6 Trends That Will Shape Innovation Development in 2024: Reminder for Investors

By Spencer Hulse Spencer Hulse has been verified by Muck Rack's editorial team
Published on April 12, 2024

The development of technology is rapid, and it inevitably leads to changes in the venture capital industry. What should investors expect from the results of the first quarter of 2024, and what technologies should they focus on? Industry insider Eugenii Chebotov, venture entrepreneur, syndicator, and co-founder of Prosto VC, helped fill in the gaps when it comes to the trends of 2024.

Artificial Intelligence Integration Into Other Industries

The number of startups in the world is expected to increase in 2024. After all, it is impossible to ensure GDP growth without it. For example, in 2022, the revenue of startups using AI was $87 billion, and according to forecasts, by 2030, this figure could reach $1,850 billion. This represents a colossal growth of 21 times in 8 years.

AI is now capable of doing many things, even writing code from scratch. That capability makes it capable of being used to develop software (mobile and web applications), optimize testing processes, and ensure security.

In addition, it can be integrated into data analysis to automate the processing and analyzing large amounts of data, as well as identifying development trends.

But this, of course, is not everything. AI is also capable of developing graphic design, such as automating the processes of creating and modifying graphic elements. Another trend in the use of artificial intelligence is game development since it automates the processes of creating and modifying games and helps to ensure interactivity. An example is Fotor, a popular platform for editing photos and creating graphic designs that use various algorithms and technologies, including some elements of artificial intelligence.

The emergence of new professions is inevitable from this technological trend. For instance, specialists in prompt engineering will be in demand. Thus, in 2024, the number of specialists who will work with AI will grow. Most likely, they will be redistributed from traditional business to the technical sector.

But there is a negative side to the trend of AI being capable of so many things, including software development, analyzing big data, and creating graphic design. It inevitably raises concerns about the substitution of human labor. The development of this technology, if left unchecked, may increase social inequality and cause employment problems.

Development of Technologies in the Field of Security, in General, Cybersecurity

The development of AI and increasing volumes of information are forcing the economy to grow the number of startups that deal with data security. This is driven by the need to protect against malware, phishing attacks, and the adoption of IoT and BYOD trends. 

This trend shows the vulnerability of enterprises to cyber threats. In 2022, the global cybersecurity market was valued at $154 billion and is expected to reach $425 billion in eight years with a CAGR of 14%. 

Services account for a significant portion of revenue in the market structure. An example in this area is the company Darktrace. It has developed a platform that uses machine learning to detect and prevent cyberattacks. The system observes network activity, identifying unusual and suspicious patterns that may indicate the presence of a threat.

However, there is a negative aspect of this trend: the increase in cybersecurity startups reflects the growing need for data protection. However, an increased focus on security can lead to more closed and restricted systems, which in turn can stifle innovation and the free flow of information.

The Growing Relevance of Blockchain and Web3

The idea of Web3 is that the economy is becoming decentralized. Facebook, for example, is a Web2 company with a centralized system that does things like decide how much a contractor will be paid for a particular job. 

Web3 and blockchain are trends in the decentralized economy’s next stage, in which the community decides for itself who and how much to reward. Now, the market has an internal demand for decentralization, and there are technical solutions for this. However, there is a low base effect.

Expect an increase in the implementation of blockchain technology in 2024. Most likely, new startups will emerge to solve the main trilemma of blockchain — implementation of decentralization, security, and scalability.

A clear example of an Internet blockchain startup is Layer Zero. The protocol can utilize artificial intelligence for a variety of purposes, including:

  1. Data Management: AI can help analyze and process large amounts of data related to blockchain transactions and network activity.
  2. Security: AI can be used to detect suspicious activity on the blockchain network and prevent cyberattacks and fraud.
  3. Performance Optimization: AI can optimize the performance of the blockchain network by predicting load and optimizing consensus algorithms.

However, while decentralization and blockchain promise to improve transparency and security on the Internet, they also face difficult challenges related to scalability, efficiency, and governance. In addition, there is a risk of centralizing power in the hands of a small group of big players.

Growing Importance of Eco-Technologies

Scientific and technological progress requires increased attention to ecology and environmental protection. New technical solutions (emergence of software) contribute to the development of industrial technologies, which, in turn, increases the number of production facilities. 

