Top 8 Thriving Industries & Companies
The economy will be hit hard. This is inevitable. The crisis will result in a $1 trillion hit to the world economy this year. Yet, it is not all doom and gloom. There are numerous opportunities all around us. In the midst of what we now call “the pandemic economy”, we are witnessing plenty of thriving industries and companies. Some were thriving before. Some were not. We must never lose sight of that. There will always be opportunities.
In order to rebuild our economy, we must spot these trends early on and react accordingly. If you haven’t already listened to it, we highly recommend you watch our webinar entitled: How AI can help you identify which businesses will be struggling and the ones that will thrive.
Before we dive right into thriving industries, it’s a telling exercise to recap some of the fastest growing industries pre-COVID.
Fastest growing industries by revenue prior to COVID-19:
- 3D Printing & Rapid Prototyping Services
- Hydraulic Fracturing Services
- Medical & Recreational Marijuana Growing
- Autonomous Underwater Vehicle Manufacturing
- Wind Power
- Medical & Recreational Marijuana Stores
- Ship Building
- Solar Power
- Hand Sanitizer
- Massage Franchises
- 3D Printer Manufacturing
- Online Vitamin & Supplement Sales
- Social Networking Sites
- Gold & Silver Ore Mining
- Automated Guided Vehicle Manufacturing
- Field Service Management Software
- Oil Drilling & Gas Extraction
- Social Network Game Development
- Dark Fiber Network Operators
- Cementing Oil & Gas Well Services
- Precision Agriculture Systems & Services
- Relaxation Drink Production
- Search Engines
- Internet Publishing and Broadcasting
- Online Men’s Clothing Sales
Now, let’s see who the new players are and which lucky players are still in the top list of the fastest-growing industries. Check out these industries and companies that are experiencing astounding growth (in no particular order):
1) Online Food Ordering
This is a good example of an industry that wasn’t growing at an exceptional rate before, that is just skyrocketing right now. Typically, when it comes to shopping online for groceries, people were still stuck on doing it the good old fashioned way.
While many are still going into stores directly, a great many have made the big leap to online shopping. The question is, will the shift in behaviour stick? We think it will. New habits and a new level of acceptance has been adopted, whether we wanted it or not. Check out these stats on this fast-growing sector:
- Online grocery shopping in the U.S. will more than double from $14.2 billion in 2017 to $29.7 billion in 2021, led by online retail giants Amazon and Walmart.
- Downloads of grocery delivery apps swelled in the United States in the first half of March. Instacart saw downloads of its app grow by 218 percent from February to mid-March based on consumers’ apprehensions about visiting grocery stores during the coronavirus outbreak.
2) 3D Printing
We can all expect astonishing growth in 3D printing seeing as it is being driven by the medical sector. Right now, 3D printing is being used to produce medical supplies needed during the crisis. It is currently being used to produce everything from face shields, masks, safety goggles, ventilator components, valves for respirators, and test swabs.
This industry was seeing some obstacles in terms of full adoption as a volume manufacturing alternative prior to Covid-19. But during this crisis, it is showing us that it can handle the volume. It still can’t replace all traditional ways of manufacturing, but with supply chains being interrupted, it has stepped in and shown that it can produce parts for items that are hard to procure right now.
- The 3D printing market was valued at USD 13.7 billion in 2019 and is expected to reach a value of USD 63.46 billion by 2025, at a CAGR of 29.48% over the forecast period 2020-2025.
- Notable players are: Natural Machines, Choc Edge, TNO, By Flow, Print2taste GmbH, CandyFab, Beehex, Nu Food, SMRC, 3D Systems, Scope and Context
Telehealth or telemedicine, often used interchangeably nowadays, is taking the world by storm right now. Remote healthcare was on the rise prior to the epidemic. Many factors have contributed to the growth of the market including increased traditional health care costs, funding for telemedicine and an increase in digital health users.
