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Personalized Medicine
A Greener Economy
Experiential Technologies
FinTech, Blockchain & Web3

 * Personalized Medicine
 * Chapter 1: Genomic Sequences & Diagnostics
 * Chapter 2: Therapeutics
 * Chapter 3: Telemedicine & Digital Health
 * A Greener Economy
 * Chapter 1: Climate change
 * Chapter 2: Mobility
 * Chapter 3: Disruptive Materials
 * Chapter 4: U.S. Infrastructure Development
 * Chapter 5: Global Decarbonization
 * Experiential Technologies
 * Chapter 1: Big Data & SaaS
 * Chapter 2: Future of Commerce
 * Chapter 3: Metaverse & Digital Experiences
 * Chapter 4: Robotics
 * Chapter 5: Artificial Intelligence
 * Chapter 6: Connectivity
 * FinTech, Blockchain & Web3
 * Chapter 1: Future of Money
 * Chapter 2: Blockchain
 * Chapter 3: Web3


GLOBAL
X
ETFS
|
OUTLOOK
FOR
2023
AND
BEYOND

CHARTING
DISRUPTION

CUSTOM
CONTENT
FROM
WSJ
AND
GLOBAL
X
ETFS
PRESENT
A
GUIDE
TO
THE
TRENDS,
TECHNOLOGIES
AND
BOLD
IDEAS
TRANSFORMING
OUR
WORLD—AND
WHAT’S
NEXT.

Section 1
PERSONALIZED
MEDICINE

Developments in genomic sequencing over the past two decades have led to
therapeutic solutions that offer a more individualized approach to healthcare.
This shift represents a major improvement over the more generalized, scattershot
approaches of the past.


3:22










A REVOLUTION IN THERAPEUTICS

“Now that we have the tools, we can make medicines and understand the biology of
what’s truly causing disease.”


PERSONALIZED MEDICINE

The following chart illustrates how different themes within this section are
progressing toward mass adoption. Themes that are earlier in the adoption curve
have more room for growth—and potential variance—ahead.

Genomics Therapeutics Telemedicine & Digital Health Aging Population Health &
Wellness Adoption Innovators Early Adopters Early Majority Late Majority
Laggards Adoption View larger

Source: Global X ETFs

> “If
> you’re
> picking
> the
> next
> industry
> that
> is
> going
> to
> blossom
> and
> is
> just
> starting,
> that
> is
> biotech
> and
> that
> is
> healthcare.”
> Luba
> Greenwood,
> J.D.
> 
> CEO,
> Kojin
> Therapeutics
> 
> Managing
> Partner,
> Dana-Farber
> Cancer
> Institute
> Venture
> Fund

CHAPTER 1: GENOMIC SEQUENCES & DIAGNOSTICS




CUTTING-EDGE TECHNOLOGIES COULD LEAD TO A WEALTH OF PATIENT BENEFITS, INCLUDING
EARLY CANCER DETECTION.

Understanding the complexity of genomic sequencing requires specialized
knowledge. But its potential to unlock early detection and even cures across a
range of illnesses is gaining wider appreciation.

Next-generation sequencing is fueling a new cycle in drug discovery and
knowledge of diseases by answering long-held questions about the human body.
Genomics approaches this challenge by identifying genetic mutations—or permanent
changes to a gene’s DNA sequence—and their links to disease.

Recent discoveries using sequencing technology have led to effective diagnostic
options such as “liquid” biopsies, which offer fast and accurate early-stage
detection of cancer with a blood test.

One roadblock, however, is cost. It is still fairly expensive to sequence the
genome of an individual, despite the cost dropping sharply over the past 20
years, from about $53,000 to under $1,000 today. Once personal genomic
sequencing falls to under $100, it is expected to drive widespread adoption,
accelerating the true promise of the technology.




PROOF POINTS


$30B

Potential market for early-detection screenings for cancer using liquid
biopsies.


350M

Number of people worldwide with an undiagnosed disease.


75%

Cancers detected only when the patient is symptomatic and most likely in a later
stage.

Sources: Global X ETFs; “Making Earlier Cancer Detection a Routine Part of
Medical Care,” Exact Sciences, Apr. 26, 2022; “Real World Evidence Solutions
Market Size, Share & Trends Analysis Report by Component (Services, Data Sets),
by Application, by End-user, by Region, and Segment Forecasts, 2022-2030,”
grandviewresearch.com. Accessed on Oct. 11, 2022; “Natera, Inc.: Investor
Presentation—Fourth Quarter 2021 Earnings Call,” investor.natera.com, 2022.


KEY DRIVERS OF ADOPTION

Improvements in Sequencing
Thanks to technological improvements, scientists can now decipher the complete
human genome.



Falling Cost of Genomics
Once prohibitively expensive, genomic sequencing is becoming more widely
accessible.



New Diagnostic Tools
The advent of blood-based biopsies offers fast and early-stage detection of
cancers.



CHAPTER 2: THERAPEUTICS




IMPROVED SCIENCE IS LEADING TO AN ERA OF TAILORED THERAPEUTIC DEVELOPMENTS THAT
IS TRANSFORMING HEALTHCARE.

Welcome to the world of medicine tailored to the individual. Progress made in
genomic technology has propelled a new era of drug discovery and therapeutic
innovations.

Genomics has introduced new ways of thinking about disease management. Going
forward, diseases are more likely to be addressed at their root cause, helping
to halt their progression. And this paradigm shift in addressing serious illness
will have beneficial effects for treatment of cancer and a wide variety of
cardiovascular, neurological, respiratory and gastrointestinal diseases.

Among the many benefits will be target therapies for cancer that consider
patient-specific factors such as individual genes and lifestyle rather than the
more generalized approaches of the past. This new age of “precision medicine” is
poised to bring life-improving developments.




