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Can Feedstock Alternatives Resolve The Crunch In Biofuel Industry?

Posted on by Rahul Garkhedkar

According to the latest IEA report, the biojet and biofuel industry is headed toward a deep feedstock supply crunch till 2027. If the producers stick to their old patterns without finding sustainable alternative sources of biofuels, the problem will become huge. The report suggests a spike in demand for fats, residue oils, wastes, and vegetable oils by 56%. It will figuratively rise to 79 million tonnes. The demand for feedstock alternatives like residue and waste-based biofuel is exceptionally high. It helps manufacturers meet the tightening emission regulations and feedstock policy objectives.

However, overconsumption of this feedstock creates a big vacuum for livestock feed supply, pushing food prices up directly and indirectly. Also, the problem is rooted deeper in the appropriation of agricultural land in feedstock production with increased fertilizers and pesticide usage that disturbs the long-term sustainability and organic food production goals. This precarious scenario calls for better feedstock alternatives and regulatory support. Moreover, identification of unsustainable and fraudulent waste supplies. The Global Bioenergy Partnership report estimates that biofuels will meet approx. 27% of global transportation fuel demand by 2050 mandates the need for strong acknowledgment and resolution of these challenges.

Total Biofuel Production by Feedstock
Figure 1: Total Biofuel Production By Feedstock From 2021 – 2027(E) (Source: IEA)

Biggest Challenges in Feedstock Alternative

  • First Generation Feedstock: The first generation feedstock comprises the most abundantly available raw materials, including starch-based and sugar-based feedstock, potato, wheat, barley, sugarcane, and sugar beet plants. The pandemic, followed by the Russia-Ukraine crisis, has disturbed supply chains and grain distribution across the globe. Russia and Ukraine are the world’s first and fifth-largest wheat producers. Europe’s ongoing conflict and energy crisis have intensified food inflation and threatened food supplies. It has happened especially in Asia, Africa, and South America. This adds extra pressure on the US and Europe to produce more land to meet this looming demand. Moreover, the stress of offering less land to biofuel feedstock mounts. As food takes priority over fuel for more than half of the world, the Western governments have pressure to shift to second-generation feedstock and curtain the grain shortage.
  • Second Generation (2G) Feedstock: The second-generation feedstock has been developed to combat first-generation feedstock’s food vs. energy dynamic. It comprises lignocellulose or carbohydrate biomass, a potent substitute for first-generation counterparts. However, the issue lies in the complications related to logistics, production costs, and complexity compared to their predecessors. International Renewable Energy Agency (IRENA) report states that second-generation feedstock’s production cost is 2-3 times higher than that of first-generation biofuels. The capital costs, land use conflicts, infrastructure limitations, and transportation are obstacles to successfully deploying and implementing these biofuels.  Cellulosic ethanol production involves complex processes, such as biomass pretreatment, enzymatic hydrolysis, and fermentation. Developing efficient and cost-effective technologies for each step remains a significant challenge. Achieving high conversion rates and optimizing the enzymatic processes to break down the complex lignocellulosic structure of biomass efficiently is a technological hurdle that needs to be overcome. Ensuring a reliable and sustainable biomass feedstock supply for second-generation ethanol production is critical. Obtaining a consistent and economically viable feedstock supply can be challenging due to factors like seasonal variations, geographical constraints, and competition with other uses such as animal feed and bioenergy. The bulky biomass feedstocks’ collection, transportation, and storage can also pose logistical challenges. The public’s perception and acceptance of second-generation ethanol can impact its market adoption. Concerns about land use change, food security, water consumption, and potential environmental impacts must be addressed effectively through education and awareness campaigns. Demonstrating sustainability and positive environmental benefits of this alternative feedstocks-based ethanol can help build public trust and acceptance.
  • Third-Generation Feedstock: The third-generation feedstock comes from algal biomass and waste oil. It neutralizes all the challenges of the first two-generation biofuels but comes with problems. IEA reports that the production costs of algae-based biofuels are approx. $7 per liter. The first gen biofuels cost more than $0.5 – $1.5. Then there is the issue of scaling up production and huge water and nutritional requirements that may involve negative environmental repercussions in the long run. For instance, the US Department of Energy states that algae cultivation may range between 1000- 2000 gallons of water for every 1000-2000 gallon fuel production. Lastly, a National Renewable Energy Laboratory report states that large-scale algae cultivation for biofuel production may lead to nutrient pollution and habitat destruction. Therefore, through utmost care and responsibility, the path to implementation can take place.

The Solution in Feedstock

  • Better Technology Deployment: Technological stagnation is a subtextual demand concerning second and third-generation biofuel production. In the current scenario where the world struggles to feed all mouths while keeping air, water, and land clean and clear, dwelling a little deeper to find technological solutions is crucial. Waste animal fats and used cooking oil offer many non-food crop feedstocks for renewable biofuels. Therefore, better technical backup can upscale and economize non-food-based biofuel production. For example, biomass-based Fischer-Tropsch and cellulosic ethanol-based technologies can employ alternative feedstocks for biofuels to yield low-carbon biofuels for commuting and transportation.
Biofuel Demand Share of Global Residues and Wastes
Figure 2: Alternative Feedstocks for Biofuels Demand Share of Global Residues and Wastes From 2010-2027 (Source: IEA)
  • Innovation: Several production modus operands have upscaled the production of biofuels on a commercial level. However, a big innovation gap exists in converting grass or wood-based biomass into liquid biofuels. Thermochemical processes like bio-FT synthesis, rapid pyrolysis, and hydrothermal gasification can help fill this gap. Moreover, sustainable upgrading of this production methodology.
  • Supporting Infrastructure: Do you know it is more economical to trap the carbon dioxide produced by second-generation biofuel production processes than first-generation and conventional fuel production processes? Several biofuel production pathways, such as ethanol fermentation, lead to carbon dioxide emissions. Since the CO2 produced in the process is pure, the cost of purification can be skipped significantly. Thus, reducing the cost of CO2 capture as a whole. Several biofuel plants worldwide successfully capture carbon, pushing the total figure to 2.21 MtCO2 annually. However, to meet the 2030 Net Zero Scenario, they must scale this figure by 50 times. That can happen by filling the vast gap with better infrastructure deployment and development.

Conclusion

The future of biofuel depends very much on alternative feedstocks for biofuels, as they enable the sustainable utilization of biomass, reduce competition with food, and offer lower carbon emissions. Better initiatives and efforts on multiple fronts can combat these predicaments. Governments and markets need to work hand-in-hand to understand the depth of these challenges and support new infrastructure and tech development. Simultaneous efforts can help cover the supply chain gaps and rising food crises. The world needs more programs like the Sustainable Aviation Grand Challenge Roadmap, which is currently active in the United States. Similarly, Germany dedicates huge investments and resources to improve yields from resides and wastes in Europe. Canada’s Clean Fuels Fund focuses on supply chain development for alternative fuels. Such initiatives are teamed with policies focused on emission reduction that promise incentives to biofuel producers to neutralize the emissions issue related to their production processes.  

V2G Technologies: Impact on EV Batteries

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California’s latest debate on mandating bi-directional charging capability in EVs brings with it the long-discussed predicament of its impact on EV batteries. In the last two decades, various theories and pilot projects have dwelled deep into this matter. Most agreed that strategic implementation of V2G technologies would yield fruitful results for EV owners, makers, and the grid. While the wide assumption degrades the reliability and durability of batteries, several ideas and theories propose to neutralize these adverse effects and make the most of the energy stored in EV batteries that may otherwise go to waste. But how viable is that idea, and will it finally lead to the proposed results? Let’s take a closer look to understand it better.

What Are V2G Technologies?

V2G or Vehicle-To-Grid technologies mediate the reciprocal power flow from EVs to another recipient. The list of recipients may include a grid, a microgrid, or an entity as small as a building. Successful application of these systems can mitigate the most significant challenges about renewable energy resources – intermittency and demand-supply unpredictability. As a power prospect, V2G is an imminent part of the highly recommended virtual power plants that aggregate distributed energy resources to stabilize electricity demand and supply to and from the power grid. When applied, V2G systems will play a key role in enhancing renewable energy adoption, grid stability, and optimization of grid upgrade costs. Therefore, it is necessary to investigate the chances of its successful implementation along with plausible solutions that may help overcome its biggest roadblocks.

