The majority of medium and large investors are always on the lookout for new opportunities. Although the last ten years were somewhat static, favoring industries such as IT and pharmaceuticals, new contenders are always on the horizon.
We’ve seen an increased demand for particular services in the last few years. Although the investors are still zeroed-in on high technology, some traditional industries are making a major comeback. This article will review the seven best industries to invest in 2022.
Biotechnology, or biotech, is a science that uses living organisms to make various types of products. This particular sector works closely with industries such as biofuels, plastics, agriculture, health care, etc. Most notably, biotech companies significantly impact the development of modern medicines.
According to financial experts, this industry will likely experience annual growth of 10% to 15% in the next ten years. But this also comes with a set of risks. Many people are reckless when investing in this industry, inflating the stock prices of related companies. This makes it harder to assess the actual value of an up-and-coming organization.
2. Artificial intelligence
AI will likely supersede the value of $300 billion by 2026. Companies in this field develop machine learning solutions, language processing, AI applications, and similar products.
The most important thing about artificial intelligence is that most economic entities are excited about this technology. Companies are looking forward to implementing all these solutions, so there is a massive public and business demand for such products.
In terms of the risks, investors can expect issues such as security breaches, ethical issues, and potential regulatory bans. In other words, even if your company invents a revolutionary product, there is a chance they won’t be able to put it on the market.
3. Commercial cleaning
Although commercial cleaning might not be as flashy as the previous two entries, it is an excellent choice for medium investors. Besides stocks and bonds, many people are interested in buying small business entities and running operations themselves.
For example, numerous investors are looking for an excellent commercial cleaning franchise for sale. Like many industries, the biggest challenge is recognizing the right opportunity.
4. Environmental and social
It is no secret that environmental businesses have experienced enormous growth in the last ten years. Nowadays, consumers are willing to spend extra money to buy eco-friendly products. A similar can be said for socially responsible companies.
The rise of this sector has been especially noticeable since the onset of the pandemic. The morality of large, global employers was put to the test, and some of them failed miserably.
Although investing in social and environmental companies sounds nice, you need to find businesses that can balance profitability with responsibility. As bad as it sounds, you won’t be able to make any money if your company neglects finances while forcing ideals.
Speaking of the pandemic, telemedicine is another industry that has experienced enormous growth due to the “new normal.” It turns out that this technology works well for patients and medical practitioners, saving money and time for both groups.
Besides investors, insurance companies are the most interested in the development of this industry as it can reduce their business costs.
Although the sector has enormous potential, these products and services are unregulated, which might cause issues going forward. We are unsure how certain situations will be regulated, especially regarding prescription control and data privacy.
6. Cloud computing
Since introducing the first programs that work via the cloud, this industry has been continuously on the rise. Nowadays, most companies store their data on the cloud and use these platforms for anything from team collaboration to finances, logistics, etc.
The great thing about cloud computing is that it allows remote work. Programs such as Zoom and Skype are excellent for large teams whose members are in different locations and time zones. Among others, these platforms allow companies to scale their processes while giving them enormous flexibility.
7. Health and pharmaceuticals
Another year in a row, health and pharmaceutical companies remain among the best investments. The recent health crisis has reminded us how dependent we are on all these products and services. Furthermore, as the western population ages, the demand for these services will continue to increase.
Regarding risks, you should always be on the lookout for potential regulatory changes. The rising number of uninsured people is another thing to consider.
Photo credit: Artem Podrez