Are you looking for the best business to invest in? This guide will teach you what the most profitable business will be in 2022.
What is the Most Profitable Business may surprise you. Technology has allowed almost anyone to start a business from the comfort of their home, meaning there are over 20 million small businesses in the United States alone!
What is the Most Profitable Business In 2022
With so many opportunities to earn income and make money on the internet, it’s not surprising that online businesses continue to be more and more popular every year! If you’re interested in starting your own online business, here are the most profitable businesses that will dominate the industry by 2022!
The Gen Z Effect
Already a powerhouse in our culture, Gen Z will make their presence felt on a global scale. Companies that can tap into their sensibilities early will be rewarded with a workforce that is not only well-informed but also highly invested in their company’s success. The challenge for those companies? Finding ways to appeal to young adults who have been raised on social media and video games—meaning an aesthetic rooted in virtual reality may be more appealing than traditional office cubicles.
Additionally, Gen Z has shown an affinity for entrepreneurship; many members of Generation Z want jobs with both high salaries and flexibility so they can spend time with friends and family. This means flexible work hours, telecommuting opportunities, and job sharing are likely to become more popular trends among employers looking to attract Gen Z employees. [3]
The Baby Boomer Effect
Demographics have always been a key driver of any economy and never more so than in today’s technology-driven landscape. The reason is simple: workers are different people than consumers, and younger workers make different consumption choices than older workers. The most powerful demographic in every country is, arguably, baby boomers—people born between 1946 and 1964 who are about 53 to 71 years old.
Boomers account for about 25% of all expenditures by U.S. households and are projected to control two-thirds of household wealth by 2025 (for context, there were over 76 million boomer children born between 1947 and 1964). How will they spend their money?
The Millennial Impact
Millennials are poised to make a massive impact on our country’s economy. As of 2019, there are 92 million of them and they already represent nearly half of all workers in America. And as they age, their earning power will go up—while ours goes down! It’s not too hard to see why so many companies have tried to tap into their buying power by targeting them with specific products and services. If you think about it, marketers have been doing it for years: just look at how every single cereal box advertises itself specifically towards kids.
How Technology will Disrupt Every Industry
Almost every business out there today is being disrupted by technology in some way. While some markets are growing, others are shrinking; employment rates for many careers are decreasing, and employment rates for others are increasing. Here’s how you can harness technology to make your career—and maybe even an entirely new market—more successful than ever before.
An Analysis of Each Industry
Below, we analyze each industry in terms of growth, profit margin, and annual revenue. We also have a list of new business ideas that might interest you. If your current employment is not interesting or if you don’t feel comfortable with your skills, now would be a good time to consider making a change!
Reading our guide on starting a business will help! It has excellent information and strategies on how to start your own business. With no entrepreneurial experience? Don’t worry; it shows you how to make money without any capital investment or credit!
Financial Services Industry
The financial services industry is one of the largest in terms of revenue, with companies like JPMorgan Chase and Capital One holding their own against tech giants like Apple. Financial services provide many opportunities for entrepreneurs, including lending to consumers and businesses, investment services (stocks, bonds), mortgage services, and insurance.
The financial crisis of 2008 left an opening for new entrants into some types of banking and insurance but also left a tarnished view among consumers. That said, according to IBISWorld’s report on financial service industries in 2018, gross revenues are expected to be about $4.7 trillion annually by 2022 (representing a more than five percent increase from 2017). The most profitable business in 2032 will be at least partially associated with finance.
Telecom and Internet Services Industry
These businesses can be capital-intensive and compete for market share with large companies that have deep pockets and brand awareness. However, many industries have been forced to converge and adapt to new technologies, leaving telecoms & internet services as one of the few areas that continue to grow unabated by economic cycles.
Overall industry revenue is expected to hit $2 trillion in 2022; most big growth will come from emerging economies in Asia, Africa, and South America. While competition is tough in developed countries such as those found in Europe or North America, there are still plenty of opportunities for smaller companies willing to take risks and adapt quickly to changing market conditions.
