Best Industries to Invest in 2020

Individuals that are looking to start a successful business need to identify good industries to invest in and come up with innovative ideas that will help them make the best of the available opportunities. Most people would advise investing in hot new stocks, but that does not guarantee success in the long run. Your ability to research and identify the industries and sectors that are well-positioned for continual growth gives you an advantage.

While investors worry about the direction the economy is going as the year comes to an end, some of them lose confidence in the stock market. With the impact of geopolitical events on the global trade markets, making the right move as we head into 2020 will assure you of continuous return on investment.

Speculation about the growth of certain investment sectors in 2020 presents an opportunity for long-term investors JKR Cyprus looking to gain significant returns. As technology fuels innovation in these industries, here is a look at the top five (5) that are expected to do exceedingly well next year.

#1 Esports

With competitive gaming becoming a global phenomenon, a lot of brands are continually seeking ways to enter the esports industry. They plan to invest in gaming companies to benefit from the popularity of esports events that are both engaging and entertaining for millions of fans streaming live from all around the globe.

Amazon-owned social network and gaming platform, Twitch, which has millions of monthly active users who watch gaming streams is a perfect example. The audience is expected to almost double by next year as it has managed to hold the attention of millennials for longer periods. Brands whose target market includes these individuals with short attention spans are looking to take advantage of this opportunity.

The esports audience continues to grow each day and several investment giants like Tencent are set to dominate the market with several sponsorship deals. Others have followed suit, investing in tournaments and teams that have earned them massive returns as seen with the popular esports franchise, Virtus Pro.

The power that fans have in esports which is rare in other sectors has made it a fast-growing industry to invest in right now. Traditional sports teams are also taking advantage of this opportunity to sell their merchandise to fans in this era of digital advancement. Who is to say that the growth trend in the esports industry will not continue in the upcoming years?

#2 Cannabis

The fact that adults can now officially buy cannabis in different parts of the world where it has been legalized for recreational use has opened up a window of opportunity for investors. With more countries expected to follow that path as we head into 2020, there is an expected increase in the number of licensed producers of marijuana.

Investing in this relatively untested industry does not mean that you have to ingest any hemp. A particular non-psychotropic component of cannabis which is in high demand will drive the expected growth in this sector. This compound known as Cannabidiol (CBD) is said to have anti-anxiety, pain-relieving, and anti-inflammatory properties.

With an increased demand for CBD, it is expected to find its way into various healthcare and beauty products, as well as edibles. Soon, CBD based lotions, soaps, and snacks would be found on shelves in different stores across the globe.

#3 Automation and Robotics

A lot of people still believe that machines will take over the world as shown in movies. Although that era is not here yet, the use of automation and robotics has made all aspects of production and our daily lives easier.

Advanced implementation of artificial intelligence, blockchain, cloud computing, and the internet of things (IoT) can be seen in financial services, healthcare, hospitality, and automotive manufacturing. Self-driven cars are increasingly becoming popular, as well as cashless transactions and cryptocurrency like bitcoin.

Several companies like Microsoft, Google, and Amazon are buying into this sector which holds a lot of opportunities as we see an increased consumer dependence on Alexa and Xiaoice. For those that want to invest in long-term technological trends, they can rest assured that the demand for devices capable of performing various tasks without human assistance will continue to increase.

These technologies help to improve productivity and manufacturing techniques while saving time, hence generating massive returns for investors.

#4 Cybersecurity

Cybercrime is on the rise as most of our routine activities can now be performed online. Fact that sensitive information like banking data and the digital identity of most internet users are found online increases the risk of victimization by hackers. The increased risk of data breaches has led to an increase in the demand for cybersecurity measures to improve the online privacy of individuals and companies.

With several e-commerce retailers looking for ways to avoid customer lawsuits as a result of hacks, data protection has now become a big deal for those that want to maintain their customer’s trust. Tools that safeguard data and files against malware, viruses, phishing, and spamming are in high demand and investors in this area are seeing massive returns.

The threat will continue to grow and the cybersecurity market will expand along with it into the upcoming years.

#5 Renewable Energy

As more people are becoming aware of the impacts of environmental degradation and climate change on the earth as we know it, a lot of people are blaming it on companies whose energy sources pollute the atmosphere. Remarkable innovations are in the works to provide clean energy solutions as some countries look to wind turbines and solar installation to provide power for its citizens.

The demand for renewable energy sources will continue to rise as we go into 2020 as more people are turning solar power for the generation of electricity in their household. The governments of many countries are taking up solar energy projects to provide enough power to drive the growth of other industries and their economy.

With recent advances in technology, renewable energy costs will drop and its demand will rise, fueled by an increase in social-awareness about its immense benefits. Investors that have seen the great potential of sustainable and renewable energy are already getting involved as the market grows.

Conclusion

Just because some sectors are showing growth at the moment does not make them good industries to invest in. When looking at the financials of companies, do not overlook their long-term growth potential as you narrow your search for good investment opportunities. You can also look at venture capital investments and forecasted outputs as you develop new revenue and business models that you can seize as you ride the wave of digital revolution into 2020.