PROOF POINTS


$372B

Projected annual worldwide sales of therapeutics tied to oncology in 2028—more
than double that of 2021.


41

Projected number of Alzheimer’s deaths in the U.S. per thousand people forecast
for 2030—more than double the rate of 2000, highlighting the sense of urgency
for new treatments.


80%

Potential success rate of treatments for cancer patients through personalized
therapies.

Sources: Global X ETFs; “Evaluate Pharma and Evaluate Omnium,” evaluate.com.
Accessed on Sept. 10, 2022, and Oct. 7, 2022; Pitakkitnukun, P., “Targeted
Therapy: Stopping Cancer in Its Tracks,” samitivejhospitals.com, Mar. 5, 2018.


KEY DRIVERS OF ADOPTION

Aging Population
The healthcare field is shifting to accommodate a larger cohort of senior
citizens who naturally have greater medical needs.



More Disease Affecting Young
Cancer and cardiometabolic and neurodegenerative diseases are increasingly
affecting people under 60.



Better Biology
With new understanding of how the human body works, the therapeutics industry is
reevaluating how it treats a variety of diseases.



CHAPTER 3: TELEMEDICINE & DIGITAL HEALTH




NEW TECHNOLOGIES ARE DISRUPTING THE WAY THE MEDICAL INDUSTRY CARES FOR PATIENTS.

Healthcare has gone digital and there’s no turning back. Among the features of
the new digital health toolkit are online pharmacies, health apps on wearable
devices that monitor and analyze health conditions, and new ways of connecting
doctors and patients digitally.

The logistical challenges brought on by COVID-19 accelerated the adoption of
digital health technologies that had been in the works for several years. There
was a sharp spike in demand for telemedicine when the pandemic hit in 2020. And
though utilization declined as society reopened, adoption of digital health
services remains well above pre-pandemic levels. At maturity, 1 in 3 doctor’s
visits is expected to be virtual.




PROOF POINTS


18%

Projected compound annual growth rate of digital health services from 2021
through 2028.


$93

Difference in average cost between a nonurgent in-person doctor visit and a
nonurgent virtual visit.


4X

Projected increase in the market size for wearable glucose monitors in 2026
compared to 2017.

Sources: Global X ETFs; “Convenient, Cost-Effective, and High-Quality Virtual
Care Is Here to Stay,” cigna.com. Accessed on Oct. 31, 2022; “eHealth: eHealth
Devices: Glucose Meters—Worldwide,” statista.com, Aug. 2022; Stewart, C.,
“Artificial Intelligence (AI) in Healthcare Market Size Worldwide From 2021 to
2030 (in billion U.S. dollars),” statista.com, Sept. 28, 2022; “Diabetes,” World
Health Organization, 2022.


KEY DRIVERS OF ADOPTION

Post-Pandemic Shift
COVID-19 accelerated adoption of telemedicine and digital health by fueling
innovation and funding in the industry as well as changing patient behavior.



Technology Advancements
The ability of doctors to visit with patients and monitor many of their vitals
virtually has reduced customary office visits.



Drug-Making Improvements
Technologies like AI are helping scientists refine the trial-and-error nature of
drug discovery, guiding them to more effective formulations.




NEXT-GENERATION GENOMIC SEQUENCING IS UPPING THE VALUE POTENTIAL ACROSS
HEALTHCARE

Adoption of sequencing technology is expected to increase significantly once
cost per genome sequence reaches $100, unlocking the promise of this novel
technology.

$100,000,000$10,000,000$1,000,000$100,000$10,000$1,000$100
10,000,000,0001,000,000,000100,000,00010,000,000 2002 2004 2006 2008 2010 2012
2014 2016 2018 2020 2022 Ordered Genome Sequences (#, RHS) Cost Per Genome ($,
LHS) Cost Per Genome Cumulative Number of Ordered Genome Sequences View larger

Source: National Institutes of Health, 2022.

Section 2
A
GREENER
ECONOMY

The world finds itself in the midst of a climate crisis. But nations and
businesses have devised an array of innovative solutions to steer us to a more
sustainable future. Countries throughout the world have set net-zero emission
targets, along with providing incentives for the adoption of electric vehicles
(EVs) and renewable energy sources. The emergence of the green economy should
create a wide range of opportunities for investors willing to ride the wave.


4:21










CLIMATE INNOVATION

“Green technologies start off very slow and boring—and then there’s an
inflection point and they just take off.”


A GREENER ECONOMY

The following chart illustrates how different themes within this section are
progressing toward mass adoption. Themes that are earlier in the adoption curve
have more room for growth—and potential variance—ahead.

Adoption Innovators Early Adopters Early Majority Late Majority Laggards
Adoption Hydrogen Global Decarbonization Autonomous & Electric Vehicles Solar
Disruptive Materials Lithium & Battery Tech Climate Change Wind CleanTech U.S.
Infrastructure Development Renewable Energy View larger

Source: Global X ETFs

> “By
> 2030,
> we
> will
> be
> able
> to
> see
> very
> clearly
> the
> contours,
> the
> shape
> of
> what
> this
> new
> Green
> Golden
> Age
> is
> going
> to
> bring
> us.”
> Azeem
> Azhar
> 
> Founder
> 
> “Exponential
> View”

CHAPTER 1: CLIMATE CHANGE




FAVORABLE WORLDWIDE GOVERNMENT POLICIES AND CORPORATE SUSTAINABILITY EFFORTS ARE
BOOSTING RENEWABLE ENERGY ADOPTION.

