Brian Markwalter 

Alright, good morning everybody! So welcome welcome to CES 2020. I'm not Steve Koenig. I'm Brian Markwalter. I'm Senior Vice President of Research and Standards at CTA. I'm excited to welcome you all here to Research Summit 2020. This is our 10th Annual Research Summit. So we're excited to be doing this. This was a great idea that our research team had at CTA 10 years back. We do all this research year round, and it's a chance for us to deliver it to a wider audience. So we're excited. It wouldn't happen without our sponsors. So we have returning sponsors, our GFK NPD Group, and Cox automotive and then we have a lot of new sponsors, helping us with new ideas and new content. That's Boston Consulting Group, L'Oreal, Siemens Mobility, Procter and Gamble, VMware, segway and here technologies so you're going to be hearing from them throughout the program. So this is a new decade 2020 I don't know if you call it any any lead up trends. I ideas but Steve's going to go over that in detail to kick things off this morning as a great chance for us to look ahead at the decade. So we will be here all day in this room and N257 today, and then the research summit continues Tuesday and Thursday morning in N256. So the topics that will be covering includes smart cities and mobility, personal care, automotive tech, 5g, first and last mile mobility, climate change, AI and more. So you're gonna see the whole gamut of topics that and what you'll also see on the show floor, it's a great way to understand what what's happening throughout our technology industry. So with that, I'm going to get off stage and let us get right into the into the meat of things here. I'd like to welcome Steve Koenig, our Vice President of Market Research at CTA. Steve?

 

Steve Koenig 

Thanks, man. Thanks. Thanks so much, Brian. And welcome once again to CES 2020 and this installment of Research Summit. Now, everybody knows that tomorrow is the first day of CES. But no matter if you're here with us in Las Vegas or watching online for all of you, CES 2020 starts right here. Right now. Can we celebrate that? And all right. And what a great way to start by topping up your understanding of major technology themes that are manifest across the industry, and of course here at CES 2020. So let's get started. And let me commence if we can have the slides please. Thank you with a question. When we look across the consumer technology industry today, how can we describe the dynamic So looking back into the previous decade? I think the the answer to this when we think about devices and hardware software Software apps, content, media, entertainment, all these things. Again, looking back in the past 10 years, I think the the operative term would be IoT, the Internet of Things. And of course, we're very familiar with this term. We invoke it regularly in the parlance of day to day business conversations and technology descriptions. But it is the start of a new decade, CES always sets the pace for innovation each and every year. But as we look forward into this decade, how can we describe the dynamic what's happening now? And what can we expect to happen? Well, I think the answer is, is that we're confronted with an entirely new IoT. And that is the intelligence of things. So this new IoT bears testimony to the fact that artificial intelligence is permeating every facet of our commerce and our culture. Now, commerce is pretty well understood. I mean, we endorsed This because this is how economies grow, and so forth. And businesses have been using technology and intelligence for for a long time with with artificial intelligence, machine learning and so forth. But culture

