Top 10 Fastest Growing Niches & Industries in US (2020,2021,2022,2023,2024,2025)

An Overview

Market Projections: The 10 Fastest Growing Industries in the US

S. No. Industry 2018-19 Revenue Growth
1 Wind Turbine Installation 53.5%
2 Automated Guided Vehicle Manufacturing 48.2%
3 Solar Power 38.8%
4 Social Networking Sites 38.2%
5 Telehealth Services 37.0%
6 Peer-to-Peer Landing Platforms 34.8%
7 Medical & Recreational Marijuana Stores 30.9%
8 Medical & Recreational Marijuana Growing 27.9%
9 Massage Franchises 27.6%
10 Online Mortgage Brokers 24.8%
     

Table [1]

Wind Turbine

Wind power in the United States is a branch of the energy industry that has expanded quickly over the latest several years. For the twelve months through November 2017, 254.2 terawatt-hours were generated by wind power, or 6.33% of all generated electrical energy.

As of January 2017, the total installed wind power nameplate generating capacity in the United States was 82,183 megawatts (MW). This capacity is exceeded only by China and the European Union. Thus far, wind power’s largest growth in capacity was in 2012, when 11,895 MW of wind power was installed, representing 26.5% of new power capacity.

In 2016, Nebraska became the eighteenth state to have installed over 1,000 MW of wind power capacity.  Texas, with over 22,000 MW of capacity, about 15% of the state’s electricity usage, had the most installed wind power capacity of any U.S. state at the end of 2018. Texas also had more under construction than any other state currently has installed. The state generating the highest percentage of energy from wind power is Iowa, while North Dakota has the most per capita wind generation.

The Alta Wind Energy Center in California is the largest wind farm in the United States with a capacity of 1,548 MW. GE Power is the largest domestic wind turbine manufacturer.

The five states with the most wind capacity installed at the start of 2017 were:

  • Texas (20,321 MW)
  • Iowa (6,917 MW)
  • Oklahoma (6,645 MW)
  • California (5,662 MW)
  • Kansas (4,451 MW)

The Wind Turbine Installation industry provides services related to the construction of wind power farms, including site planning, turbine transportation and component assembly. Industry operators generate the vast majority of their revenue from services related to the installation of new wind capacity. Wind energy generation has grown strongly over the past five years, largely due to favorable government mandates and incentives for renewable energy. However, federal incentives have been inconsistent, leading to uneven growth in turbine installations between years. For example, the industry hit a trough in 2013 due to the temporary expiration of a key federal tax incentive. Consequently, it surged overall over the past five years.

Top three companies holding the largest market share in the Wind Turbine Installation industry include General Electric Company, Vestas Wind Systems A/S and Siemens Gamesa Renewable Energy.

The industry is exposed to the following threats and opportunities:

  • Wind power growth in the United States has been driven by favorable federal and state government tax credits. In particular, the federal production tax credit (PTC) has been the primary driver of demand for wind turbine construction. Federal support for wind power is expected to decline in 2018, posing a potential threat to the industry.
  • Demand for alternative energy, such as wind power, increases in line with the price of electricity. In addition, general increases in the price of electricity generate more revenue and incentive for utilities to invest in new capacity. The price of electric power is expected to rise in 2018, presenting a potential opportunity for the industry.

Solar Power

The U.S. installed 2.1 gigawatts (GW) of solar PV capacity in Q2 2019 to reach 69.1 GW of total installed capacity, enough to power 13.1 million American homes. The utility-scale solar pipeline reached a record 37.9 GW in Q2. Total installed U.S. PV capacity is expected to more than double over the next five years – by 2024, more than 15 GW of PV capacity will be installed annually.

Modest residential growth continues in Q2 2019

After growing 8 percent in 2018, the residential market continued apace over the first half of 2019, with installations trending 7% higher than in the same period last year. This level of growth suggests increased market maturity and a more sustainable growth profile.

