Key performing sectors and trends in 2020
Rushika Bhatia
10x Industry

Key performing sectors and trends in 2020

As we enter a new decade, sectors are poised to begin the year 2020 with fresh enthusiasm as they get ready to conquer new peaks with new technology and business models. Here’s a snapshot of what’s in store…

What to expect from top sectors in 2020?

1. Healthcare: Healthcare institutions grapple with the reality that their services or technological capabilities are no longer sufficient to create a competitive edge. They need to make significant strides in the realm of patient experience to differentiate themselves. One of the top priorities will be enabling the patient to access healthcare resources 24/7 using mobile applications.

A JP Morgan report explains:Consumers pay more for their healthcare than they ever have before, with out-of-pocket costs north of $2000 on average. This has led to more discerning generation of consumers, who think a lot more about where they spend those dollars, shopping for their healthcare like they shop for other retail items. Patients are looking for the best service and the best locations, at the lowest cost. This demand for convenience has created an opportunity for traditional drug retailers, such as CVS, to make the most of their existing footprint through telemedicine, using telecommunications and virtual technology to deliver healthcare.”

In her commentary piece for UPS, Nancy Brown echoes this sentiment: “Beyond affordability, patients report that care is disparate, too complex to manage, unfocused and incongruent with their goals and priorities. Globally there is a growing recognition that healthcare leaders should prioritize patient-reported outcomes and patient-reported experiences, as well as health-outcome metrics to assess quality whenever possible. As people live longer, the need is urgent to improve innovation, treatment and payment systems so they incentivize and support the delivery of value in healthcare. Without the patient voice represented throughout this process, we cannot reach true value.”

2. Hospitality, tourism and retail: As the hospitality, tourism and retail ecosystem enters a new decade, it is likely to see new business models emerge, different breed of entrepreneurs will come to the fore, and there will be a different kind of or unique challenges to be solved. Already, there are some early signs showing with the emergence of tech startups, which are not looking at traditional services, but diving deep to solve issues and improve customer experiences. Closer to home, Expo 2020 is likely to have a positive impact on these sectors. “There is no doubt that Expo 2020 will have a significant impact on Dubai and act as a catalyst, further energizing the hospitality, leisure, retail and consumer businesses here. It only takes a quick analysis of the impact of an expected additional 20 million international visitors over a six-month period to see that significant investment in hospitality and retail infrastructure will be required,” points out Anis Sadek, Dubai managing partner, Deloitte in their online report on Expo 2020.

3. Manufacturing: In line with Dubai’s “Industrial Strategy 2030”, the economy is looking to fuel the manufacturing sector. According to the Dubai Department of Economic Development, the sector is expected to contribute 25% to the country's overall GDP by 2025. Some of the top factors reshaping this sector will be IoT and smart manufacturing. On one hand, IoT has the potential to digitize factory objects to an extent where processes become so flexible that factory owners can benefit from: cost efficiency, flexibility, reduced time cycles and cheaper labour. The biggest advantage of all, however, is that connected devices give factories the freedom to create more customised options for their customers and gain a competitive edge. On the other hand, technologies such as robotics, IoT, 3D printing and data analytics are being integrated into traditional manufacturing processes. Companies are beginning to embrace these technologies to increase productivity and profitability. In fact, many manufacturers are looking at digitization as a set requirement, not an option, to stay relevant in an increasingly connected infrastructure.

4. Education: In 2020, educators will need to strike the right balance. The education sector will need to reshape itself in line with the fourth industrial revolution and come to terms with the ‘man meets machine’ analogy to create new possibilities. The challenge for educators lies in creating a balance between traditional techniques and digital innovations to create learning experiences that keep pace with market changes. Schools and educational institutions are also quickly realizing that when it comes to learning one size doesn’t fit all. There is an emergence of customised learning modules to suit the individual needs of the students.

5. Retail: All eyes continued to be on the retail giant Amazon as it steadily gained market share. On the technology front, retailers will continue to experiment in areas such as VR and AI. Mainstream brands will be seen integrating VR experiences within their showrooms to enable potential customers to enjoy the product’s features before purchase. The beauty of such technology is that it can transform an ordinary physical space into an immersive experience. Moreover, it helps customers visualise how the product or service will fit into their daily lives. Chat apps will also continue gaining popularity as they help retailers with routine tasks such as customer support to answer standard questions, assisting with returns and providing 24/7 responses.