GP Bullhound

GP Bullhound predicts the top 10 technology trends for 2016

Press Release   •   Jan 14, 2016 15:11 CET

London and San Francisco, 14 January 2016 - GP Bullhound, the technology investment bank, has today released its top ten technology trends predictions for 2016. A leading expert in global tech dealmaking, the firm based the predictions on its own analysis of investment and acquisition activity and insights provided by its international team. The firm’s report touches upon a wide range of topics across the technology landscape.

Virtual reality is set for a breakout year with the release of hardware by big tech companies such as Facebook, Sony and HTC creating unprecedented opportunities for software developers. Expectations surrounding the technology stem from the huge potential for disruption across a diverse array of industries such as media, sports, gaming, entertainment and education, as well as large sums being discussed around fundraising and acquisition activity.

In addition, GP Bullhound has identified growth potential in connected devices, looking specifically at wearable tech and connected cars. Digital fitness and wearables will become more mainstream as the benefits of tracking one’s well-being is beginning to resonate with a mass consumer audience. While driverless cars will not be commercially ready for a few more years, the automobile industry will see notable changes with technology and connectivity inside the car increasingly becoming a major driver of new car sales.

However, amidst a landscape of growing popularity for connected devices, the investment banking firm advises caution on the potential of drones. Although becoming increasingly popular and featuring highly at CES this year, concerns persist around increased regulation, developing technological capabilities and the increase in drone incidents.

Digital media also features throughout the predictions. 2016 will see further consolidation in the gaming industry as the gaming giants continue to entrench themselves in the top mobile grossing charts and acquire the last remaining independent gaming companies that challenge their positions. The firm also provides insightful commentary on the state of digital video, where the measurement of advertising and engagement efficacy needs to keep improving. Digital video accounts for 64% of all consumer internet traffic worldwide, and over-the-top platforms such as Hulu, Netflix and Amazon are all thriving with growing subscriber bases whilst succeeding in creating their own original content. GP Bullhound anticipates further M&A activity from industry players focusing on acquiring assets and teams to help bolster their video platforms.

Alec Dafferner, Partner of GP Bullhound, commented that “investment activity across the global technology landscape continued to increase in 2015, defined by $624 billion in aggregate M&A activity, the highest annual level in history. Our technology predictions highlight the sectors set to attract substantial interest and investment in the coming year.”

“Technology advances at a rapid rate and 2016 will see sectors rise and fall. Virtual reality, connected devices and enterprise mobility are all being driven by high profile product releases and growing consumer penetration. However, drones, cybersecurity and even tech unicorns will come under increasing pressure to justify their hype.”

The report also profiles the tech companies to watch in 2016, in everything from digital media to connected devices.

Top 10 predictions in full:

1. Virtual reality becomes reality
2. “Quantified Self” transitions from niche to mainstream
3. Automobile industry ripe for innovation
4. Alternative lending continues to shine brightly in Fintech sector
5. Gaming giants fortify positions in top grossing charts
6. Digital video becomes more measured to keep growing up
7. “Deskless” workers come to forefront in enterprise mobility shift
8. Cybersecurity continues soul searching
9. Drones will fly into headwinds of uncertainty
10. Unicorn hunting now in season

To download the full report, please click here

Inquiries

For inquiries, please contact Alec Dafferner at alec.dafferner@gpbullhound.com

About GP Bullhound

As dealmakers in technology, GP Bullhound provides independent strategic advice on mergers and acquisitions and private placements to entrepreneurs, companies and investors. By combining a true passion for innovation with great access to global buyers and capital across Europe, the US and Asia, GP Bullhound has completed transactions with many category leaders including Essence, Avito, Delivery Hero, Fjord, King.com, Pingdom, Pozitron and Spotify. The firm was founded in London in 1999 and today also has offices in San Francisco, Stockholm, Berlin and Manchester. For more information, please visit www.gpbullhound.com or follow on Twitter @GPBullhound

About GP Bullhound

As dealmakers in technology, GP Bullhound provides independent strategic advice on mergers and acquisitions and private placements to entrepreneurs, companies and investors. By combining a true passion for innovation with great access to global buyers and capital across Europe, US and Asia, GP Bullhound has completed transactions with many category leaders including Avito, Delivery Hero, Fjord, King.com, Pingdom, Pozitron and Spotify. The firm was founded in London in 1999 and today also has offices in San Francisco, Stockholm, Berlin and Manchester. For more information, please visit www.gpbullhound.com