Studies And Theories Favoring V2G Implementation

  • Warwick University: Warwick University researched the feasibility of V2G technology in 2017. The team developed a comprehensive battery degradation model for a commercial lithium-ion battery. The legitimacy of this model was tested against six operationally different real-world usage cycles. It demonstrated a 4.6% transient error in capacity loss estimates and a 5.1% error in increased resistance over one year of cycling. It concluded that optimal charging balancing for driving purposes (∆SoCDrive) and V2G purposes (∆SoCV2G) could extend the battery’s lifetime and not let it waste due to calendar aging. The results of this study opened gates for further research to evaluate the possibility of improving a battery’s SoH (State of Health) by modifying its operational conditions via a smart grid and then subjecting it to V2G operations. To surmise, the study showed the possibility of reversing the widely assumed “battery degradation’ in a step-by-step approach that can be quantified and realized in the near future.
Graph Showing The Arrehnius Plot Of Logarithmic Capacity fades Vs Reciprocal Temperatures For Cells Aged At 90%, 50%, and 20% SoC (PC: K. Uddin et al.)
Figure: Graph Showing The Arrehnius Plot Of Logarithmic Capacity fades Vs Reciprocal Temperatures For Cells Aged At 90%, 50%, and 20% SoC (PC: K. Uddin et al.)
  • Hawaii University: Hawaii University also conducted a study to understand the impact of bidirectional charging on EV batteries to help owners realize maximum profits. They showed that additional battery usage, even at constant power, proved detrimental to battery performance. In conclusion, it was agreed that intelligent or strategic implementation of V2G/G2V operations is a better and safer option. This is in contrast to blind V2G operations.
Hawaii University Study Conclusion Slide Showing Impact Of Blind Bidirectional Charging Vs Intelligent Charging Impact Analysis
Figure: Hawaii University Study Conclusion Slide Showing Impact Of Blind Bidirectional Charging Vs Intelligent Charging Impact Analysis (PC: Uddin,Marongiu et al)

Other Studies and Theories

  • EV-elocity Project: It was a government-funded pilot project deployed to gain commercial and customer insights on V2G technology. The results of this research corroborate the theory presented by Warwick University. According to the theory, careful charging and discharging of EV batteries can reduce their degradation by one-eighth. Commercially, it means that every user can save as much as £400 annually per vehicle. The project demonstrated the ability to balance a battery’s calendar and cycling aging to optimize its state of health (SoH). This optimization resulted in an improvement of 8.6-12.3% per year. Under this project, the UK government deployed V2G chargers across multiple locations. They concluded that it is possible to gain carbon, costs, and conditioning benefits through the intelligent implementation of V2G technology. This applies specifically to fleet vehicles.
Average Daily CO2 Import Vs Three V2G Scenarios For Varied Locations In Britain
Figure: Graph Showing Average Daily CO2 Import Vs Three V2G Scenarios For Varied Locations In Britain (PC:Cenex)
  • Nissan’s Global Projects On Bi-directional Charging: Nissan has led the way in global bidirectional charging. In the last few years, it has helped trials in North America, Japan, Europe, Australia, and Africa. In Australia, for instance, Nissan participated in a government-backed trial to demonstrate the benefits of V2G charging technology. A Nissan LEAF owner acquired the headline of this effort by using the car to offset the night-time energy usage at his solar-powered enterprise. Similarly, Nissan’s i-rEzEPT project aided EV integration into Germany’s power grid for 13-solar-enabled homes. The company registered compelling results in the first interim review. Several such projects have been piloted in Japan, Portugal, Thailand, the UK, and the US to showcase the positive effects of V2G applications that weigh much more against the degradation of battery life.  

The Roadblocks

Despite unanimous support for the intelligent implementation of bi-directional charging, several questions challenge its deployment in real-time. Here are the biggest roadblocks:

Some Big Issues
  • Too Many Assumptions: Warwick’s study, which supported the strategic implementation of bi-directional charging, made several assumptions that are yet to be proven in the real world. It assumed that the integrated smart grid could manipulate the EV’s operational conditions. This implies that the Battery Management System (BMS) used in the process will inform the grid about the vehicle’s energy requirement for upcoming trips. It will also inform the grid about the availability of extra energy that can be sent back to the grid. Then, it was assumed that V2I (Vehicle-to-Infrastructure) and vice versa were possible. These assumptions are yet to sync with the present status quo of V2G operations worldwide. Successfully incorporating machine learning algorithms and high computing power requires the intelligent capabilities of the BMS, which in turn mandates the development of standards addressing technical issues, cybersecurity, hybrid communications, and legal matters. All these developments are still a work in progress and may need a few more years to come into the picture.
  • Prognostic Battery Aging Models Needed For Each EV Battery: Most studies were conducted on commercial Lithium-ion batteries under specific conditions. To advance the universal implementation of V2G technology, stakeholders need to develop similar prognostic battery models. These models should cover every kind of EV battery, including potential alternatives to lithium-ion batteries. Aging mechanisms differ according to the manufacturing process, cell design, elemental properties, and proprietary and chemical attributes of battery constituents. Car manufacturers need to delve deeper into creating more accurate online predictive models that can be executed in real-time. Additionally, they will need to develop microcontrollers to modify the capabilities of present-day BMS.
Algorithm Employed By BMS and Smart-Grid To Assess The Level Of V2G Services That Needs To Be Implemented
Figure: Algorithm Employed By BMS and Smart-Grid To Assess The Level Of V2G Services That Needs To Be Implemented (PC: Warwick University)

Additional Issues

  • Due Consideration Needs To Be Given To Dynamic Charging and Discharging: The models used for testing the aging effect of charging and discharging cycles only considered typical aging stress factors. These factors include temperature, state of charge variations, capacity throughput, and charging and discharging current. They skipped other influential factors like constant power versus pulse power, rapid charging process, etc.
  • Communication Protocols: Bi-directional charging involves a high level of communication between the grid and vehicles. All car manufacturers and systems must develop standardized protocols. As easy as it sounds, it has proved to be a big challenge. In Europe, for instance, there are no standard communication protocols for V2G operations, compromising systems’ compatibility.
  • Proper Optimization of SoC and Degradation Relationship: SoC has an inverse relationship with the battery degradation rate. However, most studies in this respect tested batteries at normal and lower temperatures. Neutralizing battery degradation at higher temperatures is still a significant challenge. This challenge may impede the widespread adoption of V2G applications in Asian and African countries.

Final Words

Acknowledging the challenges mentioned above paves the path for further investigation and the successful neutralization of those challenges. Solving the complex equation between ambient temperature, SoC, and degradation determines the progress. Similarly, most research has yet been conducted in the context of the fleet. We need to establish further evidence for other modes of transport. But one thing is certain: the momentum in this direction will increase as the demand for EVs rises. Industry stakeholders will systematically address and resolve the challenges and dilemmas associated with V2G, V2I, V2H, and all V2X in due course.

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Is Hydrogen Vehicle A Formidable Contender To The Present EV Technology? 

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Toyota’s recent unveiling of hydrogen combustion engine vehicles stirred several debates regarding the future of EVs and whether hydrogen vehicles can be considered a viable successor to Fuel Cell Vehicles (FCEVs) and Battery Electric Vehicles (BEVs). As EVs are rapidly replacing traditional ICE-based vehicles, the queries on its further expansion and advanced alternatives are knocking on the doors of automakers and research facilities.

The technological advancements in using hydrogen vehicles answer several bottlenecks impeding the growth of the EV market, further pushing the viability of hydrogen as future fuel. Nevertheless, in the present scenario, sustainable vehicles seem divided into two zones with hydrogen combustion engines in one corner. At the same time, FCEVs and BEVs occupy each other. This close rivalry calls for critical scrutiny to assess how deep the waters around each are and if hydrogen will replace the EV battery sector for good.  Let’s dive in to get a better idea.

  • Energy Density: Energy density carries enormous weight in deciding the future appeal and application of the contenders mentioned above in the race for sustainable transport options. Figuratively, lithium-ion batteries still take the lead over the other two for yielding 100-300 Wh/kg on a gravimetric and volumetric basis. Hydrogen combustion engines stand lowest with 120-142 MJ/kg and 8-10 MJ/L for compressed and liquid hydrogen, respectively. A hydrogen fuel cell stands somewhere in between the two. The energy density of lithium-ion batteries is proving to be an obstacle in their application in the aviation industry. Hydrogen vehicles, on the other hand, offer an extended range with much less weight and eliminate the need for heavier brakes, higher torque, and more structural weight. Therefore, it is inevitable that green hydrogen will have a place in the application where lithium batteries don’t: trains, marine, heavy long-haul vehicles, and trucks are a few notable names from that list.  
  • Efficiency: Despite technological advancements, hydrogen fuel cells and combustion engines still stand far below their EV counterparts in terms of efficiency. Figuratively, the tank-to-wheel efficiency of BEVs stands between 75-85 percent and at 50 percent for FCEVs. H2-ICEs stand at the back of the line with 40-45 percent efficiency. The gap becomes wider for well-to-wheel efficacy, where FCEVs come down to 35 percent while H2-ICE stands at a mere 30 percent. It is to be noted that these are approximate figures that may move up and down based on driving patterns, sources of renewable energy, and loads.
  • Safety in Hydrogen Vehicles: There is wide skepticism about the safety of hydrogen ICEs and FCEVs due to a lack of knowledge and awareness. While significant concerns revolve around the highly flammable nature of hydrogen, some points have also been raised about the explosive nature of this gas. It must be understood that NASA has long used hydrogen combustion to launch rockets and astronauts in space, which implies that considerable success has been achieved in safely handling hydrogen. More importantly, if there is a leakage or fault with the fuel cell, quick dissipation in the air is more likely owing to a superlight attribute of hydrogen. The customary ignition engines catch fire due to slower leakage and heavier gasoline and diesel molecular weight. Thus, the chances of accidents and fire are as low as that of traditional BEVs and ICEs.
  • Cost Of Ownership: Several factors contribute to this aspect of clean technologies, but upfront capital costs and fuel consumption play a decisive role for end-users and vehicle makers. In this respect, H2-ICEs can stand taller than others due to simple combustion and lesser exhaust treatment requirements than traditional ICEs. The BEVs take a backseat here owing to the expensive rare earth metal inclusion that drives the cost globally. However, further R&D is required in this direction as the total numbers change with driving routes, vehicle dimensions, total weight, powertrain efficiency, and how different nationalities will regulate the ownership costs for these vehicles.
  • Range and Refueling Requirements for Hydrogen Vehicles: Hydrogen vehicles stand shoulder-to-shoulder with typical gasoline-powered engines, which means one can expect a 300-400 miles range from a single hydrogen tank. On the other hand, FCEVs carry an edge on this front as they can easily stretch this range up to 500 miles under specific configurations. BEVs come last in this context, with 100-300 miles at a full charge. As for refueling, hydrogen vehicles carry an edge over battery vehicles as the latter needs more time to recharge while the former can be refueled with fresh hydrogen within a few minutes.
  • Infrastructure availability: Concerning infrastructure, BEVs have the top slot as maximum investments and progress have come their way in the last few decades. Currently, California, Texas, and Florida in the USA have the most extensive network of BEV charging stations, closely followed by Europe and China. For FCEVs and HICE, the infrastructure development has been somewhat limited. The highest expansion has been witnessed in California and Japan. Statistically, hydrogen refueling stations are available in 37 nations around the world, among which Columbia, Israel, and Cyprus are the latest additions. Europe has 254 hydrogen stations, of which 105 are in Germany, 44 in France, and the rest in the UK and Netherlands. In Asia, the stations are limited to China, South Korea, and Japan, with a staggering 455 stations. 814 hydrogen stations were registered globally at the end of 2022; the number is expected to exceed 1000 by the end of 2023.
Hydrogen Fuel Stations Around The Globe
Figure: Total Number of Hydrogen Fuel Stations Around The Globe As In 2022
  • Investments: The much-pronounced difference in global investment in hydrogen and battery vehicles can be accredited to these two concepts’ familiarity and technological evolution. The IEA estimates the global investments for BEVs to cross $300 billion by 2025. For FCEVs, global investments are estimated to touch $13.6 billion by 2032. HICE stands at the end, but it is rapidly picking up the trends as auto giants like Tesla, Toyota, and others are taking the reins in their hands. In 2021, Cummins received a hefty grant of $4.5 million from the U.S. government for developing hydrogen fuel cell powertrains for heavy-duty trucks. The efforts in this project will potentially be used to further research in HICE for the same purpose.
  • Technological Forecast: The evolution of HICE, BEVs, and FCEVs largely depends on present R&D capabilities to overcome the technological barriers associated with each. Concerning BEVs, there is an imminent need to find alternatives to lithium, for its high cost and limited availability can easily bring the BEVs to a dead end in the near future. Then there is the question of increasing battery life, vehicle autonomy, and range and reducing charging time, depreciation costs, and vehicle costs. FCEVs and HICE, on the other hand, researchers need to dwell deeper to find platinum replacements and improve operating temperatures, energy density, and hydrogen tanks’ weight. The same applies to HICE and the urgency to deal with nitrogen oxide emissions to meet sustainability goals aptly. Several automotive giants and research facilities like Tesla, Toyota, BMW, Argonne National Laboratory in the USA, National Renewable Energy Laboratory, and Hydrogen Technology & Energy Corporation (HTEC) Canada are working towards these goals.
  • Major Upcoming Launches (in each category): An exhaustive list of launches is slated in each category in the coming years. With respect to BEVs, many top-end and new makers are in line, including Bentley, Audi, Alfa Romeo, Acura, Honda, and several others. Bentley plans to replace five of its top models with fully electric powertrains by 2025.  Even the FCEV segment is buzzing with announcements of new launches from several global leaders like BMW, Honda, Hyundai, Kia, Toyota, Range Rover, and Ineos. With respect to HICEs, MAN Truck & Bus plans to bring forth a hydrogen-powered demo fleet in 2024 along with Kenworth, which also plans to launch a hydrogen-powered heavy-duty truck by the end of this year.