The current decade may well be remembered as the moment when the world got
serious about the climate crisis. Dozens of countries including the U.S. and
China have net-zero emissions targets for reducing greenhouse gases, with nearly
all aiming for 2050 or earlier. Some of the world’s most well-known corporations
are seeking their own renewable energy supplies—via power purchase agreements—to
meet sustainability targets.

Meanwhile, technology-driven advancements in solar modules and wind turbines are
improving performance while further reducing costs. Even low-carbon “green
hydrogen” is being developed as a fuel for transportation and electric power, as
well as heat for buildings.




PROOF POINTS


135

Number of countries with net-zero emissions targets, with nearly all aiming for
2050 or earlier.


54%

Share of all climate-related tech investments made by the U.S.—relative to the
rest of the world—between 2010 and 2021.


88%

Percentage decline of solar photovoltaic power costs between 2010 and 2021.

Sources: Global X ETFs; Johnson, L. and Cox, E., “State of Climate Tech 2021:
Scaling Breakthroughs for Net Zero,” PricewaterhouseCoopers (PWC), Jan. 5, 2022;
“All Transactions: Funding Rounds,” Dealroom.co. Accessed on Oct. 19, 2022;
“Electricity: Preliminary Monthly Electric Generator Inventory (based on form
EIA-860m as a supplement to form EIA-860),” U.S. Energy Information
Administration (EIA), Oct. 25, 2022.


KEY DRIVERS OF ADOPTION

Favorable Government Policy
Countries around the world are enacting policy mandates and offering subsidies
designed to boost renewable energy production.



Corporate Sustainability Efforts
Encouraged by shareholders, companies across the developed world are seeking
their own renewable energy supply to meet sustainability targets.



Technology Improvements
Advancements in wind and solar power components are enhancing performance
efficiency.



Falling Power Costs
Solar and onshore wind power costs have fallen sharply over the past decade
despite recent inflationary pressures caused by supply chain disruptions.



CHAPTER 2: MOBILITY




FAVORABLE GOVERNMENT POLICIES AND FALLING PRICES ARE DRIVING CONSUMER ADOPTION
OF ELECTRIC VEHICLES.

The road to a world dominated by electric vehicles (EVs) is on the fast track.
According to a Rho Motion study, 4.1 million EVs were sold in the first half of
2022, a remarkable 57% jump from a year earlier.

It’s clear the share of EVs on roadways across the world is reaching an
inflection point. The actions and incentives of governments, automakers and
consumers are finally aligned to replace gas-powered vehicles.

And these gains are coming despite near-term headwinds. Supply chain disruptions
caused by the COVID-19 pandemic have led to a rise in materials costs, resulting
in a slight uptick in the prices of both electric vehicles and their batteries.
But these challenges are expected to fade, and falling prices over the coming
years will likely help continue the trend toward the adoption of electric
vehicles.




PROOF POINTS


63.1M

Annual global sales of electric vehicles forecast in 2035, up from a projected
10.1 million units in 2022.


89%

Reduction of lithium-ion battery prices between 2010 and 2021.


$7.5B

Allocation by U.S. Congress to support the build-out of EV charging stations.

Sources: Global X ETFs; “The Most Comprehensive and Well-Informed Analysis for
the Energy Transition,” rhomotion.com. Accessed on Oct. 18, 2022; “Battery Pack
Prices Fall to an Average of $132/kwh, But Rising Commodity Prices Start to
Bite,” bloomberg.com, Nov. 30, 2021; “Fact Sheet: The Biden-Harris Electric
Vehicle Charging Action Plan,” The White House, Dec. 13, 2021; “President Biden,
U.S. Department of Transportation Releases Toolkit to Help Rural Communities
Build Out Electric Vehicle Charging Infrastructure,” U.S. Department
of Transportation, Feb. 2, 2022.


KEY DRIVERS OF ADOPTION

Supportive Government Policies
Governments in the U.S., China, India and Europe are offering tax breaks and
other incentives to encourage electric vehicle purchases.



Falling Prices
The cost of electric vehicles is expected to fall over the long run as
technology improves, economies of scale take effect and manufacturing becomes
more efficient.



Build-out of Charging Stations
Governments around the world are committed to creating extensive networks of
plug-in stations within the decade.



CHAPTER 3: DISRUPTIVE MATERIALS




CLEAN-ENERGY TECHNOLOGIES ARE PROJECTED TO CREATE UNPRECEDENTED DEMAND FOR
METALS AND OTHER RARE EARTH MATERIALS.

Metals such as copper, zinc, lithium, cobalt and manganese have long played a
behind-the-scenes role in advancing the industrial world. So have materials such
as graphite and carbon fiber. But these raw materials are no longer confined to
the background, serving as critical inputs in the advancement of disruptive
green technologies.

For example, more than 160 pounds of industrial metals—including lithium, nickel
and manganese—are needed to produce a single battery pack for an electric
vehicle (EV). With EV demand forecast to spike, the extraction and production of
battery components will need to keep pace. As a result, investors are starting
to view mining companies in a new light.




PROOF POINTS


42X

Increase in demand for lithium—a key ingredient in EV batteries—by 2040 over
2020 levels.


$250B

Fivefold increase in mining revenue from disruptive materials by 2040, according
to one estimate.


59%

Annual decline in coal mining revenues, by contrast, as the world moves away
from dirty energy sources.

Sources: Global X ETFs; “The Role of Critical World Energy Outlook Special
Report Minerals in Clean Energy Transitions,” International Energy Agency (IEA),
Mar. 2, 2022.


KEY DRIVERS OF ADOPTION

Transition to Electric Vehicles
An EV requires six times more industrial materials than a traditional
gasoline-powered vehicle.



Rise of Wind and Solar Power
As these alternative energy sources grow in importance, so will the demand for
copper.



