partners.wsj.com
Open in
urlscan Pro
192.0.66.2
Public Scan
Submitted URL: https://fun.riadatabase.com/MDAxLVFZVy01NTgAAAGItmw4P17VtVrfyzMN902nR1D5g3fbN9HCtpLTGS1GfzU3PODNnqBzhCaeQsZbdT4hmnuhGv4=
Effective URL: https://partners.wsj.com/global-x-etfs/charting-disruption/personalized-medicine/?utm_source=riadb&utm_medium=Email&utm_c...
Submission: On December 15 via api from US — Scanned from DE
Effective URL: https://partners.wsj.com/global-x-etfs/charting-disruption/personalized-medicine/?utm_source=riadb&utm_medium=Email&utm_c...
Submission: On December 15 via api from US — Scanned from DE
Form analysis
0 forms found in the DOMText Content
Charting Disruption Paid Program - What’s This? close popup This content was paid for by an advertiser and created by The Wall Street Journal advertising department. The Wall Street Journal news organization was not involved in the creation of this content. Share AddThis Sharing Buttons Share to FacebookFacebookShare to TwitterTwitterShare to LinkedInLinkedIn Personalized Medicine A Greener Economy Experiential Technologies FinTech, Blockchain & Web3 * Personalized Medicine * Chapter 1: Genomic Sequences & Diagnostics * Chapter 2: Therapeutics * Chapter 3: Telemedicine & Digital Health * A Greener Economy * Chapter 1: Climate change * Chapter 2: Mobility * Chapter 3: Disruptive Materials * Chapter 4: U.S. Infrastructure Development * Chapter 5: Global Decarbonization * Experiential Technologies * Chapter 1: Big Data & SaaS * Chapter 2: Future of Commerce * Chapter 3: Metaverse & Digital Experiences * Chapter 4: Robotics * Chapter 5: Artificial Intelligence * Chapter 6: Connectivity * FinTech, Blockchain & Web3 * Chapter 1: Future of Money * Chapter 2: Blockchain * Chapter 3: Web3 GLOBAL X ETFS | OUTLOOK FOR 2023 AND BEYOND CHARTING DISRUPTION CUSTOM CONTENT FROM WSJ AND GLOBAL X ETFS PRESENT A GUIDE TO THE TRENDS, TECHNOLOGIES AND BOLD IDEAS TRANSFORMING OUR WORLD—AND WHAT’S NEXT. Section 1 PERSONALIZED MEDICINE Developments in genomic sequencing over the past two decades have led to therapeutic solutions that offer a more individualized approach to healthcare. This shift represents a major improvement over the more generalized, scattershot approaches of the past. 3:22 A REVOLUTION IN THERAPEUTICS “Now that we have the tools, we can make medicines and understand the biology of what’s truly causing disease.” PERSONALIZED MEDICINE The following chart illustrates how different themes within this section are progressing toward mass adoption. Themes that are earlier in the adoption curve have more room for growth—and potential variance—ahead. Genomics Therapeutics Telemedicine & Digital Health Aging Population Health & Wellness Adoption Innovators Early Adopters Early Majority Late Majority Laggards Adoption View larger Source: Global X ETFs > “If > you’re > picking > the > next > industry > that > is > going > to > blossom > and > is > just > starting, > that > is > biotech > and > that > is > healthcare.” > Luba > Greenwood, > J.D. > > CEO, > Kojin > Therapeutics > > Managing > Partner, > Dana-Farber > Cancer > Institute > Venture > Fund CHAPTER 1: GENOMIC SEQUENCES & DIAGNOSTICS CUTTING-EDGE TECHNOLOGIES COULD LEAD TO A WEALTH OF PATIENT BENEFITS, INCLUDING EARLY CANCER DETECTION. Understanding the complexity of genomic sequencing requires specialized knowledge. But its potential to unlock early detection and even cures across a range of illnesses is gaining wider appreciation. Next-generation sequencing is fueling a new cycle in drug discovery and knowledge of diseases by answering long-held questions about the human body. Genomics approaches this challenge by identifying genetic mutations—or permanent changes to a gene’s DNA sequence—and their links to disease. Recent discoveries using sequencing technology have led to effective diagnostic options such as “liquid” biopsies, which offer fast and accurate early-stage detection of cancer with a blood test. One roadblock, however, is cost. It is still fairly expensive to sequence the genome of an individual, despite the cost dropping sharply over the past 20 years, from about $53,000 to under $1,000 today. Once personal genomic sequencing falls to under $100, it is expected to drive widespread adoption, accelerating the true promise of the technology. PROOF POINTS $30B Potential market for early-detection screenings for cancer using liquid biopsies. 350M Number of people worldwide with an undiagnosed disease. 75% Cancers detected only when the patient is symptomatic and most likely in a later stage. Sources: Global X ETFs; “Making Earlier Cancer Detection a Routine Part of Medical Care,” Exact Sciences, Apr. 26, 2022; “Real World Evidence Solutions Market Size, Share & Trends Analysis Report by Component (Services, Data Sets), by Application, by End-user, by Region, and Segment Forecasts, 2022-2030,” grandviewresearch.com. Accessed on Oct. 11, 2022; “Natera, Inc.: Investor Presentation—Fourth Quarter 2021 Earnings Call,” investor.natera.com, 2022. KEY DRIVERS OF ADOPTION Improvements in Sequencing Thanks to technological improvements, scientists can now decipher the complete human genome. Falling Cost of Genomics Once prohibitively expensive, genomic sequencing is becoming more widely accessible. New Diagnostic Tools The advent of blood-based biopsies offers fast and early-stage detection of cancers. CHAPTER 2: THERAPEUTICS IMPROVED SCIENCE IS LEADING TO AN ERA OF TAILORED THERAPEUTIC DEVELOPMENTS THAT IS TRANSFORMING HEALTHCARE. Welcome to the world of medicine tailored to the individual. Progress made in genomic technology has propelled a new era of drug discovery and therapeutic innovations. Genomics has introduced new ways of thinking about disease management. Going forward, diseases are more likely to be addressed at their root cause, helping to halt their progression. And this paradigm shift in addressing serious illness will have beneficial effects for treatment of cancer and a wide variety of cardiovascular, neurological, respiratory and gastrointestinal diseases. Among the many benefits will be target therapies for cancer that consider patient-specific factors such as individual genes and lifestyle rather than the more generalized approaches of the past. This new age of “precision medicine” is poised to bring life-improving developments. PROOF POINTS $372B Projected annual worldwide sales of therapeutics tied to oncology in 2028—more than double that of 2021. 