In this article, we will be taking a look at the top 20 industries in the world. You can also skip our detailed analysis and directly head to the Top Industry in the World in 2024.
Navigating the Global Economic Landscape: Challenges and Opportunities in 2024
The global economy has experienced significant fluctuations in recent years, particularly due to the impact of the COVID-19 pandemic and subsequent recovery efforts. In the decade leading up to the pandemic, the global economy experienced steady growth, averaging around 3.8% annually.
The world saw its worst economic fall since the Great Depression as a result of the outbreak. The global GDP shrank by 3.0% in 2020, which was a sharp contrast to the 2.8% increase in 2019. The decline of international trade was one of the main causes of this economic crisis. The epidemic led to a sharp reduction in global trade, which made the general downturn in economic performance worse. Due to the interconnectedness of the global economy, disturbances in one area of the world could have a cascading effect on other regions and sectors, creating a series of economic issues.
In 2024, the OECD projects a severe slowdown in global economic growth, with rates of decline below historical averages. The growth rate is predicted to decrease to 2.7% in 2024 from 2.9% in 2023. The IMF also predicts a slowdown, with 3.0% in 2023 and 2.9% in 2024—both significantly below the historical average of 3.8%.
A more upbeat forecast for the world economy in 2024 is provided by Goldman Sachs Research, which projects 2.6% GDP growth. They anticipate steady income growth, declining inflation, a strong labor market, and a revival of manufacturing. Interest rate reductions by central banks are expected to act as a buffer against recession. Most major economies, including the US, are predicted to do well as they transition from managing inflation to reducing the danger of recession.
In 2024, there will be possibilities and challenges in the global industrial market for several different industries. The US industrial sector is expected to gain a great deal of legislative help. The Inflation Reduction Act (IRA) has caused investment in the manufacturing of semiconductors and clean technologies to nearly triple since 2021. More than 75,000 new employees, $88 billion in investments, and approximately 200 new clean technology manufacturing sites have resulted from this. The industrial sector’s yearly construction spending as of July 2023 was $201 billion, up 70% from the previous year and suggesting promising growth in 2024.
International trade markets also continue to be robust. A $500 billion growth in trade in services illustrates adaptability despite a predicted 5% downturn. Geopolitical reasons are driving the integration of developing economies, such as Mexico and East Asian countries, into global supply chains.
With 18 of the 20 fastest-growing trade routes, Asia continues to dominate the global economy, accounting for over 50% of trade value. This trend is particularly evident in trade between China and the UAE, where non-oil commerce is expected to reach $72 billion in 2022, representing an 18% growth, and overall bilateral trade reaching $99.3 billion.
Biggest Companies Revolutionizing the Global Economy
Biggest companies like Microsoft, ExxonMobil, Chevron, JP Morgan, Visa, and Johnson & Johnson, among many others, have been making trends in the global economy. For Example, Microsoft is a multinational technology company that plays a significant role in the global economy through its diverse range of products and services, substantial economic contributions, and innovative advancements. Microsoft’s partner ecosystem and cloud services are major drivers of economic growth. Microsoft forecasts that artificial intelligence (AI) could contribute up to $15.7 trillion to the global economy by 2030. This projection underscores the transformative potential of AI in various sectors, including healthcare, education, and agriculture. In Africa alone, AI could generate $1.2 trillion, representing a 5.6% increase in the continent’s GDP by 2030. The company has pledged to equip 10 million people from underserved communities with digital skills for jobs in the digital economy by 2025. Additionally, Microsoft aims to skill and recruit 250,000 people into the US cybersecurity workforce by 2025, addressing significant workforce shortages in this critical area. In Q1 2024, Microsoft generated $56.5 billion in revenue, an increase of 13% year-over-year, and the reported operating income for the same period stood at $26.9 billion, an increase of 25%.
Similarly, ExxonMobil is one of the oldest and most prominent players in the global oil and gas industry, with a significant impact on the global economy. In 2022, ExxonMobil, its divisions and affiliates, employees, retirees, and the ExxonMobil Foundation collectively provided $158 million in contributions and community investments worldwide. Of this total, $41 million supported U.S. communities, and $91 million supported communities in other countries. Additionally, ExxonMobil employees and retirees donated $26 million through the company’s matching gift and employee-giving programs. ExxonMobil has also invested approximately $500 million annually in women-owned businesses, supporting economic change for women through various initiatives. The company reported strong first-quarter earnings of $8.2 billion and generated $14.7 billion in cash flow from operating activities.
A technician soldering a semiconductor chip, emphasizing the power of the company’s products.
Our Methodology
For our methodology, we have ranked the top industries in the world in 2024 based on their current market caps.
