In this article, we will discuss the Top 20 fastest growing industries in the next 5 years: Predictions. Click to skip ahead and jump to the Top 5 fastest growing industries in the next 5 years: Predictions.
When considering where to apply for your next job, it proves beneficial to inquire, “Which industries are experiencing the most rapid growth?” Numerous forecasts exist regarding sectors that may encounter challenges in the aftermath of the pandemic. However, it is equally true that several industries are flourishing. These sectors boast remarkable growth statistics, presenting abundant opportunities for candidates seeking their next employment endeavor.
Everybody lives in an ever-changing world. Newer advances and breakthroughs occur annually in several economic areas, greatly impacting the global industry market in its entirety. By definition, an industry is any type of business activity that involves the processing of raw materials and the production of things in factories. This implies that there is an industry connected to every service provided in the world.
It might be a wise decision to launch a business in a developing sector of the economy, as several benefits can help you succeed. A few of the main advantages are the potential for quicker growth and scalability, the opportunity to establish a strong brand presence early on, the potential for increasing demand for goods and services, and chances for creativity and innovation, as well as access to capital and resources.
Furthermore, a developing industry can also make it simpler to enter the market, increase the chances of success and profitability, draw in top talent and business partners, and allow one to ride the growth wave. The World Economic Forum has declared that digital and sustainable business are the way of the future. Technology and data will drive the next wave of industrial transformation, which will affect every industry and change how we work, communicate, and live. Business executives will have the chance to change their value chains and business models sustainably.
The Bureau of Labor Statistics (BLS) projects that between 2020 and 2030, total employment in the United States will expand by $11.9 million, or 7.7%, to $165.4 million from $153.5 million. Employment in office and administrative support occupations is predicted to decline as a result of technological advancements that enable increased automation.
With that said, here are the Top 20 fastest growing industries in the next 5 years: Predictions.
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Methodology:
To provide you with the best results for our article, Top 20 Fastest Growing Industries in the Next 5 Years: Predictions: We ranked our list based on the compound annual growth rates (CAGRs) of several industries from credible market research firms such as Grand View Research, Fortune Business Insights, and Market Research with time horizons ranging from 5-8 years.
The mean annual growth rate of an investment over a given time longer than a year is called the compound annual growth rate, or CAGR. It stands for one of the most precise methods for figuring out returns for individual assets, investment portfolios, and anything whose value is subject to fluctuations over time. According to CAGR, our list of the Top 20 Fastest Growing Industries in the Next 5 Years: Predictions, is presented in ascending order.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Top 20 fastest growing industries in the next 5 years: Predictions
20. Food Service
Compound annual growth rate (CAGR): 10.79%
Any business that prepares and serves meals outside for on-premise consumption or takeout is considered a food service establishment. From $2,646.99 billion in 2023 to $5,423.59 billion by 2030, the worldwide food service market is expected to increase at a compound annual growth rate (CAGR) of 10.79%, as reported by Fortune Business Insights. In 2022, the size of the global food service market was $2,395.03 billion. The primary cause of this rise is the consistent hike in fast food consumption. Additionally, the food service industry is burgeoning due to a surge in the number of food courts and food malls as well as higher expenditures associated with eating out.
19. Cyber Security
Compound annual growth rate (CAGR): 12.3%
From 2023 to 2030, the global cyber security market is expected to develop at a CAGR of 12.3%, as estimated by Grand View Research. In 2023, the market was valued at $222.66 billion. Some of the key factors fueling market expansion include the upsurge of smart devices, the adoption of the cloud, and an increasing number of cyber-attacks brought on by the proliferation of e-commerce platforms. Throughout the projection year, Asia Pacific is anticipated to grow at the quickest rate of more than a CAGR of 15.0%, while the North America cyber security industry is steadily growing.
18. Smart Agriculture
Compound annual growth rate (CAGR): 13.7%
Grand View Research has predicted that the small agriculture industry is expected to grow at a CAGR of 13.7% from 2024 to 2030, from $22.65 billion in 2023. Some of the major players in this space include Ag Leader Technology, AGCO Corporation, Deere & Company, and Topcon Positioning System. The primary forces fueling the market over the predicted time frame are the expanding automation of commercial greenhouses and the growing application of the controlled environment agriculture (CEA) concept in greenhouses, to produce a greater yield and maintain ideal growth conditions. With a market share of 44.07% in 2023, North America is projected to lead the world’s smart agriculture industry from 2024 to 2030, growing at a CAGR of 12.3%.
