THE NEW ROARING '20S: INDUSTRIES TO WATCH IN 2021
History proves that after periods of tribulation, society doesn’t just survive—it thrives. Today, as vaccination efforts continue and more countries approach herd immunity, many are looking forward to a global post-COVID economic boom. The second Roaring ‘20s will be characterized by technological advancements and rising standards of living for everyone. In the short term, economists predict a widespread rebound in the industries most directly impacted by COVID (hospitality, travel, entertainment, etc.). In this article, we’re highlighting some not-so-obvious sectors that are also poised for incredible growth.
The pandemic has fueled a rapid expansion in online retail. In the United States, e-commerce experienced a 32.4% increase in 2020, and many experts predict this trend will continue long after the world recovers from the virus. In the span of just a few months, the United States has “vaulted forward ten years in consumer and business digital adoption.” Online retail will be worth $740 billion by 2023. According to recent reports, over 75% of people have purchased an item online in the last month. Even as stores and restaurants continue to re-open, online retail will not disappear. COVID-19 has permanently reshaped consumer behavior. Black Morgan, a senior contributor at Forbes, writes “Consumer trends show that e-commerce will continue to grow, and companies need to be continuing their digital transformations to provide great service, both online and in store.”
Currently, electric vehicles (EVs) represent only 1.6% of total cars sold in the United States, but the U.S. EV market is projected to grow by 27.5% over the next five years. It’s no secret that the future of transportation is electric. The meteoric rise of Tesla highlights the massive shift taking place in the automotive industry. This growth will be driven by increased emissions standards from the federal regulators and the launch of Tesla competitors. Companies like GMC, Volkswagen, Ford, Lucid Air, and Riven are poised to launch their own EV models, which will compete directly with Tesla and grow the overall sector. As companies continue to build out nation-wide infrastructure networks to support EVs and solve issues like long charge times, this market is positioned to see major gains in the coming years.
The medical cannabis market is projected to grow by 19% over the next five years, and the recreational market is projected to increase 23% by 2025. Currently, 35 states have passed legislation allowing for medical marijuana use. Eleven of those states have also legalized recreational use of marijuana. More importantly, the U.S. federal government is seriously considering decriminalization. The M.O.R.E. Act, which was originally delayed due to COVID-19 relief legislation, was passed by the House by a vote of 228-164. The bill is currently under consideration in the Senate. If the bill is signed into law under the Biden administration, it would remove the last major barrier for the legal cannabis markets. The total market would be worth $41.5 billion USD. While the growth of this industry will be primarily driven by decriminalization, CBD and THC infused and concentrate products, like beverages, oils, and edibles, are predicted to play a major role in the long-term growth of this industry.
Cybercrime is up 600% due in part to the COVID-19 pandemic. With the increase in e-commerce, remote work, and online learning, the cyber security sector has never been more important. In 2019, the cyber security industry was valued at $156 billion, and the U.S. cybersecurity is expected to grow 10% over the next seven years. The interconnected world of online-compatible products, otherwise known as the internet of things, will drive much of this growth. These “products enabled with IP sensors are anticipated to introduce vulnerabilities to the user data, if they have not been adequately tested.” Over the next decade, the average customer will increasingly rely and demand on secure communication networks for their homes and businesses.
The financial technology (FinTech) industry is expected to grow by 8.6% over the next 5 years in the United States. Globally, the fintech market will grow by 23.58% as FinTech companies expand into developing economies. The entire industry will be worth $305 billion by 2025. Historically, the financial industry has been resistant to technological disruption seen in many other industries; however, as Gen Z steps into the workplace as independent consumers, this could be changing. These consumers want “seamless or on-demand access” to their financial services. Digital financial services are the future. “46% of people exclusively use digital channels for their financial needs.” Many fintech companies have seen widespread adoption over the past several years, and their services are “fast becoming the norm.”
Want to take advantage of the explosive growth happening in these sectors? CASTUS has direct experience working with companies in many of these trending industries. We help our clients achieve their goals by providing objective insight, constructive motivation, and exceptional service. We’ll strategize with your business to unlock new markets, drive revenue, and reach new customer segments.