The last few years have been very crucial for the global economy. First, the impact of Covid and now, the ongoing Russian Invasion of Ukraine has hit almost every country in the world economically. In such a situation, as industry leaders recommend, it has become crucial to shortlist the best industries to invest in 2023 on the basis of different factors such as market size, projected growth rate, targeted revenue, stock prices, and more. For better ROIs, considering the key components before finalizing any investment in an industry is a smart move.
As you might have understood, in this blog, we are focusing on talking about the most profitable industries that can be beneficial for investors in short-term or long-term investments. We will list down some of the most profitable industries in the future and discuss a little about each of them. So, without further ado, let’s begin!
What industries are best to invest in?
To answer this question, we are going to shortlist a few recommendations that are preferred by the best investment companies across the world. To prepare this list of the fastest-growing industries, we have used top sources such as Yahoo Finance, IBIS World, etc for data. So, hopefully, these below-listed most profitable industries to invest in will help you in making wise investment decisions.
1. Software Industry
A Statista report says, by the end of 2022, the global software market is expected to generate a revenue of $593.40 billion. Currently, more than 6 billion people across the world use digital technologies across the world as a part of their everyday lives. From ordering food to selling a product, assisting the best aerodynamics companies to assisting digital marketing companies, the software is everywhere. And despite economical crises like Covid, plenty of best companies to invest in sustained due to the increased demand for digital technologies that could keep the world connected and functioning. Additionally, the most profitable small businesses are finding ways to leverage the software industry to reach and serve an extended range of target markets.
2. Healthcare Industry
The healthcare industry has kept evolving and growing with time, especially due to the median change that keeps happening in the population. Additionally, the industry has transformed quite a lot as well within a couple of decades. In the current era, plenty of best mobile app development companies have merged digital technologies and healthcare opportunities to create on-demand healthcare services. An Insider Monkey report shows, in the US market, 17.8% of the revenue comes from the most profitable businesses in the healthcare industry. Relatively, the healthcare industry has seen a 7.3% growth on average since 2017 as well.
3. Insurance Industry
In the US market, insurance-based businesses are also considered one of the most profitable businesses. The data for the most profitable industries shown in the above image displays how these insurance companies contribute to the massive US economy. The Insurance Industry report also shows that by the end of the year 2021 total revenue generated by the industry was $945.7 billion compared to the total revenue of $881.2 billion in 2020.
4. Fitness Industry
People are becoming more aware of the importance of fitness due to the increasing amount of obesity, growing cases of cancers, Covid-19 and its variants, and more. Lots of top design companies from the IT sector have started leveraging the fitness industry already by shifting plenty of fitness services to digital devices. The growing demand for fitness sensors, smartwatches with fitness features, fitness apps, and more has become an opportunity for the most profitable small businesses.
You can also refer to the above image that shows a 33.6% of growth in 2017 compared to 2008 in the number of healthcare club memberships. The same data also shows that the US leads the world with the most memberships and club counts. However, Brazil holds the second highest position in the club count while Germany is in the second position with the second most memberships after the US.
5. Commercial Banking Industry
Commercial banks could easily lead the US economy as one of the best companies to invest in. Most of the income of these banks is based on loans and the interest rates that they earn on them. By offering facilities such as savings accounts, fixed deposits, and other such ways to attract money from customers, these best investment companies use customer reserves to loan others money. Now, these loans can be credit cards, vehicle loans, personal loans, and more. Additionally, according to the IBIS World report, this one of the most profitable industries to invest in has made a profit of $313 billion.
6. Legal Industry
Projected to earn $78.7 billion of total profit in 2022, law firms in the US are in demand. This one of the best industries to invest in 2023 is in demand for legal services ranging from legal practices to criminal cases. Even the most profitable small businesses in the legal industry are involved in practices such as performing roles of legal advisors for companies, taking care of contracts for various parties, real estate-related procedures, and more.
7. Portfolio Management Industry
The rising hold on assets by more and more people across the globe has also empowered the culture of portfolio management companies. These key players of one of the fastest-growing industries are charging asset owners a fee or commission to manage their portfolios. Additionally, in 2023, this one of the best industries to invest in 2023 also generated a profit of $145.5 billion in the same year. Now, as the global market is also seeing a rise in the prices of assets, the best investment companies recommend investing in the portfolio management industry in 2023 for opportunistic returns.
8. Tutoring Industry
The above image is a reflection of the online tutoring industry that has seen rapid growth across the US since 2012. Now, this already ongoing growth got a significant boost as well when Covid-19 spread and the entire world had to go into lockdown. During this period, plenty of startups such as Coursera, Khan Academy, Byju’s, etc kept students connected with the help of on-demand educational content and e-learning apps. These tutoring businesses helped students of different educational levels and specializations. Additionally, with the help of technologies such as video conferencing apps, the internet, and more, it has become for these companies to thrive and operate their operations smoothly.
9. Delivery Industry
The delivery industry is seeing a rise in demand as the number of companies delivering products and services is increasing as well. From Amazon to DoorDash, delivery companies are turning out to be one of the most profitable businesses across the globe. In 2022, the delivery industry saw a rise of 4.8% in its market. The total market size of the industry is projected to reach a threshold of $149.6 billion by the end of the year.
10. Digital Marketing Industry
With a rise in businesses involved in online services, the digital marketing industry is blooming as well. The demand for the digital marketing industry is impacted by the digital transformation market that has attracted more and more businesses to join the world of the internet. A Markets and Markets report shows the global digital transformation market is expected to reach $1,548.9 billion by 2027 at a CAGR of 21.1%. This one of the most profitable industries is growing as more and more organizations are investing in increasing their virtual visibility. In such a massive competition, companies are trying to grow and survive by using methods that can reward them with a boosted brand image and reputation so more potential customers can find them.
Wrapping Up
2023 is a year where most industries are trying to revive themselves after the Covid aftermath. However, it is also well clear that the impact of Covid paired up with the Russian invasion of Ukraine has impacted the growth and sustainability of the global economy crucially. Thus, the year is witnessing job cuts and unpredictability in the stock markets across the globe as well. Relatively, as the above-mentioned numbers for each industry show, these most profitable industries to invest in that we discussed in this blog are currently some of the rare industries that still possess a very high potential for good ROIs in the near future. So, we hope that this blog on the best industries to invest in in 2023 turns out to be useful to you.
Also, if you are an aspiring entrepreneur, you should check out our detailed blog on Bootstrapping vs Venture Capital - The Right Funding Strategy for Your Business.
By Sakshi Kaushik
Content Writer
A passionate writer and tech lover, she strives to share her expertise with mobile app developers and fellow tech enthusiasts. During her moments away from the keyboard, she relishes delving into thriller narratives, immersing herself in diverse realms.
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