17. Biotechnology
Compound annual growth rate (CAGR): 13.96%
Among the biggest names in the biotechnology industry are AstraZeneca, Bristol-Myers Squibb, Biogen, Abbott Laboratories, Novo Nordisk A/S, Merck KGaA., Johnson & Johnson Services, Inc., Novartis AG, Sanofi, F. Hoffmann-La Roche Ltd., and Pfizer, Inc. From 2023 to 2030, the biotechnology market has been forecast to boom at a compound annual growth rate (CAGR) of 13.96%, up from $1.55 trillion in 2023, based on Grand View Research. Strong government support for modernizing the regulatory environment, improving approval procedures and reimbursement guidelines, and standardizing clinical research is what accelerates the industry. From 2024 to 2030, Asia Pacific is predicted to grow at the most rapid rate.
16. Fintech-as-a-Service
Compound annual growth rate (CAGR): 16.9%
Technology in finance is rapidly flourishing and this industry will likely boom in the upcoming years. According to a Market Research analysis, the size of the global fintech-as-a-service market is anticipated to reach $681.6 billion by 2028, growing at a CAGR of 16.9% CAGR during the time frame anticipated i.e. 2022-2028. The rise in popularity of digital payments, digital lending, insurance, wealth management, and robo-advisory has led to a higher demand for technology-backed banking. Fintech technology is being used by many traditional lending institutions to benefit from innovative business practices and financial procedures.
15. Renewable Energy
Compound annual growth rate (CAGR): 17.2%
The international market for renewable energy, as per Grand View Research, was estimated to be approximately $1.21 trillion in 2023 and has the potential to grow at a CAGR of 17.2% between 2024 and 2030. The transition to low-carbon fuels and the strict environmental laws that are in place in the majority of developed nations have given the renewable energy industry a significant boost.
With a market share of 30.95% in 2023, the solar power category is anticipated to develop at a substantial rate during the forecast. Industry participants such as ACCONIA S.A. are implementing several strategic efforts to increase their market share. Renewable Energy industry is one of the Top 20 fastest growing industries in the next 5 years: Predictions.
14. Telemedicine
Compound annual growth rate (CAGR): 17.2%
In recent years, telemedicine has expanded significantly and this sector will grow in the next 5 to 10 years. The global telemedicine market is predicted by Fortune Business Insights to expand from $87.41 billion in 2022 to $286.22 billion by 2030, with a compound annual growth rate (CAGR) of 17.2% from 2023 to 2030. In 2022, North America held a 47.87% market share, making it the dominant region worldwide.
Significant companies like Teladoc and MDLive, along with strong government support, are driving the latter’s market expansion. The main driving forces of this projected growth are the implementation of cutting-edge technologies, such as machine learning, and a notable decrease in the burden of healthcare costs. Europe is anticipated to be the second leading region after North America in this market in terms of share.
13. E-commerce Logistics
Compound annual growth rate (CAGR): 18.2%
E-commerce logistics is a massive global industry that is expected to develop steadily in the next few years. The global eCommerce logistics industry, which was valued at $373.7 billion in 2022, is expected to increase at a CAGR of 18.2% to reach a revised size of $1.4 trillion by 2030, according to a report by Market Research.
The outbreak contributed to the expansion of e-commerce logistics. Artificial intelligence and big data are projected to play an increasingly crucial role in the future, and sustainability will be a key issue to monitor in this sector. In 2030, China’s growth is expected to reach a 20.7% CAGR. Alibaba Group Holding Limited is one of the key players in this industry.
12. Digital Marketing Software
Compound annual growth rate (CAGR): 19.4%
Without a doubt, one of the largest and fastest-growing industries in the world today is digital marketing. After COVID-19, the majority of businesses moved their operations online, therefore, digital marketing will only serve to increase sales and product awareness. Grand View Research reported that the size of the global market for digital marketing software was estimated at $65.33 billion in 2022, and between 2023 and 2030, it will continue to grow at a CAGR of 19.4%. Throughout the forecast period, the market for digital marketing software is expected to expand as a result of rising demand for marketing process automation. Furthermore, the advancement of technology and changing consumer behavior have encouraged the development of contemporary advertising tactics like mobile advertising.
11. Video Streaming
Compound annual growth rate (CAGR): 21.5%
Video streaming services will probably see enormous revenue growth as the media and entertainment sector as a whole evolves. There will be more job opportunities as the streaming services sector grows in popularity due to the flood of subscribers on Netflix, Inc. (NASDAQ:NFLX), Disney+, and Amazon Prime. The global video streaming market is projected to grow at a CAGR of 21.5% from 2023 to 2030, as indicated by Grand View Research, with a market valuation of $106.83 billion in 2023.
Video quality is enhanced by innovations like blockchain technology and artificial intelligence (AI). In many facets of video production and uploading, including editing, voice-overs, cinematography, and scriptwriting, artificial intelligence is crucial. It is expected that these advancements will have a favorable impact on the market’s growth.
