We’ve all come across stories of people who made the right investment move at the right time: people who bought Bitcoin when it was worth just a few dollars, or who took a gamble on emerging tech stocks such as Amazon, Facebook or Google, and reaped the rewards.
Despite all of the economic ups and downs of the last few decades, the basic truth of investment remains the same. If you can find an emerging sector or company to invest in at the right time, you can generate a significant return. So, what do we mean by an emerging industry?
Most of the emerging industries today are tech-based. This is not surprising. The world of technology is a continual source of innovations and developments that shape our knowledge, business, and leisure time. You can now do all your shopping online, you can do most of your administrative chores, pay your taxes, and bank online. You can play at this new online casino or watch your favorite shows without ever leaving your home.
In fact, an emerging industry is often defined as being a group of companies that are operating in a sector formed around a new idea or product that is still evolving or being developed. With that in mind, here are some potential areas for investment in 2021:
Artificial Intelligence (AI) has already spread through many sectors of business and society and that trend is sure to grow stronger as the technology is developed and made more flexible. AI is a key component of the car industry, where it is used in manufacturing and even in self-driving vehicles, while virtual doctor consultations are helping to push back the boundaries of what is possible in healthcare. In the years ahead, AI will become an ever more important part of our world.
The concept of Virtual Reality (VR) is not a new one, and indeed, the technology has been around in some form or another for many years. What is changing is that the potential of VR is becoming understood outside of the gaming sector, where it has had its biggest applications. This is another area where the COVID-19 pandemic has had a dramatic effect, as VR is increasingly being used in the cultural, entertainment, financial, and academic sectors.
Alternative and renewable energy
Investing in alternative or renewable energy technology is not a new concept, but after decades of warnings about the deteriorating climate conditions of our planet, the need for new energy solutions has never been more urgent. Under the Joe Biden Administration, the US has rejoined the Paris Climate Accord and this U-turn by the world’s biggest economy is sure to drive support and confidence in companies operating in these vital sectors.
Big data and analytics
The technology known as big data analytics involves reviewing huge quantities of data and analyzing it for patterns and correlations. Being able to sift through large amounts of data and reach conclusions more quickly than ever enables companies and other organizations to make ever more informed decisions, and companies that use this technology will be at a distinct competitive advantage.
It is inevitable that as technology grows and changes, the demand for cybersecurity will grow ever stronger, while the technology that keeps our businesses and private data safe will need to develop to keep pace with advancements. The size of the cybersecurity market is likely to grow enormously over the next decade and those companies that can stay at the forefront of this sector could see significant growth and returns, as new cybersecurity technology pushes back the boundaries of what is possible.
Cloud computing has been transforming a wide range of business sectors and is becoming increasingly flexible and adaptable. In particular, the development of hosted private, on-premises, and public infrastructure for cloud technology means that data streams can be more mobile than previously, and our workloads can become more portable, enabling cloud computing to support a wider range of apps, processes, and services. Cloud computing is set to be a growth market for years to come and could contain some excellent investment opportunities.
There is no doubt that emerging industries in the technological sector are some of the most dynamic and exciting areas of potential growth and investment in 2021. These sectors can be volatile, so always ensure that you seek advice before making any investment decision and do your research thoroughly to maximize your chances of generating a good return.
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