41 Projected number of Alzheimer’s deaths in the U.S. per thousand people forecast for 2030—more than double the rate of 2000, highlighting the sense of urgency for new treatments. 80% Potential success rate of treatments for cancer patients through personalized therapies. Sources: Global X ETFs; “Evaluate Pharma and Evaluate Omnium,” evaluate.com. Accessed on Sept. 10, 2022, and Oct. 7, 2022; Pitakkitnukun, P., “Targeted Therapy: Stopping Cancer in Its Tracks,” samitivejhospitals.com, Mar. 5, 2018. KEY DRIVERS OF ADOPTION Aging Population The healthcare field is shifting to accommodate a larger cohort of senior citizens who naturally have greater medical needs. More Disease Affecting Young Cancer and cardiometabolic and neurodegenerative diseases are increasingly affecting people under 60. Better Biology With new understanding of how the human body works, the therapeutics industry is reevaluating how it treats a variety of diseases. CHAPTER 3: TELEMEDICINE & DIGITAL HEALTH NEW TECHNOLOGIES ARE DISRUPTING THE WAY THE MEDICAL INDUSTRY CARES FOR PATIENTS. Healthcare has gone digital and there’s no turning back. Among the features of the new digital health toolkit are online pharmacies, health apps on wearable devices that monitor and analyze health conditions, and new ways of connecting doctors and patients digitally. The logistical challenges brought on by COVID-19 accelerated the adoption of digital health technologies that had been in the works for several years. There was a sharp spike in demand for telemedicine when the pandemic hit in 2020. And though utilization declined as society reopened, adoption of digital health services remains well above pre-pandemic levels. At maturity, 1 in 3 doctor’s visits is expected to be virtual. PROOF POINTS 18% Projected compound annual growth rate of digital health services from 2021 through 2028. $93 Difference in average cost between a nonurgent in-person doctor visit and a nonurgent virtual visit. 4X Projected increase in the market size for wearable glucose monitors in 2026 compared to 2017. Sources: Global X ETFs; “Convenient, Cost-Effective, and High-Quality Virtual Care Is Here to Stay,” cigna.com. Accessed on Oct. 31, 2022; “eHealth: eHealth Devices: Glucose Meters—Worldwide,” statista.com, Aug. 2022; Stewart, C., “Artificial Intelligence (AI) in Healthcare Market Size Worldwide From 2021 to 2030 (in billion U.S. dollars),” statista.com, Sept. 28, 2022; “Diabetes,” World Health Organization, 2022. KEY DRIVERS OF ADOPTION Post-Pandemic Shift COVID-19 accelerated adoption of telemedicine and digital health by fueling innovation and funding in the industry as well as changing patient behavior. Technology Advancements The ability of doctors to visit with patients and monitor many of their vitals virtually has reduced customary office visits. Drug-Making Improvements Technologies like AI are helping scientists refine the trial-and-error nature of drug discovery, guiding them to more effective formulations. NEXT-GENERATION GENOMIC SEQUENCING IS UPPING THE VALUE POTENTIAL ACROSS HEALTHCARE Adoption of sequencing technology is expected to increase significantly once cost per genome sequence reaches $100, unlocking the promise of this novel technology. $100,000,000$10,000,000$1,000,000$100,000$10,000$1,000$100 10,000,000,0001,000,000,000100,000,00010,000,000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Ordered Genome Sequences (#, RHS) Cost Per Genome ($, LHS) Cost Per Genome Cumulative Number of Ordered Genome Sequences View larger Source: National Institutes of Health, 2022. Section 2 A GREENER ECONOMY The world finds itself in the midst of a climate crisis. But nations and businesses have devised an array of innovative solutions to steer us to a more sustainable future. Countries throughout the world have set net-zero emission targets, along with providing incentives for the adoption of electric vehicles (EVs) and renewable energy sources. The emergence of the green economy should create a wide range of opportunities for investors willing to ride the wave. 4:21 CLIMATE INNOVATION “Green technologies start off very slow and boring—and then there’s an inflection point and they just take off.” A GREENER ECONOMY The following chart illustrates how different themes within this section are progressing toward mass adoption. Themes that are earlier in the adoption curve have more room for growth—and potential variance—ahead. Adoption Innovators Early Adopters Early Majority Late Majority Laggards Adoption Hydrogen Global Decarbonization Autonomous & Electric Vehicles Solar Disruptive Materials Lithium & Battery Tech Climate Change Wind CleanTech U.S. Infrastructure Development Renewable Energy View larger Source: Global X ETFs > “By > 2030, > we > will > be > able > to > see > very > clearly > the > contours, > the > shape > of > what > this > new > Green > Golden > Age > is > going > to > bring > us.” > Azeem > Azhar > > Founder > > “Exponential > View” CHAPTER 1: CLIMATE CHANGE FAVORABLE WORLDWIDE GOVERNMENT POLICIES AND CORPORATE SUSTAINABILITY EFFORTS ARE BOOSTING RENEWABLE ENERGY ADOPTION. The current decade may well be remembered as the moment when the world got serious about the climate crisis. Dozens of countries including the U.S. and China have net-zero emissions targets for reducing greenhouse gases, with nearly all aiming for 2050 or earlier. Some of the world’s most well-known corporations are seeking their own renewable energy supplies—via power purchase agreements—to meet sustainability targets. Meanwhile, technology-driven advancements in solar modules and wind turbines are improving performance while further reducing costs. Even low-carbon “green hydrogen” is being developed as a fuel for transportation and electric power, as well as heat for buildings. PROOF POINTS 135 Number of countries with net-zero emissions targets, with nearly all aiming for 2050 or earlier. 54% Share of all climate-related tech investments made by the U.S.—relative to the rest of the world—between 2010 and 2021. 88% Percentage decline of solar photovoltaic power costs between 2010 and 2021. Sources: Global X ETFs; Johnson, L. and Cox, E., “State of Climate Tech 2021: Scaling Breakthroughs for Net Zero,” PricewaterhouseCoopers (PWC), Jan. 5, 2022; “All Transactions: Funding Rounds,” Dealroom.co. Accessed on Oct. 19, 2022; “Electricity: Preliminary Monthly Electric Generator Inventory (based on form EIA-860m as a supplement to form EIA-860),” U.S. Energy Information Administration (EIA), Oct. 25, 2022. KEY DRIVERS OF ADOPTION Favorable Government Policy Countries around the world are enacting policy mandates and offering subsidies designed to boost renewable energy production. Corporate Sustainability Efforts Encouraged by shareholders, companies across the developed world are seeking their own renewable energy supply to meet sustainability targets. Technology Improvements Advancements in wind and solar power components are enhancing performance efficiency. Falling Power Costs Solar and onshore wind power costs have fallen sharply over the past decade despite recent inflationary pressures caused by supply chain disruptions. CHAPTER 2: MOBILITY FAVORABLE GOVERNMENT POLICIES AND FALLING PRICES ARE DRIVING CONSUMER ADOPTION OF ELECTRIC VEHICLES. The road to a world dominated by electric vehicles (EVs) is on the fast track. According to a Rho Motion study, 4.1 million EVs were sold in the first half of 2022, a remarkable 57% jump from a year earlier. It’s clear the share of EVs on roadways across the world is reaching an inflection point. The actions and incentives of governments, automakers and consumers are finally aligned to replace gas-powered vehicles. And these gains are coming despite near-term headwinds. Supply chain disruptions caused by the COVID-19 pandemic have led to a rise in materials costs, resulting in a slight uptick in the prices of both electric vehicles and their batteries. But these challenges are expected to fade, and falling prices over the coming years will likely help continue the trend toward the adoption of electric vehicles. PROOF POINTS 63.1M Annual global sales of electric vehicles forecast in 2035, up from a projected 10.1 million units in 2022. 89% Reduction of lithium-ion battery prices between 2010 and 2021. $7.5B Allocation by U.S. Congress to support the build-out of EV charging stations. Sources: Global X ETFs; “The Most Comprehensive and Well-Informed Analysis for the Energy Transition,” rhomotion.com. Accessed on Oct. 18, 2022; “Battery Pack Prices Fall to an Average of $132/kwh, But Rising Commodity Prices Start to Bite,” bloomberg.com, Nov. 30, 2021; “Fact Sheet: The Biden-Harris Electric Vehicle Charging Action Plan,” The White House, Dec. 13, 2021; “President Biden, U.S. Department of Transportation Releases Toolkit to Help Rural Communities Build Out Electric Vehicle Charging Infrastructure,” U.S. Department of Transportation, Feb. 2, 2022. KEY DRIVERS OF ADOPTION Supportive Government Policies Governments in the U.S., China, India and Europe are offering tax breaks and other incentives to encourage electric vehicle purchases. Falling Prices The cost of electric vehicles is expected to fall over the long run as technology improves, economies of scale take effect and manufacturing becomes more efficient. Build-out of Charging Stations Governments around the world are committed to creating extensive networks of plug-in stations within the decade. CHAPTER 3: DISRUPTIVE MATERIALS CLEAN-ENERGY TECHNOLOGIES ARE PROJECTED TO CREATE UNPRECEDENTED DEMAND FOR METALS AND OTHER RARE EARTH MATERIALS. Metals such as copper, zinc, lithium, cobalt and manganese have long played a behind-the-scenes role in advancing the industrial world. So have materials such as graphite and carbon fiber. But these raw materials are no longer confined to the background, serving as critical inputs in the advancement of disruptive green technologies. For example, more than 160 pounds of industrial metals—including lithium, nickel and manganese—are needed to produce a single battery pack for an electric vehicle (EV). With EV demand forecast to spike, the extraction and production of battery components will need to keep pace. As a result, investors are starting to view mining companies in a new light. PROOF POINTS 42X Increase in demand for lithium—a key ingredient in EV batteries—by 2040 over 2020 levels. $250B Fivefold increase in mining revenue from disruptive materials by 2040, according to one estimate. 