Conclusion

Both electric and hydrogen vehicle technologies have pros and cons, and it will be too soon to judge the success and failure of any as much depends on R&D efforts, success, market dynamics, usage patterns, vehicle types, and regulatory support from governments across the globe. Much will also depend on intended use, driving range requirements, and cost of ownership. However, both hydrogen and electric vehicles will play a key role in transitioning to sustainable, clean transportation in the future.

How Can We Help? (Our Services)

To stay afloat amid major paradigm shifts, every business needs to identify scalable opportunities through innovation, value creation, and a strategic road map to these goals. With over a decade of experience, Stellarix has supported hundreds of clients in achieving these goals with a comprehensive 360-degree horizon scan, current and future landscape visualization, and extensive market research.

Why Is Body Neutrality Important For A Strong Market Edge?

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In 2021, Pinterest updated its ad policy and prohibited weight loss language, imagery, and ads on its platform. In 2022, they analyzed the effect of this decision and found a 20 decrease in global searches for “weight loss” on a year-on-year basis. The platform also registered a spike in searches for healthy lifestyle and mindset choices like “quick and healthy meals,” “emotional awareness,” “positive quotes lock screen,” etc. It’s a small example, but it effectively conveys the “massive shift” from the “Eurocentric” parameters of beauty and fitness to real natural ones. However, apart from aesthetics, there are several other sides to this new definition of self-acceptance and how it is changing the value chain dynamics for several sectors. Let’s unfold them through body neutrality.

What Is Body Neutrality? 

Body neutrality gives a deeper and more meaningful touch to self-acceptance as it shifts the focus from an appearance-based approach to a subtle and respectful perspective. It is a step up from the body positivity that paves the way to a very black-and-white mindset, i.e., if you can’t love yourself, you must resort to hate. Au contraire, in body neutrality, the primary focus remains on appreciating your body for what it does and showing it unconditional respect and acceptance. It is gaining traction worldwide for its refreshing sustainability and relatability. Most importantly, it is more inclusive and doesn’t alienate people based on their sexuality, anatomy, or lifestyle choices. As consumers rapidly internalize this approach, marketers and businesses must recognize the need to synchronize their product lines and marketing efforts with it. 

The Impact 

Social: In the last few years, body image has emerged as a significant global concern. The effect of superficial weight and appearance-based perceptions is everlasting on the masses’ mental and physical health. The degree and manner of concern may vary in a cultural context, but body dissatisfaction, eating disorders, and self-image are consistent across all bottom lines. Several other factors, like hyper-visual culture, unrealistic goals set by digital influencers, faulty BMI index, etc., have acted as catchall proxies for people’s nutritional, health, and body fat status worldwide. Body image concerns were more severe in minoritized sections of society that range from females to transgender, queers, homosexuals, and those with different ethnic or racial backgrounds.

Body neutrality can resolve most of these problems as it teaches people to be more open to accepting and respecting their bodies for their abilities. On a broader scale, people open to receiving and appreciating themselves rationally will be more open to accepting others for their gender, lifestyle, and sexual orientation. For instance, a 2021 report on transgender reveals that the rate of unemployment and being underpaid is much higher in transgender people than cisgenders. More than half of transgender employees feel isolated and less supported in their workplaces. It’s apparent that the situation is worse in the real world, and one of the most understandable reasons is the high rate of dissatisfaction with oneself. Unbiased acceptance and respect for others become easier when one learns to do the same for self. That’s where the appeal of body neutrality takes center stage. 

Categorized Impact

Commercial: Perceptional shifts at consumers’ end have a perpetual effect on B2C markets, and in this case, the contextual effect will be realized heavily by media, retail, food & beverage, cosmetics, and the fitness industry. The media industry has struggled long to break its own Frankenstein practice of unrealistic beauty standards. Other sectors, such as retail, cosmetics, and the fitness industry, have an equal share in the bounty reciprocated by the media’s sense of aesthetics. The wide acceptance and application of body neutrality will push back the idea of cashing end-users’ insecurities by setting new goals for all sectors above. All new objectives align with the shift towards balanced, enjoyable, sustainable living, eating, and appearance patterns. The offerings must focus on the evolved idea of sustenance with a preferred propensity to healthier, comfort, and feel-good-oriented products. 

Digital: The credit for deep internalizing superficial aesthetics and fitness standards goes to the digital world. But it is purging itself of this toxic trend. From OTT platforms to video games and now metaverse and extended reality, many are finally moving ahead of objectifying body shapes, sizes, and figures and working to create hyperrealistic avatars based on real natural appearances and figures. The initial response may be poor, but it will move up with exceptional speed in the long run. An early example has been set by Jesse Zhang, who created Angie. This virtual influencer sets a classic example for natural physical features with acne scars and normal skin texture. It neutralizes the point of using widely used filters and editing tools that maintain a fake online appearance. 

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Body Neutrality: Early Birds

  • The Become Project: A boutique fitness company started by Meyers in 2018 and took a body-neutral approach to exercise. Its workout strategy includes a combination of dance, yoga, and Pilates. The primary objective of this app is to develop a zero-judgment fitness routine. The instructors don’t push people towards six abs or a bikini figure. Instead, leave them free to mend their broken bond with their bodies. The pre-movement “anxious” or “nervous” emotion is transformed into a post-movement “gratitude” and “self-appreciation” feeling. 
  • Unilever: Pinterest is one of many global brands taking the first step ahead of body positivity. In 2021, Unilever declared it would remove the word ‘normal’ from all its personal care and beauty brands’ advertising and packaging.’ It can be rewritten as ‘Pinterest is one of many global brands taking the first step ahead of body positivity. Next is Unilever, which decided to remove the word ‘normal’ from all its personal care and beauty brands’ advertising and packaging in 2021. 
  • Asics: Asics’ ‘Dramatic Transformation’ campaign made the brand’s stand clear on a body-neutral approach by letting people understand the positive impact of exercise on mental health instead of how it may improve the overall look and aesthetics. The company revealed that the campaign resulted in a 22% increase in media coverage for mental health compared to its counterparts. The mention of Asics concerning mental health also registered a 57% spike within the first few weeks of the campaign.  
  • Aerie: In 2014, the American lingerie brand Aerie adopted an honest approach to body neutrality by releasing photos of models with different body shapes and skin types. The idea was to challenge the unrealistic beauty standards of the fashion industry. 