At Insider Monkey, we delve into a variety of topics, ranging from the best online ESL courses to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Here is our list of the top 20 industries in the world in 2024.
20. Asset Management
Market Cap: $942.21 billion
Asset management has emerged as one of the top industries globally in 2024. Global AUM is projected by PWC to grow to $145.4 trillion by 2025, with a compound annual growth rate (CAGR) of 6.2% from 2020 to 2025. Major companies like Black Rock and Fidelity Investments dominate the industry. As yields plateau, asset managers have a $2 trillion opportunity to attract investors away from cash holdings.
19. Utilities – Regulated Electric
Market Cap: $949.78 billion
The regulated electric utilities industry is integral to economic stability, providing reliable energy that supports industrial activities, commercial enterprises, and residential needs. The industry’s annual revenue is substantial, with the American Public Power Association (APPA) reporting approximately $60 billion in revenue, which is reinvested into local communities through various initiatives. The industry is characterized by high capital expenditures aimed at modernizing and decarbonizing the grid. In 2023, the largest electric and gas utilities in the U.S. spent nearly $171 billion on capital projects, a trend expected to continue in 2024.
18. Semiconductor Equipment and Materials
Market Cap: $951.19 billion
The semiconductor equipment and materials industry is a critical component of the global technology ecosystem. In 2024, the global semiconductor market is expected to see a rebound, with sales projected to reach $588 billion, a 13% increase from 2023 and 2.5% higher than the record revenues of 2022. The industry is characterized by substantial capital investments. For instance, 41 new chip plants are being built between now and 2025, requiring over half a trillion US dollars of capital globally In the first quarter of 2024, global semiconductor equipment billings reached $26.4 billion, a 2% year-over-year contraction but indicative of a robust and adaptable industry.
17. Aerospace and Defense
Market Cap: $1047.67 billion
In 2022, the A&D industry in the United States generated revenues of $373 billion, marking a substantial recovery from the declines experienced during the COVID-19 pandemic. This figure is projected to grow, with revenues expected to reach $439 billion by 2027. Raytheon Technologies is the largest A&D company in the US, holding a market share of 10.3% in 2022.
16. Discount Stores
Market Cap: $1064.12 billion
Discount stores have generated significant revenue, with projections indicating a 6.7% surge in global retail sales in 2024. The industry provides employment opportunities to millions of people. For instance, Big Lots employs around 10,000 staff, contributing to job creation and economic stability. Several major companies like Walmart, Costco, and Aldi dominate the discount retail industry,
15. Telecom Services
Market Cap: $1067.65 billion
The telecommunications (telecom) service industry will remain one of the most critical and dynamic sectors globally in 2024. The telecom industry significantly contributes to the global economy through various channels for example the global 5G value chain alone is expected to generate $3.8 trillion in economic activity and create 22.8 million new jobs by 2035. T-Mobile has the largest 5G footprint in the United States, covering 53.79% of the country and AT&T covers 29.52% of the U.S. with its 5G network.
14. Auto Manufacturers
Market Cap: $1198.85 billion
The automotive industry is a cornerstone of the global economy, contributing significantly to GDP, employment, and technological advancements. In 2023, an estimated 86 million cars were sold worldwide, marking an 8.9% increase from 2022. The industry also employs millions of people globally, from manufacturing and assembly to sales and after-sales services. For instance, Ford Motor Company alone employs approximately 177,000 people as of 2023.
13. Banks – Regional
Market Cap: $1292.85 billion
Regional banks provide essential financial services to small and medium-sized enterprises (SMEs), which are the backbone of many local economies. A top performer in the Southeast United States, Regions Bank holds a top-five deposit market share in 70% of its footprint. The bank’s digital offerings have seen significant growth, with active digital users increasing by 13% and mobile banking rising by 14% in 2023.
12. Biotechnology
Market Cap: $1352.20 billion
The biotechnology industry stands twelfth among the top industries in the world in 2024. The industry has created millions of jobs worldwide, from research and development to manufacturing and clinical trials. Companies like Clario have facilitated over 27,000 trials, impacting over five million patients globally. Despite a slight decline in market capitalization in 2023, the long-term growth remains robust. The top 25 biotechnology companies had a combined market cap of $1.711 trillion as of December 2023, reflecting a nearly 78% increase over the past five years.
11. Credit Services
Market Cap: $1383.15 billion
Credit Services has emerged as one of the top industries globally in 2024. Major companies dominating the credit services industry in 2024 include Visa Inc. Which is the world’s largest payment processor and Mastercard Incorporated which is a close competitor to Visa. Net revenues for Visa Inc. for Q1 2024 were $8.6 billion while Mastercard’s revenue stood at $6.3 billion in the same period.
