We live in an era characterised by unprecedented growth speeds in various industries, a global outcry for green energy, and a tech-savvy consumer population that’s ever-hungry for better products and services. Consequently, a few sectors that can meet particular market needs are experiencing dramatic revenue growth that could interest you as an investor or curious reader. Here are the fastest-growing industries, according to research from IBISWorld.
Hotels and Resorts
With a total market size of about £465 billion and expected growth of 17.4% CAGR in the years preceding 2030, the global hotels, resorts, and cruise ships sector seems to have a bright future. The industry was already experiencing steady growth in the years preceding 2019, followed by a drastic decline due to the pandemic, as with most niches on this list.
However, things are expected to turn around as the public health crisis subsides and consumers as well as companies regain confidence in their finances. Global travel rates and hotel room occupancy have not reached pre-pandemic levels but are rising. This is a clear indicator of better days ahead in the industry.
The top names in the hotels and resorts industry worldwide are:
- Hilton Hotel and Resorts
- Jin Jiang
- Hyatt Hotel
- InterContinental Hotels Group (IHG)
- Marriott International
- Wyndham Hotels and Resorts, Inc.
- Royal Caribbean Group
- Mediterranean Shipping Company
Travel and Tourism
International tourism was already boasting 60% of the numbers before the pandemic as of July 2022. The industry is experiencing a renewed demand for international travel and increased freedom as destination countries lift travel restrictions.
Going hand in hand with tourism is the travel agency services industry, which equally suffered a blow due to travel restrictions and closed borders, but is now bouncing back. According to UNWTO, Europe and the Middle East are leading in recovery with over 70% of pre-pandemic arrivals.
Researchmarkets predicts continued growth of the global tourism industry market size over the next decade, giving a 3% CAGR by 2031.
Statista foresees better days ahead for the travel tourism sector as well. It suggests an annual growth rate of 8.46% and a projected market size of £882.18 billion by 2026.
The top companies in the travel and tourism sector include:
- TUI Group
- Booking Holdings Inc.
- SOTC Travel Limited
- Yatra Online Pvt Ltd
Online Gambling and Casinos
The gambling industry had an estimated market share of £677 billion as of 2022 and is projected to reach £792 billion by 2026. Noteworthy is the online gambling sector that has been taking over the industry at an alarming rate.
There are at least 2,000 online gambling websites, with the top online casinos generating upwards of £10 billion in annual revenue. In the meantime, however, land-based casinos are experiencing a decline in popularity.
The recent success of online gambling is partly attributed to the COVID-19 pandemic that limited human interaction, sparking massive migration to the web.
Here are some of the biggest names in the industry, including both gambling websites and game providers:
- Scientific Games
- William Hill
- The Start Group
- International Games Technology
- Kindred Group
The global airport operations market was valued at over £6.6 billion in 2021 and was estimated to reach £10 billion by 2028. This growth would account for a CAGR of 6.5% over the projected period.
Airport operations, including support for passengers, freight transport, etc., are flourishing worldwide, thanks to increased domestic and international air travel as well as global manufacturing activities that keep cargo flights busy. Moreover, airports are becoming increasingly diversified to provide services in commercial niches such as retail concessions and car parking.
Disruption from COVID-19 was a significant setback to the industry. Still, experts forecast a revenue increase in the coming years.
Automobile Engine and Parts Manufacturing
Vehicles are getting more tech-oriented, filled with chips and energy-efficient technologies. In the meantime, those investing in the automobile engine and parts manufacturing sector will be glad to know the industry is expected to only get more relevant in the future.
This market includes those producing motor vehicle engines and parts such as valves, crankshafts, camshafts, pistons, fuel injectors, body kits, etc. However, it is also worth mentioning that this industry is close-knit with car production. Hence, its performance ultimately relies on how well the automotive industry does.
According to GlobeNewswire, the automobile remanufacturing market is set to grow at a 7.0% CAGR up to 2028, while the aftermarket sector is projected to have a CAGR of 3.38% in the years preceding 2030.
Among the top companies in the vehicles engine and parts manufacturing industry are:
- Ford Motor Company
- Maruti Suzuki
- Tata Motors
- Hyundai India
- Honda Cars
- Mahindra & Mahindra
Commercial Aircraft Manufacturing
Civilian aircraft, aerospace engines, auxiliary equipment, and propulsion units are the names of the game. And the game is catching on fast. There has been growing air travel in unexplored areas and fleet replacements over the past few years, a trend that statisticians think will keep steady in the future.
Analysts put the industry’s CAGR between 2022 and 2028 at 3.01%, although IBISWorld puts the sector’s 2022-2023 revenue growth at 14.46%.
Some of the key market players in the commercial aircraft manufacturing industry include:
- The Boeing Company
- Airbus Group SE
- Bombardier Inc.
- Embraer S.A.
- Reliance Defence Ltd.
- Public Joint Stock Company United Aircraft Corporation
- Commercial Aircraft Corporation of China, Ltd.
- E. Aviation
- Bharat Forge
- United Technologies Corporation
- Lockheed Martin Corporation
- Mahindra Aerospace
- Leonardo-Finmeccanica S.p.a
The global cargo airlines industry had an estimated value of £98.8 billion in 2020 and was projected to reach over £109 billion in 2021. Moreover, it experienced an annual market size growth of 4.6% between 2017 and 2022. This growth is expected to continue in the industry as global manufacturing flourishes, maintaining a steady supply of goods to be transported.
However, the foreseen blossom of the cargo airline industry may be yet to actualise as planes continue to circle Russian airspace due to the ongoing conflict with Ukraine. Before the invasion, approximately 19% of international cargo shipments by air went through Russia. The extra transit time has resulted in about 20% extra fuel costs, dragging the industry’s growth.
The big cargo airline players to keep a close eye on include:
- China Airlines
- Turkish Airlines
- British Airways
- Air France
- United Airlines
- Polar Air
- Asana Airline