Final Words

Body neutrality will play a key role in setting holistic fitness standards that inculcate an ability to stay in the moment and relish natural attributes. It will be the key to answering the psychological mess created by an appearance-obsessed culture and helping mend the broken bonds between mind and body. Businesses related to nutrition, weight, aesthetics, and body image need to take heed before they lose consumers’ trust and loyalty, along with revenues and profit figures.

How Can We Help? (Our Services)

To stay afloat amid major paradigm shifts, every business needs to identify scalable opportunities through innovation, value creation, and a strategic road map to these goals. With over a decade of experience, Stellarix has supported hundreds of clients in achieving these goals with a comprehensive 360-degree horizon scan, current and future landscape visualization, and extensive market research.

We can be your partner on the road to strategic growth and a sustainable future. To know more, please refer to our contact details.

Next Gen Oral Care – Toothpaste Tablets

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Toothpaste, whether in gel or paste form, actively eliminates plaque, a sticky film of bacteria and food particles that continuously accumulate on the surfaces of teeth. Conventional toothpaste uses several chemically derived substances that take longer to degrade. The emptied toothpaste tubes end up in landfills, which aids in the environmental crisis. Due to the increasing awareness of health and the environment among people, sustainable and clean-label personal care products such as chewable toothpaste tablets are gaining more importance.

Chewable toothpaste tablets are waterless, powdered toothpaste compressed into a tablet form. These tablets comprise surfactants that reduce surface tension and perform well in contact with saliva. It has also proven to be very effective in reducing the micro-adhesion of bacteria. Like conventional kinds of toothpaste, toothpaste tablets come in fluoride-containing free forms. It comes in various flavors, such as tea-tree oil, mint, etc.

Chewable Toothpaste Tablet

Chewable toothpaste pills offer a bite-sized option that allows for easy chewing and saliva mixing to achieve a paste consistency. Xylitol, calcium carbonate, sodium bicarbonate, and derivatives of tartaric acid are the key ingredients of toothpaste tablets, waterless formulation. These toothpaste tablets are available in fluoride-containing and fluoride-free forms. The requirement for preservatives is also less in toothpaste tablets.

Steps in using these tablets:

  • Chewing: Put the tablet between your teeth and crush, chew for a few seconds.
  • Brushing: Toothbrush bristles are wetted and brush for about 2 minutes.
  • Rinse and spit.

Mechanism & Benefits

When a tablet is popped and chewed, the powdered formulation mixes with saliva, forming a paste. The rate of dissolution of the tablet increases upon contact with saliva.

It also contains an abrasive agent in sufficient amounts to remove debris from the teeth’ surface and mechanically debride plaque.

  • Natural Ingredients: Powerful cleaning is provided by plant-based ingredients, such as xylitol, sodium bicarbonate, etc.
  • Saves Water: Manufacturing conventional toothpaste tubes requires a lot of water. In contrast, these tablets are water-free products, so minimal water usage is necessary during manufacturing.
  • Convenient to Carry Around: While traveling with conventional toothpaste, there is a constant fear of spilling due to the squishing of the tube. But tablet form has made overall travel carefree. Also, the reduced bulkiness of the packaging saves up a lot of space for other essentials.
  • Low Preservative: The ingredients in toothpaste tablets undergo compression into long-lasting tablets, requiring fewer preservatives and offering a more sustainable option.
  • Eco-friendly: Unlike conventional ones that use aluminum-plastic composite tubes, these tablets offer scope for 100% plastic-free or biodegradable packaging.

Various Companies

In 2020, the toothpaste tablet market was valued at USD 45.6 million and was estimated to reach USD 90.3 million by 2030 with a CAGR of 7.3%.

The toothpaste tablet market

Many companies have started working on toothpaste tablets. Exemplary companies are:

Unpaste: Unpaste tooth tabs use cellulose to gently clean teeth, minimizing the surface area where bacteria can adhere. Less plaque and tartar accumulation leads to healthier teeth and gums. A clinical trial discovered that Unpaste tooth tabs drastically reduced the quantity of plaque after just 14 days of treatment.

Bite: Bite offers a wide range of products and mainly uses natural ingredients. It has launched a product named “Fresh Mint Toothpaste Bite,” which consists of nano-hydroxyapatite blended with clean, vegan-friendly ingredients.

Huppy: Huppy tablets incorporate secure ingredients such as sodium bicarbonate, aloe vera, and peppermint oil. They are packaged sustainably. Also, because these bites contain xylitol and nano-hydroxyapatite, they can aid in the restoration of enamel and eradicate dangerous germs.

Weldental: Chewtab gentle whitening toothpaste tablets are free from SLS and fluoride. They use baking soda as a whitening agent without damaging teeth’s enamel.

More Companies

Colgate: Colgate’s plastic-free toothpaste in a glass container, the Toothpaste Tablets, is an excellent option for those who care about the environment. It is liquid-free, so one can take the tablets with them wherever they go and get cavity protection from bite-sized toothpaste bits.

Parla: Headquartered in London, Parla has launched eco-friendly toothpaste tabs. Parla Original and Parla Pro are the two varieties of oral care: plastic and animal cruelty-free. These tablets contain naturally occurring substances, such as a mild foaming agent derived from coconuts, mint flavor, hydroxyapatite, potassium citrate, and vitamins. It helps whiten teeth and removes stains, lasts for a long time, remineralizes teeth while brushing, potassium citrate protects from sensitivity and strengthens the immune system.

Lush: It is a Korean company offering various beauty, personal care, and cosmetic products. Its toothpaste tablets are environmentally friendly, vegan-based, and cruelty-free.

Happy Tabs: Established in 2019, Happy Tabs focuses on manufacturing sustainable products without artificial dyes, fillers, heavy chemicals, etc. The company uses natural ingredients for oral care products and compostable packaging. A range of toothpaste tablets consists of mint flavor and charcoal, which effectively fights against caries and plaque.

Geo Organics: Headquartered in the United Kingdom, Geo Organics mainly focuses on developing sustainable and effective oral care products. Mineral toothpaste tablets contain natural ingredients like activated charcoal, eucalyptus, and peppermint, providing better mouth freshness and cleaning.

Conclusion

Being a nascent field, more research is being done to develop and produce this tablet. Till now, research in the domain has been limited on the efficacy of tablets. Having no preservatives, these tablets are readily acceptable to consumers. In addition, the higher cost of these tablets will be overcome in the near future by evolving production techniques, making them a perfect replacement for regular toothpaste. Furthermore, increasing consumers’ shift from liquid toothpaste to chewable toothpaste tablets will reduce environmental pollution.

Retail Industry Outlook 2023

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The retail or fast-moving consumer goods (FMCG) industry is evolving swiftly by observing people’s requirements and casting away loopholes through technology and innovation. Knowing about consumer demands and relentlessly improving quality and products’ shelf life without compromising ethics are some factors pushing the sector. Moreover, cost, quantities of packaged items and understanding of nomenclature are considered when redesigning products at molecular and surface levels. The year 2023 and beyond will be crucial for the industry.

Retail Industry Outlook

Figure 1: Retail Industry Trends

Research is instituted on goods like personal care, oral care, household care, laundry care, etc., to offer respite to the end user. The blog highlights the modifications that are likely to happen in retail in the future.

The personal care product market is huge globally. In 2022 alone, it amounts to USD 528.60 billion. It is slated to exhibit an annual growth of 4.64 CAGR (2022-2027), as per Statista. The continuous arrival of new products in improved formulations is winning over consumers.

Personal care product market

Figure 2: Size of personal care product market

Minimalism in Personal Care 

FMCG brands that cater to people have a complex way of projecting products. They produce items to tantalize and boost their brand value, betting on users’ unmet requirements. 

Minimalism is approaching quickly in personal care products, especially cosmetics, where a single ingredient offers various consumer benefits. Also, minimalism is organic, often gender-neutral, and comes with innovative ingredients. Thus, at the cost of one, many advantages. 

Some companies have realized the need and composed two-in-one products, i.e., the benefit of two for the price of one. Notably, BB creams, Micellar water, and dry shampoo have made inroads into the growth through out-of-the-box execution. The year 2023 will see a spike in more provoking product lines. 

Skinification of Hair

With the recent trend of skinification of hair, scalp care is gaining popularity, similar to the skincare routine. Previously, hair care was less focused on scalp care and more on treating and repairing damaged hair. Now, there is an awareness that healthy hair starts with a healthy scalp. Basic steps of skincare, such as cleansing, exfoliation, steamers, masking, etc., and nutritional ingredients of skin care are being taken up for scalp and hair care. The scalp is an extension of facial skin, and thus, a personalized care routine is equally essential for shining, bright, and rich hair.

Moreover, it has been found that many hair problems can be taken care of by simply maintaining a healthy scalp. For example, itchy and clogged hair follicles can cause several scalp issues. Hence, cleansing and proper care are the best ways to better hair growth. 

However, products used for hair must be sustainable and eco-friendly, and people are following the mantra. Hair nourishment and protection or skinification are happening through serums, oils, shampoos, masks, and conditioners with natural ingredients and no parabens, sulfates, DEA, dyes, silicones, phthalates, etc. 2023 will see a rise in such practices that are good for the environment and personal care.

Injectable Aesthetics

Aesthetic injectables are expanding rapidly in the beauty market. Healthy aging procedures are finding acceptance following growing awareness. Thus, many patients, millennials, and women are rising as a new segment. Moreover, men are also shifting their focus toward wellness and beauty. Thus, acceptance and demand for aesthetic injectables have shot up.

Social media awareness campaigns that dispel the myths surrounding injectables have also helped the growing number of patients receiving the treatment. Furthermore, these aesthetic procedures have become easily accessible and are expanding rapidly globally. Thus, people are latching on to them to improve their facial looks and enhance their bodies. 

