Startup Industries that are growing fast in 2022
Despite the coronavirus pandemic, many sectors experienced growth in 2022, especially those developing technology to make consumers’ lives easier. In particular, those businesses where people can make use of them whilst at home have flourished, like services-on-demand, Startup Industries, and edtech.
Startup Industries growth can be measured in a multitude of ways. One way is to identify the sectors with the greatest growth in investment, which we’ve done here, calculated using announced equity rounds completed in 2021 and 2022, using our own sector matrix.
Between 2019 and 2020, Brisk Logic saw the rise of digital security, quantum computing, and crypto-currencies. In 2021, we had some new leaders: services-on-demand conquered the list, with the greatest increase in deal activity growing 75% from 32 announced investments in 2020 to 56 in 2021, closely followed by edtech and proptech.
Here, we take a deeper dive into the six Startup Industries sectors and explore the companies and investors at the forefront of innovation.
Edtech, or education technology, is the second-fastest-growing startup sector in the UK. Edtech introduces tech tools into the classroom (or home) to create a more engaging learning experience. Edtech can help make education more accessible by opening up world-class academic resources to people around the globe, and making them available 24/7.
Again, the impact of Coronavirus encouraged the growth of the edtech sector, with teachers needing to find digital-first ways to educate students. 552 of the UK’s active high-growth companies operate in the edtech sector, the highest of all the industries in this list.
UK edtech companies secured 70 funding rounds in 2022, a 68% increase from 44 in 2020. Between 2011 to 2021, Scottish Enterprise has been responsible for the most deals, participating in 39 known rounds. Seedrs and Crowd cube are, again, high on the list of the decade’s investors, making 32 and 29 deals, respectively.
Despite seeing a decline in the number of funding rounds between 2019 and 2020, proptech saw a 67% increase in rounds between 2020 and 2021, ending on 60 rounds worth a combined £400m, the same amount as in 2018.
The original UK proptech, Zoopla, kickstarted the sector, which essentially uses technology and software to assist in real estate sales and operations. This includes using artificial intelligence (AI), automated processes, and 3D technology among others, to do a variety of tasks, making them easier and more efficient. Referred to by some as “the future of real estate”, the sector is booming, with 306 active high-growth UK companies at the time of writing.
Seedrs and Crowdcube are the sector’s top investors, with 70 and 25 deals completed from 2011 to 2021, respectively. Pi Labs, a venture capital fund dedicated to backing proptech firms across Europe, is the next highest investor, with 18 known deals completed in the UK during the decade.
The growing pandemic had created more opportunities for the business industry. According to the sources, the industry has grown to 16.8% due to the Pandemic. Wondering how? let us tell you in detail about those industries/sectors that took charge of the circumstances & found a way to grow rapidly.
Pandemic had a greater impact on the OTT services. Right from the biggies in the industry such as Netflix, and Prime to Youtube, has now become a source for all the media companies. Solid budgeted movies and series are also being made and released over OTT screens.
The companies such as Infinitum Media Solutions, Tamada Media, and AHA are growing rapidly in the streaming sector.
Health and BeautyCare
The health and beauty-care sector is always a bigger market. The sector is now spreading across to influencers creating health & beauty content on social media. The beauty care niche is extending its wings from the large cosmetic manufacturers to organic/natural remedy productions.
The digitalization services are establishing the hype in freelancer communities. Right from marketing to virtual assistants, everything is digitalized and businesses are in need of making their business go online due to the pandemic restrictions. One can start as a freelancer or can establish an agency to contribute to digitalization services globally.
IT and Tech Innovation sectors
IT and Tech sectors are also growing rapidly with digital services, as most of the new businesses are online to capture the market they require a solid application/portal to showcase their products and services. IT sectors are also heavily involved with large-scale managing projects. The sectors that generate capital on a monthly basis, a subscription model, a renewal model, etc can be the sources of capital from the customers.
Small Fashion Businesses
Earlier, that is before the pandemic there wasn’t advertising for small businesses, but as people started to educate themselves via social media, most of the Millennials and the Genzs started to bring out their brands. Earlier Sarojini Nagar market used to be a physical market in Delhi, as most of the young minds now started to turn Sarojini Nagar into their Small Business by selling those clothes online.
