In a constantly moving world, where our needs change as technology advances, it can be challenging to keep track and stay ahead of the emerging trends. A great number of start-ups fail while new ones are launched and this cycle creates constant opportunities.
While 2020 was grim, the Covid-19 vaccination programmes have provided a more promising economic outlook and underlying growth, and here we are, trying to figure out the next “big thing”.
To help you navigate the uncertainty of these times, our team has identified some key investment trends to watch in 2021.
1) Sustainable Finance
In a few words, sustainable or “Green Finance” is the art of investing while considering the environmental, social and governance (ESG) impacts of your investments. Now, more than ever, start-ups and companies look to incorporate sustainability at the core of their strategies, culture and products, attracting “conscious” investors.
We can understand the size and potential of this sector only by looking at the European Union’s Green Deal alone. A deal that will mobilise at least €1 trillion of sustainable investments over the next decade on their way to be the first climate-neutral continent by 2050.
2) AgTech
The first thing one learns in Economics class at school is that there simply aren’t enough natural resources for the number of people on the planet. Agriculture Tech tries to solve that problem as well as other environmental issues, such as climate change, by combining advanced technology and farming.
There are different ways that this can be achieved, either by using existing technology to help current or emerging farming techniques or developing new tech to produce new agricultural methods.
Indoor farming with the use of IoT, vertical farming to maximise capacity, crop yield control, and lab-grown meat, are only some of the innovations that are changing the food supply chain radically and have caught investors’ attention.
3) Crypto
There has been a lot of buzz around cryptocurrencies this past year, with major coins such as Bitcoin and Ethereum reaching all-time high levels and even breaking through them. Investors are jumping in the markets to get a grip of this exciting opportunity, but it doesn’t stop there. Companies are finding more applications of Blockchain, the technology behind cryptos, and have started adopting this “new” decentralised transaction system. Paypal and Tesla are some of the major companies that have jumped into the fray and are accepting Bitcoin as a form of payment.
Will we witness a mass adoption of cryptocurrencies? Well, we can’t say with certainty, but the fact that Central Banks such as the Fed, the European Central Bank and that of Japan, are looking into creating their own digital currency serves as a (big) hint.
4) Healthcare
It might not come as a surprise to you, but healthcare companies are here to stay and not just because of the pandemic. The digital disruption that the industry has undergone is immense, revealing the various applications of technologies such as AI, telemedicine, and the cloud’s part in transforming healthcare as we know it.
From online consultations to predicting diseases using data and AI for developing drugs, the road ahead is open and companies are fighting the battle for innovation. The future looks bright for those who adopt these technologies.
5) Infratech
Infratech can be described as the integration of material, machine, and digital technologies across the infrastructure life cycle.
Although there are still barriers to embracing technological change in infrastructure by governments, companies, contractors, and investors, it is becoming more and more clear that it’s the way to go.
UK PM Boris Johnson made the first step towards an infrastructure revolution back in 2020 by launching the “Green Industrial Revolution” which will create and support up to 250,000 jobs. Now the $2tn infrastructure investment plan announced by US president Joe Biden will surely shake things up.
Some of the technological integrations we will see in the coming years include smart cities, infrastructure decision-making optimisation via data analytics, public sector innovations such as in-road charging infrastructure for electric vehicles and Cloud-native infrastructure.
To conclude, there are endless, ever-growing trends to watch in the near future. They show great prospects and potential and with a keen eye and a shrewd approach, one can take the appropriate action to participate in game-changing ventures that will not only benefit them financially but also contribute in solving mankind’s biggest challenges.
By Annita Xenou