Retail Industry
With $2.8 trillion in sales worldwide, retail is big business and it’s only getting bigger. As consumers continue to shift away from physical stores toward digital shopping, e-commerce revenues are projected to grow by 20% per year over the next five years, reaching a total of $4.88 trillion worldwide by 2022. Indeed, internet sales as a percentage of total retail sales have been increasing steadily since 2008.
It may soon be time for your company to cash in on this trend through an e-commerce website or virtual storefront. It’s also worth noting that more and more millennials are beginning to enter peak spending years (age 25-34), meaning there will likely be increased demand for your products and services now and in future years.
Healthcare and Medical Services Industry
Healthcare spending has grown rapidly over time, but it has also become much more efficient. The industry is expected to grow 6.2% per year, reaching $6.9 trillion in 2016 and representing 19% of U.S. gross domestic product (GDP).
As both economic growth and an aging population boost healthcare spending, hospitals will struggle to keep up with rising costs while increasing patient satisfaction. Growing demand for value-based care from providers, insurers, and patients will make health IT systems a necessary tool for creating better coordination between patients and providers.
Energy Industry
According to a 2017 report by The International Energy Agency, renewables will account for almost three-quarters of new global power generation through 2040. For businesses in related fields, including solar installation, wind turbine manufacturing, and electric vehicle charging stations, that means there are potentially huge gains to be made.
And because technology is driving faster change than ever before, it’s impossible to predict which industries might emerge as key players in just a few years’ time. That’s why energy is an especially exciting (and lucrative) field. You may not know where your business will sit five years from now—but by generating or using renewable power today, you’ll be ready for whatever comes next.
Media and Entertainment
It’s no secret that entertainment is a thriving industry. However, what many people don’t realize is that it’s also a massive and multifaceted one. Video games, film, TV, and more all make up what amounts to an entire sub-economy; gaming alone generates $91 billion in revenue per year (according to Newzoo).
As these industries continue to grow, demand for knowledgeable personnel will surge along with them. Those who can manage content distribution via e-commerce platforms like Twitch are in especially high demand: Newzoo predicts 2018 revenues of $1.5 billion for just that one sector.
Consumer Goods and Retail
The global market for consumer goods was worth $7.8 trillion in 2015 and is expected to reach $9.5 trillion by 2020. As world incomes rise, so will demand for products like clothing, food, televisions, and cars—and these things aren’t cheap to make. The countries that reap the greatest rewards from selling them will be those with competitive labor markets and favorable exchange rates (i.e., their currencies are weak).
China is poised to be a big winner here; it’s forecasted to grow at more than twice the rate of India over that period. But other Asian countries—Thailand, Indonesia, and Vietnam—will also benefit from a boom in manufacturing exports such as electrical appliances.
Manufacturing
To be successful, manufacturers must have processes that are highly automated. That’s because, according to a McKinsey study, 60 percent of manufacturing tasks will be automated in just five years. As things like artificial intelligence and machine learning continue to improve.
It’s likely that process automation will impact nearly every sector of manufacturing, including transportation (think driverless cars). If you’re looking to start a business in 5 years’ time and still manufacture things, you’d better make sure you’re at least paying attention to what’s going on in automation.
Real Estate Industries Combined Industries Report
The most profitable industries of 2021 are likely to be those that combined two or more real estate-related industries together. For example, in 2021 professionals will likely make a lot of money buying and selling properties online. It’s also possible that individuals with minimal experience and education could be providing value to people in their local community as to property caretakers or by renting out a spare room on Airbnb.
Although it is impossible to know what combination of industries will result in profit in 2021, it’s safe to say that any business that is an extension of one of our top eight real estate industries (see below) will probably be worth at least $1 billion by next year. Below are predicted values for our top eight real estate industries for 2022.
Also Read: What Are the Top 10 Most Successful Businesses?
Conclusion
If you’re looking to become an entrepreneur and start your own business in five years, it’s worth thinking through potential avenues for profitability. Our research suggests there are a number of big-dollar industry sectors that are set to thrive over that time period.
If you plan on starting your own company in five years or fewer, here are some ideas that should be top of mind: e-commerce, cloud services, and cybersecurity.
Any of these three areas could have a huge impact on your bottom line—and they’re all growing at an extraordinary rate! So if you’re looking for safe business ideas in 2022 and beyond, try getting into one of these fields now.
