10 Best Growing Industries To Invest in for 2022 (2022)

Investing / Stocks

By Daniela Rivera-Herrera February 16, 2022
  • About Emerging Industries
  • Top 10 Emerging Industries

10 Best Growing Industries To Invest in for 2022 (2)

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(Video) 14 Growing Industries of the Future [2022 Edition]

The stock market is ever-changing and sometimes its ups and downs can be rather unpredictable. With the continued effects of the current global events, investors need to pay close attention to the market transformation to place their bets safely. Keeping tabs on emerging industries will let them identify the trends that could shape the investment landscape in the new year.

What Is an Emerging Industry?

As the market evolves and certain technologies start becoming obsolete, new companies and organizations with innovative products and services tend to appear. When a small group of businesses in the same sector are centered around a specific new concept or technology in an early development stage they form what we know as an emerging industry.

Investing in emerging industries could potentially give your portfolio:

  • Diversification
  • Growth

Top 10 Emerging Industries To Invest in for 2022

For those looking to diversify your portfolio in 2022, here are the top 10 emerging industries to keep an eye on:

1. Cloud Computing

The remote working trend has gained massive popularity in the past decade — however, the global circumstances brought by the pandemic have expedited the transition into it since 2020. As remote workers and companies need ways to facilitate their daily operations, cloud computing technologies have come to the rescue.

The worldwide cloud computing market size is expected to reach $1,251.09 billion within the next six years. This would lead it to register a compound annual growth rate of 19.1% between now and 2028. Some of the best stocks to invest in cloud computing are:

  • Salesforce
  • Zoom Video Communications
  • Veeva Systems
  • Unity Software
  • The Trade Desk

2. Biotechnology

The successful development of vaccines to combat the ongoing pandemic has meant a significant increase in popularity for the biotech industry. In the past months, venture capital funding for the life sciences reached record highs raising more than $30 billion in the U.S. Pacific Northwest.

The global biotechnology market size is forecasted to reach $2.44 trillion by 2028, recording a compound annual growth rate of 7.4%. There’s no doubt biotech is becoming a booming industry attracting many entrepreneurs and investors. Some of the best companies to invest in within this fast-growing sector are:

  • Axsome Therapeutics
  • Exelixis
  • Novavax
  • Regeneron Pharmaceuticals
  • Vertex Pharmaceuticals

3. Data Analytics

This emerging industry has become the core of business success across all sectors. Companies are now prioritizing data gathering and research as a vital business operation that serves as a guiding axis for building solid strategies in product development, customer satisfaction and more. In fact, the global business intelligence market is currently valued at $30.9 billion. Some of the best stocks to buy in data analytics this year are:

  • Snowflake
  • Splunk
  • Elastic NV
  • Alteryx
  • Datadog

Building Wealth

4. Artificial Intelligence

To the delight of many sci-fi enthusiasts, AI is everywhere these days. This industry has placed many sectors under a new light by allowing them to automate many of their essential tasks and providing them with state-of-the-art technologies. No wonder why the global AI market size is expected to reach a compound annual growth rate do 40.2% by 2028 and is likely to make over $190.61 billion by 2025 [ 7]. Some of the stocks you could add to your AI repertoire are:

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  • C3.ai, Inc.
  • SentinelOne, Inc.
  • Palantir Technologies Inc.
  • DocuSign, Inc.

5. Real Estate

We’re living in uncommon times, and the current economic threat presented by the pandemic has left many wondering if investing in real estate is worth it in 2022. Low mortgage rates could mean having access to lower real estate loans is possible, which means purchasing property and leasing it out could bring higher profits.

However, the Federal Government is expecting to end its mortgage stimulus program by April this year, bringing significantly higher mortgage rates going forward. This could put pressure on real estate investors to get their hands on some property before the first quarter of the year is over. Rather than purchasing a piece of property, investors could put their money on real estate investment trusts. The following have the most momentum as of January 2022.

  • Life Storage Inc.
  • Mid-America Apartment Communities Inc
  • Russell 1000
  • Real Estate Select Sector SPDR Fund

Good To Know

Emerging industry stocks are often volatile and hard to value. This makes them prone to experiencing significant price swings. But while investing in an emerging industry can pose some challenges and risks, early investors can always stumble upon the next big thing. After all, every big industry had to start somewhere.

6. Green Energy

Experts state that renewable energy is the fastest-growing energy source in North America. This emerging industry has increased by nearly 100% in the past ten years. With the federal government funding clean energy, the coal industry decline is rapidly accelerating. According to Forbes, 2022 will represent a record year for renewable energy deployment. That said, here are the renewable energy stocks to keep on your radar.