Artificial Intelligence and Augmented Reality Technology in the Beauty Industry

The beauty industry has become more personalized than ever. As the cost of living has risen, people have been particular about their expenditures. So, they wish to invest in beauty products that benefit them the most. Artificial Intelligence (AI), and Augmented Reality (AR) help p up the correct products out of a range, thus enabling personalization options for the customers. Everyone’s skin type and tone are different. Also, their issues and requirements are distinct from each other. So, the correct knowledge about skin type and what ingredients are best suited for one assists buyers in making the right decision regarding beauty product selection.

Shopping has become more accessible and targeted at shoppers and sellers. Consumers have several options, including try-on matching shades using a skin diagnostic selfie experience to help them know the required fit according to their personality traits. Moreover, it aids brands with a smooth omnichannel strategy to sell the product.

Fragrance-free Formulations in Home & Personal Care

Allergies are surfacing due to commercial soaps, shampoos, and detergents that can exceed skin disorders like eczema, psoriasis, etc. Fragrances have always been questioned for the ingredients and compounds used to prepare them. Traditional scents with chemicals react badly with the skin, offering redness, rashes, and sensitivity. 

Fragrance-free products are sans any artificial or natural fragrance. Also, they are devoid of masking agents to cast away foul odors. Thus, the potential to cause harm to the body is negligible for the user. 

Products with dual compounds that offer anti-bacterial properties and no fragrance (eco-friendly and sustainable) are trending these days. Personal-care companies are conducting more R&D to launch such fragrance-free formulations.

Retail Industry: Teeth Whitening Kits

Earlier, patients had to visit dentists for teeth whitening treatment. Home-based, consumer-friendly teeth whitening kits were unavailable to the masses. However, the time has changed. 

Look-enhancing kits are making rounds, and what better than white and bright teeth? Your smile captures one’s attention. So, teeth whitening products find takers and freshen up the smile; consumers are spending money on them. Peroxide cleaning kits can see a hike in purchases. Moreover, teeth whitening strips offer good results to users, and the demand will increase in the coming days. 

Furthermore, LED whitening kits are also popular these days and will find many buyers in 2023—the light aids in activating teeth-whitening agents. You can find two whitening agents: a non-bleach solution removes stains on the surface, and the bleach solution works beneath the teeth’ surface. A fitting tray is applied to the front teeth before using the solution. 

Retail Industry: Plastic–free Detergents 

Microplastic and microfiber in detergents are hazardous for land and water. It washes away to oceans through sewage and other water bodies and pollutes them, making it difficult for marine animals to survive. So, fish that consume them get intoxicated, and people who eat them suffer serious implications. Notably, several names are there that mislead consumers with their names. However, 2023 is set to witness no compromise with plastic in detergents. It will look forward to finding sustainable and organic alternatives that do not cause consequences to animals, birds, and the environment. 

Detergent that Degrades in Water

Harmful detergents are causing a massive headache as drinking water accounts for less than 1 percent of the total, and the wastewater flows down the drain, polluting it. Surfactants are organic compounds mainly responsible for spreading pollution through sewage. The introduction of microorganisms can evolve biochemical pathways to develop detergents that degrade in water without contaminating it. In the future, many manufacturers will take technology into account. 

Retail Industry: Reduction of Microplastic by Washing Machine

Microplastic is a primary global concern, and the world is already struggling with global warming and greenhouse gas emissions. Several washing machine manufacturers are working on reducing microplastic during laundry. Samsung has guaranteed to eliminate microplastic by 54 percent while maintaining the clothes’ quality. The company’s proprietary Ecobubble aids laundry detergent in getting absorbed and dissolving swiftly. The process washes away all stains and dirt. Thus, clothes’ abrasion is minimized, and the leading cause of microplastic shedding stops. 

Laundry Detergent Enzymes to Increase Sustainability

Conventional detergent flushes into oceans and seas, polluting corals and living beings. The biodegradable aspect of detergent enzymes is what the future is lurking for. The sustainability aspect is witnessing the dawn of detergent enzymes. 

Sustainable detergents contain naturally available element enzymes. Notably, enzymes are a part of every living organism that helps digest food and create a chemical process, turning that into energy. The common enzymes in such detergents are protease and lipase, which aid in breaking oil, fat, starch, and protein from clothes and keep them clean. Moreover, another enzyme that works effectively is cellulase, which offers brightening fabrics compared to a bleaching agent. It makes clothes look fresh by removing dust and dirt clinically. 

So, laundry detergent with enzymes will find a place in households in 2023 and beyond. 

Metaverse in Retail

With the advent of advancements in the e-commerce sector, everyone is capitalizing on digital platforms for growth. After using augmented realities by goods manufacturers and suppliers to heighten the retail business prospect, metaverse technology is finding many takers. It is helping improve customer engagement and enhance their experiences. 

Metaverse is aiding brands and industries in understanding customer behaviors and requirements through monitoring and taking the liberty to develop products around their needs. Also, they are developing relationships through innovation and creativity using metaverse technology. It helps in creating a bridge between the physical and the virtual world. 

Unilever and Coca-Cola have introduced their respective products using this technology. 

Smart Store Automation with AI in Retail

Like any other industry, retail is transforming quickly. Artificial intelligence has blossomed and taken conventional business tycoons by surprise. People might soon see several unmanned stores. AI in retail stores will reduce the workforce burden on the owners. It will enable adding more products, and the smart store will open for longer hours.

The AI-driven POS will be able to recognize people’s needs and offers they like and provide a large perspective to people in business. Furthermore, it will help improve customer personalization, drawing more consumers to the store. Moreover, owners will save money on the space for cashiers’ counters construction. 

Retail Industry: Conclusion

Personal care or home care brands are working on formulations that are good for the skin and environment. Research has been going on the molecular level to make products aesthetic and free from organic chemicals. The motive is to make products that do not cause health hazards and are free from plastics and acids, in which people from different ethnicities can participate.

The product line is witnessing a paradigm shift. Technologies like AI, AR, and metaverse are bringing innovation in the optimum utilization of products lined up for 2023. Moreover, as the world experiences global warming and increased carbon emissions, plastic-free detergents, fragrance-free formulations, and minimalist personal care offer a ray of hope for the planet’s recovery.

Telecom Industry Outlook 2023

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Telecom Sector Trends

Figure 1: Telecom Sector Trends

Future uncertainty in the telecom industry is rising due to quick technological changes, legislation, and consumer demand. However, industry employees who embrace innovation, rethink their network service capabilities, and drive growth will discover even more extensive opportunities than ever before.

As we approach 2023, the telecom sector has evolved and will continue to change. Telecom is undergoing a digital transition in technology, driving the industry and directing how it engages with customers, thanks to the acceleration of IoT and 5G.

Digital disruption already underway was amplified by the COVID-19 pandemic, necessitating the development of customer-focused services and increased effectiveness.

Know About Networks

  • 5G Implementation: In 2023, 5G will finally become a part of our daily lives (on a global scale), and telecom companies will start realizing their commercial value. The revenues earned will facilitate further investment in BSSs and 5G networks. The incoming 5G will give a significant push to IoT infrastructure. It is found in various sectors, including smart industries, homes, grids, cities, and healthcare, expanding its reach significantly. Thus, enabling a new wave of services and applications. Telecom companies will underscore all these developments through intense diversification, new billing systems, and monetization strategies. Most importantly, it will allow them to overcome their mistakes during 4G implementation.
5G Network Capabilities
Figure 2: 5G Network Capabilities  
  • Evolution of 6G and Wi-Fi: The rollout of 5G will lay the foundation for next-level connectivity. There is already much talk about the technologies that will define 6G, but everyone agrees that it will fix the limitations set by 5G. It is expected that 6G will work along the lines of sustainability goals, fostering reliability and trust and connecting the remotest parts of this planet. Along with this, the Wi-Fi 7 standards development process will pace up and probably release in 2024. The new Wi-Fi will support 8K and 4K resolution videos, cloud computing, and virtual connectivity techs like augmented and virtual reality.

Metaverse Technology

 Metaverse might be the answer to accelerating the pace of behavioral, functional, and operational changes in our society. Upon fruition, it will transform the world around us within a generation. It will impact telecommunications, connectivity, and all other verticals the most. However, it still has a long way to go and won’t be part of our current world in 2023. Although much groundwork has already been laid to bring it to the mainstream world, changing the telecom world precisely unless the service requirements are ubiquitously made available will make it difficult to experience the full-fledged benefits. With huge investments, we may expect severe changes in the telecom metaverse industry within 2-3 years.

Impact Of Metaverse On Advancement Of Telecom Sector
Figure 3: Impact Of Metaverse On the Advancement Of the Telecom Sector

Deep Impact of Technology

  • Cloud migration: A recent Gartner report suggests that over 85% of organizations will use a cloud-first approach to deploy applications in the coming year. The simplification of network infrastructure is compelling companies worldwide to adopt cloud migration. This juggernaut of cloud technology benefits the telecom sector in various ways. It provides better revenue opportunities, scalability, agility, flexibility, and lower operational costs and sustainability. Telecom companies can finally start working on customizing their offerings and developing better relationships with their end-users. In 2023, we will see several top-tier companies amalgamating fixed lines and mobile telcos with cloud-based services, allowing real-time communication from any device and location. 
  • Edge computing becomes more significant: Edge computing provides a platform for enabling and hosting application execution at the network’s edge. Edge cloud computing tech will become a rage rapidly as CSPs deploy 5G networks filled with countless distributed and central cloud-edge sites. As 5G evolves into a business imperative, its role will take center stage. There will be an increasing need to connect cloud services and benefits with IIoT applications and industrial devices. The proximity between edge cloud and edge computing will enable low latency, reliability, and availability. This is especially beneficial for latency-sensitive, high-bandwidth use cases like AR/VR, IIoT, and Industry 4.0.