 
Steve Koenig 

that's even more interesting. Why? Because when we're talking about technology's influence on culture, we're talking about shifts in consumer behavior. And that's going to be really interesting to see over the next 10 years. So the intelligence of things is really this this new dynamic, but as much as we're adding intelligence across the industry, and across the broader economy, we're still pressing ahead on that connectivity agenda. And of course, what I'm talking about is 5g, and this is a major narrative of CES 2020. And of course, over 2019, we saw about 50 different 5g networks spring up around the world, and they're kind of listed here on the map of the world, but this is Just the beginning for 5g, and it's very important understand this. So a lot of these early networks, their initiatives are very squarely focused on the consumer marketplace, the consumer market. Why? Well, because we're bridging from 4g and 4g is going to kind of be a sidecar to 5g, if you like moving forward for the time being those networks are going to coexist as we build out the 5g network. And but again, it's going to be a major talking point 5g at CES 2020. This in this very room will have a super session addressing that, talking about how 5g networks are going to grow. What are different application areas, and I'll describe some of that for you in just a second. But in any case, this is really only the beginning with 5g and the narrative here will be not only about what's happening today, but what we expect to happen over the next decade. As 5g networks grow and take hold. And of course at CTA Research we forecast global shipments of lot of different technologies and also, of course in our home market of the US, including 5g and 4g handsets. And this, this forecast is a pretty good proxy for what I was describing about it's going to we're just at the beginning of 5g networks, it's going to take time to build out these networks. This is not like flipping a switch over to 5g. And now we're all 5g. No. As many of you know, I mean 5g operates on three different bands Think of it as low, medium, high, and the antenna and the infrastructure requirements are orders of magnitude above 4g. So this is going to take a long time not to just build the gear and the equipment but to get it into the field tested and ready. And so here you can see that by the forecast horizon of 2023 This is when you know the preponderance of handsets shipping in the US market will be 5g. Starting this year, we get a better than 10 x increase in shipments in the US market of 5g handsets. We'll probably see all the major manufacturers of handsets, at least delivering initial 5g handsets in 2020. And then we're off to the races, aren't we? So again, this is a pretty good proxy for the rollout of 5g networks, at least in the US market. And as you can tell, again, it's going to take some time. I've seen a lot of headlines leading into CES about oh, well, it's, you know, not really happening yet. Well, of course not. For the reason that I mentioned it's going to take time, it's not like flipping a switch. This is critical to understand these networks just don't happen overnight. And and a lot of the, the nuts and bolts of how this is going to happen, what's the timeline, what's the roadmap will be described at CES 2020. But as I mentioned, this is only the beginning. And a lot of the initiatives that we see today relative to 5g networks and the operators thereof are focused on the consumer market. But as these networks propagate, we unlock more and more and more potential. For the enterprise. Now, 5g is the fifth wireless generation. Everybody knows that. But what a lot of people don't know is that 5g is the first wireless generation that will eventually be led by enterprise applications. Now what I mean by that? That means that 5g is literally going to overlay the entire economy. Now how will 5g do that? Well, we can attribute this dynamic to really, two application areas: massive IoT and critical IoT.

 
Steve Koenig 

So let me unpack both of these things for you. So massive IoT applications involve lots and lots and lots and lots of endpoints. That's the massive part, and little bits of data, little bits of data. So maybe that's a temperature setting or an on off orientation. Critical IoT applications, on the other hand, are pretty much the opposite. So fewer endpoints, but orders of magnitude above And beyond the data requirements, massive amounts of data. And an example of this might be Remote Patient surgery where the physicians in one location the patients in another location, maybe New York, San Francisco, and that we're talking robotics, we're maybe talking 4k 8k virtual reality for the physician. So another way to think about critical IoT, in a technical term is URLLC or Ultra Reliable Low Latency Communications. These two application areas will again unlock as we build out that network across those low medium high bandwidth. You've heard about millimeter wave and so forth. And there are just many, many, many more that I don't have time to really dive into in terms of use cases and applications across every conceivable commercial and industrial sector. But what I would like to do is illustrate this dynamic and this point that I'm making with an economic sector that you might not readily attribute to advanced technology. And that is agriculture. So, if you were with us at CES 2019, you probably almost unforgettable. The the john deere was with us over in South Hall here at LVCC. With their connected harvester, well, they're back, John Deere is back at CES 2020. And they're talking about intelligence in terms of farming activities, and so forth with precision agriculture. But as 5g networks propagate, again, we unlock more and more potential for the enterprise. And so I think in probably just a few short years, a lot of this farming equipment will become automated self driving. That's going to be really interesting more thinking about massive IoT applications will have squadrons of drones, armed with sensors that can fly over just huge areas of cultivation. And maybe in this example that you can see here, these red areas are where we need moisture. So instead of irrigating the entire field again, because we've noticed some of the plants are a bit dry, the soil is cracking etc, we can just apply the moisture where it's needed most where it's needed most, that saves water that's better for the environment that lowers food costs. This is what I'm talking about. And the slide says that when we're talking about enabling digital tools to solve food scarcity, that's really what it's about. And 5g is going to make a lot of these things possible. But let me go a step further and really, really illustrate this for you with a glimpse of what that 5g farmer The future is going to look like. Now, of course, I talked about drones, we're going to have sensors in the soil that are connected and intelligent talked about the drones, connectivity on earth and up in space. All kinds of automated farming equipment, tilling, harvesting, laying that the seed, so forth, a lot of the compute requirements for these systems will be done at the edge, of course, but a lot of that data that's needed for advanced analysis, some of the more heavy lifting is going to be uploaded, of course, into the cloud for for cloud based analysis, and then it's going to come back down to our connected farmer here. And as you can see, he's got a lot of screens. And maybe one of those screens are futures prices. And because his silos are connected and intelligent, and with predictive analytics, the farmer knows exactly how much grain say he's going to have harvested by the end of the week, and therefore he can commit today to that high price on wheat futures. That's pretty powerful. That's innovative. That's very helpful for the agricultural sector. And this is just the beginning. We can go on and on about manufacturing and the many, many other economic sectors but for agriculture, this is going to again, enabling digital tools to solve food scarcity, and by the way, help profitability for farmers and save them time.
 