  • Atlantica Sustainable Infrastructure
  • ChargePoint Holdings
  • SunPower

7. Pharmaceuticals

The current global situation has brought to light how important the pharmaceutical and healthcare sectors are. The demand for better and more effective treatments for known ailments and emerging diseases will never end, and this will keep pharmaceutical and health-focused companies thriving for years to come. The U.S. Bureau of Labor Statistics indicates that in the next seven years, the healthcare sector will produce about 2.6 million jobs. That’s an excellent indicator of how much this industry is growing. Some outstanding pharmaceutical stocks in 2022 are:

(Video) 14 Growing Industries of the Future [2022 Edition] | Best Industries to get into!

  • Pfizer
  • Johnson & Johnson
  • Bristol Myers Squibb
  • AbbVie

8. Internet of Things

Nowadays, consumers want smart everything, and that’s where the IoT industry comes in. Its heavy integration in the electronic market has massively increased this sector’s chances of growth. The global market for IoT solutions is expected to reach $1.6 trillion before 2025. Some promising stocks in this emerging industry are:

  • Cisco Systems
  • Dexcom
  • Impinj

9. Information Security

With the increasing demand for IoT systems, cloud computing and other internet-dependent tools, the rise of the cybersecurity industry is imminent. The cybersecurity market size is forecasted to reach $345.4 billion by 2026, recording a compound annual growth rate of 9.7%. The top cybersecurity stocks and finds to buy this year are:

  • CrowdStrike Holdings
  • Zscaler
  • Fortinet
  • Tenable Holdings
  • Okta

10. Sustainable Industries

In 2022, businesses and individuals are increasingly showing their commitment to leaving a cleaner and fairer world for the new generations. As the consumer reflects on the impact of the products and services they purchase, they’re beginning to look for eco-friendly, socially responsible brands. That’s why businesses that focus on environmental and social causes are rising in popularity.

Two years ago, the worldwide green technology and sustainability market size was valued at $10.32 billion. In just ten years, it’s projected to reach $74.64 billion and reach a compound annual growth rate of 21.9% in the forecasted cycle. The top ESG — which stands for environmental, social and governance stocks –to buy this year are:

  • Microsoft
  • NVIDIA
  • Coca-Cola
  • ASML Holding
  • Danaher
  • American Express
  • NestExtra Energy

Final Take

Investing in an emerging industry can certainly pose some risks, but they’re also an excellent opportunity for early investors to stumble upon a gold mine.

Up-and-coming stocks can end up being rewarded with rising price-to-earnings multiples and bring investors significant stock gains. However, as with any other investment, is essential for investors to do some research and monitor market trends before putting all their eggs in one basket.

Information is accurate as of Jan. 21, 2022.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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FAQs

Which sector is best for investment 2022? ›

The consensus seems to be that the financial sector, industrial sector, capital goods will do well in 2022. Pharmaceuticals are also looking to make a mark, and a few experts have placed their bets on real estate and automobiles while others have advised against them.

What businesses will grow in 2022? ›

Industries to consider for business ideas in 2022
  • Sustainability. ...
  • Pet services. ...
  • Fitness. ...
  • Digital events and conferences. ...
  • Home improvement. ...
  • Freelancer support.
Oct 11, 2021

Which industries will do well in next 10 years? ›

List of the Top Sectors in India that are Most Likely to Provide Excellent Returns-
  • Healthcare and Insurance Sector. ...
  • Renewable Energy Sector. ...
  • IT Sector. ...
  • Real Estate Sector. ...
  • Fast Moving Consumer-Goods Sector (FMCG) ...
  • Automobile Sector.
May 19, 2022

What are the 5 fastest growing industries? ›

Here are the top 12 fastest-growing industries in the U.S.:
  • Information technology.
  • Construction.
  • Drink manufacturing.
  • Personal services.
  • Direct retail.
  • Finishing contracting.
  • Real estate.
  • Trucking.

Which industry will boom in 2025? ›

Artificial Intelligence (AI)

According to an International Data Corporation (IDC) report, India's AI industry is predicted to reach $7.8 billion by 2025, rising at a CAGR of 20.2%. By the end of 2025, the AI software category will have dominated the market, growing at a CAGR of 18.1% from $2.8 billion in 2020.

Which sector is booming right now? ›

Some of the fastest-growing sectors in India are automobile, renewable energy, textile, retail, FinTech, pharmaceuticals, real estate, healthcare, and chemical.