Sustainable Methods

  • Sustainable Connected Systems: Content delivery and storage haven’t been eco-friendly procedures lately. The demand for energy and water is bound to increase with the rising level and complexity of telecom technologies. This puts the telecom sector, which is moving towards being an entirely data-centric industry, in a tight spot. It’s become necessary to look at alternate energy sources and practices, particularly those with less carbon footprint. There is a rising interest in renewable energy sources that will start replacing traditional energy sources by 2023-24. Solar and wind energy, the primary role models in this sphere, will bring the change, enabling a smaller carbon footprint for telecom companies and better connectivity in areas without electricity. Most importantly, renewable sources will help narrow overall operational energy costs, which is a significant expense for this sector. 
  • The emergence of Digital Twins: In the telecom industry, digital twins virtually replicate network applications and services. It includes using several real-time data sources, like edge clouds, subscriber data, IoT devices, ML data lakes, etc. Digital twins combined with machine learning help estimate the effects and challenges associated with different scenarios without their physical implementation. The rapid adoption of digital twins will help CSPs accelerate their digital transformation and rapidly resolve complications arising from 5G use cases. It will allow telecom companies to develop a fresh perspective on the interrelationship between processes, networks, and end-users. For instance, Nokia Core Networks uses digital twins to develop self-healing and anomaly prediction capacity in networks, network function software updates, visual network planning, energy consumption, cost simulations, etc. Siemens, GE, and several others are also using DTs in various capacities, and this trend is expected to evolve in 2023 and beyond. 

Detailed Classification

  • Digitization of supply chains: We cannot just talk about digital twins and leave out supply chains or “smart” supply chains from the equation. These are the answers to finding and eliminating major disruptions that impact industries’ overall operational efficiency and revenue figures. Digitization will help companies work in increasingly unpredictable times where customer, regulatory, and technological demands constantly evolve, and complications increase daily. 
  • Cyber security and resilience: As data breaches and cyberattacks rise, they raise questions about the resilience and cybersecurity of the telecom industry. The number of threats and attacks will rise in the coming year as 5G touches more lives. Companies have already begun addressing this problem, and significant developments and innovations are expected in this area in the coming years. Anticipated roles in this regard include blockchain and cloud migration, which play vital roles. The rising adoption of these technologies in 2023 indicates the industry’s efforts to tackle the challenges effectively. Verizon Media Services, for example, recently deployed a cloud-based application firewall (WAF) that addresses the increasing cybersecurity threats in the telecom sector. 
  • More inclination towards decentralized architectures: Decentralized architectures are taking center stage as companies realize the need to secure user communications and transaction information. Technologies like Decentralized Ledger Technology (DLT) frameworks keep records encrypted, immutable, and tamper-proof.  
  • Surge In broadband satellites: A recent Deloitte report predicts that over 5000 broadband satellites will join Low-Earth’s Orbit (LEO) by the end of 2023. If the numbers keep rising similarly, by 2030, the LEO may have 40-50 thousand satellites – in what we call a “mega constellation” topology. The dawn of 5G will elevate device-to-satellite connectivity to new heights, connecting millions living in the remotest areas with the global community. However, mitigating the risks of satellite collision and overcrowding requires close coordination among national and global players.

Final Word

Maintaining market leadership may pose challenges for telecom companies. Factors such as varying rates of 5G adoption and the increasing demand for sustainable business practices contribute to these challenges. Furthermore, the need for advanced analytic solutions further increases the complexity. Regardless of the evolving world, we must prioritize sustainability to ensure future generations can enjoy it. Experts consider the topical changes, such as 6G, cloud migration, supply chain digitization, and edge computing, as best practices. These practices help in reducing our carbon footprint and promoting sustainability. Stellarix helps companies to excel in the telecom sector. So, contact us.

Agriculture Industry Outlook 2023

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The agriculture industry has evolved over the years, and calling it hi-tech is no longer an exaggeration. The advancement has exposed farming to different technologies, envisaging improved crops and food quality. Modern-day agricultural practices are based on a scientific approach that enables better production, less wastage, elimination of the harmful impacts of pesticides, and nutritious diets. 

Agriculture Tech Trends

Figure 1: AgTech Trends 2023

Adapting various farming methodologies, rewilding, focusing on soil regeneration through microbes, significant data infusion, biofertilizers, automated farm equipment, raw material proofing, etc ., have transformed agriculture. Moreover, eco-friendliness and sustainability are two factors that the world is lurking in the future for food production—the blog glances at trends that can change the sector in 2023 and beyond. 

Future-proofing in Agriculture 

The objective is to find farmer-friendly technology. And that essentially means potent raw materials like seeds that can grow in any temperature or condition. Genome editing in plant breeding is one way of future-proofing. Also, pontificating supply chains that help the farm feed reach its destinations on time and incur no losses is important. 

Many demographic, environmental, and health challenges affect food systems’ security, integrity, and future. The need to implement future-proofing strategies (to protect businesses and stakeholders) in a post-pandemic world has never been greater. Transparency, traceability, and transformation are essential to increasing trust across the food system and strengthening health and sustainability.

Rewilding in Agriculture 

Approximately 40 percent of the world’s land belongs to agriculture. However, most of it is used for livestock grazing and fostering them. The wilderness area accounts for a mere quarter of the Earth’s surface. Thus, rewilding is essential for agriculture to establish the ecosystem and improve farm activities. Climate change mitigation and conservation of critical species, rivers, and other elements will be done in the future to enhance food production.

Minichromosomal Technology in Agriculture 

It helps in several traits of plants through agricultural genetics. Synthetic chromosomes are added to the method in a sequential manner. They are beneficial agronomically, making crops drought tolerant and infusing better limitations for nitrogen use.

Vertical Farming for Agricultural Industry Reforms in 2023

Vertical Farming is portended as the future of agriculture vis-à-vis food production. It is being vouched as the greener alternative to traditional Farming in the US because they can grow more food per square foot than in conventional ways. Moreover, looking at the population expected to reach around 10 billion in 2050 globally, it’ll be important to grow 70 percent more food than the current levels worldwide, as per experts. 

Agriculture Industry: Global Vertical Farming Growth Forecast
Figure 2: Global Vertical Farming Growth Forecast (2022-2026) In Billion U.S. Dollars

Interestingly, in the US alone, there are 2000 plus vertical farms. They produce lettuce, herbs, berries, and other crops. 

Several industry stalwarts, such as Kalera, Bowery, Plenty, and others, operate throughout the year, regardless of weather conditions. Vertical farming is slated to grow at a CAGR of 25 percent, and the business will reach USD 9.7 billion globally by 2026.

Notably, retail giant Walmart also announced it would invest in Plenty, looking at its advantages and growing market. 

Hydroponics in Agriculture 

Physiologists have used the technology to use plant nutrients and scientists to research plants for more than a century. So, no soil is needed here. Instead, water is sufficient, and due to the rising temperature, farmers may be pushed to grow crops in water in the coming years. So, it makes up for the future. 

Precision Agriculture Industry in Future

The year 2023 will see a rise in precision agriculture to ensure maximum protection of the environment using information technology. The concept follows the sustainability pathway, which aims at cost-effectiveness. It helps observe the number of fertilizers, water, and other natural elements crops and soil require for better yield. 

Precision agriculture is data-driven and offers important information to farmers that aid them in identifying what crops to grow, the water needed, the ideal temperature, and the kind of pesticides and resources required while sowing. 

Biofertilizers in Agriculture

Biofertilizers promote plant growth by strengthening the roots. The free-living bacteria enhance productivity and reduce the requirement for synthetic fertilizers. A study on farmers’ fields showed a 30% increase in yield and a 21% decrease in the production cost per kilogram. Also, given the demand for clean food, biofertilizers stand first in the line to reduce carbon footprint. 

Increased Access to Soil Microbe Data for Farms 

Microbial communities impact soil health immensely. They help enhance food production by supplying vital nutrients. Given the global movement to feed people globally, the focus will be on modulating microbial communities for plant growth even more in the coming days. Moreover, engineered microbial communities will help reduce the chemical fertilizers in the soil, supporting sustainability and weeding out carbon footprint. 

Digital Twins: The Future in Agriculture 

The use of digital twins has recently become common in agriculture corridors. The technology already enables the monitoring of livestock or animal health. Management decisions rely on field information reporting regarding fields and crop status. 

The pre-emption of issues for farming machinery, like tractors, is getting help from remote monitoring via digital twins technology, high-fidelity modeling, and simulation. Real-time digital information is aiding the decoupling of physical flows and leveraging farming productivity and sustainability. 

Farm Management Through Advanced Technology

Food security is critical following the bustling and bursting demography globally. Thus, adapting the outgrown information and communication technology, ICT, makes much sense. Infusion of the Internet of Things (IoT), SaaS (Software as a Service), blockchain technology, cloud, big data, etc. Moreover, intelligent farming will be more effective in 2023. 