Steve Koenig 

I can go on but but this is what we're talking about, about 5g overlaying the entire economy. This narrative is going to play out over the next several years and guarantee that CES next year and the year after and the year after, we'll be talking about these enterprise applications. The consumer applications advanced or enhanced mobile broadband on your smartphone is just the beginning. And don't get me wrong. That's great. I endorse that. We all do. But that is just the beginning. And we're getting started. That's what's so exciting about CES 2020. Yes, it's a new year, but it's a new decade. And a lot of the things that we attribute to science fiction today are gonna become reality over the next 10 years. And 5g is some of the underpinnings of that. Another one of the major underpinnings of that dynamic is artificial intelligence. And I think when we look at artificial intelligence, at least in the consumer market, the operative word is consumerization. Now, we've been learning about applications for machine learning and hearing about this in a commercial and business case for years and years. But really, what's substantially? The substantial trend now is how artificial intelligence is just again, permeating every facet of commerce and culture. And consumers are right in the middle of this. And so whether it's embedded AI in devices, applications for for AI, again, kind of throwing back to machine learning for services. What's that about? Well, it's mostly about the user experience, enhancing that user experience, whether it's devices, whether it's services, and let's face it, I mean, emerging technology today comes with AI right out of the box. And by the way, this is not a vehicle. This is a vacuum. A lot of people say what kind of car is that? Can I see that at CES? No, it's a it's a vacuum. It's it's the Bosch roxtor. Pretty cool name. But folks, here's the evidence. Here's the evidence for the intelligence of things. This new IoT. You got it. This is the evidence that I'm talking about connectivity, I think we've largely ticked that box. It's about intelligence, the intelligence of things, is what describes this new decade in terms of technology. But let's drill down to that device level because we know that there are manifold gadgets at CES. And we look forward to that each and every year. But when we we look across that device landscape, I think really the, the term that I would use to describe that is connected intelligence. And what's interesting is right here with these two words, you pretty much sum up 20 years of innovation connected the past 10 years intelligence the next 10 years. 20 years in two words, connected intelligence and that's what it that's table stakes today in the device sector. So you're going to hear about at CES 2020 when we look at 8k TVs, almost all of them have these AI upscaling chips take native 4k content, and upscale It to pretty much near 8k perfection. Really, really impressive stuff. Also, we've heard about the use of AI chips embedded AI and smartphones that have multiple cameras these days stitching images together doing its thing to create some really compelling photography. your Instagram followers can't believe that they love you. We endorse all that. But it gets better. I mean even more applications across the device ecosystem for AI that you can see listed here. I mean, I object detection is frankly my favorite because we hear about like cameras that can detect a box at your door or security systems and so forth. It can see if someone's where they shouldn't be. But when we're talking about appliances, you put a pizza in the oven. The oven recognize "Steve just put a pizza in there" it calibrates itself automatically and cooks it I don't I don't need to read the instructions right. Because what happens to me is invariably, I'm cooking in the kitchen and I wind up throwing away the past packaging, what was on the packaging the instructions to cook so I'm having to get back in there and and and get those out to understand how to cook. So what I'm really saying is this kind of application of object detection helps ameliorate the shame of having thrown away the cooking directions. Of course, we're familiar also with speech recognition, voice activated digital assistance. I don't want to belabor this point, because this has been happening for a while now. But even more applications, brands supporting voice activated digital assistance. That's what we can expect.
 

