IT services major Capgemini on Tuesday unveiled the top five technology trends to watch out for in 2024, focused on the technologies that are due to reach an inflection point next year.

In 2023, generative AI (GenAI) took centre stage in the global public and business conversation, and raised expectations that technology could catalyse progress in business and society. While it will continue to be a highly discussed topic next year, other key technologies are expected to also reach a stage of maturity or breakthrough in 2024.

“For anyone following the news these past few months, it is impossible to deny the transformative impact of technology. GenAI is an obvious example, but it is not the only one,” explains Pascal Brier, chief innovation officer at Capgemini and member of the Group Executive Committee. “Every day, Capgemini’s teams are scanning the technology landscape to harness the power of innovation for our clients and anticipate key technology breakthroughs on the horizon.”

Capgemini highlighted the top five technologies to watch in 2024:

Generative AI: It has made a crashing entrance in the global technology and business conversation in late 2022 and 2023, with expectations of significant business impact. In 2024, it is expected to live up to the massive amount of hype it has generated. While current ‘Large Language Models’ will continue to thrive, there is also an increasing need for smaller, more cost-efficient models.

Quantum technologies: Advancements in computing power must be met by bolstered digital defence mechanisms. This emerging shift promises to upend the very basis of cyber security standards globally. All business leaders and technology experts will be affected by this approaching milestone, while more and more organisations begin their quantum transition.

Semiconductors: The semiconductor industry is on the verge of a transformative era, with multiple factors converging to redefine its landscape in 2024. Chips are reaching 2 nm, transistors are approaching the size of a few atoms, and the ever-growing investments in R&D and cutting-edge fabrication facilities are becoming challenging for even the largest chipmakers. An accelerated digital transformation is expected across industries and this will be reflected in shifts in the ecosystem of semiconductors itself, with new giga factories, regulations, business models, and foundry services emerging in 2024.

Batteries: Improving the performance and reducing the costs of batteries is a major focus for both businesses and governments, as the industrial stakes are high for each nation. The aim is to support electric mobility and accelerate long-duration energy storage, which is critical to speed up the energy transition to renewables and the acceleration of smart grids. While LFP (lithium ferro-phosphate) and NMC (nickel manganese cobalt) are becoming standard for electric vehicle applications, several technologies with the chemistry of batteries are being explored, such as cobalt-free (sodium-ion) or solid-state batteries, with a likely acceleration in 2024.

Space tech: The renewed interest in space technologies aims to drive scientific discoveries and help solve the earth’s most critical challenges, including the monitoring of climate risks and disasters, better access to telecommunications, as well as defence and sovereignty. The new space age is driven not just by government agencies, but also by private actors, from startups to corporations, and is supported by various technologies such as 5G, advanced satellite systems, big data, quantum computing, etc. In 2024, this should accelerate innovation and support very promising technology projects in the field of sustainable spacecraft propulsion (either electric or nuclear) and new Low Earth Orbit constellations for seamless communications and quantum cryptography.