  • Usage of IoT in farming: Agricultural inputs management, the panoply of sensor networks for optimizing irrigation, improving the maintenance and guidance. Interestingly, the use of farming sensors in agriculture will rise to 12 million in 2023. 
  • SaaS-based agriculture: Digitizing the agriculture sector through improved supply chains, managing farm finances, and excellence in operations is essential. SaaS helps establish the smart farming method. It infuses transparency, sustainability, and traceability into food chains worldwide. 
  • Big data in agriculture: It aids farmers in knowing and getting insights regarding rainfall, water cycle patterns, and other factors for optimizing crop growth. The configured data processes and finds areas that need improvement in farming. 
  • Cloud computing in the agriculture industry: The year 2023 will witness authorities putting excessive importance on cloud computing, which enables them to store data related to yields, crop type, land requirement, soil health, etc. This will aid in better farming outcomes through adaptive strategies in the future by countering issues faced by farmers. 
  • Computer vision in agriculture: It is pivotal in identifying product defects and issues. It considers factors like ripeness, color, size, weight, etc. Notably, they can reduce time-to-market and save time due to pairing with mechanical equipment. 
  • Drones in agriculture: Drone technology has just begun to fly in the industry. It harbors farmers in several ways, including avoiding chemical overuse, GEO fencing, crop spraying, soil and field analysis, livestock management, and crop and growth monitoring. Moreover, drone technology also helps in proper plantation, preparation for weather-related issues, and health check-ups of crops. 

Robotics in the Agriculture Industry

The primary objective of robots in agriculture is profitability and efficiency. They work on proliferating environmental sustainability and specialization. The biggest reasons for robotic adaptability have risen following the lack of laborers, towering production costs, optimizing harvests, etc. 

Robot Bees for Pollination

Robotic bees for pollination are changing the dynamics of farming. Deep learning is paving the way for the implementation of inventions on farms. It is the future for farmers looking to yield an advantage, given that the population of bees and other insects is declining rapidly. 

Real-Time Kinematics in Agriculture Industry

RTK redefines the accuracy of maps, land surveys, clock correction, etc., for agriculture using the GNSS satellite data correction system. It is a technology sensor that assists broad-acre farmers with decreased overlapping, better land leveling, seamless strip-tilling, tracking, seeding, dripping, plantation, and spraying. Moreover, it helps yield greater while helping farming equipment like tractors move in an accurate direction using GPS. So, this technology will find many takers in 2023.

Automated Farm Equipment and Farming Vehicles

Driverless tractors are the future that will transform farming ways. 2023, the equipment will be more enthused and operated for precision in growing crops. Farmers can maneuver them using GPS navigation for several farm activities. That’ll save time and production costs and maintain hygiene. 

Conclusion 

The agriculture industry offers food on the table for every human. The body cannot function. So, every development fades away without the intake of proper nutrients. Also, given the rapid environmental changes, increasing population, limited resources, deteriorating nature, and declining soil microbes and forests, it is essential to entrust innovation and technologies that help agriculture boost and improve crops. Moreover, sustainability and eco-friendly farming are the needs of the time. So, incorporating trending technology can leverage production while simultaneously reducing costs. Also, for the acknowledgment of the technicalities in the field, research work, learning, and ideation aspects, the industry can contact us.

Energy Industry Outlook 2023

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Energy sector trends 2023

Figure 1: Energy sector trends 2023

2022 changed the global energy industry in several ways. It underlined the significance of energy self-reliance for almost half of the world. Top nations like the U.S. were compelled to improve their grid resiliency and policies regarding a smooth energy transition. As governments worldwide build foundations to meet their respective net-zero targets, several factors challenge developments in this direction. It wouldn’t be a stretch to say that these problems will continue to define the momentum and development in the energy sector even in 2023. Nevertheless, despite all hurdles and hassles along the way, a few changes will lead the tide of growth and development in the global energy sector in the coming year. Here is a summarized view of the energy industry outlook for 2023 and beyond:

  • Higher adoption of AI in the energy sector: According to a World Economic Forum report in 2021, the energy sector needed to acknowledge the role of AI more seriously. The deployment of AI could be a game changer in terms of a smooth global energy transition. The BNEF’s net zero scenario model states that a mere 1% rise in demand for energy efficiency will create a value worth $1.3 trillion between 2020 and 2050 as it will reduce investment requirements. AI can potentially turn this hypothetical assumption into a reality as it can flex demand while enabling better energy efficiency. As more and more corporations, governments, and global institutes are setting and working on their respective net-zero targets, the rise in the application of AI is bound to happen. However, higher costs of system recalibration will compel AI-based business practices, additional investment in the development of innovative solutions, and accelerated adoption of AI.
Artificial Intelligence in the energy sector
Figure 2: AI Implementation In Energy Industry
  • More focus on energy storage: The rising demand for renewable energy and transportation mediums has increased for the last few years. Even in 2023, short-term and long-term battery storage technologies will be critical. These technologies will significantly impact EV (Electric Vehicles) markets, whose share is expanding at a consistent pace. By 2050, it is expected that there will approx. 836 million EVs on roads. Despite technological evolution, a vast scope remains for improving utility infrastructure and battery storage capacity to ensure better performance. Innovation in this area will open gates to developing renewable energy infrastructure in remote and underdeveloped areas. Energy storage will be an inseparable part of grids worldwide as power suppliers strive to manage peak onsite demand and facilitate large-scale EV charging in the coming years.
Estimated Installed Electricity Generation Capacity From Battery Storage Globally
Figure 3: Estimated Installed Electricity Generation Capacity From Battery Storage Globally From 2020-2050
  • Higher Investment in Smart Electricity Grids To Meet Net-Zero Targets: The International Energy Agency (IEA) clearly stated that the global energy industry needs a minimum of $600 billion annual investment in electricity grids to meet the net-zero targets. It is a humungous task requiring scores of collaborations between public and private organizations. Europe is already on its way, where an Edge for Smart Secondary Substation Alliance (E4S) has been established with several technology leaders, including Intel, to develop a smart grid. Similar collaborations are underway in several parts of the world where Intel, Dell, Toshiba, Qualcomm, AT&T, and others are leading the way. Significant developments are expected in this direction in 2023. 
Average Annual Global Investment On Electricity Grids Under Net-Zero Scenario
Figure 4: Average Annual Global Investment On Electricity Grids Under Net-Zero Scenario 2015-2030
  • Higher Resilience of the Oil and Gas Industry Amidst Geopolitical And Supply Chain Disruptions: 2022 was a good year for the oil and gas industry, registered ample cash flow owing for obvious reasons. Though the geopolitical situation caused plenty of supply disruptions and price hype, it highlighted the lack of investment in the energy industry and opened gates for modifications and corrections. Experts think that though a steep price rise accompanies the initial phase of this restructuring, the revenues earned by oil and gas companies will undoubtedly be used to address the concerns regarding energy security, more giant carbon footprints, and supply chain mismanagement. In crux, 2023 will be the year of more efficient capital deployment, balanced investment, and an accelerated energy industry transition.
EIA Estimates On Global O&G Prices
Figure 5: EIA Estimates On Global O&G Prices In 2022-23
  • Rise of Renewable Market Despite Geopolitical Vicissitudes: From solar to wind power, every segment of the renewable market is slated for an uptrend growth in 2023. Economist Intelligence Union predicts an 11% surge in solar and wind energy consumption in the coming year, putting the assumed 10% annual renewable energy industry growth in the next decade. Asia will continue to lead the world in renewable energy investment, where the most significant chunk of revenues will go to Japan, India, South Korea, and China. In Europe, we may see a return of nuclear power and some non-renewable energy projects in the wake of the present crisis, increasing the cost of supporting renewable energy projects and the urgency to substitute Russia’s gas and oil supply. The rising inflation, interest rates by Central banks, and O&G price volatility may bring down the financial support for energy transition projects in the LMIC nations, increasing the woes of economically weak countries.
Global Renewable Market Size Growth
Figure 6: Global Renewable Market Size Growth Forecast 2023-2030
Nation By Nation Renewable Capacity Addition
Figure 7: Nation By Nation Renewable Capacity Addition In 2022-23
  • Europe’s Expanding LNG Import Capacity: The UK and Europe are working vigorously to raise their LNG import capacity and fill the gap left by dwindling Russian gas supplies. Europe and the UK plan to increase their LNG import capacity by 6.8 billion cubic feet per day by 2024. By the end of 2023, Europe aims to increase its regasification capacity by 5.3 Bcf/d. Work on several Floating Storage Regasification Units (FRSUs) is currently underway in Germany, the Netherlands, and Finland. Seven EU nations are now building regasification terminals, which are dated to be finished by the end of 2023. These include Greece, Italy, Estonia, Finland, Poland, France, and Germany.
  • The Increasing Pace of Energy Transition Will Resolve The Economic Struggle of Key Metal Markets: A recent report by S&P Global, the increase in renewable energy generation and demand for EVs worldwide will increase demand for metals like nickel, cobalt, lithium, and copper. This steep rise in demand will stand much taller than the supply, giving much-needed life to the economically dwindling key metals market. The commodity prices for such metals are expected to drop significantly yearly in 2023. However, the growing consumption of EV batteries will surpass the supply capacity of the mining industry, rising prices again at the beginning of 2024.
  • Cleantech Investments and Energy Convergence Will Continue to Soar: All kinds of natural resources companies ranging from metal to O&G will keep investing in renewable energy technologies like CCUS (Carbon Capture, Utilization, and Sequestration) in 2023 to constrict their carbon footprint and diversify their portfolio. In 2023, approx. Twenty global O&G companies will join the Oil and Gas climate initiative as compared to 13 in 2022. Also, it is predicted that venture capital and private equity will return to the cleantech market full-fledged. In numbers, the global private investment in this market will reach $600 billion by the end of 2023. 
  • Re-emergence of Nuclear Energy: The current European energy crisis has prompted several governments to reconsider their nuclear power phase-out plans. Japan, for example, plans to reinstate its nuclear plants, most of which were idled after the Fukushima Daiichi disaster. Similarly, France and Germany plan to bring their offline nuclear plants online to meet the energy demands by extending the lifespan of their plants. In 2023, several other nations like China and India may join the league to ensure energy security in the rapidly uncertain geopolitical scenario.
  • Extreme Weather Conditions Will Exacerbate Coal Utilization: The sporadic extreme weather calamities like hurricanes, heatwaves, and droughts have severely slowed the deployment and implementation of renewable energy systems. Europe and Asia, for example, had unprecedented heat waves during summers while dry conditions led to drought in several rivers that happened to the lifeline of their countries. The Rhine in Europe, the Yangtze in China, the Colorado River in the US, and Maine in France have dangerously low water levels that may threaten millions’ food security and well-being. The water deficit in these rivers impacted hydro and nuclear power generation, overshadowing low-carbon power production for half of this planet. Heatwaves can easily peak power demand and result in blackouts, and power plants stagnate productivity, threatening the overall energy infrastructure of these dense energy economies. In 2023, the world may witness short-term power crises due to similar random extreme weather conditions. It has and will compel middle – and low-income countries to increase coal consumption, countering all the efforts toward a smooth energy transition and controlling global temperatures.

