The world economy is constantly changing, which makes it difficult to pick winning investments. There’s no secret about that. By the time you know about a hot stock tip, the smart money is already miles away. Such is life. If you pay attention to some emerging markets, however, you can start to get an idea for which ideas have momentum behind them, and which don’t. So, here are four industries that could be the next pool of primordial ooze from which new life will emerge.
If you ever want evidence of the fact that the future is here, think about drones, VR, augmented reality, IoT devices, and the fact that we regularly speak to our phones as if they could hear us. All of these activities are made possible by data centers.
When you look at the numbers so far, you will see why there’s an optimistic outlook for the big players in big data.
That’s not the only good news for more astute investors. Since data centers produce a substantial amount of heat as waste, HVAC companies have been collaborating in an effort to improve efficiency. On top of that, 90% of U.S. homes have ducted heating and cooling in their home. Together, the data and HVAC industries are on a bit of a winning streak.
The hype wagon is circling around fully autonomous vehicles. There’s even a website dedicated to forecasting its arrival. Nevermind the fact that there’s a car brand that only sells electric cars, something that has largely been brushed off until Elon Musk brought Tesla to market.
The inevitable autonomous technology we are drooling over today will be used in construction vehicles as well. There are great strides being made all over the construction industry for safer and more ambitious projects. New developments in industrial brakes and clutches has encouraged a $1.7 billion 10 year projected growth.
Construction of data centers is slated for a $3 billion growth at a CAGR of 4%, respectably stable gains when compared to any other industry.
If there is a glitch in this growth, it might be tangentially related to four of the most common metals used in construction (carbon steel, aluminum, copper, and stainless steel) seeing a sudden tariff induced price spike. But this is unlikely to have a noticeable impact on construction as a whole.
Industrial hemp plants can grow 10 to 15 feet before they are ready to be harvested, and they look a bit like bamboo. There has been a long-running cultural push for more wiggle room, especially since industrial hemp contains below threshold levels of THC, making it non-psychoactive.
Hemp still faces some level of legal resistance, but the lights are slowly turning green.
Each of the above industries is innovating at the highest level. Some have cultural momentum, others are growing out of necessity, but all of them have extremely positive outlooks for this year and many years to come.