Whether you’re an investor or an entrepreneur, staying informed about the changing economic landscape is vital to your bottom line. Investing or starting a business in the most dynamic parts of the market can lead to outsized returns. From Bill Gates to Michael Bloomberg, giants of industry have always taken advantage of growing industries.
With that in mind, let’s take a look at 5 of the fastest growing industries around.
Cannabis
The total market value of the legal cannabis industry in the U.S moved to over $13.9 billion in 2019, according to data from New Frontier. The industry has been booming ever since medical marijuana first became legal in California with the passage of Prop 215 in 1996. Since then 33 States have legalized Medical Marijuana and 11 have fully legalized cannabis for adults over the age of 21.
Most experts expect that by 2025, a majority of US states will have legal cannabis. That means the expected market value of legal cannabis will push to over $29.9 billion in the U.S in just five years. This kind of growth has led to an entirely new industry being spawned. From seed to sale, cannabis is now big business and that means real opportunity for investors and entrepreneurs.
Most entrepreneurs have jumped into cultivation and sale—the bread and butter of the industry that has always paid. However, with the expansion and legalization of Cannabis in many areas, new businesses are getting involved and making money. From Cannabis Marketing to seed to sale software and Enterprise Resource Planning(ERP) systems the industry has expanded taking all newcomers.
Investors have also taken advantage as Cannabis stocks saw a huge boom over the past five years. The likes of Canopy Growth, Aurora Cannabis, and Tilray have all seen their day rising by over tenfold their over 2015 values. It’s clear the Cannabis industry is here to stay, and grow(pun intended).
Robotics
Robotics may sound like a technology of the future, but—however strange it may seem—robotics is undeniably a technology of today. This covers many facets including machine learning and AI development.
Consumers may think of companies like the Google-owned Boston Dynamics when they think of Robotics. The innovative company has made waves with videos of their humanoid robots engaged in otherworldly feats, like parkour. Or consumers may think of companies like the Japanese Conglomerate, Softbank (SFTBY), who recently released a new $499 cleaning robot that is more than just a generation ahead of that old Rumba you have in your closet.
The reality of robotics, however, is slightly more boring. Robots are used on factory floors far more than in homes. The reality of robots in 2020 looks more like this, a small Amazon robot wheeling through a factory and delivering packages to different stations so they can arrive at your door on time.
Don’t balk at industry development though. Robotics is an industry that is set to thrive for years to come. They are on the precipice of inevitable success which is to come.
Still, even progress in 2019 is strong. The Robotic Industries Association statistics illustrate an over 7% increase in units ordered in the first half of 2019 compared with the first two quarters of 2018. If you are looking to be the next billionaire, Robotics may be the place to stop.
Green Energy
With the growing adoption of climate change measures, despite some recent setbacks in the U.S, green energy is an industry on the move. In 2018 alone, Wind Turbine Installation revenue rose some 53.5% and Solar Power revenue was up over 38%, according to a report by IBIS World.
In the Green Energy sector, government funding has always been the leader for growth. Luckily, government-funded green energy projects remain strong in Europe, despite lagging efforts in the U.S of late. In brighter news, Bill Gates backed start-up Heliogen has begun addressing the need for green energy in the production of industrial goods and in transportation. As Bill Gross, CEO of Heliogen puts it:
We’ve made great strides in deploying clean energy in our electricity system. But electricity accounts for less than a quarter of global energy demand. Heliogen represents a technological leap forward in addressing the other 75% of energy demand: the use of fossil fuels for industrial processes and transportation. With low-cost, ultra-high temperature process heat, we have an opportunity to make meaningful contributions to solving the climate crisis.
This recent news is a big deal, not just for Heliogen but for green energy investors and entrepreneurs alike. Green energy can now make inroads into some industries that have always relied on oil and gas. This means billions in potential revenue and a booming industry.
Additive Manufacturing(AM)
Additive manufacturing, also known as 3D Printing, has been around for over 20 years. It was first invented by David E. H. Jones who described the process in an article for the journal New Scientist. The industry didn’t really begin developing until 2009 however when the patent for Fused Deposition Modeling(FDM) expired. Since then a slew of expiration has led to new entrants and a burgeoning market.
From 2012-2014 the industry witnessed a surge where investors discovered the technology and flooded into stocks which shot up in value. However, of late expiring patents on more technical 3D printing practices have allowed new—this time much larger—entrants into the industry which has increased overall growth, but hurt investor results. The likes of Hewlett Packard(HPQ) and many other smaller online companies like Xometry now flood the market.
That doesn’t mean a lack of opportunity, however. By 2024 the AM industry is expected to be valued at over $6.5 billion, growing at a compound annual growth rate(CAGR) of over 13%, according to MarketWatch. This industry is one to watch.
Autonomous Vehicles(AV)
Autonomous Vehicles are finally a reality. We’ve all seen the videos of Tesla drivers asleep at the wheel and we’ve heard of Uber’s aspirations to put self-driving cars on the road in a matter of years, but autonomous vehicles are much more than just self-driving cars.
In fact, a majority of the revenue generated from autonomous vehicles actually comes from pallet loaders, tow vehicles, forklifts, and other utility vehicles. In 2018, AV revenue jumped to $2.49 billion, an increase of 48.2% year-over-year with the adoption of many of these vehicles in factories around the world. By 2025 the AV market is estimated to be worth well over $10 billion. That means plenty of growth opportunities for investors and entrepreneurs.
Starting a business in 2020 will be no easy task. It will take leadership, personal development, and an undying work ethic to overcome this competitive market. That being said, if you focus your efforts in a growing industry, your chances of success will be much higher.
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