The conventional way to launch a startup is typically based on having an idea or a concept for service. However, more and more business owners are launching their companies based on the fastest growing and most profitable industries.
Chief among these industries is the global technology market – a dynamic and fast-moving industry that has given rise to thousands of successful new startups in recent years.
Although financial markets across the globe are showing signs of instability and many businesses are beginning to feel the punch of troubling economic times, there are nevertheless numerous startups being created and developing at an unprecedented rate.
Yes, there are systemic challenges to overcome, but these new ventures are thriving in a dynamic ecosystem. If you're thinking of setting up a brand-new startup business, keep reading to learn more about the most profitable sectors to launch in.
While there is no such thing as the perfect industry in which to launch startups, the technology industry certainly comes close. It takes a substantial amount of focus, ambition and hard work to be successful in any industry, but the tech space, in particular, has more potential for long-term growth and success than any other.
Tech sectors are fast-paced, enabling entrepreneurs to source or create brand-new products and solutions in a relatively short amount of time.
Furthermore, when you take a look at the varied list of companies that comprise the sectors we'll discuss later in the article, it's clear that there really is a place for every type of business.
Micro-companies exist alongside multinational corporations, meaning that any entrepreneur, anywhere, can pick a niche and make that part of the market their own. There's even room for business people who don't have a tech background to develop and run successful digital projects.
Gaming sectors as a whole are often a welcoming space for entrepreneurs looking to establish long-term startups, but the online gambling segment has proven to be especially profitable.
The widespread availability of remote gaming platforms, such as Joe Fortune's online pokies in Australia and digital World Series of Poker events in the US, proves just how great gaming audiences' appetites are for real money gaming.
This explosive growth in the global popularity of online gambling indicates a very bright future for new startups in the space.
The next sector we'll explore is the fast-growing FinTech segment. An amalgamation of Finance and Technology, fintech companies utilise advanced technologies to deliver financial services, including AI, blockchain, cloud computing and big data.
As we move further and further into the digital age, there's plenty of scope for continued fintech expansion – fintech already accounts for 7.1% of the global tech industry and is valued at approximately $309.98 billion.
Like fintech, EdTech is an emerging sector that blends cutting-edge technology with educational services or products. Edtech companies typically focus on developing solutions that are based on AI, augmented reality or virtual reality tech, as well as integration with the Internet of Things and, more recently, Web 3.0.
According to Grand View Research, edtech is set to grow at a CAGR of 19.9% to 2028 – placing its predicted value at around $1 trillion by the end of the decade.
The eCommerce sector shows no signs of slowing down any time soon, and that's despite the backdrop of rising inflation, lower consumer spending and supply-chain disruption that plenty of countries have been confronted with in recent months.
In 2022, market insight specialists Statista predicted that global eCommerce sales would hit around $5.4 trillion – that's just the figure for consumer retail sales alone.
This sector is also incredibly diverse, with current startups taking on several different forms, from online marketplaces to distributors or even digital intermediaries.
In much the same way technology has revitalised the financial and educational industries, tech is playing a vital role in shaping the future of healthcare.
2023 could actually be the ideal time to launch a brand new healthcare tech startup, as cloud technology is becoming ever more prevalent, which opens up increased opportunities for innovative new solutions.
Healthcare technology is another market set for substantial growth by 2028, with Grand View Research predicting the total market value to reach $166 billion.
A consequence of increasing digitisation and the growth of the digital economy is the increased risk of cybercrime. However, savvy entrepreneurs will see an increased need for cyber security products and solutions as a great opportunity to launch a potentially profitable startup.
No organisation, corporate entity or digital platform can afford to exist in the online climate without rigorous cybersecurity measures in place, which only increases the global demand for robust solutions. By 2029, the cybersecurity industry is expected to be worth over $376 billion.