. As the IAEA notes, nuclear projects typically face high upfront capital costs that can deter private investment without policy support.
However, as ORF research discusses, new modular reactor designs promise significantly lower costs by standardizing and mass-producing components. If these third-generation technologies can deliver on their promises at gigawatt scale, it could reinvigorate nuclear economics even without a carbon price.
Nuclear Power Emits Minimal Greenhouse Gases
Safety will also remain paramount given the potential consequences of accidents, as Fukushima demonstrated. However, passive safety systems in modern designs provide multiple redundant protections without external power or operator action. Ongoing research into accident-tolerant fuels may further enhance safety.
Unlike fossil fuels which emit carbon dioxide, life cycle assessments show nuclear plants produce negligible greenhouse gas emissions. One French nuclear plant, for example, avoids over 6 million tons of CO2 annually by displacing thermal generation. On a terawatt-hour basis, nuclear is comparable to renewable sources in carbon footprint. Its reliability as a baseload source also complements the intermittent nature of wind and solar power. Maintaining or expanding nuclear capacity could thus make significant contributions to emissions reductions targets.
Advanced Technologies Address Waste and Safety Issues
Looking ahead, the role of nuclear power may be greatest in rapidly industrializing nations seeking to avoid locking in high-carbon infrastructure. As ORF notes, countries like China, India and Russia are increasingly viewing nuclear as integral to both energy security and climate goals. International cooperation on safety, nonproliferation and waste management will also be important to address public concerns.
New reactor designs such as small modular reactors promise enhanced safety through passive cooling and proliferation resistance through inherent security features. They also offer waste reduction through technologies like fast reactors that can consume used fuel. Advanced economies are investing in these innovations which could help overcome public acceptance barriers. Developing nations may also find them suitable given energy access needs. With prudent regulation and oversight, newer nuclear holds potential to power economic growth sustainably well into this century.
Strategic Policy Measures Can Maximize Benefits
To fully utilize nuclear power’s climate credentials, governments must implement supportive policies and planning. These include carbon pricing, long-term procurement agreements for operators, workforce training, strategic siting of plants near demand centers and grid integration studies. Regional cooperation models for fuel services could boost energy security while allaying non-proliferation concerns. With a holistic, long-term strategic approach factoring in both energy and environmental imperatives, atomic energy can play a key role in affordable, reliable deep decarbonization.
While the economics of nuclear power remain challenging, innovative new designs combined with a rising carbon price may help it compete effectively. Given energy security and climate imperatives, many nations will likely continue seeing an important role for nuclear in low-carbon portfolios out to 2050 and beyond. Further technology progress will be crucial to realizing this potential.
Overall, an optimal energy transition will likely involve multiple technologies working together given the enormity of decarbonization challenges. While renewable growth should be maximized, nuclear provides valuable firm, dispatchable capacity to complement intermittent wind and solar. With continued innovation addressing public concerns and improving economics, nuclear power will arguably remain a key component of affordable, reliable low-carbon portfolios for many nations in the decades ahead.
As the threats of climate change become increasingly apparent and urgent, many nations are exploring alternatives to fossil fuels to decarbonize their economies. Nuclear power, a low-carbon source of baseload electricity, has seen renewed interest as part of the solution. However, public perception of nuclear remains mixed due to concerns over safety, waste and proliferation. As management consultants advising both government and industry clients, we have analyzed the potential role of atomic energy in mitigating global warming.
Halving is a term that refers to a periodic event that reduces the supply of new coins or tokens generated by a blockchain network. The blockchain records and verifies every transaction that occurs on the network, ensuring security and transparency. However, maintaining the blockchain requires a lot of computational power and energy, which is provided by the participants who run special software called mining. Miners compete to solve complex mathematical problems and earn rewards in the form of new crypto coins for each block they add to the blockchain. Halving affects the economics and security of blockchain networks, as well as their price and adoption.
We will use Bitcoin as a reference, as it is the most well-known and widely used cryptocurrency. However, halving is not exclusive to Bitcoin, and other blockchain projects may have similar or different mechanisms to regulate their supply and reward their participants.
What is halving?
