Top Industries for Startups in 2022-2023

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Olga Demidenko
Author, Geomotiv
Published: Feb 26, 2021

It seems that digitization and automation have impacted every aspect of our lives. With the world demanding a more virtual way of doing casual things, we’ve seen many companies adapt to this new reality. Some of them still struggle to survive, while others have embraced the latest technologies, relied on custom software development, and made a significant profit in particular niches.

From telemedicine to EdTech-related startups, the previous year’s fastest growing industries are likely to continue thriving throughout 2022-2023. So, if you are ready to develop the next disruptive solution but need some direction, you can find plenty of opportunities in a few of the following top industries. Read on to find out which of them are suitable for your case.

EdTech

Since digital technology has changed the way we learn, EdTech has become one of the best industries to start a business in 2021-2022. Online education has evolved and experienced a surge in investment globally as more and more startups report sky-high investment rounds.  

Venture capital interest in EdTech solutions remains strong according to the data collected by Crunchbase. The collective VC investment in the US alone has reached $1.7 billion across 156 deals in 2022. However, the global investment market has cooled compared to the previous year. Investors spent almost $6 billion of EdTech funding in 2021, a record-high sum. However, large deals of $100 million or more still occur in the USA and other parts of the world. Many education entrepreneurs are looking to grasp market opportunities to provide solutions that can support the existing education models and even reimagine them in the long run. 

On a global scale, venture capital investment reduced to almost $5.5 billion across 488 deals B in 2020, with China accounting for two-thirds of the total amount. It was followed by the US and India, with $2.5B and $2.3B of investments respectively.

This is how much capital was raised by different solutions in the world this year:

SolutionCountryAmount (in USD)
ByJu’sIndia$800M
Guild EducationUSA$175M
HandshakeUSA$200M
GoStudentAustria$340M
EmeritusIndia$350M
upGradUSA$210M
Go1Australia$100M
MultiverseUnited Kingdom$220M
ClassDojoUSA$125M
Physics WallahIndia$100M

Source: https://www.holoniq.com/edtech-unicorns/

The US maintains a solid foundation for diverse and large-sized fundraising rounds, while India, Austria, and the UK strive to catch up.

Other types of educational technology solutions rocking the industry today, are as follows:

  • Immersive Tech
  • Coding and Technology 
  • Learning Management Systems
  • Language Learning apps
  • Early Childhood Learning
  • STEM apps
  • Social-Emotional Learning apps
  • Online Courses.

These solutions have become more effective and accessible and have the ability to scale to millions of users across various sectors, including:

  • Pre-K
  • K-12
  • Higher Education
  • Corporate learning
  • Consumer learning.

As the pandemic spread, it forced 1.5 billion students away from the traditional classroom. Schools, colleges, universities, and other institutions suddenly required quick fixes to address students, parents, and teachers’ needs. The demand for diverse digital learning tools for corporate learners and ordinary consumers willing to tune their skill sets started to grow as well.

The industry expenditures peaked in 2021 when the EdTech market was valued at $85 billion, as seen from the Valuates Research paper. As for future projections, the market size is expected to hit $230 billion by 2028, which signals industry players about the promising potential of EdTech companies.

EdTech Market Size

If you are planning to invest in e-learning and education, look for tech-enablers with relevant expertise. Here’s what Geomotiv is ready to deliver today:

  • custom solutions
  • education platforms
  • live classrooms
  • teacher lessons marketplace
  • online certification systems
  • miscellaneous LMS development services. 

Browse through the list of the most popular software solutions rocking the industry in 2022 in our newest article!

eCommerce Industry

The pandemic made it more challenging than ever to find someone who’s never bought anything online. From 2020 to 2021, people needed to embrace lockdown, which resulted in a significant shift to sales via the Internet.  The trend continued into 2022, with retail eCommerce sales reaching $5.5 trillion, as estimated by Statista report. As a result, it propelled eCommerce to the list of the best startup industries, with plenty of investors looking for opportunities there. Retail eCommerce sales in the US alone amounted to $257.3 billion:

Retail eCommerce Sales in the US

Also, mobile app usage continues to grow, which has boosted mCommerce as a new way of online transactions using a mobile phone or a tablet. Mobile apps are likely to become the primary channel for online shopping and “the next big thing” for this startup industry.

There is also an uptick of interest in online supermarkets, local cafés, ghost kitchens, catering vans. Timely and affordable delivery services are also in demand. According to Research and Markets the online food delivery market was worth $115 billion in 2021 and is expected to stand at $159 billion by 2026. 