Return to Nuclear
Recent policy moves in the U.S. and abroad point to a positive outlook for
once-shunned nuclear power and the uranium needed to fuel it.



CHAPTER 4: U.S. INFRASTRUCTURE DEVELOPMENT




FEDERAL LEGISLATION IS FINALLY FUNDING MUCH-DELAYED BIG-TICKET CONSTRUCTION
PROJECTS, INCLUDING WATER SYSTEM UPGRADES.

For decades, Americans have been calling for improvements to the country’s
sagging infrastructure. Several trends have only heightened the concern.

Climate change presents a multitude of risks. Overall population growth and
uneven distribution toward cities have also put an added burden on existing
infrastructure, particularly transportation, water and energy systems.

That’s why the bipartisan federal infrastructure legislation passed in 2021 was
widely embraced. The legislative package has already started to close the gap in
U.S. infrastructure spending. Long-stalled projects are finally moving forward,
while others could leverage funds to move to the next stages. The measure is
also boosting the bottom lines of engineering and construction companies working
on these projects.




PROOF POINTS


$550B

Amount of new funding contained in the Infrastructure Investment and Jobs Act
for projects across the U.S.


$105B

Funding at the state level that is part of the federal legislation.


10%

Share of spending dedicated to water initiatives such as replacing lead pipes.

Sources: Global X ETFs; “Infrastructure Investment and Jobs Act," H.R.3684—117th
Congress (2021-2022), congress.gov, Nov. 15, 2021.


KEY DRIVERS OF ADOPTION

Depreciation of Assets
The useful life of infrastructure assets has been spread thin by years of
deferred maintenance.



Climate Risk
Extreme weather events present risks to freshwater supplies, buildings,
transportation systems and energy grids.



Demographic Shifts
Overall population growth and migrations to urban areas strain existing
infrastructure.



Federal Funding
The $1.2 trillion Infrastructure Investment and Jobs Act could begin to close
the gap in funding for long-delayed projects.



CHAPTER 5: GLOBAL DECARBONIZATION




THE CLIMATE CHANGE THREAT HAS LED TO A SURGE IN CARBON-REDUCTION ACTIVITIES.

As the reality of climate change demands action, policymakers and corporate
leaders alike are working toward alignment with the 2015 Paris Agreement, which
set forth ambitious decarbonization goals. This is leading to a rise in public
and private sector investment around carbon-reducing activities.

Despite just launching in July 2022, China already has the world’s largest
carbon market, surpassing the European Union’s efforts.

The tightening deadlines to meet net-zero emission targets are giving carbon
markets and emerging carbon-capture technologies the support needed to emerge
quickly in the face of climate threats.




PROOF POINTS


1,500+

Number of companies worldwide that have set net-zero emissions targets.


$5.35B

Forecast size of the global carbon capture and storage market by 2030.


3X

Size of China’s carbon trading market compared with the European Union’s.

Sources: Global X ETFs; Johnson, L. and Cox, E. “State of Climate Tech 2021:
Scaling Breakthroughs for Net Zero,” PricewaterhouseCoopers (PWC), Jan. 5, 2022;
Ruf, Y. and Frans, D., “The Carbon Price Presents an Opportunity for Companies
to Gain an Edge Over the Competition,” Roland Berger, Apr. 19, 2021.


KEY DRIVERS OF ADOPTION

Reality of Climate Change
As rising carbon emissions warm the planet and contribute to extreme weather
events, nations around the world feel the need to take action.



Impetus From Corporate Boards and Investors
Decarbonization has become a top corporate priority, given pressure from boards,
shareholders and even customers.



Growth of Carbon Trading Markets
Regional and national emissions trading schemes continue to expand globally,
allowing for the sale of carbon credits in order to reduce total emissions.




TECHNOLOGY SOLUTIONS CAN ADDRESS THE HUMAN-CREATED CLIMATE CRISIS

Over the last 60 years, atmospheric carbon dioxide (CO₂) concentrations have
increased 100X faster than ever recorded, while average temperatures have risen
1.2°C from the preindustrial period to 2021 (only +/- 0.1% could be from natural
drivers like solar activity).

Atmospheric CO22 Concentration (parts per million, ppm) 10000 BCE 4000 BCE 0
2020 450 350 250 View larger

Sources: “IPCC, 2022: Climate Change 2022: Impacts, Adaptation, and
Vulnerability,” Working Group II Contribution to the IPCC Sixth Assessment
Report, 2022; “Met Office: Atmospheric CO₂ Now Hitting 50% Higher Than
Pre-industrial Levels,” World Economic Forum, Mar. 21, 2021; Lindsey, R.,
“Climate Change: Atmospheric Carbon Dioxide,” NOAA, June 2021; Ge, M.,
Friedrich, J. and Vigna, L., “4 Charts Explain Greenhouse Gas Emissions by
Countries and Sectors,” World Resources Institute, Feb. 6, 2020; Global X
analysis from “Data Overview,” Berkley Earth, 2022 and inspired by Hawkins, E.,
“Warming Stripes,” 2022.

Section 3
EXPERIENTIAL
TECHNOLOGIES

Artificial intelligence, cloud computing and the metaverse aren’t just the
latest in a collection of technologies that help businesses and consumers
function more efficiently. These breakthroughs hold the potential of
transforming the way we shop, play, travel, drive, educate, conduct business and
even make scientific discoveries. As advanced as these technologies may seem,
it’s still far too early to know what promise lies ahead.


2:59










THE IMPACT OF THE METAVERSE

“The metaverse is how we will experience the future state of the internet.“


EXPERIENTIAL TECHNOLOGY

The following chart illustrates how different themes within this section are
progressing toward mass adoption. Themes that are earlier in the adoption curve
have more room for growth—and potential variance—ahead.