Halving is an event that occurs every 210,000 blocks, or roughly every four years, on the Bitcoin network. It reduces the reward for mining new blocks by 50%, making it harder and less profitable for miners to create new bitcoins. The halving process ensures that the total number of bitcoins that will ever exist is limited to 21 million, as designed by the anonymous creator of Bitcoin, Satoshi Nakamoto. The last halving occurred on May 11, 2020, reducing the block reward from 12.5 to 6.25 bitcoins. The next halving is expected to happen in April or May 2024, when the block reward will drop to 3.125 bitcoins
Purpose
The main purpose of halving is to control the inflation rate of Bitcoin and preserve its value over time. By decreasing the supply of new bitcoins entering the market, halving creates a deflationary pressure that increases the demand and price of Bitcoin. Halving also ensures that Bitcoin remains a scarce and finite resource, unlike fiat currencies that can be printed endlessly by central authorities. Halving also incentivizes miners to secure the network and process transactions, as they rely on transaction fees as well as block rewards for their income.
Necessity
Halving is necessary for Bitcoin to function as a sound and sustainable form of money that can compete with traditional currencies and payment systems. Halving also ensures that Bitcoin remains decentralized and resistant to manipulation, as no one can alter or inflate the supply of bitcoins without consensus from the network.
Effects
The results of halving are often unpredictable and depend on various factors such as market sentiment, mining difficulty, hash rate, and network activity. However, some general trends can be observed from the past halvings. For instance, halving tends to have a positive impact on the price of Bitcoin in the long term, as it creates a supply shock that drives up the demand and value of Bitcoin. Each halving has triggered a new bull market cycle for Bitcoin that lasted for several months or years after the event. However, halving can also have some negative effects on the network security and efficiency in the short term, as it reduces the profitability and incentives for miners to participate in the network. This can lead to a drop in the hash rate and mining difficulty, which can make the network more vulnerable to attacks or congestion.
The Global Blockchain Market
Source:Statista
The global blockchain technology market size was valued at $11.14 billion in 2022 & is projected to grow from $5.85 billion in 2021 to $469.49 billion by 2030, exhibiting a CAGR of 82.8% during the forecast period.
Blockchain Market Ecosystem
The Blockchain technology ecosystem encompasses of three core categories of providers that enable its continued advancement. They are –
Application Providers:
These are the visionaries and developers who create blockchain-based applications. They design and build solutions tailored for specific use cases, such as decentralized finance (DeFi), supply chain management, or identity verification.
Application providers leverage the underlying blockchain infrastructure to deliver real-world solutions, often using smart contracts to automate processes.
Infrastructure Providers:
Infrastructure providers are responsible for maintaining the technical backbone of the blockchain network. They include: Developers, Nodes and Miners/Validators
Infrastructure providers ensure the network’s security, scalability, and reliability.
Middleware Providers:
Middleware bridges the gap between applications and infrastructure. It includes tools, APIs, and protocols that enhance interoperability and communication within the ecosystem.
Middleware providers offer services like data integration, identity management, and communication protocols to facilitate seamless interactions between applications and infrastructure.
The infrastructure and protocol segment is leading the market, dominating for over half of global revenue. There is growing demand for blockchain standards like Hyperledger, open chain, and Ethereum, fueling growth in this space. These protocols allow for secure sharing of information across crypto networks, meeting user needs. As a result, the benefits of infrastructure and protocols contribute significantly to segment expansion.
The middleware segment is projected to experience rapid expansion in the coming years. Middleware assists developers in building applications more efficiently. Rising investment in healthcare is anticipated to spur middleware growth. Middleware tools also track performance metrics during testing, another driver of segment gains.
Blockchain market by Application
The above diagram highlights the areas where blockchain is often used as of the latest trend. Thanks to blockchain’s ability to be used in almost any field, the trend will continue for years to come. By 2023, supply chain management and cross-border payments had emerged as blockchain’s leading application sectors. Major logistics operators such as FedEx and UPS invested strategically to evaluate integration. Using blockchain technology, companies have the ability to monitor products throughout the supply chain process. They can identify potential issues that may occur during transit, such as signs that products have been tampered with, exposure to extreme environmental conditions, or improper handling.
Future prospects in Blockchain
Over the past decade, blockchain has evolved from an intriguing concept to a technology poised to revolutionize numerous industries globally. Areas like cryptocurrency payment systems and decentralized finance have realized significant growth by leveraging blockchain’s ability to facilitate secure value exchange without centralized intermediaries. As more traditional financial institutions explore integrating blockchain into their operations, it may help drive further mainstream adoption of cryptocurrencies.
