The world is changing at a rapid pace, and along with it, the industries that drive the global economy. While some industries have seen explosive growth in recent years, others have slowed or ground to a complete standstill. From shipping and logistics to health care, this article will provide an overview of the world’s fastest-growing industrial sectors in 2023.
1. Personal Care and Service
Many of us rely on local salons for haircuts, manicures, and facials, a trend that is not predicted to abate anytime soon. Tipped to add around 544,800 new jobs over the next 10 years, according to the Bureau of Labor Statistics (BLS), the personal care and service industry is poised to see a continued influx in business and employment, the majority of this growth stemming from post-pandemic operational changes. A BLS report noted that 11,000 personal service jobs were added in November 2022 alone. The report also predicts that personal care jobs will increase by 17.4 percent by 2028.
2. Shipping and Delivery Services
The rising popularity of e-commerce has triggered a huge increase in demand for shipping services, and as a result, the sector now ranks as a growth industry front-runner. According to a report published by American Shipper, some $394 billion in retail sales are made digitally, equating to approximately 8 percent of total sales. The pandemic has led to a significant increase in online shopping, with platforms like Amazon becoming increasingly popular among shoppers. This surge in e-commerce has created substantial opportunities for logistics and transport companies. Economists predict that this trend will persist and continue to grow in the months ahead.
3. Automotive
As electric and hybrid vehicles gain popularity, leaders in the automotive industry have been confronted with the need to innovate and evolve while simultaneously adjusting to new industry regulations. With fossil fuel-powered cars falling out of favor, motor vehicle engines and components are ripe for a complete overhaul as the race to go completely electric gains momentum.
The transition carries significant implications for the world’s leading car manufacturers, as many of them have demonstrated a reluctance and lack of interest in electric car innovations until relatively recently. It was only after Tesla raised the bar in 2018 by selling over 220,000 electric cars that year that these carmakers began to take notice and show increased engagement in the electric vehicle market. As a result, the world’s leading car manufacturers have joined the race, including Porsche, whose fully electric offering, the Taycan, was added to the luxury car manufacturer’s stable in 2019.
4. Health Care
Projected to expand by around 19 percent in 2023, health care is the second-fastest industrial sector. Increasing demand for healthcare insurance and a growing population are placing pressure on healthcare providers to hire more staff to meet rising healthcare demands. Put simply, more people are getting sick, requiring treatment. In response, healthcare providers have increased the salaries of healthcare professionals to retain staff and attract new candidates to the industry, enabling it to cope with an influx of new patients.
5. Travel, Leisure, and Hospitality
As global connectivity and disposable incomes increase, experts anticipate a boom in the travel and leisure industry, which is predicted to generate more than $6.34 billion by 2027, according to a report from GlobeNewswire. As remote working practices pave the way for people to work from anywhere in the world, experts predict continued consumer demand to experience new places and people. For example, a recent report suggests that Mexico is the go-to destination in the North American solo travel market. Analysts predict that this pattern will positively impact businesses operating in the travel, leisure, and hospitality sector.
6. Retail
In the wake of significant disruption created by the pandemic, retail sales bounced back in 2023. Experts predict that some specific niches of the industry in particular will see significant growth going forward. Take, for example, subscription boxes, which are popping up across a range of different sectors, including food, beauty, and even pet care, delivering uniquely curated products to customers each month in return for a subscription fee. In addition, live shopping is a rapidly growing online trend, with Amazon, Instagram, and TikTok presenting the perfect platforms for innovative shopping experiences like live video flash sales.
7. Fintech
Leading the charge in financial services innovation, fintech startups are transforming the way people all over the world manage their finances, making banking simpler and more accessible. Thanks to the advent of mobile payments, digital banking, and blockchain technology, fintech has grown to become an indispensable part of daily life today.
8. Rental, Repair, and Maintenance
Today’s shoppers are becoming increasingly environmentally and socially conscious, adopting a “make do and mend” attitude. In addition, against the backdrop of rising interest rates and inflation, many people are becoming reluctant to waste money purchasing items they may use just once or twice per year. Opportunities in the rental, repair, and maintenance sector include electric scooter rental, phone repairs, drone rental and maintenance, and 3D printer rental. Clothing repairs are also predicted to become a booming industry, with some of the world’s leading fashion houses, including the likes of Hugo Boss, Tommy Hilfiger, and Louis Vuitton, reportedly on the cusp of launching their own clothing repair shops.