Adoption Innovators Early Adopters Early Majority Late Majority Laggards
Adoption Metaverse IoT Robotics Artificial Intelligence E-commerce Data Centers
& Cell Towers Video Games & Esports Cloud Computing View larger

Source: Global X ETFs

> “Gamification
> will
> be
> an
> increasingly
> key
> component
> of
> future
> digital
> experiences
> as
> platforms
> innovate
> to
> service
> emerging
> user
> demands.”
> Cathy
> Hackl
> 
> Founder
> &
> Chief
> Metaverse
> Officer
> 
> Journey

CHAPTER 1: BIG DATA & SAAS




SOFTWARE INNOVATION IS NEEDED TO KEEP PACE WITH THE EXPONENTIAL GROWTH OF DATA.

It’s a data-driven world and developers are just trying to keep up.

Data that is generated, stored and processed continues to grow exponentially
across the globe. And consumer data and processing needs increasingly exceed the
capacity of available devices.

There is no doubt that availability of centralized hyperscale
processing—delivered through large-scale data centers—is critical to the success
of the digital economy. On that front, many of America’s largest tech companies
are assuming the role of infrastructure supplier, addressing their own data
processing needs while turning excess computing power into profitable ventures.

The good news is that modern applications are being built in the cloud to
capture all of this data. And cybersecurity technology will need to evolve in
lockstep with these developments to make cloud-native digital participation
safe, creating opportunities for security providers.




PROOF POINTS


4,900

Number of data interactions per day that the average connected person is
expected to have by 2025.


3X

Projected growth of data that will be created, stored and consumed worldwide
from 2022 to 2025.


18%

Projected compound annual growth rate of security software over the next eight
years.

Sources: Global X ETFs; Djuraskovic, O., “Big Data Statistics 2022: How Much
Data Is in the World?,” firstsiteguide.com, Jan. 10, 2022; “Forecast:
Information Security and Risk Management, Worldwide, 2020-2026, 2Q22 Update,”
gartner.com, June 30, 2022; “Gartner Identifies Three Factors Influencing Growth
in Security Spending,” gartner.com, Oct. 13, 2022; Reinsel, D., Gantz, J. and
Rydning, J., “Data Age 2025: The Digitization of the World: From Edge to Core,”
seagate.com, Nov. 20, 2018; “Telecommunications: Volume of Data/Information
Created, Captured, Copied, and Consumed Worldwide From 2010 to 2020, With
Forecasts From 2021 to 2025 (in zettabytes),” statista.com, Sept. 8, 2022.


KEY DRIVERS OF ADOPTION

Data Proliferation
Exponential growth in applications and devices is causing a rapid expansion of
data.



Growth of Data Centers
Big Tech data facilities are becoming hotbeds of computational innovation.



Rising Cyberattacks
Rise of ransomware attacks and data losses are converging to boost cybersecurity
spending.



CHAPTER 2: FUTURE OF COMMERCE




AS E-COMMERCE CONTINUES ITS GROWTH TRAJECTORY, IT IS ALSO ALTERING THE NATURE OF
PHYSICAL SHOPPING.

Despite its many advantages for shoppers, e-commerce makes up only about 20% of
total retail spending worldwide. But that means the potential for capturing a
greater share of retail dollars is enormous. Indeed, global digital commerce has
barely kicked off.

It’s also apparent that e-commerce is changing the face of brick-and-mortar
shopping. The trend toward digitized shopping, often with the aid of
smartphone-based apps, is forcing retail locations to adapt. The steady adoption
of technologies such as contactless checkout, automated kiosks and other related
digital enhancements will have permanently altered the in-store experience.




PROOF POINTS


$10T

Expected global e-commerce revenue by 2030.


31%

Projected global e-commerce penetration as a percentage of total retail spending
in 2030.


4.6B

Number of people worldwide who use social media platforms daily and are
potential customers for retailers.

Sources: Global ETFs (Global X e-commerce forecast based on data from U.S.
Census Bureau, 2021); Cramer-Flood, E., “Global Ecommerce Forecast 2022: As
2-Year Boom Subsides, Plenty of Bright Spots Remain,” insiderintelligance.com,
Feb. 2, 2022; Kirsch, K., “74 Social Commerce Stats Marketers Should Know in
2022,” hubspot.com, Dec. 14, 2021; “U.S. Ecommerce Will Cross $1 Trillion in
2022,” insiderintelligance.com, June 14, 2021; “Retail: Monthly Retail Trade,”
census.gov. Accessed on Oct. 28, 2022; “Quarterly Retail E-Commerce Sales: 2nd
Quarter 2022,” U.S. Department of Commerce, Aug. 19, 2022.


KEY DRIVERS OF ADOPTION

E-Commerce Still Growing
E-commerce is still only a small percentage of total retail spending worldwide,
indicating its strong growth potential.



Social Media
Social media marketing is driving sales for retailers as part of an emerging
trend called “social commerce.”



Post-Pandemic Habits
Shoppers are venturing out to restaurants and stores again, but many expect a
more digitized experience post-pandemic.



CHAPTER 3: METAVERSE & DIGITAL EXPERIENCES




THE NEXT GENERATION OF DIGITAL ACTIVITY WILL BE INCREASINGLY IMMERSIVE.

The metaverse defies easy explanation, but suffice to say it’s a digital reality
that combines aspects of social media, VR and online gaming in a way that allows
users to interact virtually instead of physically. As it develops over the
coming decades—in parallel with the adoption of 5G wireless technology—it could
impact the entire digital economy.