59% Annual decline in coal mining revenues, by contrast, as the world moves away from dirty energy sources. Sources: Global X ETFs; “The Role of Critical World Energy Outlook Special Report Minerals in Clean Energy Transitions,” International Energy Agency (IEA), Mar. 2, 2022. KEY DRIVERS OF ADOPTION Transition to Electric Vehicles An EV requires six times more industrial materials than a traditional gasoline-powered vehicle. Rise of Wind and Solar Power As these alternative energy sources grow in importance, so will the demand for copper. Return to Nuclear Recent policy moves in the U.S. and abroad point to a positive outlook for once-shunned nuclear power and the uranium needed to fuel it. CHAPTER 4: U.S. INFRASTRUCTURE DEVELOPMENT FEDERAL LEGISLATION IS FINALLY FUNDING MUCH-DELAYED BIG-TICKET CONSTRUCTION PROJECTS, INCLUDING WATER SYSTEM UPGRADES. For decades, Americans have been calling for improvements to the country’s sagging infrastructure. Several trends have only heightened the concern. Climate change presents a multitude of risks. Overall population growth and uneven distribution toward cities have also put an added burden on existing infrastructure, particularly transportation, water and energy systems. That’s why the bipartisan federal infrastructure legislation passed in 2021 was widely embraced. The legislative package has already started to close the gap in U.S. infrastructure spending. Long-stalled projects are finally moving forward, while others could leverage funds to move to the next stages. The measure is also boosting the bottom lines of engineering and construction companies working on these projects. PROOF POINTS $550B Amount of new funding contained in the Infrastructure Investment and Jobs Act for projects across the U.S. $105B Funding at the state level that is part of the federal legislation. 10% Share of spending dedicated to water initiatives such as replacing lead pipes. Sources: Global X ETFs; “Infrastructure Investment and Jobs Act," H.R.3684—117th Congress (2021-2022), congress.gov, Nov. 15, 2021. KEY DRIVERS OF ADOPTION Depreciation of Assets The useful life of infrastructure assets has been spread thin by years of deferred maintenance. Climate Risk Extreme weather events present risks to freshwater supplies, buildings, transportation systems and energy grids. Demographic Shifts Overall population growth and migrations to urban areas strain existing infrastructure. Federal Funding The $1.2 trillion Infrastructure Investment and Jobs Act could begin to close the gap in funding for long-delayed projects. CHAPTER 5: GLOBAL DECARBONIZATION THE CLIMATE CHANGE THREAT HAS LED TO A SURGE IN CARBON-REDUCTION ACTIVITIES. As the reality of climate change demands action, policymakers and corporate leaders alike are working toward alignment with the 2015 Paris Agreement, which set forth ambitious decarbonization goals. This is leading to a rise in public and private sector investment around carbon-reducing activities. Despite just launching in July 2022, China already has the world’s largest carbon market, surpassing the European Union’s efforts. The tightening deadlines to meet net-zero emission targets are giving carbon markets and emerging carbon-capture technologies the support needed to emerge quickly in the face of climate threats. PROOF POINTS 1,500+ Number of companies worldwide that have set net-zero emissions targets. $5.35B Forecast size of the global carbon capture and storage market by 2030. 3X Size of China’s carbon trading market compared with the European Union’s. Sources: Global X ETFs; Johnson, L. and Cox, E. “State of Climate Tech 2021: Scaling Breakthroughs for Net Zero,” PricewaterhouseCoopers (PWC), Jan. 5, 2022; Ruf, Y. and Frans, D., “The Carbon Price Presents an Opportunity for Companies to Gain an Edge Over the Competition,” Roland Berger, Apr. 19, 2021. KEY DRIVERS OF ADOPTION Reality of Climate Change As rising carbon emissions warm the planet and contribute to extreme weather events, nations around the world feel the need to take action. Impetus From Corporate Boards and Investors Decarbonization has become a top corporate priority, given pressure from boards, shareholders and even customers. Growth of Carbon Trading Markets Regional and national emissions trading schemes continue to expand globally, allowing for the sale of carbon credits in order to reduce total emissions. TECHNOLOGY SOLUTIONS CAN ADDRESS THE HUMAN-CREATED CLIMATE CRISIS Over the last 60 years, atmospheric carbon dioxide (CO₂) concentrations have increased 100X faster than ever recorded, while average temperatures have risen 1.2°C from the preindustrial period to 2021 (only +/- 0.1% could be from natural drivers like solar activity). Atmospheric CO22 Concentration (parts per million, ppm) 10000 BCE 4000 BCE 0 2020 450 350 250 View larger Sources: “IPCC, 2022: Climate Change 2022: Impacts, Adaptation, and Vulnerability,” Working Group II Contribution to the IPCC Sixth Assessment Report, 2022; “Met Office: Atmospheric CO₂ Now Hitting 50% Higher Than Pre-industrial Levels,” World Economic Forum, Mar. 21, 2021; Lindsey, R., “Climate Change: Atmospheric Carbon Dioxide,” NOAA, June 2021; Ge, M., Friedrich, J. and Vigna, L., “4 Charts Explain Greenhouse Gas Emissions by Countries and Sectors,” World Resources Institute, Feb. 6, 2020; Global X analysis from “Data Overview,” Berkley Earth, 2022 and inspired by Hawkins, E., “Warming Stripes,” 2022. Section 3 EXPERIENTIAL TECHNOLOGIES Artificial intelligence, cloud computing and the metaverse aren’t just the latest in a collection of technologies that help businesses and consumers function more efficiently. These breakthroughs hold the potential of transforming the way we shop, play, travel, drive, educate, conduct business and even make scientific discoveries. As advanced as these technologies may seem, it’s still far too early to know what promise lies ahead. 