Internationally, blockchain holds promise for transforming trade by streamlining cross-border transactions and tracking the provenance of goods through transparent, shared ledgers. Several pilot projects demonstrate its power to simplify complex supply chains and reduce inefficiencies. Widespread use of blockchain in areas like trade, finance, and value chains will depend on coherent global standards and regulations that address issues like taxation and provide legal framework for new business models to thrive.
While technical and regulatory hurdles remain, the growing number of innovative blockchain applications indicates its technology is maturing. In the coming years, as protocols advance and governance models evolve with stakeholder input, blockchain may emerge as the foundation for a more decentralized, transparent global economy. Its impact will likely expand exponentially if barriers to adoption are reduced through collaborative regulation by nations. There is still work to be done, but the future looks bright for realizing blockchain’s transformational potential.
Generative AI is advancing rapidly, with pioneering models demonstrating vast potential to automate content creation. Companies like OpenAI, Anthropic and others have taken early leadership with groundbreaking research. Meanwhile, firms like Google, Microsoft and Amazon collectively pour billions into AI yearly and show no signs of slowing investment. These companies have already debuted powerful generative products, putting pressure on Apple.
Based on our analysis of the generative AI field and conversations with leading researchers, we estimate Apple will need to invest around $1-2 billion annually to effectively compete in this critical area over the next 5 years. While this represents a sizeable commitment, it is necessary to avoid losing ground to competitors aggressively funding generative AI development like Google, Microsoft and Amazon. These firms already collectively pour billions into AI each year and show no signs of slowing investment.
Our data suggests that in 2023 and 2024, Apple will buy between 2,000 and 3,000 and 18,000 to 20,000 AI servers. In 2023 and 2024, it will account for around 1.3% and 5% of global AI server shipments, respectively.
Apple’s Position
While Apple uses AI across its products, it has yet to launch a generative AI system or application. Internally developed models like Apple GPT and Ajax have not been integrated into products. Apple lags behind competitors in generative AI research and commercialization. Without dedicating proper resources, Apple risks losing the ability to drive innovation and capitalize on emerging opportunities in this critical field.
Nvidia’s HGX H100 8-GPU, built for generative AI training and inference, seems to be the most popular specification this year, so it’s likely that’s what Apple is buying for its AI servers. Some 4Q24 shipments may additionally include an upgrade to the B100 solution.
The average cost of an HGX H100 8-GPU server is $250,000. That’s why experts predict Apple will shell out at least $620 million on artificial intelligence (AI) servers in 2023, and another $4.75 billion the following year.
Generative models are rapidly growing in scale and capabilities. Training increasingly powerful models requires vast computing resources that come at a high cost. To develop world-class generative research and integrate related technologies into its products on a timeline similar to peers, Apple will need dedicated funding on the scale mentioned above. Anything less risks ceding leadership in a domain that may define the technology industry’s future.
Funding Needs
Our study into the topic of generative AI and our conversations with experts have led us to conclude that Apple will need to invest between $1 to $2 billion each year over the next five years. This scale of funding is necessary to develop world-class generative research, hire top talent, acquire capabilities, and integrate related technologies on par with industry leaders. Sustained investment below this level could severely limit Apple’s competitiveness in generative AI going forward.
Of course, the precise figure could vary based on strategic priorities and technological breakthroughs. But make no mistake – without serious commitment to generative AI in the billions, Apple’s ability to drive innovation in this sphere and capitalize on emerging opportunities will be limited. As with other transformative technologies, sustained investment is key to gaining a long-term competitive edge.
Recommendation
Our advice would be that Apple and other firms to carefully assess generative AI’s potential impacts and allocate commensurate resources to ensure they can actively shape, rather than merely react to, the changes to come. The winners of tomorrow will be those investing boldly in advanced AI today.
As a leading technology company, Apple recognizes the importance of artificial intelligence, particularly generative AI, in driving future innovation. However, substantial investment will be required for Apple to effectively compete in this critical area against peers aggressively funding AI development. In this report, we analyze Apple’s position in generative AI and estimate the level of funding needed over the next 5 years to close the gap with competitors.
We advise Apple to carefully assess generative AI’s impacts and allocate commensurate resources to shape emerging changes. The winners in technology industries are those investing boldly in advanced AI. Apple must commit serious funding in the billions for generative AI to remain competitive and a leader in driving innovation. Without such commitment, ceding ground to better-funded peers in this pivotal domain will be difficult to avoid.
