Investors can profit from some of these, but there are different markets that are stronger. Let’s look at three of them and see how they can be great investing options.
The fintech market has digital-payment platforms and online banking services, along with cryptocurrency platforms. This market keeps expanding as people switch from cash to shop online more, and depend less and less on traditional banks.
Businesses are also beginning to see the value of streamlining their payments, integrating tools into mobile apps, and taking advantage of analytics to track their customers’ purchases. Allied Market Research predicts the mobile payment market to expand globally at a compound annual growth (CAGR) of 30.1% between last year and 2027 to reach $12.06 trillion.
Companies that might profit from this explosion are PayPal (PYPL), which has its popular online-payment platform that reaches 377 million accounts, and Square (SQ), which handles payments for merchants and allows consumers to make peer-to-peer payments through its app.
The AI market is usually thought of as being only “smart robots” but its scope is actually much larger. AI services are now being used to calculate data for advertising platforms, processing large amounts of info to aid companies in making choices.
They can also power chatbots to help a company’s customer-support, or help optimize a company’s supply chain by finding inefficiencies, and increasing safety standards by finding hazards.
The global AI industry increased to $39.9 billion in 2019, as reported by Grand View Research, but might go even further with a CAGR of 42.2% through now and 2027.
My top stocks in this sector include NVIDIA (NVDA), which gives high-end GPUs for completing AI tasks, and Palantir (PLTR), which finds and processes data for federal agencies and corporate customers.
3. VR and AR
The virtual reality and augmented reality sectors are still small but they have both expanded and have great growth potential.
VR devices, which put users inside digital environments, can be used by more than just video games, simulations and even socialization. Facebook‘s Oculus system has a first-mover’s advantage in this sector, and its headsets might expand Facebook’s ecosystem beyond mobile devices.
AR devices, which push digital images onto real-world environments, can be used like heads-up displays for particular professions.
One company worth keeping an eye on in this market is Vuzix (VUZI), which mostly sells AR smartglasses to corporate customers. It is a small company but they have an early-mover’s advantage in the AR market, and might keep expanding as more people and companies get into AR glasses.
The global AR and VR markets might expand at a CAGR of 42.9% between 2020 and 2030, according to reports by Research and Markets, and become a $1.27 trillion sector. That is a bullish prediction suggesting that VR and AR devices might become the next big platforms after smartphones.