With a post-pandemic world not too far away, many industries are set to hit the ground running throughout 2022. However, with some industries looking more promising than others, we wanted to highlight three key industries that provide excellent investment opportunities not just in 2022 but also for the foreseeable future. So, what are the industries with impressive growth in 2022?
Let’s find out…
The Green Renewable Energy Industry – The obvious one amongst the impressive growth industries of 2022
The renewable energy industry will continue to shine in 2022. Investment in renewable energy sources such as wind and solar power are becoming much more affordable in recent years. Yet, this shows no signs of slowing down in 2022 and beyond! In assessing the impressive growth industries of 2022, this one stands out.
At present, the consistently increasing demand for renewable energy, paired with the growth in the efficiency of the industry, the renewable energy industry has a bright future ahead of it. But, with the added involvement of oil and gas companies (such as BP) slowly shifting to renewable energy sources, an investment in green renewable energy is an opportunity that you would be stupid to avoid.
The bright future for the renewable energy industry is further supported by BlackRock in its 2021 Global Outlook report (You can also check the 2022 version.)
To add some context, BlackRock is a worldwide investment company that manages over $7 trillion in assets. So, when they come out and say that the movement towards sustainable and renewable energy will “help enhance returns,”. But also, that there will continue to be a significant increase in investment in renewable energy, it’s clear to see that the renewable energy industry is an industry that you can’t afford to avoid.
Also, it is vital to consider the positive implications that the newly elected US president Joe Biden will have on the renewable energy industry. This is because the new administration is set to rejoin the Paris Climate Accord, which the previous Trump administration selfishly left.
The Paris Climate Agreement is dedicated to stopping climate change and global warming.
Some of the key initiatives that have been put in place through the Paris Agreement are outlined by Deloitte as:
- A $2 trillion investment into clean energy.
- A carbon-free power sector by 2035.
- A long-term goal of net-zero carbon emissions by 2050.
Therefore, with the US government now set to be involved in the Paris Agreement, this not only demonstrates the continued growth and economic support of the renewable energy sector. But it will also prove to be a fantastic investment for the future of our planet and the environment that we live in. So, if investing in ethical, sustainable, and responsible industries is something you hold close to your heart, look no further than the booming renewable energy industry.
Electric Vehicle Industry (EV’s) – The most anticipated amongst the impressive growth industries of 2022
The EV industry will see increased backing from US President Biden. We consider this one of the impressive growth industries in 2022. This is an important catalyst for the electric vehicle market, given the significance of the US economy as a global superpower.
We can see just how big of a prospect the EV industry holds when we consider four key factors highlighted by Deloitte driving the EV market’s growth.
These key factors driving the growth of the Electric Vehicle market are:
Changing consumer sentiment
Electric vehicles are becoming more affordable, and the distance per charge (currently the biggest concern amongst drivers) is increasing yearly.
Legislation and Policies supporting EV initiatives.
Various policies and legislations include:
- CO2 and fossil fuel emission targets
- City access restrictions for fossil fuel-powered cars.
- Such as those already seen in London, Madrid, and Mexico City, to name a few.
- Financial incentives such as:
- cash subsidies for consumers buying low-emission vehicles.
- Reduced tax on Electric Vehicles.
- Maintained or increased taxes on ICE (Internal Combustion Engine) vehicles.
Significant Contributions from Vehicle Manufactures in the EV Market
Vehicle manufacturers have adopted strategies to shift towards the production of EV vehicles.
Some examples of vehicle manufacturers shifting their strategies towards EV production include:
- Toyota – targeting 5.5 million total EV sales in 2025.
- BMW – EV’s to make up 50% of the European market by 2030.
- Mazda – All vehicles, either EV or hybrid, by early 2030s.
- VW Group – EVs to make up 25% of global sales by 2025.
- Fiat Chrysler – 60% of their European market to be hybrid or EV by 2022.
- Nissan – 42% of European sales to be EVs by 2022.
There are loads more examples of other companies in the EV market that are taking similar approaches. But it’s also important to not forget about the likes of Tesla, Nio, Workhorse Group, Blink Charging, and Arcimoto. The likes of Tesla, Nio, and Blink Charging saw their share prices increase by 695%, 1,110%, and 2,198%, respectively, in 2020.
Corporations as a Key Player in the EV Market
By utilizing the three aforementioned factors, corporate companies play and will continue to play a large role in the transition to Electric Vehicles.
For example, in another Deloitte report predicted that corporate companies would make 63% of new car purchases throughout Western Europe.
To put the growth of the EV market into perspective. Here is a graph (using data from Deloitte) of the forecasted EV industry growth that Deloitte anticipates:
The Genomics Industry – Unexpected amongst the impressive growth industries of 2022
Recently, Cathie Wood’s who is the investment manager at ARK, predicted that Genomic stocks would see the most significant growth. Cathie Wood’s is all about investing in the next big thing and innovative companies. Her eye for spotting the next big thing is remarkable!
You can invest in the ARK ETFs that Cathie Wood manages. In particular, the ‘Genomic Revolution Multi-Sector ETF’ has the ticker symbol $ARKG. So, given the complexity of the Genomics industry, investing in an ETF managed by one of the world’s best investment managers is likely to be a much more secure but equally rewarding investment.
To put the genomics industry into perspective, in 2019, the global genomics market was worth $18.85 billion, but in 2027 it is forecast to be worth $82.60 billion. This represents a 339.2% increase or a Compound Annual Growth Rate of 19.5%.
One usually does not expect the genomics industry to be one of the impressive growth industries of 2022. Hence, it stands out.
Conclusion
Wherever you choose to invest your money and time in any of those industries is ultimately down to you. But we believe that projected industry forecasts and advances in innovation point to three key industries. These are the green renewable energy industry, the electric vehicle (EV) industry, and the genomics industry. So, although this is just insight and not financial advice, we are confident that these three industries will prevail in 2022 and beyond.
Snippet
2022 looks set to be a promising year for investing. Each industry offers its unique advantages and disadvantages, from the green renewable energy industry to the electric vehicle industry. However, with the need to live a more sustainable life, the EV and the green renewable energy industries will continue to dominate as powerful growth industries.
But another key industry is lurking under their shadows that provides an equally exciting investment opportunity. So, to find out what this investment opportunity is, make sure to head over to our blog for a more in-depth overview.
If you’re thinking of creating a business in any of those industries, we recommend hiring a freelancer to start your business planning as a first step.
Meet The Author Of This Article
I’m Al Anany, the founder and CEO of Albusi.
Writing in the business industry has shifted my mentality toward entrepreneurship. I started on Medium in 2021 and ended up being a Top Writer of more than 4 categories and had my content viewed more than 213k times.
I always have a single goal while writing: focus on entertaining while adding value.