2:59 THE IMPACT OF THE METAVERSE “The metaverse is how we will experience the future state of the internet.“ EXPERIENTIAL TECHNOLOGY The following chart illustrates how different themes within this section are progressing toward mass adoption. Themes that are earlier in the adoption curve have more room for growth—and potential variance—ahead. Adoption Innovators Early Adopters Early Majority Late Majority Laggards Adoption Metaverse IoT Robotics Artificial Intelligence E-commerce Data Centers & Cell Towers Video Games & Esports Cloud Computing View larger Source: Global X ETFs > “Gamification > will > be > an > increasingly > key > component > of > future > digital > experiences > as > platforms > innovate > to > service > emerging > user > demands.” > Cathy > Hackl > > Founder > & > Chief > Metaverse > Officer > > Journey CHAPTER 1: BIG DATA & SAAS SOFTWARE INNOVATION IS NEEDED TO KEEP PACE WITH THE EXPONENTIAL GROWTH OF DATA. It’s a data-driven world and developers are just trying to keep up. Data that is generated, stored and processed continues to grow exponentially across the globe. And consumer data and processing needs increasingly exceed the capacity of available devices. There is no doubt that availability of centralized hyperscale processing—delivered through large-scale data centers—is critical to the success of the digital economy. On that front, many of America’s largest tech companies are assuming the role of infrastructure supplier, addressing their own data processing needs while turning excess computing power into profitable ventures. The good news is that modern applications are being built in the cloud to capture all of this data. And cybersecurity technology will need to evolve in lockstep with these developments to make cloud-native digital participation safe, creating opportunities for security providers. PROOF POINTS 4,900 Number of data interactions per day that the average connected person is expected to have by 2025. 3X Projected growth of data that will be created, stored and consumed worldwide from 2022 to 2025. 18% Projected compound annual growth rate of security software over the next eight years. Sources: Global X ETFs; Djuraskovic, O., “Big Data Statistics 2022: How Much Data Is in the World?,” firstsiteguide.com, Jan. 10, 2022; “Forecast: Information Security and Risk Management, Worldwide, 2020-2026, 2Q22 Update,” gartner.com, June 30, 2022; “Gartner Identifies Three Factors Influencing Growth in Security Spending,” gartner.com, Oct. 13, 2022; Reinsel, D., Gantz, J. and Rydning, J., “Data Age 2025: The Digitization of the World: From Edge to Core,” seagate.com, Nov. 20, 2018; “Telecommunications: Volume of Data/Information Created, Captured, Copied, and Consumed Worldwide From 2010 to 2020, With Forecasts From 2021 to 2025 (in zettabytes),” statista.com, Sept. 8, 2022. KEY DRIVERS OF ADOPTION Data Proliferation Exponential growth in applications and devices is causing a rapid expansion of data. Growth of Data Centers Big Tech data facilities are becoming hotbeds of computational innovation. Rising Cyberattacks Rise of ransomware attacks and data losses are converging to boost cybersecurity spending. CHAPTER 2: FUTURE OF COMMERCE AS E-COMMERCE CONTINUES ITS GROWTH TRAJECTORY, IT IS ALSO ALTERING THE NATURE OF PHYSICAL SHOPPING. Despite its many advantages for shoppers, e-commerce makes up only about 20% of total retail spending worldwide. But that means the potential for capturing a greater share of retail dollars is enormous. Indeed, global digital commerce has barely kicked off. It’s also apparent that e-commerce is changing the face of brick-and-mortar shopping. The trend toward digitized shopping, often with the aid of smartphone-based apps, is forcing retail locations to adapt. The steady adoption of technologies such as contactless checkout, automated kiosks and other related digital enhancements will have permanently altered the in-store experience. PROOF POINTS $10T Expected global e-commerce revenue by 2030. 31% Projected global e-commerce penetration as a percentage of total retail spending in 2030. 4.6B Number of people worldwide who use social media platforms daily and are potential customers for retailers. Sources: Global ETFs (Global X e-commerce forecast based on data from U.S. Census Bureau, 2021); Cramer-Flood, E., “Global Ecommerce Forecast 2022: As 2-Year Boom Subsides, Plenty of Bright Spots Remain,” insiderintelligance.com, Feb. 2, 2022; Kirsch, K., “74 Social Commerce Stats Marketers Should Know in 2022,” hubspot.com, Dec. 14, 2021; “U.S. Ecommerce Will Cross $1 Trillion in 2022,” insiderintelligance.com, June 14, 2021; “Retail: Monthly Retail Trade,” census.gov. Accessed on Oct. 28, 2022; “Quarterly Retail E-Commerce Sales: 2nd Quarter 2022,” U.S. Department of Commerce, Aug. 19, 2022. KEY DRIVERS OF ADOPTION E-Commerce Still Growing E-commerce is still only a small percentage of total retail spending worldwide, indicating its strong growth potential. Social Media Social media marketing is driving sales for retailers as part of an emerging trend called “social commerce.” Post-Pandemic Habits Shoppers are venturing out to restaurants and stores again, but many expect a more digitized experience post-pandemic. CHAPTER 3: METAVERSE & DIGITAL EXPERIENCES THE NEXT GENERATION OF DIGITAL ACTIVITY WILL BE INCREASINGLY IMMERSIVE. The metaverse defies easy explanation, but suffice to say it’s a digital reality that combines aspects of social media, VR and online gaming in a way that allows users to interact virtually instead of physically. As it develops over the coming decades—in parallel with the adoption of 5G wireless technology—it could impact the entire digital economy. The metaverse is arguably the most well-known manifestation of the next generation of digital experiences—one that is highly immersive and meshes more seamlessly with a user’s surroundings. Unlike in the past, digital platforms will be able to integrate more complex systems and be capable of processing inputs such as voice, sight, touch and even temperature. PROOF POINTS 4.4B Number of people worldwide expected to have 5G connectivity by 2027. $350B Projected total revenue from gaming in 2030. 