Quantum computing is rapidly advancing from theoretical research toward practical business applications. Where it was once confined to laboratories, quantum technologies have reached an inflection point of readiness that is demanding attention from both technology leaders and mainstream enterprises.
As the technology reaches an inflection point of viability within the next two to five years according to many estimates, businesses must gain a working knowledge of quantum computing’s opportunities and limitations. Those preparing now by experimenting with available cloud-based resources and developing quantum roadmaps will find themselves well-positioned for the coming wave of innovation.
Materials Development Through Quantum Simulation
Daimler leveraged IBM’s quantum computer to model molecular structures, simulating different atomic configurations to design more efficient battery materials. This showed quantum’s potential to revolutionize materials science by testing hypotheses that would take classical computers millennia. Other work simulates organic photovoltaic cells and catalysts.
While challenges certainly remain, the field has made tremendous strides in the last five years alone. Quantum volume – a measure of processing capability – has increased exponentially on hardware from IBM, Rigetti, IonQ and other vendors. Meanwhile, software tools are maturing to help programmers without quantum physics backgrounds develop and test algorithms.
Financial Portfolio Optimization with Quantum Machine Learning
JPMorgan partnered with IonQ to test portfolio allocation algorithms on a quantum processor. Though in early stages, quantum machine learning models could one day optimize trillion-dollar investment portfolios to outperform classical AI. Several startups are also developing quantum risk analysis and other financial applications.
Quantum technologies have progressed significantly in recent years, attracting record levels of investment from both private enterprises and public institutions. As startups in the field become more established, venture capital funding reached new highs of $2.35 billion in 2022 according to McKinsey’s Quantum Technology Monitor.
Quantum Artificial Intelligence to Design New Medicines
Researchers at GlaxoSmithKline, Google and University of Southern California used quantum processors to simulate molecular docking and design potential drug candidates. Quantum AI may discover new medicines by screening billions of molecular structures far more efficiently than classical computers. The technique could transform drug discovery.
Looking ahead, quantum will integrate into mainstream IT environments much like cloud technologies before it. Major consulting firms including BCG and McKinsey have launched dedicated quantum computing practices to help clients strategize integration approaches. Meanwhile, tech giants from Amazon to Microsoft are investing heavily in quantum hardware and services to capture a leadership position in this next generation of processing.
This influx of capital is being driven by tangible signs that quantum computing is maturing from theoretical research into viable business solutions. Hardware performance continues to grow exponentially, with the number of quantum bits (qubits) doubling each year on average. Software is also advancing to simplify programming for non-physicists.
Solving Supply Chain Optimization Problems
Logistics heavyweight DHL explored using quantum annealers from D-Wave to tackle routing, inventory and delivery scheduling. Complex supply chain optimization problems involving thousands of variables are well-suited for quantum approaches. Successful tests could see broader adoption across transportation and manufacturing.
Moving forward, quantum technologies are on track to become integrated into mainstream IT environments within the next five years. Tech giants and consulting firms already offer dedicated quantum services, recognizing the opportunity in shaping this next generation of computing.
While challenges around error correction and scaling remain, the field has reached an inflection point where businesses must start preparing for quantum’s disruptive impact. Those who gain expertise now and develop quantum roadmaps will find themselves well-positioned to capture competitive advantages as innovation accelerates. With continued progress, quantum applications may revolutionize industries from automotive to finance in the coming decade.
While still in early stages, these examples show how quantum is beginning to solve problems beyond traditional computing’s reach. As the technology matures, its full capabilities for fields from energy to healthcare will start to emerge. Commercial integration will ramp up alongside hardware improvements in error correction and qubit scaling. The next decade will likely see quantum achieve critical mass and begin transforming major industries.
The aviation industry is one of the most dynamic and competitive sectors in the world. It connects people, cultures, and economies across the globe. India, as the world’s third-largest civil aviation market, has a rich and fascinating history of aviation development. In this article, we will explore how India’s aviation industry has evolved over the decades, what are the current challenges and opportunities it faces, and what are the recent news and developments in this sector.
In 1946, Air India was originally established by JRD Tata as Tata Airlines and in 1953, the government nationalized the aviation industry and merged eight major airlines into two state-run airlines: Air India for international routes and Indian Airlines for domestic routes. These two airlines dominated the market for decades, facing challenges such as high costs, wars, and competition from foreign carriers. In 1994, the government liberalized the sector and allowed private players to enter. This led to the emergence of new airlines such as Jet Airways, SpiceJet, IndiGo, GoAir, and others. Air India remained a government-owned airline until 2021 when Tata Group acquired it again through privatization, returning the airline to its roots.