Netflix, Inc. (NASDAQ:NFLX) is an American subscription video-on-demand over-the-top streaming service that generated $33.72 billion in revenue in 2023. This service is available globally in many languages and primarily distributes original and acquired films and television shows from a variety of genres. Netflix, Inc. (NASDAQ:NFLX) started utilizing AI technologies in May 2016 to give its subscribers a better, more tailored experience.
10. Cannabis Edibles
Compound annual growth rate (CAGR): 22.1%
A special case that merits discussion is the burgeoning worldwide industry for edible cannabis products. The cannabis edibles market is expected to rise at a compound CAGR of 22.1% from its anticipated $8.8 billion in 2022 to $43.6 billion by 2030 ( Market Research analysis). The United States leads the cannabis edibles market with $2.7 billion in 2022, while China’s growth rate is predicted to be 21.5% CAGR in the cannabis edibles market. According to industry professionals contacted by MJBizDaily, edibles are seen as discreet and convenient, with a special appeal for new cannabis consumers who do not want to inhale smoke or are terrified of other forms of consumption.
9. Healthcare Predictive Analysis
Compound annual growth rate (CAGR): 24.4%
Predictive analytics in healthcare is another industry that is escalating significantly and is likely to be one of the fastest growing industries in the next 5 years. The global market for healthcare predictive analytics, estimated at $11.7 billion in 2022, is projected to expand at a CAGR of 24.4% from 2023 to 2030 to reach $67.5 billion by 2030, as stated by Grand View Research. One of the main factors driving the market has been the increasing need for advanced analytics systems in the healthcare sector to save costs and enhance patient outcomes. Predictive analytics has grown significantly as a result of the necessity to control rising healthcare expenditures without sacrificing the quality of service given.
With a maximum share of more than 48.2% of the global market revenue in 2022, the North American region dominated the global market. Throughout the projection period, the Asia Pacific region is anticipated to increase at the fastest rate. The number of patients with chronic diseases is expanding, and the healthcare system is getting better. These factors have sped up the development of healthcare predictive analytics, which aims to lower growing health-related expenses and improve patient outcomes from treatments resulting in its market expansion.
8. Virtualization Software
Compound annual growth rate (CAGR): 25.4%
With the use of virtualization technologies, networks, servers, storage, and other physical machines can all be virtualized. To run several virtual machines simultaneously on a single physical computer, virtual software imitates the operations of actual hardware. Additionally, market experts have seen a multiplication in the use of virtualization technology by enterprises.
Some of the greatest brands in technology, like Amazon, Google, Microsoft, Oracle, and Huawei Technologies, are dominating the virtualization software market. The market is expected to grow at a CAGR of 25.4% from $63.1 billion in 2022 to a staggering $386.8 billion by 2030, according to a study by Market Research. Virtual Software is one of the biggest industries in the future.
Many nations throughout the world, including the US, China, Japan, Canada, Germany, Australia, India, and South Korea, have a significant demand for virtualization software.
7. Digital Education
Compound annual growth rate (CAGR): 25.8%
Persistence Market Research anticipates that the value of the worldwide digital education industry will rise from $19.2 billion in 2023 to $95.7 billion by the end of 2030, growing at a CAGR of 25.8%. The latter is growing exponentially as a result of various important aspects. The global development of internet penetration is primarily responsible for the emergence of digital learning resources.
The job market’s rapid evolution has led to a huge increase in demand for lifelong learning and skill development. Moreover, the COVID-19 epidemic has accelerated the adoption of remote learning systems, which has increased market growth. North America surges ahead of the other regions.
One of the leading businesses in this sector that gained popularity mainly due to the pandemic is Coursera, Inc. (NYSE:COUR), which generated $523.76 million in revenue in 2022. In 2012, Stanford University computer science professors Andrew Ng and Daphne Koller created Coursera, Inc. (NYSE:COUR), a for-profit giant open online course provider based in the United States. Coursera, Inc. (NYSE:COUR) provides online courses, certificates, and degrees in a range of areas in collaboration with universities and other organizations.
6. Data Science
Compound annual growth rate (CAGR): 29.0%
Fortune Business Insights predicted that, at a CAGR of 29.0%, the global market for data science platforms is expected to soar from $81.47 billion in 2022 to $484.17 billion by 2029. The increasing expansion of big data to support market growth due to COVID-19 is the factor driving the growth of the data science platform market. Moreover, the market will grow during the projected period due to the growing use of data software in the healthcare industry. Considering major businesses like Microsoft and IBM Corporation are located there, North America is anticipated to have the largest revenue share during the projection period.
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Disclosure: None.Top 20 fastest growing industries in the next 5 years: Predictions is originally published on Insider Monkey.