Market reports predict the top five tech growth sectors over the next few years will be Artificial Intelligence (AI), Nanotechnology, Biotechnology (BioTech), Digital Twins, and Genomics, projected to collectively grow more than 400%.
The Vector Innovation Fund (VIF) is an investment vehicle for global technology companies, specialising in enabling new tech sectors working to improve healthcare and sustainability.
VIF’s chairmain, Paul Stannard, stated: “These top five tech growth sectors hold the key to solving major global challenges relating to sustainability, healthcare, energy, food resources and equal and fair distribution of innovation worldwide.”
1. Artificial Intelligence
AI holds the most potential out of these tech sectors, forecast to grow from US$62.35 billion in 2020 to US$997.77 billion by 2028. Integration of AI technology will be the catalyst for accelerating most technology fields, already achieving in food science, lowering retail and banking costs, and advancing medical care. According to StockApps, in the last quarter of 2020 investment in AI companies surged, totalling $73.4 billion, a $15 billion increase from the start of 2020. In the first half of 2021 already, 4,080 investment deals have been made with AI firms.
Set to grow from US$54.2 billion in 2020 to US$126.8 billion by 2027, nanotechnology has advanced medicine, electronics, environmental solutions, and materials, with the potential to improve drug delivery procedure and storage, and renewable energy. The Covid-19 pandemic accelerated both vaccine and virus testing technology, and also drove many healthcare innovations including nanotech material masks that filter out 99.9% of bacteria, viruses, and particulates. According to Pitchbook, in the first half of 2021, there has already been US$7.72 billion of investment in nanotechnology companies, from 775 deals.
The BioTech sector is predicted to grow from $752.88 billion in 2020 to US$2.44 trillion by 2028. BioTech is innovating in agriculture, improving food nutrition and preservation, minimising waste, and healthcare. The most noteworthy recent BioTech advance being the record-breaking speed of Covid-19 vaccine developments last year. A surge of investment is also being made in pandemic protection and preparedness through multi vaccines, autoimmune treatments, and early intervention testing.
4. Digital Twins
A new tech trend, Digital Twins are a high growth tech sector, forecast to grow from US$3.1 billion in 2020 to US$48.2 billion by 2026. This technology is already widely used in the construction, energy, healthcare, automotive, and aerospace sectors. Cityzenith’s SmartWorldProOS™ software platform uses Digital Twins to enable architects, planners, and energy providers to manage energy usage from individual buildings to even whole cities.
Set to grow from $20.1 billion in 2020 to US$62.9 billion by 2028, genomics technology is playing a key role in healthcare innovation. According to Pitchbook, investment in genomics companies has more than doubled in 2021, compared to 2020. Genetics testing companies like CircleDNA are bringing healthcare and disease testing and prevention to consumers globally.