Scientists, technologists, engineers, and visionaries are building the future. Amazing things are in the pipeline. It’s a big deal. But you already knew all that. Such speculation is common. What’s less common? Scale. How big is big? “Silicon Valley, Silicon Alley, Silicon Dock, all of the Silicons around the world, they are dreaming the dream. …
1. Deep Learning Could Be Worth 35 Amazons
Deep learning is a subcategory of machine learning which is itself a subcategory of artificial intelligence. Deep learning is the source of much of the hype surrounding AI today.
As deep learning advances, it should automate and improve technology, transportation, manufacturing, healthcare, finance, and more. And as is often the case with emerging technologies, it may form entirely new businesses we have yet to imagine.
2. Fleets of Autonomous Taxis to Overtake Automakers
“This is the biggest change that the automotive industry has ever faced,” she said.
Today’s automakers have a global market capitalization of a trillion dollars. Meanwhile, mobility-as-a-service companies as a whole (think ridesharing) are valued around $115 billion. If this number took into account expectations of a driverless future, it’d be higher.
The mobility-as-a-service market, which will slash the cost of “point-to-point” travel, could be worth more than today’s automakers combined, Twice as much, in fact. As gross sales grow to something like $10 trillion in the early 2030s, her firm thinks some 20% of that will go to platform providers. It could be a $2 trillion opportunity.
3. 3D Printing Goes Big With Finished Products at Scale
3D printing has become part of mainstream consciousness thanks, mostly, to the prospect of desktop printers for consumer prices. But these are imperfect, and the dream of an at-home replicator still eludes us. The manufacturing industry, however, is much closer to using 3D printers at scale.
4. CRISPR Starts With Genetic Therapy, But It Doesn’t End There
According to ARK, the cost of genome editing has fallen 28x to 52x (depending on reagents) in the last four years. CRISPR is the technique leading the genome editing revolution, dramatically cutting time and cost while maintaining editing efficiency. Despite its potential, Wood said she isn’t hearing enough about it from investors yet.
“There are roughly 10,000 monogenic or single-gene diseases. Only 5% are treatable today,” she said. ARK believes treating these diseases is worth an annual $70 billion globally. Other areas of interest include stem cell therapy research, personalized medicine, drug development, agriculture, biofuels, and more.
5. Mobile Transactions Could Grow 15x by 2020
By 2020, 75% of the world will own a smartphone, according to ARK. Amid smartphones’ many uses, mobile payments will be one of the most impactful. Coupled with better security (biometrics) and wider acceptance (NFC and point-of-sale), ARK thinks mobile transactions could grow 15x, from $1 trillion today to upwards of $15 trillion by 2020.
In addition, to making sharing economy transactions more frictionless, they are generally key to financial inclusion in emerging and developed markets, ARK says. And big emerging markets, such as India and China, are at the forefront, thanks to favorable regulations.
6. Robotics and Automation to Liberate $12 Trillion by 2035
Robots aren’t just for auto manufacturers anymore. Driven by continued cost declines and easier programming, more businesses are adopting robots. Amazon’s robot workforce in warehouses has grown from 1,000 to nearly 50,000 since 2014. “And they have never laid off anyone, other than for performance reasons, in their distribution centers,” Wood said.
But she understands fears over lost jobs.
This is only the beginning of a big round of automation driven by cheaper, smarter, safer, and more flexible robots. She agrees there will be a lot of displacement. Still, some commentators overlook associated productivity gains. By 2035, Wood said US GDP could be $12 trillion more than it would have been without robotics and automation—that’s a $40 trillion economy instead of a $28 trillion economy.
“This is the history of technology. Productivity. New products and services. It is our job as investors to figure out where that $12 trillion is,” Wood said. “We can’t even imagine it right now. We couldn’t imagine what the internet was going to do with us in the early ’90s.”
7. Blockchain and Cryptoassets: Speculatively Spectacular
Blockchain-enabled cryptoassets, such as Bitcoin, Ethereum, and Steem, have caused more than a stir in recent years. In addition to Bitcoin, there are now some 700 cryptoassets of various shapes and hues. Bitcoin still rules the roost with a market value of nearly $40 billion, up from just $3 billion two years ago, according to ARK. But it’s only half the total.
“This market is nascent. There are a lot of growing pains taking place right now in the crypto world, but the promise is there,” Wood said. “It’s a very hot space.”
Like all young markets, ARK says, cryptoasset markets are “characterized by enthusiasm, uncertainty, and speculation.” The firm’s blockchain products lead, Chris Burniske, uses Twitter—which is where he says the community congregates—to take the temperature. In a recent Twitter poll, 62% of respondents said they believed the market’s total value would exceed a trillion dollars in 10 years. In a followup, more focused on the trillion-plus crowd, 35% favored $1–$5 trillion, 17% guessed $5–$10 trillion, and 34% chose $10+ trillion.