In this article we are going to list the Top 5 fastest growing industries in the next 5 years: Predictions. For detailed coverage of this topic and a more comprehensive look, please take a look at the Top 20 fastest growing industries in the next 5 years: Predictions.
5. Artificial Intelligence
Compound annual growth rate (CAGR): 37.3%
Artificial intelligence (AI) is widely regarded as one of the newest sectors, and it has been expanding at an unparalleled rate in recent years. With a predicted valuation of $196.63 billion in 2023, the worldwide artificial intelligence market is expected to develop at a CAGR of 37.3% between 2023 and 2030 as reported by Grand View Research. The continual research and innovation pulled by tech giants has fueled the adoption of cutting-edge technologies across industry verticals such as automotive, healthcare, retail, finance, and manufacturing. For example, Google LLC released “Gemini,” a sizable language AI model, in December 2023. Three versions of Google’s new Gemini model are planned: Gemini Nano, Gemini Pro, and Gemini Ultra. Gemini’s inherent multimodal feature sets it apart from its rivals.
4. Augmented Reality
Compound annual growth rate (CAGR): 39.8%
An interactive experience that blends computer-generated material with the actual world is called augmented reality. Grand View Research projects that the worldwide augmented reality industry, valued at USD 57.26 billion in 2023, would boom to a whopping $597.54 billion by 2030, with a CAGR of 39.8% between 2023 and 2030. Leading industry participants like Google LLC, Microsoft Corporation, Apple, Inc., and others are showing a great deal of interest in using augmented reality (AR) in a variety of applications, which is opening up new prospects. The market for media and entertainment is also expanding. One example is the growing usage of augmented reality in the gaming industry, which provides users with a view that is extremely effective in terms of video, graphics, and sound. Hence, the latter is expected to be a significant growth element.
Apple Inc. announced the release date of the much-anticipated Vision Pro headset in January 2024, and on February 2nd in the United States, it became available for purchase. The sophisticated R1 chip in this state-of-the-art gadget is intended to speed up the information processing from its sensors.
3. Robotic Process Automation
Compound annual growth rate (CAGR): 39.9%
Over the past few years, there has been a notable increase in robotic process automation. As stated by Grand View Research, the size of the global market for robotic process automation was estimated at $2,942.7 million in 2023 and is expected to increase at a CAGR of 39.9% between 2023 and 2030. The primary cause of this anticipated rise is the COVID-19 pandemic. The U.K.-based RPA solution company Blue Prism Limited, for example, performed a survey and published a paper in February 2022 titled “RPA In the APAC Financial Services Sector.” As per the report, 21% of the respondents from financial services businesses in India stated that their organizations used RPA during the COVID-19 pandemic. North America had the strongest demand for robotic process automation, with a market share of around 37.0% in 2022 and a CAGR of approximately 39% from 2023 to 2030. From 2023 to 2030, Asia Pacific is expected to have the greatest CAGR, almost 42%. SAP, Blue Prism Limited, Microsoft, and NTT Advanced Technology Corp. are some of the prominent competitors in the market.
2. Space Tourism
Compound annual growth rate (CAGR): 49.9%
The worldwide space tourism industry was worth $851.4 million in 2023 and is predicted by Grand View Research to tremendously increase at a CAGR of 49.9% between 2024 and 2030, with a revenue estimate of $9,669.5 million by 2030. The market is booming due to various factors, such as the increasing focus on research and development activities by government and private research organizations, the growing inclination of adventure travelers, the growing interest of High Net Worth Individuals (HNWI) in spaceflight, and rising technological advancements. Travelers can travel within and across the Earth’s orbit for business, pleasure, or leisure thanks to space tourism. In the upcoming years, space tourism is expected to open up travel to non-astronauts and laypeople alike. Virgin Galactic and SpaceX are two of the most prominent space travel businesses in the industry.
1. 5G Services
Compound annual growth rate (CAGR): 59.4%
In the realm of telecommunications, 5G stands for fifth-generation technological standard for cellular networks. 5G is the successor to 4G technology, to which most modern mobile phones are connected, and was widely deployed by cellular phone carriers in 2019.
Grand View Research has released a new study that projects the size of the worldwide 5G services market to reach an astonishing value of $2,208.25 billion by 2030 from $84.31 billion in 2023, with a CAGR of 59.4% from 2023 to 2030. Throughout the projection period, the market is expected to burgeon due to the rapidly increasing need for ultra-reliable and low-latency data networks that may provide improved mobile connections. From 2022 to 2030, the market is expected to grow at a rapid pace because of the possible adoption of 5G services for applications such as remote patient monitoring and remote surgery. The seamless connectivity that 5G wireless technology will provide for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication is predicted to completely revolutionize the transportation and logistics sectors.
AT&T, Inc. and Cisco Systems, Inc. announced a strategic partnership in June 2023 to help companies improve connectivity to satisfy the expanding demands of a workforce that is heavily dependent on mobile devices. Together, these organizations are eager to offer broadband and 5G in addition to SD-WAN connection, making sure that companies of all sizes may benefit from an efficient and smooth experience.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at the Top 20 Largest Seafood Companies in the World and Alcohol Consumption by Country: 25 Countries with the Highest Alcohol Consumption per Capita.