Steve Koenig 

But we can also expect is even new applications in a smart home context, at least of AR and so what we're seeing now is actually fixtures in the home becoming connected and intelligent. And all these solutions that you saw that you see here we're seeing at CES 2019. We'll see even more this year, but This was really impressive. What does it add up to? What does it add up to? I think when we look at solutions like this, not just one off gadgets and DIY solutions, and so forth, we've had those for years and years. But when we're looking at connected and intelligent bathroom vanities, voice activated faucets, I think the answer is we're finally fulfilling the promise of smart home, which is to create intelligent living spaces that take care of us, instead of the opposite. With solutions like this, we're making good on that promise. And finally, if you need even more evidence, for the extent that AI is permeating every facet of our commerce and our culture, pretty soon you may have to look no further than the McDonald's drive thru. This is a really interesting story that I learned about earlier in 2019. And so so why is McDonald's doing this? Why is McDonald's doing this well Think about the person that's working the drive thru. I don't know if any of you in your distant past worked in fast food or maybe you you in fact worked at the drive thru. Well, what does that person it's a pretty stressful job. Why? Well, because first, you know, they've got a headset like I'm wearing, they've got to take the order. And then as soon as they drive around, they've got a handle the transaction, they definitely better get that right. Because they don't want to shortchange anybody. And then they're scrambling around and they've got to organize the order, get it in the right bags, okay, the extra ketchup goes over here. And then they got to end the people, by the way, coming through the drive thru or what? They're in a hurry just on principle. It's a stressful job. It's a stressful job. They're constantly working. By adding intelligence to automate one part of this test taking the order. We really ameliorate the stress of this job the human worker can focus on the monetary transaction, so they make sure they get that right there till isn't short. They can focus on order organizing the order, focus on better customer service because they're less stressed. What am I saying? I'm saying things like this are emblematic of human machine partnerships. And this is what we can expect to unfold over the next 10 years more human machine partnerships. Yes. And manufacturing, yes in medicine, and yes at the drive thru at McDonald's. So it's going to be everywhere human machine partnerships, automating little tasks, working alongside humans. That's what we can expect. So I want to pivot now to content of course content has been a major theme across CES for years and years. And of course, we we have some exhibits and more conference programming showcase. Over at the ARIA hotel, we call that Tech South and that's also called C Space. So if content is interest, if an interest of yours whether its its media companies, content creators, social media, all these things, C Space is where the action is. But what's happening on in terms of a trend? Well, of course all of us are pretty familiar today. There's there's no shortage of choice when it comes to video streaming services SVOD services. I mean, we've got what you've got Netflix, Prime Video, YouTube, Hulu, BBC I player The list goes on. So suffice it to say consumers have an abundance of choice. And in and in the industry. There's an abundance of competition so not Star Wars, but certainly streaming wars. But get ready for the media empire strikes back.

 

Steve Koenig 

Do you see what I did there?

 

Steve Koenig 

Okay, I may have another Jedi mind trick for you a little bit later. You Star Wars fans can stay tuned. But yeah, so a lot of us are familiar with this recent activity where a lot of these media studios have started standing up their own streaming services. Why are they doing this? Well One thing, it's they want to monetize their own content, but they also want to have a direct engagement with their audience. So that they can, they can have more control over that interaction. And with customers and so forth, and a lot of us are probably already watching content on Disney plus, like Star Wars, or Apple TV plus that launched in November of last year. HBO Max and NBC Universal will launch probably in the spring of this year, and NBC Universal is here, by the way, and they'll be talking about Peacock, their forthcoming streaming service. But what does all this add up to? Well, I think the mosaic of content that we currently manage is about to get more granular, that's for sure. That's for sure. And another point I want to make is that we we like to say at CTA that every company is a tech company we see that illustrated across the show floor at CES but here with Apple, very interestingly a very, very well known tech company trying to be a media company and also part of this picture, pardon the pun, is original content. That's really important. And that's pretty much all Apple's got, right? So if that's your thing, maybe Apple TV pluses is a sweet spot.

 
Steve Koenig 

But what can we expect from here?