Final Word

The global energy market is on its path to restructuring, but it will worsen before it gets better. The key to rising above all these challenges is building better industry resilience and energy efficiency on all scales. Our world is currently in the middle of a global energy crisis that is too deep and complicated. While the top brass economies have a fair chance to battle it out, the underdeveloped nations are bound to suffer. The developments mentioned above and dilemmas wouldn’t mellow with time, so the only way out is to fight the odds and get over the roadblocks as efficiently as possible as we move towards a well-balanced energy equation. The energy industry outlook is promising, with both public and private sectors attempting to address issues on energy security, green practices, and advanced technological innovation. With the growing pressures and urgency to meet net-zero targets, we may expect exciting developments and innovations in this direction in the coming years.

Fintech Industry Outlook: 2023 & beyond

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Digitalization, especially with AI & ML, has revolutionized the banking and financial services industry, and it will continue to do so in the future. Fintech companies are leveraging digital technologies to create innovative products and services such as mobile payments, peer-to-peer lending, and cryptocurrency. With the continued advancement of digital technologies, Fintech companies will be able to provide better access to financial services, more efficient and secure financial transactions, and improved customer experiences.

Emerging markets have played a significant role in revolutionizing the industry. With the increased adoption of mobile phones and associated mobile wallets, digital banking, and advanced payment system acceptance have pushed the market penetration

Alan Kay, an A.M. Turing Award laureate, once said, “The best way to predict the future is to invent it.” But be it innovation or invention, they last as long as they serve the needs of the hour. In the same lieu, this blog highlights some unique technologies that will restructure opportunities, strategies, and disruptions in the fintech industry over 2023 and beyond.

Figure 1: Fintech Industry Trends

  • New POS Integrations supporting the Buy Now Pay Later (BNPL) trend: Buy Now Pay Later, or BNPL, has been around for years, but it has been highly criticized as an unhealthy practice that may develop unhealthy spending habits among consumers. However, this concept was widely accepted during the pandemic, becoming a preferred choice for retaining eCommerce customers. The trend is expected to expand in 2023. It will happen along with new POS integrations, loyalty perks, and online checkout features in eCommerce platforms across the globe. 
Global Buy Now Pay Later Transaction Value
Figure 2: Fintech Industry: Global Buy Now Pay Later Transaction Value (US $ Billion) Forecast 2022-2026
  • Embedded digital fingerprinting and credit scoring: Banking institutions, investors, and lenders are now deploying AI-driven credit scoring and digital fingerprinting methods to reduce margins of error, accelerate the loan approval process, and analyze potential loan applications in a better way. Digital fingerprinting works through an extensive key customer and user database that can be used to create reports. Moreover, detailed profiles of customers. The data goes down to every detail, such as ISP, location, cell phone carrier, etc. The smart credit scoring system includes additional data like IP analysis, income, spending potential analysis, geodata, social media information, and more. Lenders and banks can easily use it to determine a user’s or applicant’s credibility. 
  • Regtech compliance: Regulatory technology, or regtech, is a specialized technology that ensures private and public financial institutions’ compliance with the latest regulations. Increasing regulatory pressures are compelling businesses to spend more to meet convoluting regulations. The growing list of regulations related to cryptocurrencies, data, risk, compliance, and financial services is attracting more and more global players into this domain. For instance, IBM developed a cognitive fraud prevention solution to win Financial Crime Product of the Year, and other giants like Deloitte Touche, ACTICO GmbH, Ascent Technologies Inc, Chainalysis, Broadridge Financial Solutions, and several others are developing similar solutions.
Fintech Industry: Total Global Regtech Market Activity
Figure 3: Fintech Industry: Total Global Regtech Market Activity (VC, PE, and M&A) 2019-2022
  • Digital Immune Systems (DIS): Digital Immune Systems provide a fault-tolerant operating environment that prevents complete system failure and returns to normal mode without delay, reducing the risk of business interruption. Apart from that, DIS helps maintain consumers’ trust in the responsiveness and reliability of transactions. DIS will grow in importance as more businesses put their money into digital investments to better connect with their customers. A Gartner survey predicts that by 2025, companies relying on digital immunity will boost their respective end-user satisfaction by 80%. 
  • Web 3.0 And Metaverse: The rise of Web 3.0 and the Metaverse was triggered by the emergence of AI, ML, and Blockchain technology. These sophisticated technologies bred the idea of decentralized finance (DeFi), which is now getting a foothold in the fintech market. According to a recent forecast, the Web 3.0 Blockchain market evaluation will reach USD 6,187.3 million by 2023. This figure is also expected to expand at a CAGR of 44.6% from 2023 to 2030. As more and more fintech applications wave through the World Wide Web, the internet’s infrastructure will be rebuilt, making it a safer, more accessible, and more efficient haven for business activities. It will allow regulators, businesses, and individuals to work and collaborate in a more open space online. Further, recent patent filing trends indicate authenticating transactions in extended reality spaces using different “virtual” biometric identifiers, enabling seamless transactions for users.
  • AI Trust, Risk, and Security Management (AI TRiSM): AI TRiSM provides tools that simplify AI models’ interpretation and regulate their usage as confidential, sustainable, trustworthy, and fair solutions. Gartner predicts that, by 2026, business models focused on AI transparency, trust, and security will register an approximately 50% improvement in user acceptance, adoption, and business goals. They also predict that in 2028, AI-driven machines will constitute 40% of global economic productivity and 20% of the workforce. It’s safe to assume that AI model deployment figures will show a positive trend in 2023. 
  • AR (Accounts Receivable) Automation to Support Cash Flow Management: As automation digs deeper into the finance sector, it is helping companies move away from manual accounting practices and streamline their businesses more efficiently. More and more CFOs are now adopting automated AR processes, and the trend is bound to go up as organizations enter remote and hybrid work modes. 
  • Predictive Analysis to Support Critical Financial Decisions: Data-based predictive analysis plays a pivotal role in understanding market dynamics, customer creditworthiness, and revenue forecasting. The information extracted from such studies helps companies make informed decisions. As decision-making moves from intuition to logic, data-based predictive analysis takes center stage in every business domain, including finance. 
  • Embedded Finance: Embedded finance refers to integrating financial tools with nonfinancial institutions’ offerings. The embedded finance ecosystem ranges from investment to credit, banking, payment processing, and insurance. The search for the term “embedded finance” has grown by 488% since 2018, which means positive growth will be witnessed further in 2023. As more companies decode the significance of improved user experience, trust, and distribution, the rage for embedded finance will soar globally. 
  • Fintech Solutions for Environmental, Social, and Corporate Governance (ESG): With the growing pressures of climate change and net zero targets, the ESG niche has overflowed with massive investment influxes in the last few years. A Bloomberg analysis estimates that global ESG funds will surpass the $53 trillion figure by 2025, constituting more than 1/3 of total assets under management (AUM). The emergence of ESG bred another niche called “ESG-focused fintech solutions” that caters explicitly to organizations in this domain. These solutions employ distributed ledger technology to provide traceability and fund allocation capability based on pre-determined outcomes or criteria. Automated reporting systems or auditors can then verify (through IoT) whether the fund distribution conforms to the relevant ESG requirements. The diversity of these solutions, numbers, and categories will proliferate as ESG assets and mandates increase in the coming years. 
  • UPI 2.0 and Digital Rupee: UPI or Unified Payments Interface and e-Rupee are innovations from India that are making their way into countries worldwide. UPI works on a highly secured platform that promises reliable end-to-end security and complete data protection. The National Payments Corporation of India (NPCI) recently launched UPI 2.0 this year with several new features like support from all major banks, an overdraft facility, a one-time mandate, signed intent, QR code payments, and invoices. The digital Rupee is a virtual iteration of physical money. It can be withdrawn and placed in a digital wallet as we do with real cash in the real world. However, unlike UPI, eRupi is handled by RBI and does not entail any individual owner.  UPI is already an accepted mode of payment in Singapore, and soon it will be available in the UAE, Bhutan, France, Nepal, and several other nations.

Fintech Industry: Conclusion

With worldwide Fear, Uncertainty, and Doubt prevailing globally, the Fintech sector might be bearing the brunt for the coming few months. Valuations are going down, access to capital markets is restricted, and enormous pressure to sustain profitability and margins exists. The 2022 “Crypto Winter” will not end soon and will significantly impact developments in 2023. However, as history has witnessed, recession times are the best times for unique and game-changing innovations. Additionally, the growth of the gig economy and the increased focus on financial inclusion will also create opportunities for fintech companies to expand their offerings and reach new customers. Despite the troughs, investments crested in fintech industry and tech, and in 2023, we may witness some noteworthy M&A resulting in market consolidation.