4.06M Estimated number of mixed-reality headsets in use by 2036. Sources: Global X ETFs; “Insights on the Cloud Gaming Global Market to 2030: Players Include Apple, Electronic Arts, Google and Intel,” businesswire.com, July 19, 2022; Nakamura, Y., “Video-Game Sales Set to Reverse,” bloomberg.com, Jan. 25, 2019; Scarsella, A., “Worldwide Smartphone Forecast, 2022–2026,” idc.com, March 2022. KEY DRIVERS OF ADOPTION Rise of Gaming The popularity of gaming should spur the growth of the metaverse as players seek a more immersive in-game experience. Shared Experiences People seeking enhanced versions of virtual travel, entertainment and sports viewing will be drawn to metaverse experiences. Next-Generation Networks Growing prevalence of 5G connectivity will enable a wide application of next-generation digital experiences. Better Graphics Higher-fidelity graphics engines are leading to greater adoption of metaverse applications. CHAPTER 4: ROBOTICS THE ROBOTICS INDUSTRY IS EXPANDING FROM ITS MANUFACTURING ROOTS TO THE SERVICES SECTOR. The number of robots installed in auto plants and other manufacturing facilities is at record highs—and demand will continue to be strong. But robots are beginning to make their mark in other sectors of the economy, too. Industries such as fast food, consumer goods and even life sciences account for the fastest growth in robotics, with the expectation that annual sales of robots in the services industries will overtake sales of industrial robots in 2023. The global robotics market as a whole is likely to continue to grow at a steady pace through the end of the decade. PROOF POINTS 5.1% Compound annual growth rate of robotics revenues from 2022 through 2026. $13.5B Projected market for package delivery services using drones in 2026—almost six times 2021’s level. $120B Projected market for surgical robots in 2030, which would double 2021’s market. Sources: Global X ETFs; Guerry, M., Müeller, C., Kraus, W. and Bieller, S., “World Robotics 2021,” International Federation of Robotics, Oct. 28, 2021; “Robotics Markets: Next Move Strategy Consulting,” nextmsc.com, July 2022; “Drone Package Delivery Market: 56% of Growth to Originate From North America, Driven by Increased Use of Drones by E-Commerce Companies,” prnewswire.com, July 26, 2022. KEY DRIVERS OF ADOPTION Increased Functionality Robot features and functionality continue to increase as adoption costs decrease. Labor Shortages Due to a combination of demographic and social trends, companies in developed markets are finding it difficult to hire prime-age workers in service and manufacturing roles. Labor Costs Inflation and labor shortages have also driven wages higher in many sectors, incentivizing companies to invest in automation. CHAPTER 5: ARTIFICIAL INTELLIGENCE BOTH AI HARDWARE AND SOFTWARE CONTINUE TO ADVANCE IN SOPHISTICATION. Artificial intelligence (AI) relies on computers and machines to mimic the problem-solving capabilities of the human mind, albeit faster and with less emotion. And judging by one measure of performance—GPU (graphics processing units)—AI technology is improving at a remarkable pace. A GPU is an electronic circuit that can process many pieces of data simultaneously, making it useful for machine learning and other AI applications. Currently, GPU performance is 10 times better than it was a decade ago. And technologies like real-time tracing, which can simulate the lighting of a scene, now can create ever more realistic environments, which is of particular value to game design. Meanwhile, businesses are finding AI applications beyond gaming, including operating systems that are contributing to the commercialization of self-driving vehicles. PROOF POINTS 35.6% Projected compound annual growth rate of the global AI market from 2020 through 2026. 10X Projected size of global GPU market in 2028 compared with 2020. 10X Reduced likelihood of a self-driving car being in an accident versus one operated by a human. Sources: Global X ETFs; “Artificial Intelligence Market,” fnfresearch.com, June 2021; “Global Graphic Processing Unit (GPU) Market Size by Type,” verifiedmarketresearch.com, Apr. 2022. KEY DRIVERS OF ADOPTION Competitive Edge AI plays numerous roles in businesses seeking a competitive advantage, such as process automation, sales forecasting, security surveillance and even the creation of self-driving vehicles. Healthcare Enhancement AI can be used in transformative ways to enhance medical care, from helping in the diagnosis of diseases to managing hospital workflow. Educational Aids Machine learning has numerous roles in the classroom, including creating personalized curricula and helping special needs students recognize voice and text. Scientific Discovery AI technology can help parse vast amounts of data from experiments, noting anomalies and detecting patterns that would otherwise go overlooked. CHAPTER 6: CONNECTIVITY FALLING COSTS AND IMPROVED BROADBAND TECHNOLOGY WILL FUEL GROWTH OF THE INTERNET OF THINGS. In the wake of the pandemic, there are more people, devices and applications connected to the cloud than ever before. But this trend isn’t new or purely circumstantial. In fact, the rise of the Internet of Things (IoT) can be largely attributed to falling sensor costs over the past two decades. And the continued decline in those costs is expected to increase the number of connected devices exponentially over the next five years. Meanwhile, the advent of 5G networks and other technological improvements are poised to further expand the realm of connected devices. The global IoT market is projected to grow at a compound annual rate of 26% per year through 2029. PROOF POINTS $12.6T Potential global economic value of IoT in 2030, a nearly eightfold increase from 2020. 