 
Steve Koenig 

Well, really more the same. And CES is going to illustrate that one way will be the keynote from Quibi. Now, what is Quibi? It's a new streaming service, if you haven't heard that's going to be coming online later this year. Quibi stands for quick bites. And this is really novel and interesting. And Meg Whitman and Jeffrey Katzenberg are the leadership of Quibi. They're going to be talking about all this and their keynote on Wednesday. But what's interesting is kwitny is different because it's really focused on short form content I hear I see some heads nodding and so forth, short form content, so so clips of video episode at content and so forth. It's less than 10 minutes. And as a result, Quibi is squarely focused on mobile devices or that mobile platform. So Think about it, you're on the train, you're at the bus stop, just I don't have a lot of time. But I want to blow in there. They're already architecting and producing a lot of content that's going to be locked and loaded and ready to go when they launch later this year. So very interesting development here, that streaming media ecosystem just continuing to develop, and we'll learn about it at CES. The other thing I wanted to just mention as more and more of these services come online, consumer spending continues to grow and enter some of our forecasts at CTA research about the same and as you can see, here in 2020, we're approaching 17 billion US dollars and consumer spending for streaming services. That's a lot. That's a lot. And so maybe the not so good news is for cord cutters is that when you you start to tally up all the monthly expenditures from all these different streaming services you're subscribed to because you want to get certain different content that only they have cord cutters made from find themselves right back at that dollar amount that they were paying years ago for their pay TV bill. But at least they're going to be getting the content that they want when they want it. So that's the good news. The even better news is that we get to enjoy all that robust content from all these different streaming services on progressively bigger screens. And of course, CES is legendary for big screen entertainment, big screens. We've already heard a lot of dialogue and in the news and so forth, different announcements being made about 8k TVs. And that's really the point I want to make with this slide is why is 8k coming into the picture? Well, it's because screen sizes are getting really big. And here in the US market. We're almost pushing up against a 50 inches as the average screen size for annual LCD TV shipments. So not even counting OLED, but just for LCD alone, nearly 50 inches is the average. So these are really big screens and in fact in 2017 Here in the US market, that was a major date because that was the year that screen LCD TV 70 inches and above top 1 million units. What are they this year, almost 2 million. That's a lot of these massive, massive screens. So therefore I don't think all of these screens are going to be destined for for US households think about video conferencing, digital signage, b2b applications, I think are good sweet spot for this thing about video conferencing, 8k 85 inch screen. Your globally distributed team is all dialing in and they look life size and lifelike. pretty compelling, pretty compelling. So let's continue the theme of of immersion and so forth talk about xR another another fan favorite here at CES and really the trends here xR Of course addressing AR and VR the trends are twofold. Really hardware and use cases this this is kind of the the thumbnail for what's happening. In these spaces, let's let's unpack hardware first. So for VR, six degrees of freedom is really the norm now 60 off of course, tracking you in three dimensional space is what we're talking about. Also a lot of optical sensors, cameras mounted over here. You can see on on this example, why are these cameras there? Well, that's on unlock and enable so called room scale experiences. So what am I really saying? I'm saying we're, we're inching closer and closer and closer to the Star Trek holodeck. I think that's going to be really cool. And like I said, things that we attribute to science fiction, now, this decade are going to happen. And you'll look back and say, Oh, I remember Steve konak said that at CES 2020. But also untethered, it's not wireless. It's untethered. There's very sensitive about that. But yes, that's the proper word untethered. But AR is perhaps even more interesting, more interesting for AR Why? Well, because remember, Google Glass and how awkward That looked well now as you can tell here from one of our Innovation Awards Winner norm glasses from the company Human Capable. They look very realistic like normal eyeglasses or eyewear. So either sunglasses or clear lenses, ar glasses getting you know, these these smart glasses getting very realistic. What are the features? Well imagine like smartwatch features for your face. I mean, that's kind of the sketch on on AR. So some people are going to want that all the time. Some people are going to want it just some of the time. More AR apps if you don't want to wear glasses, or maybe you wear glasses and you can't put another pair of glasses on. You can use the AR apps on your smartphone but use cases is where we're really seeing just just the so much innovation and activity, particularly in the commercial space these b2b spaces. Why? Well, let's face it, it's a competitive marketplace and companies and brands are looking for an edge and consumer technology can provide edge so across across the economic, the economy and different economic sectors, companies are really leaning into what AR can do for them. And you'll see a lot of examples of commercial use cases of AR and VR. Again, like medicine, training doctors on surgeries, they can't work on a real cadaver. They can work on one virtually more and more and more. They're just just dozens and dozens and dozens of use cases tumbling out of xR technology. Let me keep moving here. And again, continuing that theme of immersion and talk about gaming. Lots to see here as usual, you know, these these high end column exotic gaming rigs are PCs, all kinds of next gen headsets and so forth and sound with Dolby Atmos but eSports right here in the middle. This is really interesting. Did you know that eSports is already more than a billion dollar industry globally. Huge and then a lot of the forecast there of just projected to just continue to climb out through the middle of this decade just as the forecast horizon, so lots of