The technology industry is staggeringly powerful and profitable. Its market value is now estimated to be over $3 trillion.
Within the tech industry, there are several behemoth sectors which have contributed significantly towards its success. Today we’re going to be finding out what these different sectors are and why exactly they are so profitable.
Whether you’re a gadget geek or aspiring entrepreneur looking for somewhere lucrative to invest, you should keep reading to discover what specifically has led to the technology industry’s astounding amount of success.
FinTech is the term used to describe technology which facilitates the process of banking and financial services. Giving the nature of finances, inevitably this specific sector of the tech industry was going to be profitable. Some of the most common examples of FinTech include mobile banking, online banking, investing or borrowing services and cryptocurrencies. This technology has made a variety of transactions quicker, easier and securer than ever before.
Following on from FinTech enabling online monetary transactions, the e-commerce industry has become hugely profitable in recent years. Its market value is just over $102 billion and seems likely to grow even larger, following on from the recent surge in demand for online shopping. E-Commerce is essentially the buying and selling of goods via the internet. The mega-corporation Amazon is the flagship for this business sector – and recently made CEO Jeff Bezos the richest man in the world.
3.) Artificial Intelligence
Artificial intelligence is only an emerging technology and yet it’s still at the top of every list when it comes to the most prosperous industries in the world. This is because the potential of AI – and how it could change life as we know it – is insurmountable. Every successful sector that already exists within the tech industry could be completely revolutionised or replaced by artificial intelligence. Resultantly, this technology has attracted a huge amount of investors, such as Andreessen Horowitz and Tej Kohli London Tech Entrepreneur.
Customer behaviour patterns have started to shift, moving more towards the side of instant gratification. People want everything to be instant, easy and convenient. On-demand technology has both capitalised on and been the catalyst for this change in consumer needs. If you’re a little hazy on the definition, on-demand technology is software that allows people to access the products/service that they want as soon as they want it, wherever they are, and at whatever time. This is also referred to as cloud computing. A classic example of on-demand technology would be video streaming services like Netflix and Amazon Prime. Cloud computing has appliances beyond this, though. For example, workplaces now use this technology to share documents with one another at ease. Believe it or not, the on-demand tech sector is now worth more than $178 billion.
These are some of the most profitable sectors in the technology industry. As innovations and inventions continue to occur, we’ll be interested to see what other successful sectors will emerge.