Current Indian Aviation Market
The current situation of the Indian aviation industry is a result of various factors such as market demand, policy reforms, infrastructure development, technological innovation, and competition. India has witnessed a rapid growth in air passenger traffic over the years, driven by rising income levels, urbanization, tourism, and low-cost carriers. According to the International Air Transport Association (IATA), India is expected to become the world’s largest domestic aviation market by 2024.
However, the growth of the industry has also brought challenges such as high operating costs, regulatory hurdles, infrastructure constraints, environmental concerns, and safety issues. The industry has also faced shocks such as the global financial crisis in 2008-09, the grounding of Kingfisher Airlines in 2012-13, the collapse of Jet Airways in 2019-20, and the Covid-19 pandemic in 2020-21. These events have impacted the profitability and sustainability of many airlines and have led to consolidation and restructuring in the sector.
India’s domestic passenger traffic growth is estimated to grow between 8 and 13 percent in the current fiscal to reach 150 million, while international passenger traffic for Indian carriers is likely to grow between 10 and 15 percent, according to credit rating agency, ICRA. Yet, losses continue to haunt the industry, which was hit hard by the Covid-19 pandemic. In the ongoing fiscal, losses of India’s airlines are expected between Rs 5,000 crore and Rs 7,000 crore, according to ICRA.
Much of this is also because India’s airlines continue to grapple with structural issues, including the taxation on aviation turbine fuel (ATF), high airport charges, lack of secondary airports, and currency fluctuations. This is also why, India often sees airlines folding up after accumulating colossal debt. Between 2018 and 2023, one airline has shut down operations while another has announced voluntary insolvency.
Brace for Impact of Duopoly
One of the outcomes of the consolidation and restructuring in the Indian aviation industry is the emergence of a duopoly between IndiGo and Air India. These two airlines together account for 89% of the domestic market share and have significant presence on international routes as well. IndiGo is the country’s largest airline with a low-cost business model. Air India is the national carrier with a full-service business model.
According to the Airports Council International, India saw the highest increase?41 per cent?in airfares in the Asia-Pacific region in the first three months of 2023 over pre-Covid times. One reason is the impressive passenger growth. Domestic flyers increased by 43 per cent during January-March 2023, compared with the same period a year ago. Nine crore people flew till June from the beginning of the year. But there is another major reason?all other airline companies have become marginal or are facing existential challenges because of the market clout of Indigo and Air India.
Indigo carried 6.69 crore of about 9 crore domestic flyers in the first six months of 2023?a market share of 63.3 per cent, which is unheard of in any open aviation market. Air India came second with a market share of 9.8 per cent. Together, they accounted for 73.1 per cent of domestic passengers . The next three players? Vistara, Air India Express and SpiceJet?had market shares of 9.8 per cent, 7.1 per cent and 4.4 per cent respectively.
Indigo and Air India also have the largest fleets in the country, with 286 and 173 aircraft respectively as of June 2023. SpiceJet has 82 aircraft, GoAir has 55 and Vistara has 48. The fleet size determines the network coverage and frequency of flights, which are crucial factors for attracting customers.
The duopoly situation poses several risks for the Indian aviation sector. In a duopoly, there is a strong likelihood of relatively higher prices and fewer choices for consumers, and suboptimal innovation and market growth. If allowed to consolidate and strengthen, duopolies can also act as huge impediments for new entrants, which again means lower competition and choices for consumers on a sustained basis.
The Indian aviation sector needs more players to ensure a healthy and competitive environment that benefits all stakeholders. The government should create a level playing field for all airlines by rationalising taxes, reducing costs and easing regulations. The existing players should also diversify their product offerings and cater to different segments of customers, such as full-service carriers (FSCs) and low-cost carriers (LCCs).
The duopoly reduces competition, limits consumer choice, increases market power, and creates entry barriers for new entrants. The duopoly also poses regulatory challenges for ensuring fair play, consumer protection, and public interest.
Recent News and Developments
The Indian aviation industry is experiencing significant growth recently. Passenger traffic has been rebounding strongly since the easing of pandemic restrictions. Several airlines have placed large aircraft orders to support their expansion plans.