The metaverse is arguably the most well-known manifestation of the next
generation of digital experiences—one that is highly immersive and meshes more
seamlessly with a user’s surroundings. Unlike in the past, digital platforms
will be able to integrate more complex systems and be capable of processing
inputs such as voice, sight, touch and even temperature.




PROOF POINTS


4.4B

Number of people worldwide expected to have 5G connectivity by 2027.


$350B

Projected total revenue from gaming in 2030.


4.06M

Estimated number of mixed-reality headsets in use by 2036.

Sources: Global X ETFs; “Insights on the Cloud Gaming Global Market to 2030:
Players Include Apple, Electronic Arts, Google and Intel,” businesswire.com,
July 19, 2022; Nakamura, Y., “Video-Game Sales Set to Reverse,” bloomberg.com,
Jan. 25, 2019; Scarsella, A., “Worldwide Smartphone Forecast, 2022–2026,”
idc.com, March 2022.


KEY DRIVERS OF ADOPTION

Rise of Gaming
The popularity of gaming should spur the growth of the metaverse as players seek
a more immersive in-game experience.



Shared Experiences
People seeking enhanced versions of virtual travel, entertainment and sports
viewing will be drawn to metaverse experiences.



Next-Generation Networks
Growing prevalence of 5G connectivity will enable a wide application of
next-generation digital experiences.



Better Graphics
Higher-fidelity graphics engines are leading to greater adoption of metaverse
applications.



CHAPTER 4: ROBOTICS




THE ROBOTICS INDUSTRY IS EXPANDING FROM ITS MANUFACTURING ROOTS TO THE SERVICES
SECTOR.

The number of robots installed in auto plants and other manufacturing facilities
is at record highs—and demand will continue to be strong. But robots are
beginning to make their mark in other sectors of the economy, too.

Industries such as fast food, consumer goods and even life sciences account for
the fastest growth in robotics, with the expectation that annual sales of robots
in the services industries will overtake sales of industrial robots in 2023. The
global robotics market as a whole is likely to continue to grow at a steady pace
through the end of the decade.




PROOF POINTS


5.1%

Compound annual growth rate of robotics revenues from 2022 through 2026.


$13.5B

Projected market for package delivery services using drones in 2026—almost six
times 2021’s level.


$120B

Projected market for surgical robots in 2030, which would double 2021’s market.

Sources: Global X ETFs; Guerry, M., Müeller, C., Kraus, W. and Bieller, S.,
“World Robotics 2021,” International Federation of Robotics, Oct. 28, 2021;
“Robotics Markets: Next Move Strategy Consulting,” nextmsc.com, July 2022;
“Drone Package Delivery Market: 56% of Growth to Originate From North America,
Driven by Increased Use of Drones by E-Commerce Companies,” prnewswire.com, July
26, 2022.


KEY DRIVERS OF ADOPTION

Increased Functionality
Robot features and functionality continue to increase as adoption costs
decrease.



Labor Shortages
Due to a combination of demographic and social trends, companies in developed
markets are finding it difficult to hire prime-age workers in service and
manufacturing roles.



Labor Costs
Inflation and labor shortages have also driven wages higher in many sectors,
incentivizing companies to invest in automation.



CHAPTER 5: ARTIFICIAL INTELLIGENCE




BOTH AI HARDWARE AND SOFTWARE CONTINUE TO ADVANCE IN SOPHISTICATION.

Artificial intelligence (AI) relies on computers and machines to mimic the
problem-solving capabilities of the human mind, albeit faster and with less
emotion. And judging by one measure of performance—GPU (graphics processing
units)—AI technology is improving at a remarkable pace. A GPU is an electronic
circuit that can process many pieces of data simultaneously, making it useful
for machine learning and other AI applications. Currently, GPU performance is 10
times better than it was a decade ago. And technologies like real-time tracing,
which can simulate the lighting of a scene, now can create ever more realistic
environments, which is of particular value to game design.

Meanwhile, businesses are finding AI applications beyond gaming, including
operating systems that are contributing to the commercialization of self-driving
vehicles.




PROOF POINTS


35.6%

Projected compound annual growth rate of the global AI market from 2020 through
2026.


10X

Projected size of global GPU market in 2028 compared with 2020.


10X

Reduced likelihood of a self-driving car being in an accident versus one
operated by a human.

Sources: Global X ETFs; “Artificial Intelligence Market,” fnfresearch.com, June
2021; “Global Graphic Processing Unit (GPU) Market Size by Type,”
verifiedmarketresearch.com, Apr. 2022.


KEY DRIVERS OF ADOPTION

Competitive Edge
AI plays numerous roles in businesses seeking a competitive advantage, such as
process automation, sales forecasting, security surveillance and even the
creation of self-driving vehicles.



Healthcare Enhancement
AI can be used in transformative ways to enhance medical care, from helping in
the diagnosis of diseases to managing hospital workflow.



Educational Aids
Machine learning has numerous roles in the classroom, including creating
personalized curricula and helping special needs students recognize voice and
text.



Scientific Discovery
AI technology can help parse vast amounts of data from experiments, noting
anomalies and detecting patterns that would otherwise go overlooked.



CHAPTER 6: CONNECTIVITY




FALLING COSTS AND IMPROVED BROADBAND TECHNOLOGY WILL FUEL GROWTH OF THE INTERNET
OF THINGS.

In the wake of the pandemic, there are more people, devices and applications
connected to the cloud than ever before. But this trend isn’t new or purely
circumstantial. In fact, the rise of the Internet of Things (IoT) can be largely
attributed to falling sensor costs over the past two decades. And the continued
decline in those costs is expected to increase the number of connected devices
exponentially over the next five years.

