Most business journalists are focused on the impact of inflation, geopolitical conflicts, and worries over a recession. Daily news headlines often tell a negative story and overlook pockets of substantial growth in the global economy.
Drawing on the latest data from a variety of market research firms, this article shines a spotlight on growing industries of the future. Most of these markets are driven by innovative technological developments and scientific advancements. You may not hear much about them on a regular basis, but these large, fast-growing industries are expected to boom in the next few years.
1. 5G Security
Fifth generation (5G) cellular offers improved network capacity but also creates unique threats for governments, enterprises, and industrial customers.
A growing need for robust security and privacy features will drive heightened demand in the 5G security market, which is expected to grow at a compound annual growth rate (CAGR) of 36.8% to reach $25.9 billion in 2030, according to the Mind Commerce report 5G Security Market Outlook and Forecasts 2022-2030.
“There is more at stake with 5G than predecessor network implementations involving LTE and WiFi,” according to Mind Commerce. To address concerns about possible security gaps, “Leading carriers will transform 5G security from a cost of doing business into a major market differentiator.”
2. Virtual Reality Gaming
Recent technological advancements have also led to a rise in virtual reality gaming, a $20.6 billion market in 2021. The market is expected to grow at a CAGR of 29.8% between 2022 and 2027 and hit $100.23 billion by 2027, as described in Global Virtual Reality Gaming Market Report and Forecast 2022-2027 by Expert Market Research.
“The market is gaining popularity in several developing regions like Brazil, India, and Mexico, because of the increasing disposable incomes among consumers coupled with the easy accessibility of VR-enabled games,” according to the report.
3. Virtualization Software
Market analysts have also noted a multifold increase in the adoption of virtualization technologies by businesses. Some of the biggest heavy hitters in technology including Amazon, Google, Microsoft, Oracle, and Huawei Technologies are competing in the virtualization software market, which is projected to rise from $38.7 billion in 2020 to reach a whopping $189.4 billion by 2027, growing at a CAGR of 25.4%, according to a study by Global Industry Analysts.
Virtualization software is in high demand in many countries around the world including the United States, China, Japan, Canada, Germany, Australia, India, and South Korea.
4. Digital Education
The rising adoption of digital technology has made its mark on education as well with the use of online learning and tools such as smartboards, tablets, laptops, and massive open online courses (MOOCs).
The digital education market was an estimated $12.6 billion in 2019 and is expected to increase to $136 billion by 2030 at a CAGR of 25.1%, according to Digital Education Market 2030 by Fatpos Global. Top players in this space include Coursera, LinkedIn, and Pluralsight.
5. Healthcare Predictive Analytics
Another area of rapid growth is predictive analytics in healthcare. Valued at $13.6 billion in 2022, the healthcare predictive analytics market is expected to increase at a CAGR of nearly 25% to reach $33 billion in 2026, according to Healthcare Predictive Analytics Global Market Report 2022 by The Business Research Company.
“Healthcare facilities are increasingly adopting healthcare predictive analytics, mainly in areas such as clinical trials, administration, and operations management, in order to provide the best care possible,” The Business Research Company stated.
Predictive analytics in healthcare can help with critical functions such as identifying early indicators of patient deterioration, designing personalized medicines, and improving clinical trial outcomes.
6. Cannabis Edibles
Many of the markets we’ve touched on so far are clearly technology-related, but an outlier that may be worth mentioning is the burgeoning global market for cannabis edibles.
According to a recent report by Global Industry Analysts, the global market for cannabis edibles was an estimated $5.7 billion in 2020 and is projected to reach $23.3 billion by 2027, growing at a CAGR of 22.3% during that period.
Industry executives interviewed by MJBizDaily agreed that edibles are considered to be discreet and convenient, and they hold particular appeal for new cannabis consumers who do not want to inhale smoke or may be intimidated by other forms of consumption.
7. E-commerce Logistics
Already a huge global market, e-commerce logistics is poised to achieve steady growth in the future. The e-commerce logistics market was an estimated $243.4 billion in 2020 and is expected to rise at a CAGR of 18.9% to reach a staggering $819 billion by 2027, according to the report eCommerce Logistics.
The pandemic helped to accelerate the growth of e-commerce logistics. Technologies such as artificial intelligence and big data are expected to play an increasingly important role in the future, and sustainability will be another key issue to watch in this industry.
8. Solar Energy Solutions
Increasing environmental awareness and technological advancements will help create new business opportunities in the global solar energy solutions market, which is projected to rise from $30.06 billion in 2022 to reach $62.97 billion by 2027, growing at a CAGR of 15.94%, according to a recent report by Infogence Global Research.
Key drivers include increasing adoption of green energy, the emergence of smart cities, high electricity tariffs, and regulatory compliance.
Vaccines form another large, growing market with room for innovation. “In 2020, the global vaccine market was valued at $35.9 billion,” according to Vaccine Market Report 2022 by Health industry Distributors Association (HIDA). “Fueled by the pandemic, the prevalence of other diseases, and research and development, the market is expected to more than double to $83.5 billion by 2027.”
The report noted that increased funding, scientific interest, and manufacturing capacity will help drive the market for mRNA vaccines for a wide range of diseases beyond COVID-19.
Financial technology is booming as well. The global fintech-as-a-service market size is expected to reach $681.6 billion by 2028, rising at a CAGR of 16.9% CAGR during the forecast period, according to a report by Knowledge Based Value (KBV) Research.
“To take advantage of cutting-edge business activities and financial processes, many traditional lending institutions are turning to fintech technologies,” the report stated. “The demand for technology-backed banking has increased as a result of the surge in popularity of digital payments, digital lending, insurance, wealth management, and robo-advisory.”
Fintech-as-a-service encompasses technologies such as API, artificial intelligence, robotic process automation (RPA), and blockchain.
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About the Author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.