Five key tech sectors will have a combined growth of more than 400% over the next five years, according to market reports. These innovation pacesetters – nanotechnology, AI, Digital Twins, genomics, and other biotech life sciences – attracted a combined $892.63 billion of investment in 2020, set to rocket to $2.44 trillion by 2025.
If you are out of work or looking to get into a growth industry, here are 5 top industries for growth that you may want to consider:
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Artificial Intelligence (AI)
- AI has the most far-reaching potential, and the market is forecast to grow 16-fold from $62.35 billion in 2020 to $997.77 billion by 2028 at a 40.2% CAGR, being the catalyst for accelerating almost all tech sectors and has already shown how it can enhance food science, lower retail and banking costs, and develop medical advances such as remote patient monitoring and more intelligent clinical diagnosis. AI is transforming future healthcare, food, energy, transport, construction, aviation, and many other sectors. Combining AI with nanotechnologies, for instance, allows platform technologies to re-invent the industries over this decade. According to data gathered by StockApps.com, in the last quarter of 2020, there was a massive surge in investment in AI technology companies totaling $73.4 billion, which was a $15 billion increase at the start of 2020. In the first half of 2021, we have seen 4,080 investment deals in AI technology companies, according to the investment monitoring platform Pitchbook. The average investment deal flow value has increased nearly three-fold in 2020.
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Nanotechnology
- Is set to grow its market from $54.2 billion in 2020 to $126.8 billion by 2027, which has enabled significant advances in medicine, electronics, environmental solutions, and materials, with the potential to improve drug delivery procedure and storage, and renewable energy. For example, COVID-19 accelerated both vaccine and virus testing and also drove specific developments such as nanotech material masks that filter out 99.9% of bacteria, viruses, and particulates. According to the investment monitoring platform, Pitchbook, in 2020, $5.56 billion was invested in nanotechnology companies. In the first half of 2021, there has already been $7.72 billion of investment in nanotechnology companies, from 775 deals, with the average deal size value increasing three-fold in just the last six months.
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Biotechnology
- is the biggest and most mature market here, forecast to grow from $752.88 billion in 2020 to $2.44 trillion by 2028 at a 15.83% CAGR through significant effects on agriculture, improving the nutritional value and preservation of foods, minimizing waste, and healthcare advances – the last being highlighted by the record-breaking speed of the Pfizer COVID vaccine development last year. According to Nature magazine, global biotech funding in 2020 had its best year ever: 73 life science firms alone raised a collective $22 billion. Private fund-raising also mushroomed by 37% on the previous year – already a stellar year. This is being further fuelled with the COVID-19 mitigation market and the advent of a surge of investment in pandemic protection and preparedness using multi vaccines, autoimmune treatments, and early intervention testing. Pitchbook has recorded 3,800 deals in biotechnology companies in the first half of 2021, totaling $34.48 billion in investment in these companies. Again, the average investment level is nearly three times what it was the previous year, and post valuations of invested biotech companies have doubled from 2020.
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Digital Twins
- are a new up and coming high growth tech sector, forecast to grow 15-fold from $3.1 billion in 2020 to $48.2 billion by 2026 at a 58% CAGR, with the technology already widely used in the construction, energy, healthcare, automotive, and aerospace sectors, and new fields opening up all the time.
According to Pitchbook, last year, there was $103.8 million of capital invested from just 53 investors into the Digital Twins technology start-ups. The Digital Twin sector is an interesting space with tremendous growth opportunities for nimble, fast-moving start-ups who have the opportunity to compete with major conglomerates in this dynamic field such as Microsoft, Siemens, Phillips, and Bentley.
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Genomics
- is a market set to grow from $20.1 billion in 2020 to $62.9 billion by 2028 through its key role in healthcare innovation and tailoring care to an individual patient while providing more data on diseases and human genetics. The World Health Organisation reports that gene sequencing was critical to the rapid development of COVID-19 tests and other tools used to manage the virus outbreak. According to Pitchbook, investment capital in genomics companies has more than doubled in value per deal in 2021 over the previous year. So far in 2021, post-investment valuations have also more than doubled against the whole of 2020.
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