Meanwhile, the advent of 5G networks and other technological improvements are
poised to further expand the realm of connected devices. The global IoT market
is projected to grow at a compound annual rate of 26% per year through 2029.




PROOF POINTS


$12.6T

Potential global economic value of IoT in 2030, a nearly eightfold increase from
2020.


70%

Percentage decline of IoT sensor costs between 2004 and 2018, which facilitated
the growth of connected devices.


20%

Projected share of IoT devices that will be “wide area” by 2030, allowing
communication over distances of at least 500 meters.

Sources: Global X ETFs; “Reports and Papers: Ericsson Mobility Report: Ericsson
Mobility Visualizer,” ericsson.com. Accessed on Oct. 31, 2022; Leonard, M.,
“Dive Brief: Declining Price of IoT Sensors Means Greater Use in Manufacturing,”
supplychaindive.com, Oct. 14, 2019; “IoT Value Set to Accelerate Through 2030:
Where and How to Capture It,” mckinsey.com, Nov. 9, 2021; Vailshery, L., S.,
“Consumer Electronics: Potential Economic Value From IoT Worldwide in 2030,”
statista.com, July 7, 2022.


KEY DRIVERS OF ADOPTION

5G Network Speed
5G will drive adoption of IoT devices much faster than 3G and 4G networks drove
in the past.



Sensor Savings
Sensors that transmit and receive signals between connected devices are critical
to the functioning of IoT—and their costs have fallen sharply.



Cloud Capacity Growth
IoT relies on sharing and storing real-time information, and the cloud is
essential for those purposes.




EXPANSION OF GLOBAL DATA IS SPARKING A RISE IN CLOUD-DEPLOYED SOFTWARE

Businesses are struggling to keep up with the explosive growth of their data
assets, leading to a correlative increase in revenue for SaaS companies.

Worldwide Data Generated and Consumed Annually Total Revenue for 75 Public SaaS
Companies (in USD billions)
Data in Zettabytes 1,000 900 800 700 600 500 400 300 200 100 0 2010 2020 2021
2022 2023 2024 2025 2026 2027 2028 2029 2030 CAGR = 40.3% CAGR = 30.7% 859 59
99.7% Correlation (2010-2021)
$160 $140 $120 $100 $80 $60 $40 $20 0 Last 12 months revenue 2030 2029 2028 2027
2026 2025 2054 2023 2022 2021 2020 2010 99.7% Correlation (2010-2021)
View larger

Sources: Djuraskovic, O., “Big Data Statistics 2022: How Much Data Is in the
World?,” firstsiteguide.com, Jan. 10, 2022; Reinsel, D., Gantz, J. and Rydning,
J., “Data Age 2025: The Digitization of the World: From Edge to Core,”
seagate.com, Nov. 20, 2018.

Section 4
FINTECH,
BLOCKCHAIN
&
WEB3

The financial system is transforming in ways few could have imagined a decade
ago. Digital banking, the trading of cryptocurrencies and even the latest
iteration of the internet are being supported by blockchain, a shared ledger
that can be viewed and updated without the need for a trusted intermediary. The
financial world is being disrupted.


2:47









THE
EVOLUTION
OF
CRYPTO



“Ethereum
and
a
lot
of
the
innovations
we
have
seen
since
[its
launch]
are
new
technologies
that
are
secured
by
assets.
What
I
think
that’s
done
is
basically
allowed
for
an
explosion
of
innovation
in
terms
of
smart
contract
platforms,
decentralized
finance,
non-fungible
tokens
…
and
a
whole
slew
of
other
experiments.”



FINTECH,
BLOCKCHAIN
&
WEB3



The
following
chart
illustrates
how
different
themes
within
this
section
are
progressing
toward
mass
adoption.
Themes
that
are
earlier
in
the
adoption
curve
have
more
room
for
growth—and
potential
variance—ahead.



FinTech Blockchain Web3 Adoption Innovators Early Adopters Early Majority Late
Majority Laggards Adoption View larger

Source: Global X ETFs

> “Tens
> of
> billions
> of
> dollars
> of
> capital
> will
> be
> deployed
> over
> the
> course
> of
> the
> next
> five
> to
> seven
> years
> to
> build
> out
> the
> crypto
> industry.”
> Ryan
> Selkis
> 
> Co-Founder
> &
> CEO
> 
> Messari

CHAPTER
1:
FUTURE
OF
MONEY


DIGITAL
FINANCIAL
SERVICES
ARE
QUICKLY
MAKING
THE
STATUS
QUO
BANKING
MODEL
OBSOLETE.

Over the past decade, banking has transitioned from costly brick-and-mortar
branches to connected devices. And the trend is accelerating, led by Millennials
who are more comfortable with digital technology than their parents and largely
have no problem with purely electronic transactions.

Digital banking also has a powerful social benefit: the potential to bring
financial services to billions of people across the globe who live far away from
the closest bank. A mobile phone is all that is needed to manage digital banking
accounts. And there are more than 6.25 billion smartphone users globally. That’s
almost one phone for every man, woman and child on the planet.




PROOF POINTS


35.9M

Number of digital-only bank account holders in the U.S. in 2022.


14X

Growth in user base of the top digital wallets in the U.S. from 2016 to 2021.


42%

Share of American consumers who say using a mobile app is their preferred
banking method.

Sources: Global X ETFs; Magana, G. and Dyke, D.V., “The U.S. Digital-Only
Banking Revolution,” Insider Intelligence, Sept. 15, 2021; Curry, D., “Cash App
Revenue and Usage Statistics,” Business of Apps, Sept. 6, 2022; Curry, D.,
“Venmo Revenue and Usage Statistics,” Business of Apps, Sept. 6, 2022; Strohm,
M., “Digital Banking Survey: How Americans Prefer to Bank,” Forbes, March 8,
2022.

