Tech Landscape 2020: A Recap of the Peaks and Troughs

Of all the years in the recent past, in no particular year have so many predictions taken a nose dive, rather spectacularly, like in 2020. Large scale panic leading to grocery hoarding, giants in the alcoholic beverages sector manufacturing sanitizers overnight, and behavioral shifts all around led by information overload. The year however, has been stupendous for the world of technology as Covid19-induced tech adoption happened at an unprecedented scale. Here’s a recap of what transpired through 2020 to morph the tech landscape for 2021.

Accelerated Adoption of Technology

While India had already been ahead of the curve in digital adoption, people across the globe acquired a taste for technology that’s here to stay. From digital payments to content consumption on OTT platforms, consumers have embraced technology like it was always there. India’s Internet penetration is largely unrivalled with 500+ million subscribers! There is a dynamic digital ecosystem where both the sellers and the consumers get benefited. This leaves marketers two options: go digital or go home.

SMEs finally digitally transforming themselves

Businesses which had been shying from transforming their lethargy system due to cost, time or simply inertia, have been forced to go digital. That remained the only way to do business in 2020, as more and more SMEs warmed up to the idea of taking their physical presence online. Google reports that the basket size of consumers purchasing online is 40% higher than the basket size for offline consumers. And this makes a strong case for businesses to re-evaluate their business models. 

Sectors that thrived

Ed-tech

There are over 4,530 active EdTech start-ups in India today, out of which 435 were founded in the last 24-months alone. The sector that was poised for growth even before Covid-19 received a major push with education at all levels needing tech support in order to ensure continued learning even during lockdown. Virtual classes have become a norm and it is a matter of habit development that will define their progress in the coming years.

Health-tech and Health-comm

Early movers in the health-tech space saw a boom in consumer acquisition as circumstances necessitated teleconsultation as a replacement for physical visits. The medicine delivery business too has done well with people choosing to order medicines from the comfort of their homes. Mental health consultations have seen a rise with people getting more sensitized about the need to talk to an expert when needed.

Online Gaming

Online gaming has come to rescue for many who needed an interactive and participative form of entertainment to survive the pandemic. With innumerable options to choose from, there is something for everyone – from noobs to hardcore gamers, people have found their own addictions and the gaming industry have witnessed accelerated growth in many countries. However, monetization strategies beyond fantasy games and Poker kind of games is something yet to be discovered.

Online Entertainment

This is a no-brainer. As people spend more than 90% of their time indoors, they are constantly looking for quality content to consume. Several OTT platforms have seen a significant rise in the percentage of viewers. The content strategy too has evolved in this space with OTT platforms creating a sort of bridge between small and big screen. While many newcomers found their calling, a lot of big-screen actors became the protagonists for series that would perhaps be often watched on a tiny mobile screens as well.

E-retail and Social-comm

While Amazon continues to be the juggernaut in e-retail, many new entrants have also faired well. Also, social media selling reached new heights with more and more people getting confident about ordering from brands they love on Instagram or Facebook. A mini-ecosystem has also evolved on WhatsApp groups with people selling and placing orders within closed communities.

Sectors that suffered

Organized retailers have been heavily impacted by the shutdown of malls as luxury shopping with sensory appeal took a backseat during Covid-19. While hopes for recovery are strong, year 2020 changed many habits and to get people to go back to the ‘mall-experience’ with the same enthusiasm could be a challenge.

The tourism and hospitality sectors were one of the worst affected sectors in 2020. However, signs of recovery can be seen with restrictions lifting. However, with the new-strain of Coronavirus now found in Europe, the near-future for international tourism will remain dicey.

The automobile sector which had been in doldrums for a while did face a big blow as all manufacturing plants had to be shut down. However, the small car market did see some growth, as many people earlier reliant on apps like Ola and Uber wanted to switch to safer options for commuting.

Also, the real estate sector suffered immensely with as key construction projects were put on hold for a long time. But the sector is poised for growth as markets recover and people look for more investment avenues.

While some industries survived the storm better than others, a big behavioral shift has been witnessed in consumers and provides several new windows of opportunities for new entrants. 2021 will perhaps be one of the most dynamic years as a result of repercussions of 2020. Technology has been the underlying foundation for most industries which progressed and it is going to remain one of the most important ingredients for success that cannot be ignored.

What other sectors do you think could witness massive growth in 2021? Which sectors do you think could become obsolete?