Five key tech sectors will enjoy a combined growth of more than 400% over the next five years, according to market reports. These innovation pacesetters – nanotechnology, AI, Digital Twins, genomics and other biotech life sciences – attracted a combined $892.63 billion of investment in 2020, set to rocket to $2.44 trillion by 2025.
Top Five Tech Growth Sectors
Paul Stannard, Chairman of the Vector Innovation Fund (VIF) – an international alternative investment vehicle for advancing enabling technologies globally – said:
“These top five tech growth sectors are the ones currently lighting up investment opportunities, and we have specifically aligned our investment pipeline to them. They hold the key to solving major global challenges relating to sustainability, healthcare, energy, food resources and equal and fair distribution of innovation worldwide.
- Artificial Intelligence
The market is forecast to grow 16-fold from $62.35 billion in 2020 to $997.77 billion by 2028 at a 40.2% CAGR, transforming future healthcare, food, energy, transport, construction, aviation, and many other sectors. Combining AI with nanotechnologies, for instance, allows platform technologies to re-invent the industries over this decade.
- Nanotechnology
The nanotechnology market is set to grow from $54.2 billion in 2020 to $126.8 billion by 2027, which has enabled significant advances in medicine, electronics, environmental solutions, and materials, with the potential to improve drug delivery procedure and storage, and renewable energy.
- Biotechnology
This is the biggest and most mature market here, forecast to grow from $752.88 billion in 2020 to $2.44 trillion by 2028 at a 15.83% CAGR through significant effects on agriculture, improving the nutritional value and preservation of foods, minimising waste, and healthcare advances – the last being highlighted by the record-breaking speed of the Pfizer COVID vaccine development last year.
- Digital Twins
A new up and coming high growth tech sector, Digital Twins is forecast to grow 15-fold from $3.1 billion in 2020 to $48.2 billion by 2026 at a 58% CAGR, with the technology already widely used in the construction, energy, healthcare, automotive, and aerospace sectors, and new fields opening up all the time.
- Genomics
The genomics market is set to grow from $20.1 billion in 2020 to $62.9 billion by 2028 through its key role in healthcare innovation and tailoring care to an individual patient while providing more data on diseases and human genetics. The World Health Organisation reports that gene sequencing was critical to the rapid development of COVID-19 tests and other tools used to manage the virus outbreak.
The Role of the COVID-19 Pandemic
Paul Stannard added: “The accelerated innovation since the COVID-19 pandemic is astonishing – some experts say we witnessed ten years’ growth in the last 18 months of the outbreak – giving us a glimpse of even greater possibilities, especially when some of these pacesetters, such as nanotech, genomics and Digital Twins are able to advance, accelerate and complement each other.
“If it is backed by astute and enlightened investment, our future is looking bright!”
