The 4 Hottest Industries To Start a Business in For 2024

The 4 Hottest Industries To Start a Business in For 2024

When starting a new business, consider potential industries for your company to compete in.

To help, we’ve compiled a list of the top 4 industries with the most promise for startups in the coming years. With determination, passion, and creativity, your profitable business is just around the corner.

Transportation

Why Transportation Industry Businesses are Trending

Recent advancements in transportation (self-driving Teslas, Uber, Lyft) show the industry is hungry for growth and new talent.

Every person, company, and product relies on transportation daily—creating a powerful demand. As transportation becomes more intertwined with technology, there is a shift towards startups with radical ideas.

Transportation industry projected growth

  • The ride-sharing market is expected to achieve a growth rate of over 20 percent between 2018-2025, according to MarketWatch.
  • The global on-demand transportation market is expected to reach USD $304.97 billion by 2025 with a compound annual growth rate (CAGR) of 19.8 percent.

How to Stand Out

Transportation is becoming all about ease, accessibility, and technology. Differentiate yourself from industry giants by harnessing trends to alleviate current pain points.

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For example, Nomad rides, a rideshare app, attempts to beat Uber by putting their drivers first. By charging riders 20 percent less and giving drivers 20 percent more of their profits, Nomad rides has a competitive advantage.

Resources for starting a transportation business

Technology

Why tech startups are (still) trending

Technology has exploded in popularity and established itself as the backbone of companies like Apple, Samsung, and JP Morgan. Businesses have instant access to customer data and can conduct meaningful research that keeps them ahead of competitors.

Tech industry projected growth

  • The “in-vehicle” technology market is expected to grow 6 percent in 2020, reaching $18.5 billion.
  • The global information technology industry is expected to grow at a rate of 3.7 percent in 2020, reaching $5.2 trillion.
  • 44 percent of businesses plan to increase tech spending in 2020, up from 38 percent in 2019.

How to Stand Out

Differentiate yourself in the tech industry by thinking specialized and targeted. Instead of capturing the entire market, try targeting an underrepresented customer or industry.

One example is Even, a bank app that focuses on providing financial help to those living below the poverty line. This demographic is historically neglected by traditional banks, giving Even a unique advantage.

Keep in mind that tech businesses succeed all around the nation, not just in Silicon Valley. It’s often cheaper and more sustainable to build your app or software somewhere else. Some businesses even build fully remote workforces to avoid the high costs of living and working in the Bay Area.

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Resources for starting a tech business

Health and Medical

Why Health and Medical Business is trending

Healthcare in the U.S has reached a turning point—where traditional services and facilities face extinction due to the rising preference for “convenient, personalized, and data-driven health.” The over 65 population is set to double by 2030 due to the aging boomers, creating a record-breaking demand for elderly care.

Healthcare industry growth projections

  • Global healthcare spending is expected to rise at a CAGR of 5 percent between 2019 and 2023
  • Medical cost trends have been flat over the past two years, but are expected to increase by 6 percent in 2020

How to stand out

The current gaps in the health industry, including high medical and insurance costs, leave large opportunities for startup success. Move away from traditional models and specialize in biotechnology, personalized health, or elderly care to align with current needs.

GoodRx, a telemedicine platform, developed their business model after recognizing the burden high prescription drug costs place on individuals. Using technology that tracks pharmacy drug prices, they offer customers lower costs. By alleviating this common pain point, GoodRx becomes a necessary step in healthcare routines.

Resources for starting health and medical business

Green products and services

Why businesses related to green products are trending

As concerns about global warming and sustainability become increasingly prevalent, an environmentally conscious population enters the consumer purchasing market. Green products have gained popularity by offering quality goods with low environmental impacts.

Growth projections for businesses selling green products and services

  • 50 percent of consumer packaged goods growth from 2013-2018 came from sustainability-marketed products.
  • Sustainable product sales are estimated to reach $142.4 – $151.1 billion by 2021.
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How to stand out

One of the biggest barriers in this industry is the intention-action gap. According to a study, 65 percent said they want to buy products from brands that advocate sustainability, yet only about 26 percent actually do so. Closing this gap could be the key to unlocking the market potential.

Imperfect Produce, a produce subscription box that fights food waste, has effectively closed the intention-action gap by going straight to their consumers. Instead of trying to draw people to their website, this company actively sets up booths at farmer’s markets and college campuses.

Build your brand with a business plan

A creative idea backed up by data and demand projections is well qualified to bring about profitable results, but a business plan is what will really drive your success. Follow the outlined steps to lock down your financials, design successful marketing and distribution strategies, and create a plan that is adjustable for future growth.

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