The Solar Power industry has experienced clear skies over the five years to 2019, propelled by favorable government incentives in the form of renewable portfolio standard (RPS) targets and tax credits. RPS legislation, currently implemented in 29 states and territories, requires local utilities to generate a percentage of their total energy portfolio from renewable sources. Meanwhile, increased public support for green energy has led to tax incentives and grants to encourage investments in solar power. Additionally, equipment costs have continued to fall during the five-year period. In light of these trends, industry revenue is expected to grow at an annualized rate of 36.4% to $9.5 billion over the five years to 2019, including growth of 31.0% in 2018.

The companies holding the largest market share in the Solar Power in the US industry include NextEra Energy Inc. and Consolidated Edison Inc.

Top 10 Solar PV Installation US States

The below ranking will help you target and provide solar installation services in respective US states. Below table let us know about the growth in solar PV installations as per Q2 2019 stats.

State 2017 2018 2019
CA 1 1 1
FL 3 4 2
NC 2 3 3
MD 13 13 4
NJ 11 7 5
AZ 7 9 6
TN 25 17 7
MN 6 8 8
NY 12 6 9
Hawaii 17 16 10

The industry is exposed to the following threats and opportunities:

  • In addition to coal, solar competes with natural gas in providing energy to US consumers. Thus, the price movement of natural gas generally moves in line with demand for substitute energy sources, such as solar power. If the price of natural gas increases, there is typically greater demand for substitute solar energy; if it decreases, demand for solar energy will also likely decrease. The price of natural gas is expected to decrease in 2019, though it will remain low compared with historical averages, posing a potential threat for the industry.
  • Tax credits for energy efficiency incentivize solar energy generation by lowering industry operators’ cost of production and, subsequently, increasing profit. These tax credits also enable solar energy generators to compete on the price of electricity with other, more-established energy sources, such as coal and natural gas, thereby encouraging operators to enter the growing industry. Tax credits for energy efficiency are expected to remain stable in 2019, representing a potential opportunity for the industry.

Telehealth Services

Telehealth is enabling healthcare providers and payers to address the US healthcare industry’s growing list of problems, including rising healthcare costs, an aging population, and the transformation of healthcare from service-centric to consumer-centric, which is straining healthcare system resources and threatening to drive up payer costs.

In Numbers

Below chart shows the projected growth of the total number of telehealth patients worldwide from 2013 to 2018. The source forecasts the number of telehealth patients to grow to around seven million by 2018.

Chart

Another chart we are discussing about the number of telehealth visits in the U.S. from 2013 to 2017. It provides a forecast from 2018 to 2022 (low to high estimates). In 2013, the total number of telehealth visits reached some 22 million.

Chart

As per 2017 U.S. Telemedicine Industry Benchmark Survey, health care professionals prefer Telehealth. 83% health care executives responding that they were likely to invest in telehealth in 2017.

STRENGTH WEAKNESS
Huge momentum Money flowing in from investorsTechnical talent coming in from other industriesGrowing acceptance of online living Smartphones becoming ubiquitousNot contending w. large legacy baseA game-changer toward the 3 Aims Interoperability/ InfrastructureQuality of dataMany patients not engaged Reluctance of health system to embrace wholesale changeReimbursement for e-visits MD’s slow to recommend mHealth products to patients
   
OPPORTUNITY THREATS
Risk-sharing payment models should give home devices a positive ROIThe “high engagement patients”, especially for social mediaFast innovation cyclesAligns with aging populationPossibilities are almost limitlessDeveloping countries may see most dramatic increase in mHealth use May take a while for market to “shake-out” and stabilizeIntent of large EHR vendors is unclear mHealth may not “move the needle” on population health as predictedRegulationPolitical environment
   

Recreational Marijuana

As of November 2018 33 US states have approved marijuana ala cannabis for medical use and is used to treat symptoms associated with diseases such as AIDS, cancer, and glaucoma. Medical marijuana laws, usage, and prices vary from state to state. Not only can prices differ dramatically by state there can also be significant differences in medical marijuana prices between cities within the same state.

The number of medical marijuana patients and caregivers can also fluctuate depending on the state. While New Mexico, for example, had a legal medical marijuana patient rate of 25 per 1,000 residents in May 2018, Illinois had a rate of under two 1,000 residents.