The soaring demand for online shopping and delivery services makes eCommerce one of the fastest-growing industries to start a business. It offers a massive opportunity for entrepreneurs in 2022 and the forthcoming years. The market is becoming very dense, which means that the competition is growing.

If you are thinking of developing an online store, then consider starting with a branded niche-specific product. You can find a particular area to specialize in and then push this strategy forward. It is more reasonable from the point of view of the allocation of investments and human resources.

Also, when facing the question of adding an eCom store in your processes, companies have two paths to consider: either to go with a system available on the market or build their own platform from scratch. With a custom solution, you can target all the goals of your company, but have to invest more time and money. Based on the size of your business, the price range for custom online stores starts from $60K and can go up to $300K:

  • Basic version (core feature set with responsive design) $60K+, 3-6 months
  • Medium version (more features and design of a larger complexity) $90K+, 6-9 months
  • Large version (complex multi-level website design, development, and support*) - $300K+, 9+ months (ongoing)

*Explore an in-depth review of the stages involved in an eCommerce software development process in our recent article. 

In this context, Geomotiv can enable your business’s digital transformation with our custom eCommerce software development services.  

Streaming Services

TV watching and online streaming have surged during the lockdown and continue to add new subscribers and loyal fans as we proceed with 2022. Cord-cutting and the concept of content “anywhere and anytime on any device” continue growing. Another factor that fuels the demand for streaming services is the popularity of binge-watching among consumers.

Analysts from Fortune Business Insights project the Video on Demand (VoD) Market to hit $257 billion by 2029. Massive growth opportunities await the industry’s significant players, with Netflix, Disney+, and Amazon Prime gradually expanding their reach.

Here’s how many paying subscribers the key global platforms have had in 2022 so far:

VoD ServiceNumber of subs in 2022, in millions
Netflix220
Hulu46.2
Peacock13
Disney+152
HBO Max/Discovery+92
Amazon Prime117
Sling TV2.5

The video streaming landscape continues to get more crowded and fragmented as more and more players enter the market. Especially for the US, the video streaming landscape has changed, with Netflix gradually losing its market share because of the competition. HBO max has shown more aggressive growth, while Disney+ and Amazon Prime have slowed down for a while.

As viewing habits are changing, VoD service providers are likely to expand their offerings and attract more subscribers. Some of them invest in new content, while others focus on expansion to new countries and regions. For instance, Disney+ has recently announced its plans to extend the service to Faroe Islands and Gibraltar. This trend is likely to continue to grow, making streaming services one of the best industries for startups. In this way, entrepreneurs can unlock numerous opportunities hiding in plain sight.

With Geomotiv’s TV Media software development services, you can join the conversation and break into the game of Netflix. 

Healthcare

There is no surprise that Healthcare became one of the fastest-growing industries in the world in the previous year. Health-related tech solutions are experiencing a push right now, even though most lavish events have been sidelined in 2021-2022. Booming business opportunities attract many exciting startups willing to leverage the latest advances in Healthcare software development services and technology.

The pandemic has surely set a direction for the industry, with investors pouring a record amount of money into health-related startups in 2021. However, the speed of investment growth has slowed down as we proceed with 2022. Healthtech companies have secured $10.3 billion in 2022 so far and are expected to collect around $21 billion, which is less than 2021’s anomaly ($29.1 billion):

Here’s how much funding investors have put into the top 8 Healthtech  companies in 2022:

NameCountryAmount (in USD)
RoUSA$150M
DoctolibFrance$549M
Lyra HealthUSA$235M
Reify HealthUSA$220M
OuraFinlandVC round
SomatusUSA$325M
Saliogen TherapeuticsUSA$115M
Incredible HealthUSA$80M
Omada HealthUSA$192M
AthelasUSA$132M

As we can see from the above table, a giant health-related round this year went to telehealth (Ro), which involves tech-powered services and telecommunications outside traditional facilities. According to a new Telehealth Market Size and Analysis study conducted by Absolute Reports, the sector is set to grow to $11.7 billion by 2025

The demand for virtual non-Covid doctor’s visits is one of the primary drivers of the market’s growth. Elderly and chronically ill patients need regular guidance and treatment but had to stay at home due to stay-at-home rules and restrictions. As The Washington Post found, numerous people have ignored severe health problems that require hospital treatment. That is why the urge to make medical tools and guidelines widely accessible is becoming one of the top priorities.