This is reflected in the internal demand for technologies that reduce the impact of industrial production in companies. The green technology market is growing due to several key trends:

  • Renewable Energy: Accelerated transition to solar, wind, and other forms of clean energy.
  • Smart Cities: Developing green solutions to improve sustainability and quality of life.
  • Circular Economy: Minimizing waste and recycling it to create new value.
  • Cleaning Technologies: Innovations in water and air purification to reduce pollution.
  • Digitalization for Sustainability: Applying AI and digital technologies to improve efficiency and reduce resource consumption.

Consequently, projects are emerging to recycle waste, develop alternative energy sources, and ensure sustainable production. 

An example is Recycleye, an eco-technology project that uses artificial intelligence. The startup offers innovative solutions for automating waste management processes. Machine learning and data analysis are used. The technologies help to optimize waste sorting, which improves recycling efficiency and at the same time reduces the negative impact on the environment.

But there is a downside here as well. Despite the desire for sustainable development and minimizing environmental impact, many eco-technologies require significant investment and may not be available to developing countries. This can also reinforce global inequalities.

Robotics and Automation are Relevant

The global robotics market is expected to grow from about $25 billion this year to $160-260 billion by 2030. The market for professional service robots could reach up to $170 billion, and sales of industrial and logistics robots could exceed $80 billion. Changing consumer preferences and social trends are key drivers of this growth.

Trend and growth drivers worth highlighting include:

  • Increasing applications in emergency services and healthcare. The COVID-19 pandemic showed the importance of robotics in these areas, including room disinfection, drug delivery, and support for surgical procedures.
  • Advances in AI and machine learning (ML). Their integration into robotics is improving robots’ learning, perception, and decision-making abilities, which is expanding their applications in various fields.
  • Growth of collaborative robots (cobots). Cobots, designed to safely interact with humans in the work environment, are becoming increasingly popular due to their variability in customization and ability to increase productivity.
  • Increasing automation in logistics and warehousing. Automated systems for warehousing, sorting, and delivering goods are seeing significant demand, especially with the growth of e-commerce.

One startup that is using artificial intelligence in robotics is Boston Dynamics. The company is known for its advanced robotics systems, including robots such as Spot and Atlas. 

Using machine learning and artificial intelligence technologies, Boston Dynamics develops robots that can move autonomously, interact with their environment, and perform a variety of tasks.

While automation and robotics can improve workplace efficiency and safety, they also have the potential to lead to job losses and increased social divisions between those with skills in new technologies and those without.

Trends in VR and AR

Earlier this year Apple released Vision pro virtual and augmented reality glasses. This is the birth of a new trend, or an indicator that the technology has fallen to the giants and the process of intensive development is over. Chebotov thinks we will see where this trend will turn in the near future. PS Market Research reports that the global AR and VR market was valued at $28.5 billion in 2021 and is expected to reach $200.1 billion by 2030, growing at a CAGR of 24.2% between 2021 and 2030. 

VR is, of course, more related to the gaming industry, but the technology is also useful in education, medicine, tourism, construction, and marketing. The discussion with Chebotov highlighted the following development prospects:

  • Hardware improvement
  • Development of new applications and content
  • Expansion and use in business
  • Integration with other technologies, such as AI and blockchain

One of the latest virtual and augmented reality (VR and AR) startups to utilize artificial intelligence is Nreal. The company develops augmented reality devices, such as glasses, that allow users to interact with virtual objects in the real world.

With artificial intelligence, Nreal aims to improve user experience and create more realistic and interactive augmented reality environments.

Virtual (VR) and augmented (AR) reality are opening up new opportunities for learning, entertainment and work. However, the concerns caused by their development cannot be ignored since they are related to people’s isolation, loss of connection with reality, and privacy issues.

So, everything is highly integrated into the trends in the market. Chebotov highlighted another complex trend from those named earlier, which is blockchain and AI in combination. Why? Because the technologies are not separate from each other but instead synergistic, which is what allows the market to grow and develop.

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By Spencer Hulse Spencer Hulse has been verified by Muck Rack's editorial team

Spencer Hulse is the Editorial Director at Grit Daily. He is responsible for overseeing other editors and writers, day-to-day operations, and covering breaking news.

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