activity, and we're going to be talking about eSports over at C Space. So eSports is kind of coming in to that entertainments place, but also with brand marketing. That's where the billion dollars comes from. And since 2016, nearly a half billion dollars has been awarded in prize money, globally. So if you have a teenager, and they're down in the basement playing games, that might not be a bad thing, is what I'm trying to say, Hey, why don't you go in and enter a contest, and then maybe you can win a bunch of money and pay for your own college? That would be great news. We're gonna go to Italy, or something. But cloud based gaming, this is another thing, console and cloud, console and cloud. This is what we can expect from a platform. This has long been postulated that we would see the console disappear. I don't think so. We may hear from Sony today about PS5 a little bit. I don't know. Maybe some of you have heard some of those rumors. Yeah. I'm a I'm a PlayStation. gamer as well. I'm excited about that. But cloud based Google, Apple, Microsoft, lots of options. So gaming is really expanding. I think we're seeing democratization, democratization. If I can get my words out of gaming, it's not just you got to own a console, you gotta have a high end PC. A lot more options there. Let's talk about transportation. And if you're talking transportation at CES, you're talking LVCC. Where North Hall North Hall, yes, long been described as a show within a show. There are so many things going on in this this general area, automotive, other vehicular modes of transportation. I could spend probably 30 minutes talking about this, but instead, I'll spend just a few unpacking some of these major themes. Let's start with electrification. So we're at now, this inflection point where electrification makes a lot of sense. electrification makes a lot of sense. In fact, I would go on say that this is the electric decade for vehicles. I'll say that again. This is the electric decade. For vehicles, we're going to see a lot of ease at CES 2020. We'll see more and more in the coming years. And why is this happening? Well, advances in battery technology, they're lighter, they're cheaper, they hold more charge, which speaks to range, electric motor, the engineering innovation there have better, more endurance more capable, and charging systems safer, easier to use. And by the way, there are more of them at airports at parking garages, not just in your garage. So more opportunities to charge we're at that inflection point. electrification makes sense? This is the electric decade for vehicles. Which leads me to self driving vehicles which are pretty much all electric and we've been talking about electric vehicles and and and self driving vehicles for for a while at CES of course with self driving vehicle sensor innovation, sensor fusion, better sensors faster processors and so forth to make this happen. But what we started to see happening in the past couple of years is really a stronger narrative about commercial deployments, a stronger narrative about commercial deployments. And so I think again, that's going to be we're going to write a new chapter in, in that narrative related to commercial deployments of self driving vehicles, which we expect more and more of to happen this year, not just in the US market, but around the world. And if you're talking commercial deployment, you're talking fleets. And if you're talking fleets, you're talking partnerships, vehicle OEMs software developers, platform providers, obviously service providers. So that's going to be part of the narrative here and nobody can do this all on their own. So self driving fleets. See vieta x cellular vehicle to everything. This is where we put self driving vehicles and other connected cars and really a smart cities, context 5g really being the connective tissue. If you like, for For this And last but not least, multimodal transportation now. There has been a lot of innovation over the past couple of years addressing so called first and last mile transportation needs and emblematic of that I think is the I'm somewhat sad to say the omnipresent scooter. Anybody ride a scooter Have you have you written one social him? Or now we know who the crazy people are? I'm just kidding. But know that why. So why are all these scooters suddenly appearing across America and around the world? It has to do with urbanization, urbanization, our cities are becoming more densely populated. And we need more transportation options. That's that's the state of affairs now that's why this is really happening. And again, we're more innovation addressing first and last mile we'll see here not just scooters but other devices. There's a French startup called welo. That has like a little enclosed, like almost like a trial. sickle that you can get in and it'll it'll go up to 25 miles an hour and take you just like a scooter would. That's helpful if it's raining. I haven't seen anybody riding a scooter when it's raining. And it does do tend to do that from time to time. But as much as we're focused on first and last mile, we're also for focusing innovation on the next mile. Innovation is addressing the next mile. What does that look like? Well, electric vertical takeoff and landing crafts. That's that's what it looks like. And that's now you understand why we just say flying car is a lot easier to describe. But flying cars are started really the narrative at CES 2019. With the bell Nexus we're going to have even more from even some, perhaps some automotive brands. Billions of dollars are pouring into this space to develop technology, all of these electric very interesting a lot of companies are talking about commercial deployments over the next couple of years. Probably my expectation is more towards the middle part of the decade, but will See, 5g is certainly another storyline in this narrative but flying cars, really addressing the next mile of transportation needs. On to digital health. And I think to sum up this category, digital health becomes a lifestyle this year in 2020. digital health becomes a lifestyle. We have over 150 exhibitors in digital health space across the entire ecosystem. And at CES, you know, we talked about CES brings the entire technology ecosystem together. Well, digital health is almost like an ecosystem of ecosystems because you have health care providers or payers. You have all these different domains like sleep tech, and then obviously there's the the fitness pieces, but baby tech, mommy tech, all these different genres or ecosystems within the ecosystem of digital health.
 

