5 Key Investment Trends For 2022 And Beyond

5 Key Investment Trends For 2022 And Beyond

The COVID-19 pandemic posed unprecedented challenges to the economy in 2020, with supply chain disruptions, record-low interest rates, and other pandemic consequences in place, causing unpredictable changes in market and investment trends until now. As people adjusted to lockdown policies and border restrictions, the market evolved quickly, causing certain industries to become obsolete while giving birth to a slew of new ones. Here are five key investment trends for 2022 and beyond, based on economic changes caused by the COVID-19 crisis, to help you grow your investments more effectively:

Artificial Intelligence (AI)

Although still developing, the AI industry appears to make significant progress, establishing itself as one of the most influential on the new wave of technologies that are currently reshaping global trends. As many employees were forced to work remotely in 2020, and with 70% of the workforce expected to remain in such a setup by 2025, many companies have relied more on technological advancements like this to sustain and continue their business operations.

At present, 37% of organizations employ AI in their services and transactions. However, the AI market is expected to have an exponential growth in the years to come as studies expect the global AI market value to reach $267 billion by 2027. As more companies leverage AI technologies, the AI market becomes one of the best industries to invest in.

Biotechnology

The biotechnology industry has grown in prominence as a result of the effective production of vaccinations to combat the COVID-19 pandemic. According to research, the global biotechnology market was valued at $1,006.68 billion worldwide in 2021, and is expected to have a compound annual growth rate (CAGR) of 15.83% by 2028. As the industry grows, many entrepreneurs and investors are attracted, making it possibly one of the most stable markets to invest in for 2022 and beyond.

Renewable Energy

According to studies, the global use of coal, gas and electricity fell during the onset of the pandemic in 2020, yet the use of renewable energy was nonetheless resilient. By 2021, new solar and wind projects not only became cheaper, but they became the most affordable energy resource compared to less sustainable coal-fired plants. As a result, Forbes predicted that by the end of 2022, the industry would have set a new record for renewable energy deployment, while other studies predict that the industry’s market value will reach $1,977.6 billion by 2030. With all of this data and optimistic forecasts in place, the renewable energy market has emerged as one of the best growing industries to invest in.

Pharmaceuticals

The importance of the pharmaceutical industry has been highlighted by the current crisis brought about by the global pandemic. In 2021, the global pharmaceuticals market was estimated to reach the value of $1250.2 billion. As citizens all over the world demand better treatments for symptoms associated with the COVID-19 virus that may have long-term adverse effects on their health, pharmaceutical companies have been predicted to thrive in the years to come, with a forecasted CAGR of 5.97% from 2022 to 2026.

Cybersecurity

In 2018, 70% of organizations have already adopted a digital transformation strategy. During the onset of the pandemic in 2020, more companies have gone digital amid work restrictions and lockdown policies. However, as more organizations become dependent on digital tools, the rise of the cybersecurity industry becomes imminent as data breach is one of the biggest problems associated with digital transformation. According to studies, revenue in the cybersecurity market is projected to reach $146.30 billion by the end of 2022, with a CAGR of 9.68% by 2026. With the growth of this emerging industry at hand, optimistic outlooks can be seen for investors.

Start Your Investment

To start investing in these markets, it is always wise to research and seek the professional help of investment groups like AIX Investment, a financial investment firm in the UAE. With services like AIX Secure, where both individual and institutional investors can take advice on secure investments, you can guarantee cash flows at pre-established dates through efficient market analyses and risk management.

Author: Troy Metzinger