The Five Most Disruptive Technologies of 2015

New technology has dramatically impacted companies that were once considered industry leaders. It has also changed consumer behavior and altered the cost structures and processes of existing operations. Typically, the most powerful disruptive technologies change the way that information, capital, or products move.

Simply put, this form of innovation transforms existing products and practices into new paradigms.

For example, mobile telephones disrupted landline telephones, adding convenience to consumers’ daily lives and facilitating the growth of mobile networks and new forms of commerce and communication. Most importantly, over the years, mobile phones have become increasingly cheaper and more accessible to consumers.

This article examines the five most disruptive technologies of 2015 and explains how these new devices, products, and services stand to change the way we live and do business.

1. Health and Fitness – The Quantified Human Being

The wearable technology revolution is well underway. Tech giant Apple Inc.(APPL) made a splash this year when it launched the Apple Watch. The watch's apps are creating a wealth of possibilities for innovative minds in the health and fitness sector.

What was once considered science fiction or the accessories of secret agent James Bond, wearable technology has evolved into one of the fastest-growing business sectors of 2015. This year has produced a gold rush for technology entrepreneurs who create new applications that collect, report, and respond to data collected by wearable technologies from a consumer’s body. Wearable technology has the potential to disrupt payment systems, digital media and advertising, data collection in the health industry, communications, among other sectors. According to MarketsandMarkets, the industry will be worth $11.61 billion by 2020. (For more, read: Beyond Apple: Investing in Wearable Technology.)

2. Ride Sharing – On the Go with Uber

Uber has fast become a preferred mode of transportation in urban environments as an alternative to taxis and subway systems. In Chicago, the transition has been so dramatic, that the city aims to raise taxes on ride-sharing vehicles to offset anticipated losses from riders on public transportation and cabs. Meanwhile, Medallion Financial Corp. (TAXI), a financial company dedicated to loans and other services for taxi companies has seen its stock price decline as much as 50% this year as ride-sharing companies have started to erode the demand for taxis.

Today, Uber is considered the leader of the ride-sharing revolution, and it currently has a private valuation of roughly $51 billion. Investors are eager to see whether the company will file for an IPO in 2016, as the size of this new global industry continues to expand at a breakneck pace.(For more, read: Are You Ready for Uber's IPO? 2 Things to Consider)

3. Blockchain's Separation from Bitcoin

One of the hottest trends in technology is related to blockchain, the underlying technology that makes Bitcoin a successful alternative commodity for investors. Blockchain is the public ledger that records all Bitcoin transactions in the commodity’s history. It also records the addresses of the recipients, a standard that prevents double spending. Created on digital networks, the blockchain is constantly growing as new “blocks” are tallied to each new set of recordings. The blockchain maintains a complete, secure data set that prevents double spending of Bitcoins and expedites the processing and clearing of payments. (For more, see: What Does a Blockchain Record in a Bitcoin Exchange Transaction?)

Financial institutions, central banks, and stock exchanges are all developing blockchain solutions because of blockchain's security features and ease of use.(For more, read Blockchain Technology to Revolutionize Traditional Banking.)By separating from Bitcoin, blockchain has the potential to become one of the most disruptive technologies of the future in the payment processing arena. Through blockchain, all you need to exchange money is an internet connection. Due to its tamper-proof nature, security is sound and exchanges take place instantly. Companies and customers no longer need to wait days for payments to be processed.

4. Genomics: Extending Your Life

Genomics is a revolutionary study of the human genome, which is the broad set of DNA or genetic material found in every organism. This study allows doctors and engineers to provide a complete genetic blueprint of a human. The combination of supercomputers and deeper understand of the human body could potentially extend an individual's life by an additional six months to two years in 2025, according to McKinsey Consulting.

Through genomics, scientists can gather and analyze gene sequencing to determine potential threats to an individual patient or identify illnesses a patient are prone to; thereby extending an individual's life expectancy. Scientists anticipate they will be able to manipulate genes, potentially reverse aging, and “turn off” the dangerous genes that might lead to a chronic disease or even cancer. According to a new study by Grand View Research, Inc. the global market for genomics is expected to reach $22.1 billion by 2020, growing at an estimated Compound Annual Growth Rate (CAGR) of 10.3% from 2014 to 2020. (For more, read: Global Genomics Market Is Forecasted To Be Worth $22.1 Billion By 2020.)

5. The Internet of Things

In 2015, roughly 99% of physical objects and devices are disconnected from the “Internet of Things,” a global network of communication and sensors designed to share information across many devices. However, according to McKinsey Consulting, soon machine-to-machine, and machine-to-mobile communications will be the norm. Next-generation technologies will interconnect vehicles, alarm systems, temperature controls, watches, televisions, anything with an on-and-off switch. (For additional examples and how it works, read The Internet Of Things In 2015.)

The Internet of Things isn’t disruptive just because it's expanding communication among networks and devices. It's disruptive because it could connect a wealth of information to areas once annexed from the rest of the world. Globally, consumers will purchase 2 billion cell phones this year and approximately 75% of them will be smartphones. As prices decline, the vast majority of cell phones bought in 2018 will have internet capabilities. Accessible access to the internet via smartphones will have profound economic and geopolitical impacts around the world.

The Bottom Line

Disruptive innovation can alter the process and operations of century-old industries by displacing existing technologies through widespread adoption. The technology sector will continue to develop a wealth of innovations that improve the way information, capital, goods, and humans move and communicate around the world. Currently, the sports, healthcare, and banking industries (among others) are experiencing a significant amount of disruption, and as technology evolves, these industries will continue to be revolutionized.

Source: http://www.investopedia.com/articles/investing/100515/five-most-disruptive-technologies-2015.asp