70% Percentage decline of IoT sensor costs between 2004 and 2018, which facilitated the growth of connected devices. 20% Projected share of IoT devices that will be “wide area” by 2030, allowing communication over distances of at least 500 meters. Sources: Global X ETFs; “Reports and Papers: Ericsson Mobility Report: Ericsson Mobility Visualizer,” ericsson.com. Accessed on Oct. 31, 2022; Leonard, M., “Dive Brief: Declining Price of IoT Sensors Means Greater Use in Manufacturing,” supplychaindive.com, Oct. 14, 2019; “IoT Value Set to Accelerate Through 2030: Where and How to Capture It,” mckinsey.com, Nov. 9, 2021; Vailshery, L., S., “Consumer Electronics: Potential Economic Value From IoT Worldwide in 2030,” statista.com, July 7, 2022. KEY DRIVERS OF ADOPTION 5G Network Speed 5G will drive adoption of IoT devices much faster than 3G and 4G networks drove in the past. Sensor Savings Sensors that transmit and receive signals between connected devices are critical to the functioning of IoT—and their costs have fallen sharply. Cloud Capacity Growth IoT relies on sharing and storing real-time information, and the cloud is essential for those purposes. EXPANSION OF GLOBAL DATA IS SPARKING A RISE IN CLOUD-DEPLOYED SOFTWARE Businesses are struggling to keep up with the explosive growth of their data assets, leading to a correlative increase in revenue for SaaS companies. Worldwide Data Generated and Consumed Annually Total Revenue for 75 Public SaaS Companies (in USD billions) Data in Zettabytes 1,000 900 800 700 600 500 400 300 200 100 0 2010 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 CAGR = 40.3% CAGR = 30.7% 859 59 99.7% Correlation (2010-2021) $160 $140 $120 $100 $80 $60 $40 $20 0 Last 12 months revenue 2030 2029 2028 2027 2026 2025 2054 2023 2022 2021 2020 2010 99.7% Correlation (2010-2021) View larger Sources: Djuraskovic, O., “Big Data Statistics 2022: How Much Data Is in the World?,” firstsiteguide.com, Jan. 10, 2022; Reinsel, D., Gantz, J. and Rydning, J., “Data Age 2025: The Digitization of the World: From Edge to Core,” seagate.com, Nov. 20, 2018. Section 4 FINTECH, BLOCKCHAIN & WEB3 The financial system is transforming in ways few could have imagined a decade ago. Digital banking, the trading of cryptocurrencies and even the latest iteration of the internet are being supported by blockchain, a shared ledger that can be viewed and updated without the need for a trusted intermediary. The financial world is being disrupted. 2:47 THE EVOLUTION OF CRYPTO “Ethereum and a lot of the innovations we have seen since [its launch] are new technologies that are secured by assets. What I think that’s done is basically allowed for an explosion of innovation in terms of smart contract platforms, decentralized finance, non-fungible tokens … and a whole slew of other experiments.” FINTECH, BLOCKCHAIN & WEB3 The following chart illustrates how different themes within this section are progressing toward mass adoption. Themes that are earlier in the adoption curve have more room for growth—and potential variance—ahead. FinTech Blockchain Web3 Adoption Innovators Early Adopters Early Majority Late Majority Laggards Adoption View larger Source: Global X ETFs > “Tens > of > billions > of > dollars > of > capital > will > be > deployed > over > the > course > of > the > next > five > to > seven > years > to > build > out > the > crypto > industry.” > Ryan > Selkis > > Co-Founder > & > CEO > > Messari CHAPTER 1: FUTURE OF MONEY DIGITAL FINANCIAL SERVICES ARE QUICKLY MAKING THE STATUS QUO BANKING MODEL OBSOLETE. Over the past decade, banking has transitioned from costly brick-and-mortar branches to connected devices. And the trend is accelerating, led by Millennials who are more comfortable with digital technology than their parents and largely have no problem with purely electronic transactions. Digital banking also has a powerful social benefit: the potential to bring financial services to billions of people across the globe who live far away from the closest bank. A mobile phone is all that is needed to manage digital banking accounts. And there are more than 6.25 billion smartphone users globally. That’s almost one phone for every man, woman and child on the planet. PROOF POINTS 35.9M Number of digital-only bank account holders in the U.S. in 2022. 14X Growth in user base of the top digital wallets in the U.S. from 2016 to 2021. 