Public approval of medical marijuana has also increased. As per few survey stats medical marijuana patients seem to also be satisfied with the treatment they experience, with a majority reporting that they would be highly likely to recommend medical marijuana to friends or family for treatment.

Let’s start off this analysis by knowing 2017 retail sales figure for medical marijuana and estimates for coming few years. What trends show with respect to retail sales.

If we analyse combined market for Medical & Recreational Marijuana, by 2024 the cannabis consumer market in the U.S. will reach $37.3bn.

Users Estimates

Medical Marijuana sales are on the rise, number of businesses is on the rise and so are the numbers of dispensaries. Why this rise in MMJ market? This is all due to rise in the use of marijuana for medical purposes among people and knowing what are the numbers of such legal Medical Marijuana Patients by state, will help some cause.

As of May 2017, it was estimated to be 2,132,777 legal medical marijuana patients in 26 out of 29 US states and DC. And California tops the list among all legalised using states at 915,845 patients.

Lets’ see the top 10:

Chart[2]

State Medical marijuana patients State population # of patients per 1,000 state residents
Alaska 1,054 739,795 1.42
Arizona 162,528 7,016,270 23.16
Arkansas 5,000 3,004,279 1.66
California 915,845 39,536,653 23.16
Colorado 88,946 5,607,154 15.86
Connecticut 25,948 3,588,184 7.23
DC 5,679 693,972 8.18
Delaware 3,588 961,939 3.73
Florida 108,981 20,984,400 5.19
Hawaii 21,004 1,427,538 14.71
Illinois 21,800 12,802,023 1.7
Maine 51,324 1,335,907 38.42
Maryland 39,276 6,052,177 6.49
Massachusetts 48,265 6,859,819 7.04
Michigan 269,553 9,962,311 27.06
Minnesota 9,435 5,576,606 1.69
Montana 25,725 1,050,493 24.49
Nevada 21,579 2,998,039 7.2
New Hampshire 4,753 1,342,795 3.54
New Jersey 20,445 9,005,644 2.27
New Mexico 52,260 2,088,070 25.03
New York 55,136 19,849,399 2.78
North Dakota4 N/A 755,393 N/A
Ohio N/A 11,658,609 N/A
Oregon 45,210 4,142,776 10.91
Pennsylvania 37,000 12,805,537 2.89
Rhode Island 6,313 1,059,639 5.96
Vermont 5,313 623,657 8.52
Washington 80,818 7,405,743 10.91
West Virginia N/A 1,815,857 N/A
Legal Medical Marijuana Patients 2,132,777 Average 10.79

What’s Ahead

Michigan has the second-largest population of medical marijuana patients in the nation, but that could change significantly after the recreational market launches in the state.

Data from across the country show the number of medical marijuana patients significantly drops in a state once the product is legalized for recreational use, according to figures collected by the Associated Press.

That trend could already be underway in Michigan. In December 2018 there were 297,515 medical marijuana patients, but as of June 1 there are 287,094 patients. Officials say it’s too early to tell what is causing the decline in patient figures.

Current Applied Rules for Recreational Marijuana

  • There are no capitalization requirements for adult-use licenses and fewer financial documents are requested from applicants.
  • Adult-use home delivery includes designated consumption establishments and any residence. Medical home delivery is to registered marijuana cardholders only.
  • Adult-use license renewal fees are divided into three tiers in which larger volume licensees will pay more on renewal and smaller volume licensees will pay less.
  • Growers and microbusinesses may accept the transfer of marijuana seeds, tissue cultures, and clones from another grower licensed under the adult-use law or the medical marijuana law.
  • Class A growers and microbusinesses may accept the transfer of marijuana plants one time from registered primary caregiver(s) so long as the caregiver(s) was an applicant for that license.
  • Current medical marijuana licensees who apply for adult-use licenses will be expedited through the application process if there are no changes in ownership.
  • All adult-use applicants are required to submit a social equity plan. The social equity plan must detail a strategy to promote and encourage participation in the marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition and enforcement and to positively impact those communities.
  • Adult-use safety compliance facilities are required to hire a laboratory manager.

[1] IBIS World

[2] https://medicalmarijuana.procon.org/view.resource.php?resourceID=005889

Revisions

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