The new decade is nearly knocking on our door — what does business have in store for startup owners and aspiring entrepreneurs? We’ve watched markets rise and fall over the past 20 years and investors who got burned by the volatility know how important it is to financially forecast the years to come. Here’s a look at four industries that are set to explode in 2020; use these insights to tailor your future business plan.
Smart Clothing
We’re familiar with the wearable technology that’s made itself known on the streets. From Fitbits to Apple Watches, the ability to track our vitals while taking phone calls is nothing new. However, a new study indicates that connected clothing will soon outpace the manufacturing of smart wearables.
The financial forecast suggests that this market will see growth because all the various types of wearables will broaden the space and create longer purchase cycles. Only 7 million units are expected to shift in 2020, but this number is supposed to skyrocket to 30 million units by 2022. Next year is just the beginning of the exponential growth soon to come.
Marijuana
It may be shocking to some, but more and more states have decided to legalize the controlled use of marijuana. As the nation battles an opioid crisis and searches for a safer alternative to treat chronic pain, marijuana is becoming more commonly accepted. Although it’s still considered illegal by federal law, thus far 29 states plus the District of Columbia have legalized medical marijuana, several additional states have passed limited-purpose laws, and eight states have legalized it recreationally.
There’s no denying that the legal and medical marijuana market is booming. An investment bank recently increased its sale forecast for the cannabis industry by 50%, claiming that the market will be worth $75 billion by 2030. The “green rush” has definitely gripped Wall Street investors, but aspiring business owners need to be mindful of medical marijuana laws by state as the rules and regulations are constantly in flux.
Ecommerce
Experts predict that the ecommerce market will reach $4 trillion in 2020. The massive boom in global digitals sales is accredited largely to the advancement of the fintech industry, or the technology used by the financial services sector. If you’ve purchased or sold anything online over the past couple years, you’re probably already aware of how the checkout process is evolving. Consumers now have a variety of payment methods to choose from when it comes to completing a transaction; some examples of fintech include Paypal. Apple Pay, Android Pay, and Google Wallet.
Payment solutions are changing, but fintech developers are also changing how transactions are recorded. For example, blockchain technology was developed to record cryptocurrency payments such as bitcoin, but retailers are also now using it to protect against theft and counterfeiting. The future of fintech is interesting and we’re expected to see more innovations like Amazon’s Prime Air. Whether you’re a merchant, consumer, or developer, you can expect online payments and business transactions to get easier and easier.
This has several implications. For starters, independent software vendors (ISVs) have a ton of space to grow and expand their offerings to retailers and developers as the demand for mobile-ready in-app purchases increases. Secondly, brick and mortar retailers will want to make sure their products are also offered online to meet the needs of consumers who search for more convenient ways to shop. If you’ve considered starting an ecommerce business, now could be the right time to do it.
Personalized Health Services
Science has come a long way and consumers no longer settle for a “one size fits all” approach to health and nutrition. We’re witnessing more and more startups open up shop, offering personalized and custom-tailored dieting regimens, multivitamins, workout routines, and more. Customization has been trending for a while now, with personalized packages containing everything from food to media. Health services are the next step in that direction. From DNA kits to home-test kits, questionnaires to wearable health monitors, the products on the market allow consumers to glean insight to their vitals, DNA makeup, and gut micro biome, just to name a few examples. The global genetic testing market is expected to grow to $19.1 billion in 2024 from $9.5 billion in 2018, according to recent research.
Keep your eye on these industries next year and think about investing in the latest business boom.