Steve Koenig 

Let's see yes. 2020 is also going to describe the future narrative for this category. And this is important because this is going Going to literally touch all of us. How do we expect this space to evolve? Well, moving for and this is again where AI and 5g two key ingredient technologies that will underpin innovation across this decade, moving from symptoms based telemedicine that we have today to evidence based telemedicine live, vital sign data coming through other medical analysis, live video. If you're in a hospital, you want a second opinion, your physician saying you need surgery, you really can't go anywhere. Well, here it is. You can have a bedside console, live with a with a physician in another place. augmented indies and AI more human machine partnerships, AI assisting in diagnosis, ophthalmology, cardiology, and radiology with x rays goes on and on. What am I really saying? I'm saying that hospitals before long are really going to become like data centers. So that really underscores The need for for innovation and encryption technology, security technologies and so forth will also see that unfold across the next decade. and resilience. Resilience is another major theme. And you could also kind of append sustainability here. So resilient technologies, just like in transportation, there's so much to unpack here. I think kind of the bookends here, cyber security and renewable energy are my picks for kind of what's the what's really relevant and most important here, I mean, they're all important. But as I said, we need more security and then renewables. I mean, we can't always rely on fossil fuels. So this narrative will be present at the show, mostly over the West Gate is where we have that marketplace, but also we're partnering with the World Bank Group to stand up this Global Tech Challenge that will bring forward new sustainability options, but if sustainability is an interest of yours, I would highlight a lot of the innovation we're seeing over at Eureka Park where we have 1200 startups, including these three from Holland, all focused on sustainability, Coolfinity with their refrigerator that uses six hours of power to cool for 24 hours. Skoon is a batter a shipping can? Well, it's a battery that isn't a giant battery inside a shipping container that can be deployed to different places Hyrdraloop not a not a vending machine, although it kind of looks like it, but recycles grey water in the home that reduces water use costs, better for the environment, and so forth. So if if you're looking for sustainability startups have a lot going on a lot going on a lot of new thinking, which kind of you know, underscore startups in the first place.
 

Steve Koenig 

Let me close with maybe a fan favorite and that is robotics. And, and when we're talking robotics, we're talking really two parts, task based systems and, and so called social robots. Now, over the past 10 years, we've seen And even maybe 15. We've seen a lot of innovation and task based systems. What am I talking about? These are robots that do one thing and they do it really well. Probably the best example I could give is the the robotic vacuum. It was we saw earlier in the consumerization of AI. So a lot of innovation and task based systems. But I would say maybe seven, eight years ago, we saw this rising tide of innovation addressing so called social robots. These were robots that could move around and a lot of cases maybe they were on wheels, or actually they would walk and walk around. They could do a lot of things. But what was the use case? Why would I need that? It's pretty expensive. And so as a result, social robots just, it's just couldn't really find a market. They struggled to find a market in some ways. They really, they still are, which is which is, which is why we're seeing I think a resurgence of innovation in task based systems. Okay. Anybody know what this is?