KEY
DRIVERS
OF
ADOPTION

Low Acquisition Costs for Banks
FinTech platforms can reach and on-board customers at much lower costs than
legacy financial institutions.



Preference Among the Young
Tech-savvy generations prefer digital banking due to lower fees, greater
transparency and 24/7 availability.



Shift to a Cashless Economy
Global mobile payment adoption is projected to eclipse 20% by the end of 2022.


CHAPTER
2:
BLOCKCHAIN


BITCOIN
MINERS
ARE
TURNING
TO
LOW-COST
GREEN
ENERGY
ALTERNATIVES
TO
IMPROVE
PROFITABILITY.

Bitcoin, the most widely owned cryptocurrency, was made possible by blockchain
technology. But as it turns out, bitcoin is expensive to produce.

Cryptocurrency can only be created or “mined” via brute-force computing. And the
advanced hardware needed to profitably mine bitcoin requires massive and costly
amounts of electricity.

It may come as a surprise, but green energy provided by solar panels and wind
turbines has emerged as an attractive energy source for bitcoin miners. That’s
because the price has fallen sharply, driven by steadily improving technologies
and economies of scale. This development is giving bitcoin miners a strong
incentive to increase the share of renewables in their energy mix as they strive
to improve profit margins.

Meanwhile, demand for other applications that rely on the blockchain continues
to grow.




PROOF POINTS


6.25

BTC reward for miners who “solve” new blocks on the blockchain.


165B

Market cap of Ethereum, the largest decentralized computing platform for
decentralized applications (dapps).


>7X

Multiple of the decline since 2009 in levelized cost of solar electricity
(LCOE), used in the energy mix of bitcoin miners.

Sources: “Coins: Cryptocurrency Prices by Market Cap,” coingecko.com. Accessed
on Oct. 5, 2022; “Chart: Bitcoin,” Messari.io. Accessed on Oct. 5, 2022;
“Lazard’s Levelized Cost of Energy Analysis—Version 15.0,” lazard.com, Nov. 16,
2021.

KEY
DRIVERS
OF
ADOPTION

Strong Demand for Blockchain Applications
The blockchain allows for the creation of “smart contracts,” which are
transactions between a buyer and seller that don’t need the involvement of a
central authority.



Renewable Energy Is Getting Cheaper
The costs of solar and wind power have fallen sharply for crypto miners, driven
by improving technologies and economies of scale.



Discounts Drive Flexibility
Crypto miners are willing to shut down during periods of electricity load peaks
in exchange for discounts and rebates from utility companies.


CHAPTER
3:
WEB3


THE
ADOPTION
RATE
OF
THE
WEB’S
NEXT
REIMAGINATION
COULD
RESEMBLE
THAT
OF
THE
ORIGINAL
INTERNET.

Web3 has been touted as the evolutionary step in the internet that puts power in
the hands of individuals rather than corporations—and there is much truth in
that. Unlike Web2, which was a closed source web governed by the proprietary
algorithms of dominant companies, Web3 is open source and decentralized, led by
applications hosted on smart contract blockchains. That’s a far cry from the
original Web1, which offered limited interactivity as webpages were mostly
static and text-based.

But while Web3 represents a leap forward technologically, it exhibits many
structural similarities to the original internet. These similarities might
predispose Web3 to the same synergies between hardware and software innovation
seen in the development of the internet in the 1990s. If proven true, the base
expectation is for Web3 to gain internet-scale mass adoption over the next few
decades.




PROOF POINTS


$90B

Market cap of all tokenized securities as of September 2022.


700%

Year-over-year growth of the Web3 gaming industry.


$6B

Amount of venture capital raised for gaming projects in the first half of 2022,
a 50% increase over the total of 2021.

Sources: Global X ETFs; “Gaming (GameFi): Top Gaming (GameFi) Coins by Market
Cap,” coingecko.com. Accessed on Oct. 27, 2022; “The World’s Dapp Store,”
dappradar.com. Accessed on Oct. 27, 2022; Gherghelas, S., “DappRadar x BGA Games
Report #6,” dappraddar.com. Accessed on Aug. 9, 2022; “Security Token
Consulting” (data as of September 2022), securitytokenadvisors.com. Accessed on
Oct. 1, 2022.

KEY
DRIVERS
OF
ADOPTION

Critical Synergies
A positive feedback loop between application development, user adoption and
investment has been set in motion.



Success of Ethereum
Since the launch of Ethereum, the leading smart contract blockchain, continuous
innovation within hardware and software has supported accelerating adoption of
the network.



Next-Level Experience
New users are drawn to the network because of greater utility and number of
applications.


EXPANSION
OF
PAYMENT
PLATFORMS
IS
BOOSTING
PROFITABILITY
PER
USER

The growth of wallet platforms into adjacent verticals is compounding the
addressable market.

$50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 2016 Select Merchants (2016) Business
Accounts (2016) QR Codes (2017) Instant Deposit (2017) Instant Transfer (2018)
Cash App Card (2018) Venmo MasterCard (2018) Bitcoin Trading (2018) Stock
Trading (2019) Direct Deposit (2020) Rewards Program (2019) Venmo Credit Card
(2020) Cryptocurrency Purchases and Payments (2021) Borrowing (2021) Cash App
Venmo 2017 2018 2019 2020 2021 Cash App Gross Profit Per User and Venmo Average
Revenue Per User Growth 2016-2021 View larger

Sources: Block Incl Analyst Day Presentation, May 2022; Business of Apps,
September 2022. Note Venmo ARPU calculated using scaled TPV divided by total
user base.

Download the full report

CHARTING
DISRUPTION




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