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Uzone.id — Many entrepreneurs launch a startup based on a concept or idea for a product or service, but the game has changed–at least for the past few years. After the pandemic hit, the business landscape kept evolving at a fast pace.
The fastest-growing sectors startups attract huge interest from investors, new opportunities for startups emerge as the value gets higher. That’s why choosing the right industry can be a game changer for your startups. Here are the top five industries that are poised for massive growth in 2024 (and 2025).
Sustainability and Green Technology (ESG)
Study by Stanford University shows that two-third of Gen Z consumers are concerned about sustainability, and 70 percent are willing to pay more for eco-friendly products.
As a result, companies are developing their own solutions in this area and purchasing startup developments, like recyclable packaging to logistical solutions that can reduce carbon emissions, etc.
As climate change becomes a bigger concern globally, startups in the sustainability area are also gaining more attention. This year, industries that include area to the 17 UN Sustainable Development Goals (SDGs) like ClimateTech, UrbanTech, renewable energy, eco transport, social projects, etc attract more investor’s interest in the field right now.
Based on Statista reports, 50 percent of professional investors worldwide plan to increase funding for socially relevant projects in 2024.
Artificial Intelligence
OpenAI with its AI product, ChatGPT, is a trendsetter. Their popularity blew up the market and brought revolution to the investment activity. Till this day, AI is still the hottest area that is catching the attention of investors.
Remember when Microsoft made a big move by investing USD10B in OpenAI? That’s just the start. On top of that, more than 70 rounds in the total amount of about USD100M were dedicated to startups that create models, provide infrastructure or apply technology for a specific application.
According to a report from PWC Global, AI could contribute up to $15.7 trillion to the global economy in 2030, more than the current output of China and India combined.
Artificial Intelligence (AI) uses computers and machine learning to mimic human thinking and problem-solving and AI assistants (chatbots) like GPT-3.5 or GPT-4 language models are one of the results.
These assistants have built-in prompts (tips or instructions), so you just need to select the right assistant for the task and briefly explain the task.
For now, there are around 3 million versions of AI assistants for a variety of tasks: from program training, and dating training, to casual movie selection.
Health Tech or Telehealth
Silicon Valley Bank stated that 2023 was the third biggest year for the USA venture capital investments in healthcare projects over the past decade.
After Covid-19 hit, the health industry is still undergoing rapid digital transformation and it has become a goldmine for startups. Statista reported that the health industry is still going strong with the global health tech market predicted to hit $660 billion by 2025.
Startups and innovators build tools, machines, platforms, or devices that offer everything related to healthcare, from telemedicine, and online healthcare treatment to wearable health trackers.
“Telehealth is just the beginning. The future of healthcare is digital,” says Brett Plotzker, founder of Patch.
Financial Technology or Fintech
The fintech industry remains strong until now, in fact, it isn’t slowing down anytime soon. The fintech industry began to grow rapidly after the 2008 global financial crisis, it’s the era when people lost trust in traditional financial institutions.
According to the McKinsey report, in July 2023, the market capitalization of publicly trading fintech companies amounted to USD550 Billion, which is twice as much as in 2019.
Forbes estimates that the global fintech market will grow at a compound annual growth rate of 23.58 percent by 2026, reaching USD324 billion.
With traditional banking systems getting disrupted by tech-savvy alternatives, consumers are leaning towards faster, more transparent financial services. Startups offer services such as digital payments, digital banking, personal finance management, and blockchain solutions.
Digital Marketing Tech
Digital marketing is a thing right now, even becoming more common and powerful in the marketing world. Digital marketing is all about promoting products and services online through websites, apps, social media, search engines, and more, using devices like phones, tablets, and computers.
Unlike old-school marketing like billboards and magazine ads, digital marketing is more flexible and efficient. It’s data-driven, so you can build strategies in real time based on what’s working or not.
According to a Forrester report, the global market for marketing technologies is expected to grow by 13.3 percent a year in the coming years.
Its growth is largely influenced by major B2C brands when they spent 18 percent of their marketing budget on technology. This share is expected to grow further, with data management (AI and machine learning) as the main item for investment.
