More and more companies have started to invest in controversial or lesser-known high-tech industry sectors. If your company is like most, you’ve probably spent most of your time leveraging the power of social media, analytics data, social networks and cloud (SMAC) to take your company to the next level. But have you ever considered stretching the boundaries of your digital business and investing in new industries?
The Internet of Things(= the digitization of processes, services and products) has become a driving force behind many businesses, but with so many options to choose from, how do you decide on your priority investment? Below are 5 lesser-known, yet extremely profitable sectors that you should consider.
1. Mobile App Development
Technology is evolving at an alarming pace. Smart-phone penetration in the United States has reached the 75% mark and many customers are already expecting their favorite companies to provide them with a dedicated mobile app. In other words, mobile apps are no longer a luxury or means of gaining the competitive edge on the market, they are a necessity.
The ability to create highly efficient mobile apps for the world’s largest companies can lead to incredible profits. Many forward-thinking individuals have already transformed this into a digital business. As more and more smart-phones, mobile operating systems and tablets role out, the need for apps will increase. This sector of technology is definitely worth investing in.
2. Solar Stocks
According to Fool.com, there is probably no other industry with a greater potential for growth than the solar industry. Seeing as more and more countries are turning to alternative energy to eliminate fossil fuels and pollution forever, this shouldn’t come as a surprise. The solar industry has the power to surpass the electricity industry – which will be worth 4 trillion dollars by 2035.
If you’re set on investing in solar stocks there are a few things you should know. First of all, not all solar systems are created equal, and in this industry, the technology used matters. Secondly, the interaction between homeowner and solar system is extremely important for maximization of revenue. There are a lot of risks involved in this industry, but the potential winnings are immeasurable.
3. Electronic Cigarettes
One in every three adults is a smoker. What do they have in common besides their addiction? They all want to quit, or at least find a safer alternative. Two years ago, Forbes estimated the value of retail sales for e-cigarettes at $2.5 billion. The value of sales for eCigs is doubling each year and is expected to reach $39.6 billion by 2024. This is the perfect example of a true growth market.
Sure, in an effort to standardize safety, stricter electronic cigarette regulations will be implemented, but companies that have the necessary resources will be able to drive huge revenue growth. So how can you invest in this promising industry? Either by buying into ‘pure-play’ companies, or starting an online vaper shop.
4. 3D Printing Technology
The 3D printer industry may have had a slow start, but it’s finally catching fire. In 2013, 3D printer companies expected to sell between 60.000 and 100.000 dollars’ worth of equipment. The number doubled by 2015. 3D printers are now used for jet engine parts, medical equipment and in architecture.
“Overall, despite individual company performance, or lack thereof, there is opportunity for growth in the 3D printing market, and I would add 3D scanning and 3D design to the mix. The investment opportunity may come by buying stock in companies that use the technology versus only in those who manufacture the printers, for now. The industry still looks bright.” – Source: Forbes
5. The Digital Sector
According to Charlie Morris, of HSB Global Asset Management, the digital sector will go absolutely nuts this year. The biggest drivers in 2015 and 2016 will be innovators like Facebook and Zendesk. In addition to this, market opportunities in the security, data, analytics, cloud and mobile sectors shouldn’t be overlooked.
Cloud computing Industry Growth
In its comprehensive report “Digital Business Era: Stretch Your Boundaries”, Accenture identified several emerging themes that should be found in the digital power broker of tomorrow:
- The Intelligent Enterprise – investing in better, more intelligent software that will lead to operational evolution, innovation and efficiency.
- (R)evolution Platform – digital platforms that are becoming the go-to choices for the new generation. Revolution platforms provide entire ecosystems where next-gen products and services are available.
- The Internet of Me – The behavioral patterns of internet users are changing, thus prompting a response from digital companies – the focus has shifted on improving their digital experience.
Whether you want to invest in other companies, or looking for new business opportunities, the industry sectors mentioned above are your safest bet in 2015 and beyond.