42% Share of American consumers who say using a mobile app is their preferred banking method. Sources: Global X ETFs; Magana, G. and Dyke, D.V., “The U.S. Digital-Only Banking Revolution,” Insider Intelligence, Sept. 15, 2021; Curry, D., “Cash App Revenue and Usage Statistics,” Business of Apps, Sept. 6, 2022; Curry, D., “Venmo Revenue and Usage Statistics,” Business of Apps, Sept. 6, 2022; Strohm, M., “Digital Banking Survey: How Americans Prefer to Bank,” Forbes, March 8, 2022. KEY DRIVERS OF ADOPTION Low Acquisition Costs for Banks FinTech platforms can reach and on-board customers at much lower costs than legacy financial institutions. Preference Among the Young Tech-savvy generations prefer digital banking due to lower fees, greater transparency and 24/7 availability. Shift to a Cashless Economy Global mobile payment adoption is projected to eclipse 20% by the end of 2022. CHAPTER 2: BLOCKCHAIN BITCOIN MINERS ARE TURNING TO LOW-COST GREEN ENERGY ALTERNATIVES TO IMPROVE PROFITABILITY. Bitcoin, the most widely owned cryptocurrency, was made possible by blockchain technology. But as it turns out, bitcoin is expensive to produce. Cryptocurrency can only be created or “mined” via brute-force computing. And the advanced hardware needed to profitably mine bitcoin requires massive and costly amounts of electricity. It may come as a surprise, but green energy provided by solar panels and wind turbines has emerged as an attractive energy source for bitcoin miners. That’s because the price has fallen sharply, driven by steadily improving technologies and economies of scale. This development is giving bitcoin miners a strong incentive to increase the share of renewables in their energy mix as they strive to improve profit margins. Meanwhile, demand for other applications that rely on the blockchain continues to grow. PROOF POINTS 6.25 BTC reward for miners who “solve” new blocks on the blockchain. 165B Market cap of Ethereum, the largest decentralized computing platform for decentralized applications (dapps). >7X Multiple of the decline since 2009 in levelized cost of solar electricity (LCOE), used in the energy mix of bitcoin miners. Sources: “Coins: Cryptocurrency Prices by Market Cap,” coingecko.com. Accessed on Oct. 5, 2022; “Chart: Bitcoin,” Messari.io. Accessed on Oct. 5, 2022; “Lazard’s Levelized Cost of Energy Analysis—Version 15.0,” lazard.com, Nov. 16, 2021. KEY DRIVERS OF ADOPTION Strong Demand for Blockchain Applications The blockchain allows for the creation of “smart contracts,” which are transactions between a buyer and seller that don’t need the involvement of a central authority. Renewable Energy Is Getting Cheaper The costs of solar and wind power have fallen sharply for crypto miners, driven by improving technologies and economies of scale. Discounts Drive Flexibility Crypto miners are willing to shut down during periods of electricity load peaks in exchange for discounts and rebates from utility companies. CHAPTER 3: WEB3 THE ADOPTION RATE OF THE WEB’S NEXT REIMAGINATION COULD RESEMBLE THAT OF THE ORIGINAL INTERNET. Web3 has been touted as the evolutionary step in the internet that puts power in the hands of individuals rather than corporations—and there is much truth in that. Unlike Web2, which was a closed source web governed by the proprietary algorithms of dominant companies, Web3 is open source and decentralized, led by applications hosted on smart contract blockchains. That’s a far cry from the original Web1, which offered limited interactivity as webpages were mostly static and text-based. But while Web3 represents a leap forward technologically, it exhibits many structural similarities to the original internet. These similarities might predispose Web3 to the same synergies between hardware and software innovation seen in the development of the internet in the 1990s. If proven true, the base expectation is for Web3 to gain internet-scale mass adoption over the next few decades. PROOF POINTS $90B Market cap of all tokenized securities as of September 2022. 700% Year-over-year growth of the Web3 gaming industry. $6B Amount of venture capital raised for gaming projects in the first half of 2022, a 50% increase over the total of 2021. Sources: Global X ETFs; “Gaming (GameFi): Top Gaming (GameFi) Coins by Market Cap,” coingecko.com. Accessed on Oct. 27, 2022; “The World’s Dapp Store,” dappradar.com. Accessed on Oct. 27, 2022; Gherghelas, S., “DappRadar x BGA Games Report #6,” dappraddar.com. Accessed on Aug. 9, 2022; “Security Token Consulting” (data as of September 2022), securitytokenadvisors.com. Accessed on Oct. 1, 2022. KEY DRIVERS OF ADOPTION Critical Synergies A positive feedback loop between application development, user adoption and investment has been set in motion. Success of Ethereum Since the launch of Ethereum, the leading smart contract blockchain, continuous innovation within hardware and software has supported accelerating adoption of the network. Next-Level Experience New users are drawn to the network because of greater utility and number of applications. EXPANSION OF PAYMENT PLATFORMS IS BOOSTING PROFITABILITY PER USER The growth of wallet platforms into adjacent verticals is compounding the addressable market. $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 2016 Select Merchants (2016) Business Accounts (2016) QR Codes (2017) Instant Deposit (2017) Instant Transfer (2018) Cash App Card (2018) Venmo MasterCard (2018) Bitcoin Trading (2018) Stock Trading (2019) Direct Deposit (2020) Rewards Program (2019) Venmo Credit Card (2020) Cryptocurrency Purchases and Payments (2021) Borrowing (2021) Cash App Venmo 2017 2018 2019 2020 2021 Cash App Gross Profit Per User and Venmo Average Revenue Per User Growth 2016-2021 View larger Sources: Block Incl Analyst Day Presentation, May 2022; Business of Apps, September 2022. Note Venmo ARPU calculated using scaled TPV divided by total user base. Download the full report CHARTING DISRUPTION Custom Content from WSJ is a unit of The Wall Street Journal Advertising Department. The Wall Street Journal news organization was not involved in the creation of this content. * Privacy Notice * Cookie Notice