Over the years, AI has emerged as the main driver of many emerging technologies. Be it to manage operations, scale supply chains in response to real-time or predicted demands, improve ROI or achieve cost savings, the demand for AI-powered applications has increased.
Some are either in the very early stage of AI integration or planning to integrate, but every industry is integrating AI to create better services and products. Industries including manufacturing, healthcare, education, and transportation are using AI.
As per the latest report by International Data Corporation (IDC), India Artificial Intelligence Market, 2021, India’s AI market is expected to reach USD 7.8 billion by 2025.
But as technology is improving, AI is advancing. And with more advancements, AI will continue to act as a technological innovator for the foreseeable future.
Internet of Things (IoT)
With technology redefining the potential of everyday products and consumers wanting everything smart, the Internet of Things (IoT) is likely to make regular life easier and experiences better by connecting everyday products with people.
As India is a vibrant economy, backed by rising internet penetration, strong connectivity and coverage, an increase in smart applications adoption, etc., the IoT ecosystem is expected to continue growing.
With the growth of digital infrastructure and more people online, cyberattacks have gotten quite frequent, and the need for cyber security is more than ever.
The sector is already witnessing huge demand and is among one of the few trending sectors. Additionally, with the growth of cloud computing, IoT systems, and other internet-dependent tools, the cybersecurity industry has grown leaps and bounds.
Sustainable Products Market
Increasing environmental and climate concerns are pushing businesses and individuals to promote a sustainable way of living. Because of this, businesses are manufacturing a variety of everyday-use products that are earth-friendly. And as awareness among people about conscious consumption and environment-positive products is rising, the demand for sustainable products is increasing.
Changing consumer behaviour and product adoption has led to an increase in eco-friendly products, biodegradable packaging and a zero-waste lifestyle, discouraging single-use plastics.
The last of the fast-growing sectors in this list, gamification refers to the process of adding game mechanics into non-game environments to increase participation. The goal of gamification is to engage with consumers, employees, and partners to inspire collaboration, sharing, and interaction. There are currently 199 high-growth companies innovating in this space in the UK.
As insurance, the gamification sector has seen huge increases in funding activity since 2011. Companies in the industry completed 32 deals in 2021, up 33% from 2020, and marking over 10% of the sector’s total 230 fundraisings since 2011. The total value of fundraisings has more than quadrupled, from under £50m in 2020 to over £200m in 2021. Seedrs has backed 20 of the sector’s 230 deals, while Crowdcube has made 14. SyndicateRoom is the next top investor, with nine deals over the last decade.
Tutoring and online learning
Most schools across the country reopened to full-time, in-person learning for the 2021-2022 school year, but the impact of last year is still being felt.
Students are an average of four to five months behind academically. And the learning loss among minority and low-income students is even greater.
With a return to mostly in-person learning, some parents and school districts are looking for tutors to help their kids close the gap. If it’s a career choice you’re interested in exploring, you can learn more in our article about how to start a tutoring business from home.
While many students (and their parents) are happy to be back in a classroom, online learning isn’t going away. E-learning platforms are an easy and convenient way for anyone to learn new skills.
Spurred by demand from academic, corporate and government organizations, the e-learning market is expected to quadruple by 2027— if you prefer to stay virtual.
In-person and digital fitness
Gyms across the country shut down in response to the pandemic, sending millions of Americans to exercise in their living rooms. Though gyms in most areas are now open for business as usual, many people are unwilling to give up the safety and convenience of at-home workouts.
If you’re a fitness enthusiast who’s good with technology, digital fitness can be an opportunity as growth for the industry is expected to grow by 18.5% worldwide by 2026.
In the United States, the U.S. Bureau of Labor Statistics (BLS) projects job growth for fitness trainers and instructors to increase by 39% through 2030 — much faster than average across all job categories.
With no advanced degrees required and a median wage of nearly $20 per hour, becoming an online fitness trainer has a low barrier of entry for health-conscious entrepreneurs.
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