Technology trends for investors to watch in 2022

In our annual trends report, we highlight the key tech trends going into 2022, some of the technology and market leaders riding these trends, and the role they will play within our three innovation indices: ROBO, THNQ, and HTEC. 

Here’s a sneak peek into some of the major technology trends poised to disrupt our world in 2022 and how to gain investment exposure to the growth to come.

The Arms Race to Automate

As we expected a year ago, 2021 turned out to be a boom year for robotics and automation with record-high installations and demand exceeding supply in the context of a strong economic recovery. And as we head into the new year, the outlook is stronger than ever.

First, the digitization of the economy is now going full steam ahead. The global pandemic kicked off an arms race to automate and business leaders around the world are now taking full advantage of the increasingly broad set of automation technologies available, from software and the cloud to robots and machine intelligence.

Second, supply chains are under tremendous stress and are screaming for automation. The US consumer boom and its increasing predilection for online shopping have stretched transport and logistics infrastructure to the breaking point.

And lastly, labor shortages are becoming increasingly painful. With more than one million unfilled manufacturing positions in the US alone and service businesses struggling to attract workers, the short answer is automation.

Read more about how to invest in these robotics trends by downloading our full report here.

Digital Transformation is the Demand, AI is the Answer

As companies revise their strategies with a view to permanently increasing their remote workforce over the next decade, digital technology is at the forefront in relation to R&D investments and innovation. As previously predicted, AI is having a major impact on the $2 trillion e-commerce sector. Aside from personalization engines driving conversion rates for online shopping, AI-powered solutions are also helping merchants make accurate sales predictions and improve customer support for a more seamless experience. AI is going to be the critical element in delivering a strong digital experience—whether that’s working from home or engaging in e-commerce.

This digital shift in the wake of the COVID-19 pandemic has also accelerated the need for next-generation cybersecurity solutions. With constantly evolving cyberattacks and the proliferation of smart devices, AI and machine learning are playing a vital part in automating threat detection and even detecting malicious attacks before they happen. The year 2021 was a year of cybersecurity M&A deals driven by an increase in threat vectors. Two of our THNQ index members received private offers as the need to ramp up investments in AI capabilities became the principal focus. There were over 150 cybersecurity M&A deals in the US in the first three quarters of 2021, compared to 94 in the previous year, according to 451 Research. We expect trends around digitization and data protection to continue throughout 2022.

In Healthcare, Innovation is the Only Way Forward

Upon entering 2021, we expected the pandemic to have lingering impacts throughout the year. However, no one anticipated the magnitude of SARS-CoV-2’s ripple effects, such as the Delta Variant. As we near the end of the second year of the pandemic and reflect on its wake, one of the costliest effects we’ve observed is the toll it has taken on healthcare workers. Globally, over 100,000 healthcare workers have been killed by COVID [1]. Of those remaining, a range of pandemic effects, from physical and mental health issues to vaccine mandates, are driving an exodus and further shrinking the workforce. In the US alone, healthcare worker employment has declined by nearly half a million since February 2020 [2].

We expect that it will get worse before it gets better. Staff shortages are driving lower capacity for medical services. Lead times for medical procedure bookings — already playing catchup following the COVID infection waves of 2020 and 2021 — will stretch even longer.

Given these challenges, we expect accelerated demand for automation, artificial intelligence, and data analytics. This will drive compelling investment opportunities as we head into 2022. Healthcare innovation will progress, and the companies that can facilitate the doing of “more with less” will thrive.

Read more about how to invest in these healthcare tech trends by downloading our full report here.

[1] https://www.icn.ch/news/icn-reaction-who-dg-dr-tedros-confirms-least-115000-health-workers-have-died-due-pandemic

[2] https://www.bls.gov/news.release/pdf/empsit.pdf

ROBO Global currently offers three innovative index portfolios to allow investors to capitalize on these 2022 technology trends, including our Robotics & Automation Index (ROBO), Healthcare Technology & Innovation Index (HTEC), and Artificial Intelligence Index (THNQ). To learn more, visit our website at www.roboglobal.com.