Which industries will boom in 2022? ›

THE TOP 11 FASTEST GROWING INDUSTRIES IN 2022 LIST – PREDICTIONS
  • ARTIFICIAL INTELLIGENCE. Most websites and apps these days are monitoring and tracking our online behaviour and preferences. ...
  • SOFTWARE. ...
  • HOME ENTERTAINMENT. ...
  • ASSISTIVE TECHNOLOGY, PRODUCTS AND SERVICES. ...
  • “NON-CONTACT” MOBILITY. ...
  • GARDENING AND HOME DIY PROJECTS.
Sep 17, 2022

What will be the 5 fastest growing industries between now and 2022? ›

Global Fastest Growing Industries in 2022
  • Global Airport Operation. 2022-2023 Revenue Growth: 47.2% ...
  • Global Hotels & Resorts. ...
  • Global Travel Agency Services. ...
  • Global Tourism. ...
  • Global Airlines. ...
  • Global Casinos & Online Gambling. ...
  • Global Commercial Aircraft Manufacturing. ...
  • Global Deep-Sea, Coastal & Inland Water Transportation.

Which business will grow in next 5 years? ›

Here is the list of future business ideas in India for 2022 which have bright future for 2025, 2030 and 2050 and beyond.
  • 1) Outsourcing business. ...
  • 2) Internet of things (IoT) industry. ...
  • 3) Rise of co-working space. ...
  • 4) 3D printing. ...
  • 5) Consumer goods and services business. ...
  • 6) Business in real estate. ...
  • 7) Healthcare industry.
Sep 3, 2022

Which industries are most profitable? ›

The 10 Most Profitable Industries in the US
  • Commercial Banking in the US. ...
  • Life Insurance & Annuities in the US. ...
  • Portfolio Management in the US. ...
  • Software Publishing in the US. ...
  • Property, Casualty and Direct Insurance in the US. ...
  • Private Equity, Hedge Funds & Investment Vehicles in the US. ...
  • Health & Medical Insurance in the US.

What is the best industry to invest in? ›

13 Best Industries to Invest in for 2022
  • Biotechnology.
  • Artificial Intelligence.
  • Home Technology.
  • On-Demand Services.
  • Green Energy.
  • Environmental, Social and Governance.
  • Healthcare and Pharmaceuticals.
  • Telemedicine.
Jun 20, 2022

What are the next big industries? ›

For those looking to diversify your portfolio in 2022, here are the top 10 emerging industries to keep an eye on:
  • Cloud Computing. ...
  • Biotechnology. ...
  • Data Analytics. ...
  • Artificial Intelligence. ...
  • Real Estate. ...
  • Green Energy. ...
  • Pharmaceuticals. ...
  • Internet of Things.
Feb 16, 2022

What industries will always be in demand? ›

  • Food. Food is required for life and this means demand will always be high. ...
  • Pharmaceutical. The pharmaceutical industry has experienced impressive growth globally. ...
  • Healthcare. ...
  • Education. ...
  • Sin Industry. ...
  • 6. Entertainment and Media. ...
  • Professional Services.

What businesses are likely to disappear in the future? ›

15 Disappearing Jobs that Won't Exist in 2030
  • Travel agent. ...
  • Cashier. ...
  • Fast food cook. ...
  • 4. Mail carrier. ...
  • Bank teller. ...
  • Textile worker. ...
  • Printing press operator. ...
  • Sports referee/Umpire.
May 17, 2021

What are the top 10 stocks to buy in 2022? ›

Top 10 Stocks To Consider in 2022
StockPriceMarket Cap
Devon Energy Corp. (DVN)$65.12$43.128 billion
Marathon Oil Corp. (MRO)$25.76$17.455 billion
Qualcomm Inc. (QCOM)$124.77$143.104 billion
Berkshire Hathaway Inc. (BRK-A)$419,869$608.826 billion
6 more rows

What is a good sector to invest in now? ›

Health care has been the top investment sector for the past decade.
...
Health Care
  • Hospital conglomerates.
  • Insurance companies.
  • Institutional services.
  • Drug manufacturers.
  • Medical instrument makers.
  • Biomedical companies.

Will financial stocks do well in 2022? ›

The financial sector was one of the S&P 500's biggest winners last year and market strategists believe the best financial stocks to buy for 2022 will outperform by wide margins once again. In 2021, financial stocks delivered a total return (price appreciation plus dividends) of 35%.

Is 2022 a good time to invest in mutual funds? ›

As it can be seen that the mutual fund industry is expected to go up in 2022, one should also make some investments in the same. Therefore, the investors can look into Axis Bluechip Fund, BNP Paribas Large Cap Fund, Mirae Asset Large Cap Fund, Canara Robeco Bluechip Equity Fund, and Edelweiss Large Cap Fund.

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