10. Oil & Gas Integrated
Market Cap: $1635.34 billion
Oil & Gas Integrated companies are major employers, providing millions of jobs worldwide. For instance, the oil and gas sector employs over 65 million individuals globally, with significant portions in oil supply (8 million) and gas supply (3.9 million). In the United States alone, the industry accounts for approximately 8% of the GDP and employs 10.3 million people. The largest producers, including the United States, Saudi Arabia, and Russia, collectively produce around 40 million barrels of oil per day, which is 43% of the total world production. This production is crucial for meeting the global demand, which is projected to rise to 102.8 million barrels per day by 2024.
9. Insurance – Diversified
Market Cap: $1926.98 billion
Insurance – Diversified companies play a crucial role in the global economy by providing a wide range of insurance products and services across multiple sectors. Global insurance premiums reached USD 6.8 trillion in 2021, representing 7.1% of the world’s economic activity which exceeds the combined GDP of Spain, Italy, and France. The United States leads in premium volume with USD 2.7 trillion, surpassing the combined total of the next eight largest insurance markets.
8. Software – Application
Market Cap: $2079.44 billion
Application software is one of the top 20 industries in the world in 2024. The software industry directly employs millions of people worldwide. In the United States alone, it accounts for 2.9 million direct jobs and supports a total of 10.5 million jobs when including indirect and induced effects. These jobs often offer high wages, with senior software developers earning an average annual wage of $104,360, more than twice the average for all US occupations.
7. Banks – Diversified
Market Cap: $2265.52 billion
Diversified banks largely contribute to the global economy. They collect deposits from individuals and businesses and lend these funds to those who need capital for investment or consumption which helps stimulate economic activity and growth.
6. Internet Retail
Market Cap: $2602.74 billion
Internet Retail, which is exemplified by companies like Amazon, has become a significant player in the global economy, revolutionizing the way consumers shop and businesses operate. Internet Retail has been a major driver of economic growth and job creation worldwide. E-commerce sales are projected to reach $6.38 trillion by 2024, up from $3.53 trillion in 2019.
5. Drug Manufacturers
Market Cap: $3017.20 billion
Drug manufacturing companies are at the forefront of medical innovation, investing heavily in research and development to produce life-saving medications and treatments. In 2019, American pharmaceutical companies invested over $83 billion in research and development, culminating in nearly $1 trillion in R&D investment over the past 20 years This level of investment represents approximately 17% of total R&D investment in the United States. The pharmaceutical and medicine manufacturing sector directly employs an estimated 267,000 workers in the United States and supports nearly 1.9 million additional jobs across the country. Pharmaceutical and medicine manufacturing generates nearly $339 billion in output. Furthermore, every $1.00 in pharmaceutical and medicine manufacturing output generates an additional $1.09 in output elsewhere in the economy.
4. Consumer Electronics
Market Cap: $3287.89 billion
Consumer electronics companies play a crucial role in the global economy, with major players like Samsung, Apple, Sony, and LG driving innovation, employment, and economic growth worldwide. Samsung is a significant player in the global consumer electronics market, which was valued at USD 1,068.22 billion in 2022.
3. Software – Infrastructure
Market Cap: $4950. 09 billion
Software – Infrastructure stands third among the top 20 industries in the world in 2024. One of the most prominent players in this space is Microsoft, particularly with its Azure cloud platform and enterprise software solutions. Azure provides scalable computing resources to businesses worldwide, enabling them to reduce IT costs and accelerate innovation. In 2023, Azure’s revenue grew by 27%, contributing significantly to Microsoft’s $211.9 billion in total revenue Microsoft directly employed approximately 221,000 people as of 2023, with many more jobs supported indirectly through its ecosystem.
2. Internet Content & Information
Market Cap: $5996.13 billion
Internet Content & Information companies play a crucial role in the global economy by providing platforms for information sharing, communication, and digital services. One of the most prominent companies in this sector is Alphabet Inc. As of 2023, Alphabet employs over 185,000 people directly. Additionally, its platforms and services have indirectly created millions of jobs in the digital economy, from app developers to digital marketers and content creators.
1. Semiconductors
Market Cap: $6518.17 billion
The semiconductor industry tops the list for being the top industry in the world in 2024. The global semiconductor industry generated $264 billion in sales in 2023. This represents a significant portion of global economic activity, with semiconductor sales accounting for over 0.50% of global GDP in recent years. Semiconductors are also a major export for several countries. In 2023, the United States alone exported $52.7 billion worth of semiconductors.
At Insider Monkey, we delve into a variety of topics, ranging from the top industries in the world in 2024 to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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