At the end of 2019, spending in the global technology market had peaked at $3.36 trillion, while this number is only likely to grow further in the years ahead.
This is particularly true when you consider the increasingly disruptive and transformative nature of technology, with software and devices continuing to evolve at a frighteningly rapid pace.
In this post, we’ll take a closer look at how technology is transforming our society, while appraising the best tech sectors from the perspective of investors.
How is Technology Disrupting and Transforming Society?
While there have been examples of technology and innovation transforming society for centuries, the pace of this evolution has been pronounced through the digital age.
Take the evolution of the smartphone, for example. The first, rudimentary mobile device of this type was launched back in 1992, creating a de facto ‘feature’ phone that could be used to call other mobiles and landlines and little else.
Innovation in this space really began to accelerate with the advent of the iPhone in 2007. In the 15 years since, smartphones have evolved into everything from digital and mobile wallets to homes for an array of functional apps, which can have a positive impact on our personal lives, productivity and physical fitness.
With the advent of intuitive smart technology, we’ve also been able to create an increased connection between the physical and virtual realms.
This has definitely led to the formation of increasingly connected homes, while creating technologies that enable older and vulnerable people to retain their independence for much longer as they age.
In this respect, technology has had a transformative impact on society for all of its members, from tech-savvy youngsters and freelancers to older citizens who want to live comfortably and securely in later life.
What are the Best Technology Sectors for Investment?
A few of these examples also help us to understand the best technology sectors for investment, as key trends are underpinned by specific innovations and applications.
But what are the best and most prominent technology sectors from the perspective of present and future investors? Let’s find out!
- #1. Fintech: We’ll start with fintech; which is arguably the largest market of its type in the world and one that’s expected to grow at a CAGR of around 20% over the course of the next four years (reaching $305 billion in 2025). Referring to the ‘financial technology’ market, fintech has undergone several phases and completely disrupted the banking and financial payment space, driving faster transaction speeds and far greater levels of financial inclusion in the process!
- #2. Artificial Intelligence (AI): AI and the concept of machine learning is another highly lucrative technology space, and one that will be worth an estimated $126 billion by 2025. This technology has a much broader and diverse range of potential applications, including financial market investment and vehicles like CFD trading. In conjunction with the use of big and unstructured datasets, AI is helping investors to successfully automate their trades while making more informed decisions over time.
- #3. Cybersecurity: As technology and online innovations help to digitise more aspects of our lives, we become increasingly vulnerable to the machinations of cyber and identity thieves. This is driving significant demand for cybersecurity services, creating a significant opportunity for investors through both individual stocks and indices. According to sources, the total number of Internet users will also hit six billion by the end of the year, driving demand and the number of solutions on offer even higher!