Artificial intelligence is a hot topic in cars, drones, robots, etc.

The year 2016 is expected to be the year when automobiles, drones, and robots, led by artificial intelligence, emerge as major issues in the ICT industry.

According to a report released by the Information and Communications Technology Promotion Center (IITP), the top 10 issues in the ICT industry in 2016 were IoT (Internet of Things), automobiles, mobile, drones, artificial intelligence, robots, China, batteries, and healthcare.

The top 10 issues announced by IITP are: ① full-scale competition for hegemony in the IoT ecosystem ② infinite evolution of automobiles through ICT ③ fintech market revitalized by mobile ④ full-scale utilization of commercial drones ⑤ artificial intelligence, the brain of next-generation ICT ⑥ rapidly increasing IoT security threats ⑦ intelligent robots approaching daily life ⑧ Chinese ICT evolving from imitation to creation ⑨ batteries entering a second golden age ⑩ full-scale launch of mobile healthcare.

▲ A scene from the AI-themed movie Ex Machina.

First, 2016 is expected to be the year when the struggle for supremacy in the IoT ecosystem intensifies. IoT is evolving from a future high-value-added growth engine into a 'Game Changer' of the present. Accordingly, competition among global ICT companies to expand their ecosystems and secure market dominance is already underway, and next year is expected to see fierce competition to secure ecosystem leadership amidst the acceleration of boundary breaking. However, IITP stated that domestic IoT technology capabilities are at 81% of the level of the United States, with a technology gap of 14 years. Among 20 countries worldwide, the country ranks 12th in national capability, following the United States (1st), Switzerland (2nd), Japan (9th), and Germany (10th).

As the automotive industry leads future industries through its integration with ICT, it is expected to garner even more attention in 2016. The prelude to automotive-ICT convergence began in the infotainment sector, and 2016 is anticipated to see both cooperation and competition for dominance between the automotive and ICT camps regarding infotainment. In particular, with autonomous vehicles becoming a reality, cooperation or competition between ICT and automotive companies is accelerating. Key points to watch include infrastructure competition—such as road maintenance and regulations—and R&D among automotive powerhouses like the U.S., Europe, and Japan, as well as the race to secure international standards, such as safety criteria.

The prelude to automotive ICT convergence is in the infotainment sector

The fintech industry, driven by mobile technology, is projected to experience high growth. In particular, given that President Park Geun-hye has cited fintech as an example of financial innovation since the beginning of the year, the pace of its development is expected to accelerate further if relevant laws are reformed. As global ICT companies actively enter the fintech industry based on their existing platforms, Korea's first internet-only bank is scheduled to launch in the first half of 2016. Consequently, attention is focused on how the emergence of internet-only banks will impact the existing financial and ICT industries, the extent to which "banking in the palm of your hand" services will be commercialized, and how the market can be defended amidst the entry of foreign companies.

It is also noteworthy that the utilization of drones, having transitioned from military to everyday life, is becoming more widespread. Key issues include the expansion of companies launching commercial drones, changes in regulations, and increasing domestic interest. Companies are actively making moves, such as Qualcomm launching a drone equipped with the dedicated drone platform 'Snapdragon Flight' in partnership with Yuneec, and Sony establishing the joint venture 'AeroSense' with the startup ZMP and announcing plans to provide drone services to businesses starting in early 2016. The Ministry of Land, Infrastructure and Transport plans to conduct pilot projects utilizing drones for parcel delivery, advertising, gaming, and facility safety inspections.

The evolution of artificial intelligence (AI) technology is also notable. The development of AI-related technologies is accelerating, and there is active development centered around global companies as AI advancements converge with other industries. Companies such as IBM, Google, Facebook, Apple, and Microsoft, along with China's Baidu, have joined the fray to compete for dominance in AI technology and build ecosystems. Furthermore, new markets are emerging by utilizing AI in fields such as automobiles, robotics, and healthcare, moving beyond existing voice and image recognition technologies. Relevant legislation and regulations are needed for safety-critical issues such as autonomous driving, robotics, and healthcare, while personal information security concerns regarding the utilization of big data have also emerged as a critical issue that must be addressed.

The surging IoT security issues also continue into 2016. As the number of connected IoT devices increases rapidly, security breaches are also rising year by year. Medical devices, smart cars, and smart homes are cited as sectors facing significant security threats. As attacks on IoT devices become more commonplace, attention must be paid to their impact on the growth of the IoT market. This is expected to serve as an opportunity to assess how the competitive and cooperative landscape among domestic IoT security companies will unfold, as well as to explore possibilities for securing competitiveness and expanding into overseas markets.

Intelligent robots, which have emerged from the advancement of industrial applications, are also a major topic. Robots that perceive their external environment, independently assess situations, and operate autonomously are defined as intelligent robots. As intelligent robots are being utilized across various fields, their growth is accelerating. The internalization of artificial intelligence and increased connectivity with the IoT are expected to replace human roles in almost every field. China has risen to become the world's number one in industrial robots, and key points to watch regarding global robot issues include the expansion of robot-led intelligent production systems and the growing threat of robots.

China's ICT Industry Focuses on the 13th Five-Year Plan Launching in 2016

The Chinese ICT industry also deserves attention. Chinese ICT companies are evolving from "Copy Cats" into "Innovators." China has already emerged as a powerful competitor in key sectors such as smartphones and displays, and is showcasing its accumulated R&D technological prowess through the strengthening of capabilities in advanced fields like drones and electric vehicles. It is intensifying its entry into global markets based on the Chinese government's "Going Overseas" strategy. In particular, the global market presence and influence of Chinese companies are expected to expand further in conjunction with the detailed strategies within the 13th Five-Year Plan, which is set to launch in 2016.

Batteries that are evolving to be smaller, faster, and safer are also emerging. As the IoT trend expands, technological competition among companies to overcome battery limitations is expected to intensify in the future. Market research firms have stated that the so-called "Big 3"—Panasonic, LG Chem, and Samsung SDI—will account for 80% of the total market by 2020. Accordingly, key points to watch in 2016 will include whether 30-second smartphone and 5-minute electric vehicle charging technologies lead to commercialization, whether semi-permanent batteries that address the shortcomings of existing batteries can be commercialized, and whether the full-scale operation of the world's largest battery factory will contribute to infrastructure expansion, such as lowering battery prices and popularizing large-sized batteries.

Attention is also being drawn to the healthcare sector as it begins in earnest. As wearable devices lead the era of personal healthcare, mobile healthcare is garnering attention due to the accelerating aging population and rising interest in well-being. The government is set to actively foster the healthcare industry, while companies will seek opportunities through overseas expansion. Key points to watch include whether the domestic healthcare business will be revitalized, what innovative healthcare device products will be launched, and whether discussions on deregulation to promote healthcare will gain momentum.

Hong Seung-pyo, a team leader at the Information and Communication Technology Promotion Center, stated, "Looking at the top 10 issues in the ICT industry for 2016, words such as global, mobile, and IoT stand out the most." He added, "The keywords can be summarized as the 'three no's': no people, no boundaries, and no owners. This signifies the emergence of a market that replaces humans, has no industrial boundaries, and is ownerless; we must not forget these elements."