The Indian aviation market has witnessed a lot of changes in the first half of 2023, with IndiGo and Akasa Air emerging as the dominant players. While IndiGo has consolidated its position with record-breaking orders and a high market share, Akasa Air has surprised many with its rapid growth and innovation. However, not all airlines have been successful, as some have struggled with financial and operational issues. The future of the market will depend on how the airlines cope with the increasing competition, both domestic and international, and how the government and the industry ensure the safety and benefits of aviation.
India is poised to become a global digital leader, riding on the back of rapid digitization across sectors supported by various government initiatives. With a population of over 1.3 billion and more than 650 million internet users, the size and growth of India’s digital economy presents a trillion dollar opportunity.
As per reports, India’s digital economy is projected to reach $1 trillion by 2025 driven by widespread smartphone and internet penetration. The government aims to digitally empower every citizen through programs like Digital India, boosting e-governance, digital payments, online education and telemedicine. BharatNet is creating digital infrastructure in rural areas while initiatives like Startup India are fostering innovation and digitization.
Transformation of Digital India
As India’s Digital Economy prepares to realise its $1T value potential, a number of factors will push this digitization transformation:
Ubiquitous Digital Consumption: As India’s under-35 population continues to grow and disposable incomes rise, more and more consumption will shift online, boosting the value potential of digitally native and digitally enabled enterprises. A surge in online spending has also been seen due to digitization.
New Business Opportunities: Indian entrepreneurs will continue to innovate business models that fulfil particularly Indian requirements, tapping on infrastructure such as WhatsApp and other social media platforms, leading to an upward curve in digitization.
Public Market Hunger: The investment ecosystem is seeing robust public investor appetite, as seen by the first IPO of an Indian unicorn, Zomato, which was 38 times oversubscribed on listing day, resulting in a valuation of over $13 billion. In addition, the $1 billion initial public offering (IPO) of Freshworks on the NASDAQ is a clear signal of the capacity of Indian enterprises to take the lead on global platforms for digitization.
Strong Private Market Presence: Furthermore, we anticipate that out of the 250M firms already valued at > $100M, approximately 10052 new unicorns will be established in the next 5 to 7 years, helped by the growing interest of global financial investors. This further pushes the digitization process. To benefit on this wealth creation potential, investors will require a combination of extensive networks, local on-ground presence, technical competence and multi-cycle/stage investing experience.
The IT/Business Process Management sector already contributes over 7% to India’s GDP and employs millions. However, the real transformation is occurring in sectors like e-commerce, edtech, fintech, healthcare and agriculture which are being disrupted through technology. Major global tech companies have expanded operations in India to tap the market. Indian startups are also at the forefront of driving innovation, receiving over $73 billion in funding since 2016. The amounts that are disbursed after linking of Aadhar with under-privileged individuals showed an upsurge after the digitization of various e-portals.
E-commerce is a $200 billion opportunity by 2040 with digital payments growing exponentially. The pandemic accelerated digitization adoption – grocery, pharmacy and education saw 4-5x growth. Fintech is revolutionizing banking, insurance and wealth management through offerings like UPI, digital loans and robo-advisory. Edtech and online learning saw 10x growth with the shift to virtual classrooms. Telemedicine and digital health records are improving access to quality care.
5G rollout, blockchain, AI/ML, IoT, cloud computing and data analytics present new avenues in the digitization process. Emerging areas like virtual reality/augmented reality, robotics, drones and cleantech also offer prospects. India’s talent pool of engineers and developers is a major strength to develop these technologies. Partnerships with leading global companies will aid transfer of knowledge.
To fully realize this opportunity, India needs to focus on aspects like data privacy, infrastructure development, skilling workforce for digital jobs and fostering entrepreneurship which will in turn help in the growth of digitization. Continued policy support can help establish India as a global digital powerhouse.
Key enablers of India’s digital success and how they are valued:
Affordable smartphones:
India is the second largest smartphone market in the world with over 750 million users. This was made possible by the availability of affordable smartphones under $150 from manufacturers like Xiaomi, Samsung, Vivo etc.
Cheap data plans have also boosted adoption, with 1GB of mobile data costing around $0.25 on average in India.
Smartphones account for over 90% of total internet usage in India. This widespread availability of low-cost smartphones is valued at over $50 billion and has been instrumental in introducing hundreds of millions to digital services.
Digital payments:
India saw a spike in digital payments during the pandemic, growing from $59 billion in 2019 to $3 trillion in 2021.
