Individuals who made strategic investments in some industries a decade ago are now reaping substantial returns thanks to their timely astute decisions. But as technology takes a leap forward, one wonders if there are still any treasures left to discover. Well, the answer is a resounding “yes.”
Undoubtedly, there are countless emerging industries demonstrating a remarkable demand and exponential growth rate, that present ample opportunities for investors to capitalize on. In order to secure your financial future and maintain an edge in the investing arena, it is imperative to stay well-informed about these domains.
In this article, we have assembled a list of the top 7 emerging industries (in no particular order) along with the industry characteristics to help you benefit from their expected growth.
1. Software development
The immensely popular software development industry is poised for remarkable growth in the upcoming decade for a variety of reasons.
Firstly, software and digital technology serve as a cornerstone for numerous other industries. Whether it is healthcare, finance, or retail, organizations are keen to modernize their operations and improve their online presence, leading to a growing requirement for software developers. Moreover, the enhanced reliance of companies and employees on digital tools and software can open new avenues for software developers. Additionally, the emergence of AI and the proliferation of IoT technology also implies that software experts will be in high demand in the future.
As per Statista, the software development industry, which is already valued at a whopping $659 billion, is expected to experience even more steady growth in the years to come. With an annual CAGR of 5.42% between 2023 and 2028, the industry can accomplish a market volume of $858 billion by 2028. Note that “Enterprise Software” is poised to be the dominant segment in the software development market, with an estimated market size of $271.80 billion in 2023.
2. Cloud computing
As businesses make the shift from conventional platforms to digital domains, the realm of cloud computing has experienced a surge in demand.
This innovative technology empowers enterprises to nimbly adapt to volatile market conditions and execute operations with remarkable speed & efficiency. It can be said that cloud computing has unlocked a world of previously unexplored possibilities, enabling companies to craft immersive customer experiences.
Note that this industry can also experience a dynamic surge, fueled by cutting-edge innovations like AI, big data, and machine learning.
As per Grand View Research, the worldwide sphere of cloud computing attained a remarkable value of $483.98 billion in the year 2022 and is projected to burgeon at an impressive compound annual growth rate (CAGR) of 14.1% from 2023 to 2030.
As one of the most prominent emerging industries, Cybersecurity is also positioned to demonstrate monumental growth in the next decade.
As the realm of digital interaction expands, the nefarious world of online criminality follows suit. In other words, the exponential surge in over-the-internet interactions presents a plethora of chances to malicious actors. Such actions often culminate in data breaches, thereby jeopardizing all internet users.
If the current trend continues, the monetary devastation from cyber assaults will reach a staggering $10.5 trillion yearly by 2025, denoting an astronomical 300% spike from the statistics recorded in 2015.
Consequently, the enhancing demand for security solutions in industries like finance, banking, manufacturing, and healthcare among others is poised to stimulate the growth of the cybersecurity market in the years ahead.
As per the Fortune Business Insights, the international landscape of cyber security is anticipated to ascend from $172.32 billion in 2023 to a staggering $424.97 billion in 2030, depicting a remarkable compound annual growth rate of 13.8% during the forecasted period.
4. Artificial Intelligence
While Artificial Intelligence has been around for many years, the industry has only recently made a flamboyant resurgence with several new AI applications emerging in the market.
Thanks to its substantial versatility, AI technology has become a crucial part of diverse industries, including finance, automotive, entertainment, healthcare, and many more. But the evolution of AI is only in its beginning phases and incorporates the potential to reveal several new possibilities and uses in the years to come. Certain industries are only beginning their exploration of the potential of AI, while others have already been long-time users. Regardless, both groups have a considerable distance to traverse.
According to a Precedence Research report, the global market for Artificial Intelligence was valued at around $119 billion last year. Experts anticipate that this figure will skyrocket to a whopping $1,591 billion by 2030, exhibiting an impressive CAGR of 38.1% during this period spanning from 2022 to 2030. Note that the Asia Pacific region is predicted to lead the charge with the highest CAGR of 42% during the same timeframe.
Healthcare may not be considered one of the emerging industries but the astonishing technological advancements within this realm certainly makes it a high-potential domain for investors.
As a major portion of the population ages and people seek more personalized and efficient medical treatments, the healthcare industry can experience tremendous growth. Telemedicine, digital healthcare, and wearable devices are just some of the innovations pushing the envelope and opening up exciting new avenues.
Note that there are numerous opportunities embedded in the healthcare arena to capitalize on. For instance, Pfizer Inc’s shares hit an all-time high in August 2021 as this COVID-19 vaccine maker witnessed a surge in demand due to the increasing number of coronavirus cases. Consequently, any company that creates a game-changing treatment for a major disease could be the next big success story.
As indicated by Statista’s projections, the Healthcare sector is primed to amass an impressive sum of $60.72 billion in earnings by the conclusion of 2023. With a steady yearly expansion rate of 10.95%, the industry is anticipated to broaden its market scope to an awe-inspiring $92.01 billion by the year 2027.
Additionally, the healthcare domain’s customer base is set to skyrocket, with an estimated 1.57 billion users projected by 2027, signifying a substantial upsurge in global health service demands.
6. Virtual and Augmented Reality
The AR & VR industry is also one of the most distinguished emerging industries with outstanding growth potential for the next 10 years.
The industry’s progression is being fueled by its exponential adoption across multiple sectors, ranging from gaming and entertainment to tourism, education, retail, and healthcare. As such, the increasing popularity of Virtual and Augmented Reality has paved the way for an exciting future where reality is redefined and technology is truly transformative
As per Statista, the Virtual and Augmented Reality segment is set to undergo a tremendous surge, with its projected revenue displaying a remarkable CAGR of 13.72% from 2023 to 2027. By the year 2027, this rapidly developing industry is anticipated to reach a whopping market volume of $52.05 billion. Interestingly, the leading market segment in this booming industry is none other than “AR Software”, which is forecasted to amass a remarkable market volume of $11.58 billion by 2023.
But the potential of this industry goes beyond even this impressive projection. According to the PS market research, the revenue of Virtual & Augmented Reality could soar to an astounding $200 billion by 2030, indicating a prodigious CAGR of 24.2% between 2021 and 2030.
7. Renewable Energy
The current state of the renewable energy sector presents an invigorating moment of opportunity for investors interested in capitalizing on emerging industries. According to projections by the insightful team at Next Move Strategy Consulting, this expansive market is on track to reach a staggering two trillion US dollars by the year 2030.
Multiple factors are contributing to this impressive growth, including mounting concerns over traditional fossil fuels’ impact on the environment, the rapid pace of global urbanization, and the flourishing economic development of emerging regions. This confluence of factors is positioning the renewable energy industry as one of the most lucrative and transformative markets of this era.
Recent data from Grandview also underscores this point, showing that the global renewable energy market’s value stands at a remarkable $870.6 billion as of 2022. Having a projected CAGR of 16.6%, the industry is poised to skyrocket to a whopping $2.97 trillion by 2030.