Not all businesses are created equal. Although the list of new and exciting tech startups grows longer every day, few of these will even make it past the first year, let alone ever make a profit. There are some industries which, although less trendy than lifestyle apps and specialized e-commerce stores, have a much stronger chance of thriving. Industries and have been analyzed and the numbers are in, so read on to find out the top growth industries for startups in 2019.
The global logistics and transportation industry is a booming $3 trillion marketplace, with demand showing no sign of slowing down. The race to create an infrastructure fit for the 21st century has meant that small companies with the right ideas have been able to make a killing from this global boom. Top growth sectors within the industry include autonomous vehicle development (i.e. self-driving cars) and, of course, green transportation. On a smaller scale, so-called “micro-mobility” startups that specialize in short-distance transport, such as the billion-dollar e-scooter startup Spin, have been the unexpected winners.
With the domination of major platforms like Netflix and Spotify, you’d be forgiven for thinking that the entertainment industry right now was a closed shop, a monopoly which shuts out new businesses. However, more specialised forms of entertainment startups have been taking a record slice out of the trillion dollar entertainment industry. Platforms focused on gambling and lottery betting have shown astonishing growth, with Gibraltar-based company Lottoland being a shining example of how a young entertainment company can go from nothing to revenues of over $300 million in a couple of years.
Education is sexy again. In the developed world the surging demand for innovative tutoring systems has led to a flood of high-growth “EdTech” startups aimed at delivering high-quality skills training and education by utilizing the latest technological developments. Demand is also skyrocketing in the developing world, with China and India being the largest growth markets for these kinds of startups in 2019. One to watch this year is Seppo, a Finnish startup that has “gameified” advanced education by teaching complex subjects through simple online games.
The construction industry, which is expected to hit double-digit growth worldwide in 2019, is in its best shapes in decades. A global real-estate boom, as well as a worldwide shift towards innovative new urbanization projects, has meant that now has never been a better time to work in a construction startup. It’s a very broad industry, with some of the most promising startups of last year specializing in materials, planning software, transportation tools, intelligence gathering, and mapping programmes, to name just a few. Government contracts have proven to be a major source of revenue for successful construction startups, with the US government, in particular, throwing billions at such companies. Promising startups you should keep an eye on in 2019 include Blu Homes, which constructs affordable, eco-friendly housing, and the Chinese startup Zhaogang, which allows companies to efficiently trade materials.
While today’s growth industry may be tomorrow’s zombie industry, right now these are the sectors which every ambitious entrepreneur should be trying to break into.