Telemedicine refers to clinical patient care, while telehealth refers to a broader collection of educational, administrative, and other non-clinical healthcare activities. All sectors have seen growth. Here’s a closer look at the data for this growing and broad industry:
- Call centre segment – 18% CAGR
- Tele-education training segment – 20.5%
- Tele Home Segment – 18.9%
- Hardware Segment – 18.7%
- Web/mobile-based segment – 11.9 BN
- Tele-monitoring segment – 4.8BN
- Tele-consulting segment – 28.1 BN
4) Hand Sanitizer
Hand sanitizers are flying off the shelves. And there is no explanation required as to why we are seeing exponential growth in this market. And were hand sanitizers trending pre-COVID? The answer is yes. Will we continue to see this type of growth post-COVID? Most certainly. The demand for hand sanitizers has increased by 1400 percent from December 2019 to February 2020 period. The hygiene market in general will continue to experience unprecedented growth.
- The US hand sanitizer market is expected to grow at a CAGR of over 20% during the period 2019-2025.
- The foam segment is anticipated to grow at the highest CAGR of 9.5% over the forecast period.
- The departmental store segment dominated the global hand sanitizer market and held the largest market share of 40.32% in the year 2019.
Again, no deep explanation required for the reasons this sector is in high demand. However, the big winners are the ones that weren’t experiencing growth and are now experiencing a massive surge.
The types of things people are buying online now have changed. With new consumers moving online and new categories of shopping becoming the norm, we can expect many advancements in e-commerce technology and security.
The big winners are in the essential products category and the new growing reliance and acceptance for online shopping for new users. Studies are showing results such as 80% of consumers intend to return to shopping online for non-essential products later in the year.
- $600 billion in online sales accounted for 56% of overall retail growth last year. And projections say e-commerce sales may go as high as $6.5 trillion in 2023.
- New growing sectors: office supplies, health and beauty, housewares, home improvement, and toys and hobbies categories. For our health and beauty customers, for instance, sales have increased 53% since March 15, when stay-at-home orders first took effect. Home and garden sales have also increased, up 54% since March 15.
6) Work from Home
We are witnessing the greatest workforce paradigm shift in history. Our reliance on technology to help make the shift as seamless as possible will continue to move at an even faster pace. We expect to see much more innovation and investments being made in this very lucrative sector. This space is filled with our favorite tech titans but there are many new players making an impact.
So watch out for companies in everything from video recording and communication, video calling, collaboration platforms, virtual fairs, virtual offices, webinar tools, remote HR tools and live streaming. Quarantines will end. But we think remote work is here to stay.
- In 2020 (before the arrival of COVID-19) there were already 7 million people working remotely in the U.S., or 3.4 percent of the population.
- Nearly one in five chief financial officers surveyed last week said they planned to keep at least 20% of their workforce working remotely to cut costs.
7) Video Games
There is no doubt that video games and lockdowns are a perfect match. Not only are sales going through the roof, but operations have remained pretty steady compared to most industries. In contrast to many other economic sectors that are drastically affected by the pandemic, the video game industry has been proving to be more resilient.
Most video game developers, publishers and operators were able to maintain operations with employees working from home to sustain game development and digital releases. The biggest challenge has been keeping up with demand, although there have certainly been major delays to hardware due to supply chain disruptions. The video game industry also heavily relies on events to showcase new releases.
- The NPD Group reported that video game sales in North America in March 2020 were up 34% from those in March 2019, video game hardware up by 63% – which includes more than twice the number of units of the Nintendo Switch console.
- Movements like #PlayApartTogether, a campaign by 18 video game companies to encourage people to play video games as a means to maintain physical distance while still connecting socially with others, has helped position video games in a more positive light.
8) App Industry
Mapping out the growth of the app industry has been tricky. There are apps that are thriving and others that have been severely hurt. There has been a big increase in the demand for apps that fall in the remote work and education categories. But on the other hand, downloads for apps like ridesharing and fast food have been declining.
But as an industry, apps are experiencing steady growth and is expecting to continue growing in the future The top downloads during the lockdown have been for the followings apps: Zoom, Tiktok, Hangouts Meet, Houseparty, Google Classroom, Perfect Cream, Newsbreak, Save the Girl, and Microsoft Teams.
- Worldwide consumer spending in mobile apps is projected to reach $171 billion by 2024, which is more than double the $85 billion from 2019.
- Global spending on mobile apps will surpass $100 billion for the first time in 2020, growing at approximately 20% year-over-year to hit $102 billion.