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Grabbing investors’ attention: Top 4 profitable startup industries of 2022-2027

Updated: Sep 21, 2022

Entrepreneurs and startups are always looking for opportunities to explore within an emerging or existing industry. One way to predict where those opportunities may surface is by gaining insight into market trends (i.e. understanding where the market is headed), thereby giving entrepreneurs a glimpse into the future. It means having the choice to set up shop in an industry where growth is expected, and positioning the company favourably to provide in-demand solutions.

For startups, moving into the right industry at the right time can be the difference between success and failure; between launching a successful exit strategy or launching an unsuccessful product.

Based on business and technology projections for 2022 to 2027, here are four trending industries startups can invest in:

1. Sustainability Market: Green is the future. With much of the world’s natural resources under threat, the need to reduce environmental risks and conserve energy has increasingly become a global assignment. As a result, Green Technology and Sustainability Market projections are scaling higher each year.

According to a report by Markets and Markets, the Green Technology and Sustainability Market is expected to have a Compound Annual Growth Rate (CAGR) of 26.6% between 2020 and 2025. The market size is also expected to grow from USD 11.2 billion in 2022 to USD 36.6 billion by 2025.

More people are choosing clean energy and adopting eco-friendly lifestyles to suit the global agenda to reduce and conserve energy, making technologies such as nanotechnology and Radio-frequency identification (RFID) the way to go.

2. Artificial Intelligence (AI): The most promising innovation technology, according to almost 40% of entrepreneurs, is Artificial Intelligence (AI). Due to several limitations and challenges brought on by the pandemic, adaptation of processes into digital initiatives became a necessity for survival. AI provided the technology and flexibility many companies not only adapted to, but adopted to power their companies forward.

Companies are expected to invest more into AI and other related technologies such as Machine Learning (ML). According to Enterprise Talk, “the global market is expected to grow exponentially in the coming years, reaching around US $126 billion by 2025.”

3. Healthcare: Startups looking to provide solutions in the healthcare industry by connecting healthcare professionals to patients can be assured of making meaningful contributions now and in the future due to the prevalence of chronic diseases and the spread of viruses.

For example, Telemedicine, described by Forbes as “the very epitome of technology-driven healthcare and serves as a literal lifeline for thousands if not millions of people”, is expected to experience “rocket ship growth” between 2022 and 2027. The market is expected to grow from $79.79 billion in 2020 to almost $400 billion in 2027, with a CAGR of 25.8%.

Protective measures instituted during the Covid-19 pandemic, including isolation and distancing, have contributed to the current and projected growth of Telemedicine.

4. Cybersecurity: As more companies embrace digitization and digital infrastructure to build their businesses, it becomes imperative to keep out cybercriminals looking to take advantage. Taking into account the rise of remote working during the pandemic and the need to protect valuable data and resources, cybersecurity presents an opportunity for entrepreneurs hoping to catch a trending wave. The global market projection further supports that claim.

According to Mordor Intelligence, the “Global Cybersecurity Market was valued at USD 132.94 billion in 2021, and it is predicted to grow at a CAGR of 14.1% from 2022 to 2027.”

If you are looking for startup ideas, hoping to scale an existing one, or searching for fresh investment opportunities, these four startup trends are sure to guide your decision-making process.

Timing is crucial for entrepreneurs and startups looking to reap the rewards of the current trends. The time to start is now.


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