Steve Koenig 

This is another one of my Jedi mind tricks. But alright, so indulge me with this, this little illustration here. So let's, let's imagine you're on the board of directors of the Empire. And you've just, you know, spent hundreds and hundreds of billions of dollars to build this new facility. It's It's huge. I mean, it's the size of a small moon and in the marketing people there, they're geniuses, they came up with this really cool name. It's they call it the Death Star. That's awesome. That's awesome. And the HR department who they had been working overtime, because they've had to recruit 10s of thousands of new employees to staff this this small moon shaped facility called the Death Star, a lot of them wearing white and carrying blaster rifles. That's true. But in any case, thousands of new employees. Nobody knows how to get from Turbo laser 16 to docking bay 94 I mean, it's such a huge facility. Enter The mouse droid that can lead the employees around. What's the point I'm coming to? Even in a galaxy far, far away? There was a use case for a task based system. Yes, we had c threepio. And our 2d to they could do a lot of things. They were kind of the social robots. But we still had a use case for task based systems. And guess what, back here on Earth, we are dreaming up all kinds of tasks to put robots to task on I mean, look at it. I mean, delivery robots of all kinds. If you were with us at CES 2019. You probably remember bread bot, really, really innovative and interesting. And then again, every conceivable task, we're deploying robots to help humans with like folded mate. I mean, this is a robot. It's it's pretty big. It's about the size of a washer or dryer. But fold your clothes and it actually does a really good job. Yeah, I kind of think you either have to hate folding clothes are really suck at it to, you know, to buy this, you know, and, and good luck convincing your spouse. It's like, yeah, we have our laundry pair and then we have our clothes folding robot. We need this, but some people do and there is there a market for this, I don't know. But we're putting forward all these different robots around tasks. But social robots are still in the mix. They're still in the mix. And what's been happening here is I described you know that whenever you add mobility to a robotic system, you know, that adds cost that in some cases, a lot of costs, especially if it's walking around. I mean, that takes a lot of different sensors and so forth. So interestingly, that I think that the trend here for social robots has been towards stationary units. What am I saying? I'm saying that instead of moving around, jumping around, spinning around, going all over the home, doing whatever, staying in one place and really focusing on the human machine interaction. What does that look like? Well, ROI baby is really engineered for children to teach them a foreign language to teach them Science and Technology Engineering math stem. Really neat doesn't move around, but very, very effective. The top is this robotic top dog adorable or what I mean the Tom bot so focused on on seniors with Alzheimer's kind of a care service dog, robotic dog. You can speak to it, it interacts. It doesn't jump around and so forth. But certainly for a senior who can't enjoy a real dog. This is a pretty good substitute. And last but not least, Priya by Black and Decker was this little guy who dispenses medicine. So a really great way if you have a parent, an aging parent or a loved one, that you want to make sure they take medication. Maybe it's your mom and dad living alone. And you want to make sure that dad takes his medicine mom takes her Medicine, Priya can help with that. With facial recognition there's there's text alerts and so forth so focused on the human machine interaction not moving around jumping around. That's kind of the trend with social robots. So that's what I have for you today. But just wanted to make a point that if you enjoyed the presentation, if you're looking for perspective on consumer research and and just general technology trends, you know, what's what's happening with with human behavior relative to technology, CTA research can help and by the way, all of our research is free to CTA members. So if we could have the, the slide back, I mean, we hope that you join us and become a CTA member. Again, if we could have the slide back please at CTA.tech for more information. That's my little 22 second commercial but CTA research we'd be delighted to help your understanding of technology themes and opportunities there. And let me just leave you with with one final question.


Steve Koenig 

Are you CES ready? I hope so, whether you're here or watching online, I hope you're CES ready. Enjoy CES 2020. And thank you very much!

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