Every entrepreneur wants to start a business in a lucrative industry. As such, plans must reach beyond tomorrow and embrace the coming decades.
Deciding what line of business you want to get into can be a pretty daunting task. Besides looking at your areas of interest and personal skills, other factors can limit or hasten the success of your business. To establish whether your business is likely to grow, look at the industry trends. These include growth in industrial output and employment trajectories, among other factors.
When you are researching business investment opportunities, here are the high growth industries poised for a major expansion in the future:
Industry #1: 3D Printing
Also known as additive manufacturing, 3D printing is the process of making 3-dimensional objects from digital files. Developed in the 1980s, 3D printing first existed as a tool for prototyping. This high growth industry has evolved over the years to cover different technologies.
Many companies are finding ways to create new business models and opportunities as the potential applications for 3D printing increase. 3D printing has contributed greatly to achieving a high level of performance in many fields, which, in turn, has seen the technology continue to grow at a very fast rate. According to 2019 statistics, the industry was valued at 13.7 billion USD. It is projected to reach 63.46 billion USD by 2025.
Industry #2: E-commerce and Online Auctions
E-commerce is yet another high growth industry at a breakneck speed. When it first started, many people were a bit hesitant to get on board. However, as the years went by, people started embracing technology. Currently, there are a host of online stores; many of which ship products nationally and internationally. This industry has made it possible for people to shop anywhere and at any time.
The flexibility and ease of this industry are what have seen it outperform traditional retail stores. As a result, retail stores have been forced to change track and adapt. Most now include the option of shopping online and at physical stores. According to researchers, a surge is expected from 2.382 trillion USD to 6.542 trillion USD between 2017 and 2023.
Industry #3: Biotechnology
Every day, humans strive to survive and have a good life. This is, perhaps, why the biotechnology industry has grown rapidly and continues to thrive. It is a science-driven industry that utilizes living organisms and molecular biology to come up with technologically advanced healthcare products.
Scientists are working hard to come up with medicines and supplements that will improve the quality of human life. The demand for these cutting-edge medicines and treatments has influenced the growth of the biotechnology industry. Researchers predict that by 2025, this industry will be worth 727.1 billion USD.
Industry #4: Video Games
For many people, playing video games has become a preferred method of unwinding. Key players in the gaming industry have recognized this great opportunity. They are banking on people’s continued craving for long hours of playing video games. The continued increase in demand for video games will continue to fuel the growth of the industry.
Courtesy of the video gaming industry, numerous job openings have come up, especially in the area of software development, design, audio engineering, animation, and tech support. Valued at 151.06 billion USD in 2019, the industry is expected to grow at a compound annual growth rate (CSGR) of 12.9% by the year 2027.
Industry #5: Warehousing and Storage
These establishments handle a variety of goods, which are usually stored in boxes, barrels, or drums. They provide storage for all manner of products.
The rising trade activities in emerging economies such as Brazil and China have contributed a great deal to the growth of this industry. Examples of major players in this industry include APL, DHL, Mitsubishi Logistics, and Genco. The warehousing and storage industry is estimated to be worth 646.77 billion USD by the year 2022, bringing the compound annual growth rate of this industry to about 10.7%.
Industry #6: Forestry
You may have read so many articles or books talking about how we continue to lose forests annually. This would ideally make having the forestry industry on this list appear ridiculous, but it is not. Forestry is a wide-reaching industry that can be broken down into timber tract operations, gathering of forest products, and forest nurseries. That this industry is growing is not in dispute as evidenced by its annual employment growth rate, which is currently at 2.1%.
Industry #7: Information Services
If the employment rate for this industry is anything to go by, information services are one of those sectors to watch closely going forward.
Besides traditional components like libraries and broadcasting, this industry now incorporates other areas, such as exclusive internet publishing. Think of the numerous online publishers and sites on the internet. Publishers now prefer going digital as opposed to traditional publishing. The annual growth rate for the “new” information services is at 2.5 percent, while your everyday hardcopy publications, such as newspapers, periodicals, and directories are witnessing a steady decline in annual growth sales.