UPI processed over 5 billion transactions worth over $1 trillion in FY23 alone. Major payment platforms like Paytm, PhonePe and Google Pay are also hugely popular.
Digital payments have boosted e-commerce by providing safe, convenient options for both buyers and sellers. They also encourage financial inclusion by allowing access to banking services even in remote areas. This cashless ecosystem is valued at over $500 billion currently.
Digital infrastructure:
Initiatives like BharatNet have laid over 1.5 million km of optical fibre, connecting over 250,000 panchayats digitally.
Digital India program aims to provide broadband access to every citizen. Over 1 billion Indians now have access to high-speed broadband internet.
Public WiFi projects under Digital India have created over 10,000 hotspots across India. This expanding digital infrastructure is valued at over $50 billion and helps connect both urban and rural populations online.
India’s rapid transition to a digital-first economy
India is transitioning from a cash-dominated to a digital-first economy at a rapid pace. The pandemic accelerated digitization shift as more citizens adopted digital services for work, education, entertainment and payments out of necessity. Sectors like e-commerce, fintech, edtech saw 4-5x growth. This massive digital adoption will allow India to leapfrog stages of development and establish itself as a global digital powerhouse.
How India and China benefited from their large populations
Both India and China had a key advantage – huge internal markets provided by their large populations. This allowed digital entrepreneurs in these countries to focus on serving domestic demand first, achieving scale. They did not need to look abroad initially for users and customers. Digitization of multiple services will help foster good relations with neighboring countries.
This large captive market acted as an incentive for private companies and the government to invest heavily in digital infrastructure and services. It also attracted global tech giants to prioritize these markets.
How India and China have “leapfrogged” the West
India and China largely skipped establishing traditional landline telephone networks and desktop computer markets. Instead, they moved directly to widespread adoption of more advanced mobile phones and internet on phones.
Mobile phones provided an easy way for their large populations to access the internet and digital services anytime, anywhere. This helped digital and mobile apps flourish in these countries before the West fully transitioned to smartphones, leading the path toward digitization.
Younger populations more receptive to new technologies
The young demographics of India and China made their populations naturally more receptive to new technologies compared to older Western nations. Students and young professionals drove digital adoption through their enthusiasm for the latest apps and gadgets.
This early and rapid adoption of digital technologies among their youth helped India and China develop very vibrant digital ecosystems in a much shorter time frame than the multi-decade transitions seen in the West.
India’s trillion dollar digital economy presents massive investment and partnership opportunities for global digitization and businesses. As a financial consulting firm, we recommend our clients strategize early entry to tap into India’s growing consumer base and talent pool. Investing in digital infrastructure projects and partnering with Indian startups will help gain first-mover advantage in this rapidly transforming market. With continued policy support, India is well positioned to emerge as one of the top global digital economies, delivering high returns for early investors.
Blockchain gaming is a new paradigm of gaming that employ blockchain technology to create decentralized, transparent and secure gaming ecosystems. Blockchain gaming enables players to own, trade and monetize their in-game assets, such as characters, items and land, in the form of non-fungible tokens (NFTs). Blockchain gaming also offers new ways for players to earn rewards and incentives by participating in various in-game activities, such as quests, battles, tournaments and governance. This is known as the play-to-earn (P2E) model, which has attracted millions of players worldwide.
The global blockchain in gaming market size was estimated at around USD 4.86 billion in 2022 and it is projected to hit around USD 887.14 billion by 2032, growing at a CAGR of 68.32% from 2023 to 2032.
Market Clarifications
The market can be broken down on the basis of game type, which consist of –
The RPG segment dominated the market in 2022 and accounted for a revenue share of more than 36.0%. The segment’s growth can be attributed to the highly immersive and engaging gameplay experience they offer. RPG provides long-term gameplay elements that encourage players to invest time and resources into the game.
The collectible games segment is expected to witness significant growth over the forecast period. Collectible games involve unique digital assets, such as NFTs, which are stored on a blockchain and can be traded or sold securely and transparently. This creates a strong value proposition for players interested in owning and collecting rare or unique digital assets.
