Success in business is not easy. But chances can be increased by choosing the right industry which will not be absorbed by robots (unless, of course, your startup is associated with making robots) and will not need to reorient the business as it progresses. And here you may find the recently published report of Fundera specializing in financial solutions helpful.
After analyzing various data, the company’s specialists have created a list of the most promising industries that “in the nearest 10 years’ time will rapidly grow and develop, bringing high profits to participants”. Please note that these are not the largest industries, but the fastest growing and profitable ones. The list includes industries with a predicted growth rate in the range of 118–135% and a likely rise in share prices by 56–296%.
Top directions: Cloud Computing, Machine Learning, AI, Big Data.
The leader of this list is futuristic technologies, and this is not a surprise to anyone. The report encourages small business owners in this space to “concentrate on enhancing the convenience of a product or service, which will ensure efficient users’ experience and save them time.”
Top directions: Biotechnology, Health Data Management and Individual Healthcare.
Fundera experts recommend future entrepreneurs to “focus on user-friendly, personalized and data-based healthcare solutions to compete with traditional medical organizations such as hospitals and primary health care facilities (nowadays they face a decline in profitability and closing down).”
The best directions are: Oil and gas, mining, hydraulic fracturing and efficient Power.
This industry has three distinct advantages: the need for greater sustainability and efficiency, the solution of national policy problems and the increase in demand with population growth. In this sense, it is very promising.
Top direction: Games, Virtual Reality, Streaming Television. Perhaps no other industry is changing faster than the media industry.
In addition, computer games and virtual reality demonstrate unprecedented growth rates in this segment. any computer user can be ensured in the rapid development of the industry. To do this, it is enough to compare modern super-realistic games like the Call of Duty series with those that were released, say, ten years ago. In other words, this direction can be very promising for new players.
Top directions: E-commerce, spontaneous and individual retail trade.
The report indicates that the key is to create a business that successfully combines the Internet with regular retail. Basing on the example of the consumer goods industry we can say that the fastest growing retailers have already understood this.
Top directions: Residential real estate, large infrastructure projects, building technologies.
The main opportunity in this sector is connected with building technologies, providing more efficient construction of buildings, and with housing construction itself. McKinsey study predicts that by 2025 a third of the world’s urban population will need safe, comfortable housing. This opens an unprecedented opportunity for companies engaged in the construction of such efficient and affordable housing.
Top directions: Hotels and quality food Catering.
The hotel business, which includes hotels, restaurants and leisure activities, is under attack from various start-ups, including Airbnb. Currently, the latter offers more than 4 million properties worldwide – more than the five largest hotel chains combined. It has resulted in more flexible hoteliers, ready to cooperate with start-ups that help them work in the new world (in turn, newcomers receive the necessary support for direct competition with Airbnb and VRBO).
Top directions: Fintech and cryptocurrency.
There are not many competitors in this industry, since so far very few people understand what cryptocurrency is. However, more knowledgeable people are quite able to succeed by launching startups, entering into partnership agreements or competing with banks, brokerage companies and other financial institutions — this is already happening with new companies such as OnDeck and Fundera.
Top directions: Online brokerage services and online design, real estate technologies.
The report notes that innovation in the industry is too slow. This creates a fruitful environment for substantial modernization. The main growth engines (closely related to construction, which also appeared on this list) should be real estate agents (people or robots), real estate managers, landlords and other companies and people providing related services.
Top directions: Autonomous and electric cars, smart cities.
This industry includes self-driving automobiles (the potential size of the industry is estimated as $ 3.6 trillion) and related segments, as well as companies that will benefit from the corresponding changes in urban planning.