The Latest Thematic Reads for Digital Privacy and Digital Infrastructure
Headlines continue to confirm the prospects for these two investing themes
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Thanks for being a subscriber to Thematic Signals+. Here are some of the things we’ve been reading lately pertaining to our investment themes as well as related indices and models. Enjoy!
-Team Tematica
Cyber Security & Data Privacy
Securing individuals and organizations against cyber threats and privacy violations:
“Recently, more and more consumers have started becoming aware of online privacy and the many issues that arise in the digital realm. On average, 9 in 10 online users have actually moved ahead and tried to do something about the matter and that just goes to show how serious they are… A huge chunk of the digital privacy concerns that many have is related to criminal activity, above anything else. To be more specific, the biggest nightmare of many consumers is having their identity stolen or another portraying themselves as them.”
Here’s What Consumers Feel About Their Digital Privacy in 2022
“One of the main fears of 56% of young people is the security of personal data. This is related both to the growth of personal information in social networks and messengers, and to the growth of hacker attacks and viruses. 42.9% of young citizens are afraid of Internet fraudsters, and 25.8% are afraid of losing important information, including smashing their phones, not saving data, forgetting their passwords, or being without an internet connection."
More than half of young people are concerned about personal data security
“As the Internet and connectivity evolved, so too did the concept of digital privacy. Digital privacy has moved to the need to ensure that constituents have a say in how their data are used and distributed. This has driven the resolve for robust identity management which not only includes usernames and passwords but now is accelerating the adoption of multi-factor authentication across government agencies. While these technologies are not new concepts and the regulations around digital privacy continue to change, it is imperative that government IT organizations prioritize creating, adopting, and deploying a robust digital privacy plan.”
Survey Says: IT Leaders on Their Biggest Data Privacy Challenges
“As governments around the world grapple with the implications of crypto’s explosive growth, many are continuing to explore—with increasing urgency—the development of central bank digital currencies (CBDCs) in the hopes of revitalizing and expanding access to payments infrastructure, facilitating cross-border payments, and maintaining sovereign currency control. Yet persistent concerns about CBDCs, including and perhaps most notably privacy concerns, continue to befuddle policymakers and central bankers, alike.”
Privacy concerns loom large as governments respond to crypto
“Managing identities and access control for enterprise applications remains one of the greatest challenges facing IT today.
Digital identity will be the single biggest gating factor to the adoption of enterprise IoT
A combination of technologies and approaches are required to ensure robust security and privacy
Over 23% of all communications and commerce solutions will rely upon a unified digital identity approach by 2027
Driven by emerging opportunities, digital identity infrastructure and services will become a $53.9 billion USD global opportunity by 2027
The five largest industry verticals through 2027 will be financial services, telecom and IT, insurance, government, and healthcare services
Digital Identity will be the Single Biggest Gating Factor to the Adoption of Enterprise IoT
"From a security perspective, eliminating passwords from the user authentication process reduces the damage from list-based attacks, and from a usability perspective, providing an authentication method that does not rely on remembering passwords prevents situations where a user is unable to login because they forgot their password.”
Yahoo Japan strives for universal passwordless authentication
Digital Infrastructure & Connectivity
The buildout and upgrading of our Networks, Data Storage Facilities, and Equipment:
“From 2020 to 2025, IDC forecasts new data creation to grow at a compound annual growth rate (CAGR) of 23%, resulting in approximately 175ZB of data creation by 2025. ‘The amount of digital data created over the next five years will be greater than twice the amount of data created since the advent of digital storage.’”
Big Growth Forecasted for Big Data
After dipping its toes into the Wi-Fi 7 water with a chip for smartphones and PCs in February, Qualcomm is taking the plunge with a full-blown ecosystem for the new, super-charged Wi-Fi standard. Qualcomm's new lineup – called the Wi-Fi 7 Networking Pro Series – aims to hit the other side of the link, supporting high-end access points, mesh devices, gateways, and premium home routers… Qualcomm isn't the only chipmaker launching Wi-Fi 7 products. Rival Broadcom announced its own Wi-Fi 7 ecosystem in April, in the form of a handful of chips for both residential and enterprise applications.”
Qualcomm goes big on Wi-Fi 7
“The Wi-Fi Alliance, which makes Wi-Fi standards and includes Qualcomm as a member, has said that Wi-Fi 7 will offer a max throughput of "at least 30Gbps." …The next-gen tech is aimed at network-intensive applications, like virtual and augmented reality, video streaming at 4K and higher, and cloud computing and gaming. By making changes to the physical (PHY) layer and medium access control (MAC), Wi-Fi 7 should allow you to enjoy these applications with less latency and jitter.”
Wi-Fi 7 home mesh routers aim to hit 33Gbps
“Smart camera company Snap Inc. continues rolling out new augmented reality (AR) features on its Snapchat visual platform. The company is rolling out a new suite of AR content creation and shopping tools aimed at social commerce, including several that further build upon its Lens platform. These include a dedicated destination on Snapchat called "Dress Up" that lets users try on clothes (virtually).”
New Snapchat AR shopping features include virtual try-on
“VR and AR will push the bandwidth requirements upwards bringing many challenges to the Internet service providers running on legacy technologies. ISPs will require to cater to these demands by providing high capacity symmetrical bandwidth, uniform internet speed with low latency, and IPv6 connectivity to provide rich visual content for the VR-enabled electronic devices. AR will require upwards of 100Mbps and VR will require upwards of 25Mbps on a contact basis for a smooth experience.”
Upcoming Bandwidth demand for Virtual reality (VR) and Augmented reality (AR)