While no analyst can accurately predict how different industries will expand or contract in the next few years, here is a list of industries that have expanded steadily in the past few years.
The global lubricants market isn’t booming, but it’s shown steady growth in the last few years. With demand for lightweight cars and industrial equipment expected to increase in the future, experts anticipate the market will grow by 2.4 percent between now and 2022. This market is responsible for oils used to cool heavy machinery and passenger vehicles. More new cars being sold translates into more demand for lubricants. This industry is also fueled by the construction industry, which requires the use of heavy equipment.
This is a relatively new way to invest. People invest their money directly into borrowers, and receive the bulk of the interest a borrower pays. Essentially, these peer-to-peer lending companies cut out the bank, or the middle man.
IBIS World projects this industry—peer-to-peer lending—will explode in the next few years. IBIS World researchers project it will grow by more than 37 percent in the next year.
Though people in Colorado can legally use marijuana for recreational use, many other states are loosening restrictions on its use for medicinal purposes. The market is responding. In 2014, medical marijuana growers took in $2.58 billion in revenue. IBIS World analysts predict that medical marijuana revenue will top $8 billion by 2019.
Airlines were onetime financial losers, following the terrorist attacks on the World Trade Center and the last recession. The air travel industry has since bounced back, however. Analysts predict annual growth of 3.5% over the next 10 to 15 years as consumer and business spending continues to grow. In 2015, the U.S. airline industry raked in more than $157 billion in profits.
Now may be the time to invest in a jewelry store. The U.S. jewelry industry plummeted during the recession as disposable income fell. However, between 2010 and 2015, the industry began to recover, posting gains in each of those 5 years. In 2015, the industry reported revenue of $34 billion. Analysts estimate that number will continue to creep skyward at a reasonable pace of 2.5% annually during the next 10 to 15 years.
Amazon remains king of the e-commerce universe, and it’s a universe analysts predict will continue to grow by more than 12 percent over the next 10 to 15 years. With an assist from increases in consumer disposable income and the willingness of shoppers to seek products online, the e-commerce industry raked in $281 billion last year.
Helped largely by American demand for products produced on the other side of the Pacific Ocean, rail transport, or freight, is booming. Railroads carry goods—lots of them at one time—from point A to point B. Much of what travels by train car is imported via ships to the West Coast. Then these shipping containers are placed on the rails where they traverse the country. From the rails to the road, the shipping containers are easily moved from train to truck and transported locally.
When you have a few extra dollars to spend, figuring out where to invest it is a challenge, but it can also be a thrill. Whether putting money into hydraulic oil coolers in Irvine, Texas, or investing in service industries on the West Coast, investors can make educated decisions.