Regardless of looming financial challenges, quite a lot of U.S. industries are projected to develop at a quick tempo within the subsequent 5 years.
Drawing on present knowledge from Freedonia Focus Studies—a analysis division inside MarketResearch.com that gives knowledgeable overviews on greater than 500 market segments—this text spotlights a variety of quick rising industries within the U.S. to observe in 2023 and past.
A few of these industries gained recent momentum on the heels of disruptive new applied sciences, whereas others have been robust performers for years. Take a look at the record beneath and see if any of those industries shock you.
1. Automotive Batteries
Because of the proliferation of hybrid and electrical automobiles (HEVs), the demand for automotive batteries within the U.S. is predicted to surge at a 12% annual enhance, rising from a base of $7.2 billion in 2021 to achieve $12.8 billion in 2026, in accordance with a current report Automotive Batteries: United States.
“As the marketplace for HEVs has developed, this phase has had an more and more massive impression on automotive battery demand,” in accordance with Freedonia Focus Studies. “These automobiles — particularly EVs — have a tendency to make use of costly batteries in comparison with these utilized in typical automobiles, and progress in HEV utilization is a crucial driver of enlargement within the automotive battery market.”
2. Pet Dietary supplements
One other sizzling progress market is pet dietary supplements, which gained monumental demand as customers grew to become extra involved about well being and wellness through the pandemic. A increase in cannabidiol (CBD) merchandise additionally contributed to market enlargement.
Sustaining its outstanding momentum for 2 consecutive years, the pet complement market achieved a powerful double-digit progress price in 2022, growing by 10.5% to surpass the $1.0 billion milestone, as reported by Pet Dietary supplements: United States.
Whereas pet dietary supplements are often thought of elective purchases, the pandemic revealed a shift in notion amongst pet homeowners. Many now see pet dietary supplements as important and proceed to purchase them regardless of inflationary situations.
3. Movement Footage
The marketplace for pet dietary supplements could also be rising at a quick price, however it’s miniscule in dimension compared to the US movement image and video business, which was an estimated $97.8 billion in worth in 2022. Because of the ongoing enlargement in streaming platforms and related income all through the business—plus worth will increase resulting from inflation—the US movement and movie business is projected to develop to $153 billion in 2027, rising at a 9.3% annual progress price through the forecast interval, in accordance with Movement Footage & Video: United States.
“As well as, these suppliers will additional broaden into untapped and more and more rich international markets, which is able to increase royalty funds,” the report explains.
4. Credit score Playing cards
One other huge market with a excessive progress price is general-purpose bank card and debit card funds, which is predicted to hit a price of $13.7 trillion in 2026, with annual features of 8.9% from $9.8 trillion in 2022, as reported in Credit score Playing cards: United States. Visa, Mastercard, American Categorical, and Uncover are the main manufacturers on this house.
Nonetheless, the report shares an necessary caveat that would weigh available on the market: “This progress forecast doesn’t account for the impression of doable bank card regulation, which may depress bank card progress; or doable inroads made by account-to-account transfers, a fee methodology anticipated to achieve traction in 2023 that would depress each bank card and debit card fee worth progress.”
5. Dairy and Egg Alternate options
Within the meals and beverage sector, dairy and egg options is a vibrant market to observe, with many new product introductions, growing availability, rising shopper adoption, and important product enhancements. Retail gross sales of plant-based dairy and egg merchandise will rise 8.9% yearly between 2022 and 2027, reaching $9.6 billion, in accordance with Dairy & Egg Alternate options: United States.
Lately, as individuals have change into more and more aware of their well being and the atmosphere, there was a noticeable shift in direction of plant-forward diets and using plant-based options for dairy and eggs.
6. Plant and Cultured Cell-Based mostly Meat Alternate options
Issues about sustainability and animal welfare are additionally driving the marketplace for plant and cultured cell-based meat options, which is projected to rise 8.4% yearly between 2022 and 2027 to achieve $2.6 billion. This market may also profit from new product introductions, wider availability, and enhancements to style and texture.
In Plant & Cultured Cell-Based mostly Meat Alternate options: United States, Freedonia Focus Studies explains that though plant-based beef is at present a big product class, this phase is already saturated. Consequently, plant-based rooster is predicted to function essentially the most product introductions within the coming years.
7. IT Technical Consulting Providers
Within the tech business, IT technical consulting companies is predicted to keep up robust progress. U.S. revenues from IT technical consulting companies are forecast to broaden 8.2% per yr to 2026, the quickest enhance amongst varied segments in IT companies.
“Company initiatives aiming to replace infrastructure, together with cloud options, will bolster features,” in accordance with IT Providers: United States. “Such transitions are extremely difficult, requiring quite a lot of experience to hold out effectively. Demand for IT safety consultants may also assist features, as cyber threats proceed to emerge.”
8. Buses
Buses could not bounce to thoughts as a progress business, however the demand for buses within the U.S. is predicted to rise 8.1% per yr, reaching 56,200 models in 2026 from a base of 38,000 models in 2021, per Buses: United States.
“Bus gross sales will develop quickly as operators substitute growing older fashions after delaying bus purchases, faculties throughout the US buy new buses, and demand for electrical, hybrid, and compressed pure gasoline/liquefied pure gasoline (CNG/LNG) buses (notably transit buses) climbs,” the report states.
A high-growth phase to observe is motor coaches, which is able to profit from a restoration within the tourism and journey sector as considerations over COVID-19 chill out.
9. E-Commerce
Already a large business—valued at $956 billion in 2021—e-commerce is predicted to proceed its sturdy progress path with annual features of seven.7% to achieve a price of $1.4 trillion in 2026, in accordance with E-Commerce: United States.
E-commerce retailers are set to reap the rewards of the enduring pattern of residence buying, together with rising ranges of disposable earnings and simpler entry to credit score for customers. Conventional bodily shops will additional leverage e-commerce to spice up gross sales and supply prospects the selection of retailer pickup or returns, as they proceed to refine their omnichannel methods.
10. Pet Merchandise and Providers
Pet dietary supplements was already highlighted above as a progress market, however the broader pet market is predicted to advance at a wholesome price as nicely. U.S. retail gross sales of pet services is projected to complete $192 billion in 2027, representing annual will increase of seven.3% from $135 billion in 2022, as reported by Pet Merchandise & Providers: United States.
The report explains that every one main pet business sectors “will proceed to profit from the pandemic-heightened concentrate on well being and wellness, which ought to serve to bolster all ‘premium well being’ segments by motivating pet homeowners to keep up proactive measures towards preventive well being.”
Extra Rising Industries to Watch
This text options knowledge on 10 booming industries to observe within the U.S. in 2023, however it’s possible you’ll have an interest to study just a few different prime contenders which have an annual progress price above 6%. These embody fairly a spread: medical companies, knowledge processing and internet hosting, corrugated containers utilized in e-commerce, US music manufacturing, and farm tractors, amongst others.
The place to Study Extra
For extra in-depth data, make sure to discover the complete assortment of reviews by Freedonia Focus Studies, which offer recent, unbiased evaluation on all kinds of markets and industries. Printed in 20-30 pages, these reviews assist readers rapidly perceive all the market and the place it’s headed subsequent, with data on market dimension and business output; segmentation; market drivers, constraints, and key indicators; and segment-by-segment outlooks in five-year forecasts. Studies will be bought individually or by way of a subscription.
Concerning the Writer: Sarah Schmidt is a Managing Editor at MarketResearch.com, a main supplier of world market intelligence services.