The pandemic has also triggered a surge in interest in AI technology. Its algorithms are already able to process thousands of medical records, develop treatment plans, and design new drugs for rare illnesses. The technology has the potential to open new horizons for healthcare, with patient data mining, predictive analytics, personalised insights, and other use cases.

Another notable area of digital health is advancements in medical devices and proliferation of The Internet of Medical Things (IoMT). Wearable devices already empower patients as well as individuals willing to take care of their own health through technologies. But IoMT went further in uniting disparate devices to ensure unified access to data for patients and doctors. The future of this technology looks promising as reflected by its market size projections. It is anticipated to accelerate at a CAGR of 23.4% by 2031.

As a company with vast experience in the domain, we’ve helped various Healthcare providers to extend their services to remote areas using technology. Our software development team worked on a telemedicine solution that could facilitate remote communication between patients and doctors in real-time. Another piece of software was dedicated to meeting unprecedented demands of patient care with an AI-powered healthcare chatbot. Apart from driving substantial cost savings, the solution also helped to monitor health at home during quarantine. 

Other thriving areas include web and mobile apps for patients and doctors, Healthcare CRMs, healthcare analytics solutions, and BI services. If you are considering starting a business in the industry, Geomotiv’s technology experts can help you stay ahead of the curve and provide the most ambitious solutions. 

Find out more about our experience in developing a custom Healthcare CRM for one of the leading medical centers.

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Leisure and Entertainment

Leisure and entertainment belong by right to the list of top industries to invest in. With the pandemic keeping people indoors, online services outside work are taking the world by storm. Many of us had to suddenly adopt digital technology and look for social activities, workout, and dating online overnight. That had consequently impacted the way businesses operate in the traditional leisure and entertainment industry. 

Entrepreneurs looking to launch a new product in these niches started to surf new opportunities. As gyms were forced to close, the demand for online alternatives like exercise-tracking apps began to soar. Also, evolving virtual reality (VR) games and systems suggest a new way of working out for stay-at-home consumers. It seems like that trend will keep flying and consequently let us usher in an era of gamified fitness.

Meanwhile, apps like Tinder, Clubhouse, Bumble, and Hinge go through a new surge in downloads and interactions in 2022. Virtual dates and video chat services are thriving since they help users adapt to new interaction norms. The interest peaks with the growing unemployment numbers, as subscriptions to dating apps may become the way to cut household expenditures.

Logistics

The Logistics industry has produced over 12K+ tech startups that consist of companies offering platforms for fleet monitoring, data warehousing solutions, dealer management systems, and other types of software. It was one of the most active sectors for investors in 2020, with total funding exceeding $19B as the CB Insights agency reported.

These numbers come as no surprise as the move towards digitization unites new market entrants and traditional logistics providers. With the latest technology, companies automate back-office processes, improve inventory visibility and management, and reduce the number of human errors. 

As technology advances, it is vital for each market player to be proactive and detect the next big thing for their business at an early stage. To help you prioritize where to invest in 2023, here's an overview of the key technologies that are likely to have the greatest current impact on Logistics:

Key Technologies for Logistics

With a deep understanding of modern technology, our proficient team of developers and business analysts is also familiar with the Logistics industry. Geomotiv can work with you to help create digital solutions, including Delivery Operations solutions, Routing Solutions for Student Transportation, or any other type of Logistics software for your custom needs.

Closing Thoughts

After two years of complete and partial restrictions, we can observe that  the way we use technology has changed. Simultaneously, the world experienced the need for change, with ordinary consumers and business owners adapting to the new measures induced by post-Covid economy. That gave rise to particular business niches and removed priority from the other ones. So, if you are thinking of good industries to invest in, our list may help you find success in 2023 and beyond.

For entrepreneurs looking to launch a new product, you are better off embracing digital technology and innovation in EdTech, eCommerce, Streaming services, Healthcare, Logistics, and Leisure and Entertainment industries.

From education platforms to gamified fitness software and streaming platforms - all solutions in the best startup industries involve online presence digitalization.

That is where technology experts can step in to the rescue to reinvent traditional businesses and invent new, compelling solutions for the future. If you are thinking of taking the opportunity to compete in one of the fastest-growing industries to start a business, engage Geomotiv’s team. We’ve built immense niche expertise in selected industries, Big Data processing, custom web, and mobile development. 

Let’s craft the next generation of top-level solutions together.

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