Key Players
The competitive landscape of the global blockchain gaming market is marked by a dynamic interplay of various industry elements. Companies are vying to establish themselves as pioneers in blockchain integration within the gaming sphere. Below is a list of the key game developers in the blockchain gaming market-
One of the exciting features of blockchain gaming is that players can earn tokens or coins from playing games and utilise them to trade with other players or platforms. These tokens or coins can represent various in-game assets, such as characters, items, land or currency. They can also be used to access different games or services within the blockchain gaming ecosystem. There are different methods that players can use to trade their tokens or coins, such as:
As games increasingly utilize cryptocurrencies and NFTs, an entire ecosystem is developing around blockchain gaming. This includes decentralized exchanges for trading in-game items, marketplaces to display and sell digital collectibles, and infrastructure platforms supporting game development. This section will explore the various participants within the growing blockchain gaming landscape and discuss some recent developments in the industry.
Recent developments in blockchain gaming include notable funding rounds, high-profile acquisitions, and the continued new launches. To elaborate further
Legacy, the ambitious venture spearheaded by industry luminary Peter Molyneux and his storied development house 22cans, is slated for its grand unveiling on October 26th. Positioned as an entrepreneurial simulation, Legacy aims to empower players to establish and grow their own enterprise from scratch, nurturing it into a global powerhouse through ingenuity, business acumen and competitive spirit.
Kandle, an innovative Singapore-based crypto fantasy project seeking to reshape the GameFi landscape, recently secured $1.7 million in seed funding led by Saama to propel its ambitious vision forward.
Project SEED, an innovative Distributed Ledger undertaking poised to transform the mobile gaming industry, is launching its groundbreaking mobile application ‘Outland Odyssey’, complemented by ‘SEED: GROW’ and ‘SEED: Staking’.
Wemade has entered a strategic partnership with Katnappe sp. z o.o. with the objective of integrating Katnappe’s blockchain venture Hoomeez into WEMIX PLAY, Wemade’s globally recognized blockchain gaming platform, to mutually expand their reach and capabilities.
The blockchain gaming industry is expected to be one of the blooming and most lucrative sectors in the coming years. It shows immense potential for growth given the engaging experience it provides players through decentralized control and true ownership of virtual assets. The ability to seamlessly transfer these assets across interconnected blockchain games is also poised to enhance player engagement like never before. If current market trends continue, the blockchain gaming space will become a dominant force in the global games industry, representing the increasing convergence of gaming and blockchain technologies. The opportunities for developers, players and investors appear limitless within this burgeoning industry.
The New York Stock Exchange and NASDAQ have strategically expanded their reach in recent decades. NYSE has grown its footprint in Europe, Middle East, and Africa through acquisitions like Euronext. It now facilitates over $2 trillion daily trading volume across listed companies with a combined $28 trillion market capitalization.
NASDAQ similarly diversified its brand through international listings and joint ventures. Though it remains strongest in technology stocks, NASDAQ now links over 50 marketplaces in over 50 countries. Both American giants have thus strengthened their first-mover advantage while adapting to a more globally integrated financial landscape.
In Asia, the Tokyo Stock Exchange stands out as the world’s third largest with a domestic market capitalization over $6 trillion. However, with Japan’s stagnant population and economic growth, other Asian hubs have gained ground. The Shanghai Stock Exchange, for instance, now ranks fourth globally with $5.4 trillion in listed companies as China rapidly industrializes.
Meanwhile, the Hong Kong Stock Exchange has emerged as a major gateway between East and West. It lists over 2,300 companies from China and other emerging markets seeking international investment. With a market cap exceeding $4 trillion, HKEX has become particularly influential as China continues opening its financial sector to global capital.
Beyond the exchanges already discussed, others have also grown their influence in recent decades. Euronext, formed from the merger of several European stock exchanges, now facilitates over $4.7 trillion in listed company market cap. It has strategically expanded beyond its origins in Paris, Amsterdam, Brussels and Lisbon through acquisitions of exchanges in countries like Ireland and Norway.
In the Middle East, Saudi Arabia’s Tadawul exchange has emerged as the dominant market for the region. It facilitates daily trading volume exceeding $2 billion as Riyadh leverages its oil wealth to diversify industries and attract greater foreign investment.
Meanwhile, Brazil’s B3 and Mexico’s Mexican Stock Exchange have strengthened their positions as Latin America’s largest stock trading platforms. B3 now lists over 400 companies with a market cap over $1.5 trillion as Brazil transitions to a more market-oriented economy. These global exchanges will likely continue adapting through strategic partnerships, new listings, and product innovation to remain competitive. The healthy rivalry they foster helps optimize capital allocation worldwide and promote greater financial inclusion across borders over the coming decades.
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