The 2022 industry outlook and what’s in store for 2023?

As we close the chapter of the previous year and head toward 2023, it is important to note how various industries performed and what all trends are predicted to shape the upcoming year ahead. From economic uncertainties, tech-led innovations and yet funding winter for startups, 2022 reflected tectonic shifts for various industries in the market. It is an exciting time to analyse the major lessons and foresee what’s in store for industries in the upcoming year.

Indian startup scenario 

India houses the third largest startup ecosystem in the world after the US and China. With the significant growth of startups from Tier II and III cities, the year also marked the introduction of many new startup programs that further helped in the development of this new breed of startups and entrepreneurs.

According to Ashish Bhatia, Founder of India Accelerator, said, “The year 2022 has turned out to be an up-and-done one for the Indian startup ecosystem. Startups generated huge profits in 2021, however, also had to cope with funding and global economic slowdown. Additionally, it also witnessed the emergence of a large number of new startups and 2022 marked it with the most mergers and acquisitions.”

“Despite the threat of uncertainties, we see 2023 to be full of optimism. With a positive development, innovation and investment prospects, a new development phase in the Indian startup ecosystem is anticipated in 2023, supported by opportunities led by 5G with a focus on climate, education, health etc,” he added.

Exponential use of AI potential

AI embedded with Machine Learning algorithms has proved to be a powerful driving force for industries including healthtech, fintech, edtech, proptech, etc. No business sector is left untouched by the integration of AI defining new frontiers for complex problems and scenarios. 

“In 2023, it is predicted that businesses will explore the commercial use of AI and deploy it to realize its potential in real-world. Advanced technology tools such as no-code AI will potentially help small businesses create intelligent products and services for consumers. Contactless, autonomous shopping and delivery is another trend that has a lot of potential,” said, Ratan Deep Singh, CEO of SkillUp Online. 

Talking about AI advancements for businesses, he further said, “In 2023, there is a good chance that the buy-online-pickup-at-curbside (BOPAC), buy-online-pickup-in-store (BOPIS), and buy-online-return-in-store (BORIS) trends will be the norm. It will provide the relevant impetus for the most recent autonomous delivery initiatives that retailers are yet to implement. 

Emergence of Social Commerce across industries

The emergence of social commerce has evolved at an unprecedented pace in India. The global pandemic further resulted in a strong push with support from newer generations to revolutionise how businesses work in India including the way the modern populace books their travel itineraries.

As per Ashish Sidhra, Co-Founder of Alike.io, “The Indian traveller has made up for the lost travel opportunities during the pandemic lockdowns. The spike in the travel in 2022 was led by revenge travel which is expected to become the yearly routine in 2023 and beyond.”

Talking about industry projections, he further said, “One of the most important Indian travel trends of 2023 will be the increased influx of foreign tourist guests to India which will surpass the historical highs next year.”

With normalization coming on track, 2022 proved to be a year of sanity for the investment sector. After the huge turmoil of FOMO investments and record-high valuations during the pandemic, this year brought much-needed financial discipline back into the game. Investors, started making more rational investment decisions and taking adequate time to evaluate and invest. This led to the slowdown in funding, also termed as funding winter. 

Talking about the drop in business investments, Arvind Agarwal, Co-Founder of CEO, C4D Partners said, “Slowdown in funding is not a setback for the business ecosystem. It was simply all things getting back to how they should be whether it is investors taking rational decisions or valuations being done appropriately within the financial discipline.”

“The momentum will continue in 2023 with investment decisions based on diligence. Investors will now look at long-term valuations, and there will be a significant surge in the pace of business investments. Furthermore, climate financing will be given much priority in 2023 and the market will hopefully not go the ed-tech way,” he further added.

On the other hand, EVs in a big way disrupted the way consumers shopped and perceived automaker brands and this shift surely will provide legacy automakers a unique opportunity to tap in. The EV market is seen as one of the most dynamic segments of the clean energy industry. 

Talking about the future of EVs, Pankaj Gupta, CEO-Mufin Green Finance, said, “We can foresee the future of Vehicle mobility being Electric and E-mobility being one the most popular automotive trends in 2023. We look forward to key trends like Smart EV Charging, Parallel Charging, Battery Chemistry; technology, Swappable Batteries and Non Swappable batteries and the seamless transition in EV, fueled by Hydrogen Cells.”

The upcoming year is an exciting time to see how technology will shape the offerings of various industries. With tech integrations, industries will come over innovation barriers, market competitions and challenges that once bottlenecked business operations. 

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