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Top 20 Industries in the World Heading into 2023

In this article, we will be taking a look at the top 20 industries in the world heading into 2023. To skip our detailed analysis, you can go directly to see the Top 5 Industries in the World Heading into 2023.

The top industries in the world are responsible for a majority of the global economy, creating jobs for hundreds of millions of people in the world while ensuring wealth creation. From 2008 to 2018, the global economy has grown at an annual rate of 3.4% per year. If we go further back, according to the World Bank, since the 1980s, the global GDP has increased fourfold while the global population has doubled as well. While that would lead you to believe that quality of living has improved twofold compared to the 1980s, the truth is different as this increase in GDP and wealth hasn't been spread evenly across the population but is mostly concentrated in the hands of just a few people. For example, while developed nations continue to improve in wealth and standard of living, developing nations continue to struggle, with most of them concentrated in South America, Asia and Africa.

When the Covid-19 pandemic hit the world in 2020, the world came to a standstill with the GDP of most nations in the world contracting as industries came to a screeching halt while lockdowns were imposed in order to combat the spread of the virus. Global unemployment increased to more than 6% in 2020 while the global GDP was expected to have contracted by around 8% in 2020 as a direct result of the pandemic. However, most countries posted recoveries in 2021 as vaccines helped the world gain a foothold against the pandemic and emerge from it much quicker than expected.

Despite growth in 2021, 2022 has once again brought significant uncertainty which was initially promulgated by the Russian invasion of Ukraine. The war has resulted in massive sanctions by Western countries against Russia while in retaliation Russia stopped gas supplies to some European nations after they refused to pay in rubles. Energy prices have risen drastically as a result which has caused a lot of issues to many European governments and its citizens, especially in places where winter is quite brutal.

Photo by Bank Phrom on Unsplash

Inflation has also continued to increase at record levels in most countries which has affected the disposable income of most people while interest rates have been risen significantly as governments aim to control inflation. Meanwhile, most countries are also braced for a recession and according to some definitions, many countries are already in a recession, including the biggest economy in the world, the US. As a result of these impacts, the global economic outlook for 2023 is a bit uncertain.

To determine the top 20 industries in the world heading into 2023, we considered their market cap, invested capital and total revenue of each industry.

20. Drugs (biotechnology)

Total market cap of the industry (in billions): $1,981

Total invested capital in the industry (in billions): $311

Total revenue of the industry (in billions): $260

Biotech companies are the future of medicine and many pharmaceutical companies are completely pivoting to becoming biotech companies such as GSK plc (NYSE:GSK). Biotech companies deploy science-based information to use molecular biology and living organisms to come up with healthcare solutions.

19. Information services

Total market cap of the industry (in billions): $1,992

Total invested capital in the industry (in billions): $171

Total revenue of the industry (in billions): $266

The global information services industry includes syndicates, broadcasting companies, libraries and Internet publishing. Media falls under this definition and hence, the biggest companies in this industry include The Walt Disney Company (NYSE:DIS).

18. Electrical equipment

Total market cap of the industry (in billions): $1,916

Total invested capital in the industry (in billions): $456

Total revenue of the industry (in billions): $764

Examples of electric equipment include major appliances, small appliances and lighting among others.

17. Healthcare products

Total market cap of the industry (in billions): $2,429

Total invested capital in the industry (in billions): $360

Total revenue of the industry (in billions): $432

Healthcare products are increasingly in demand as innovations are achieved in this industry, making it easily rank among the top industries in the world heading into 2023.

16. Retail (Online)

Total market cap of the industry (in billions): $2,812

Total invested capital in the industry (in billions): $426

Total revenue of the industry (in billions): $740

Online retail has been growing over the past decade and has experienced significant growth after the pandemic when many people were limited to their houses and appreciated the benefits of focusing on online shopping. The biggest online retailer in the world currently is Amazon.com, Inc. (NASDAQ:AMZN).

15. Software (entertainment)

Total market cap of the industry (in billions): $4,008

Total invested capital in the industry (in billions): $614

Total revenue of the industry (in billions): $527

Entertainment software is software used for entertainment purposes. Video games make up a huge chunk of this industry.

14. Electronics (general)

Total market cap of the industry (in billions): $2,192

Total invested capital in the industry (in billions): $699

Total revenue of the industry (in billions): $1,153

You will see several entries in this list that wouldn't even be a consideration just a few decades ago and the general electronics industry is one of such industries.

13. Chemical (Specialty)

Total market cap of the industry (in billions): $2,224

Total invested capital in the industry (in billions): $716

Total revenue of the industry (in billions): $846

Specialty chemicals are chemicals which are used to provide various effects which are integral as raw materials for many other industry sectors.

12. Software (System & Application)

Total market cap of the industry (in billions): $6,613

Total invested capital in the industry (in billions): $383

Total revenue of the industry (in billions): $611

Software is as integral as hardware for the proper usage of tech, and software companies which design and implement programs pertaining to systems and application are considered to be among the most important companies.

11. R.E.I.T

Total market cap of the industry (in billions): $2,468

Total invested capital in the industry (in billions): $2,536

Total revenue of the industry (in billions): $281

A real estate investment trust, or R.E.I.T., is a company which either owns or operates income-producing real estate. The type of real estate can vary significantly including apartment buildings, office buildings, warehouses, shopping centers and other types of commercial real estate. American Tower Corporation (NYSE:AMT) is one of the largest R.E.I.Ts in the world.

10. Semiconductor

Total market cap of the industry (in billions): $4,259

Total invested capital in the industry (in billions): $644

Total revenue of the industry (in billions): $664

As technology continues to permeate every aspect of our life, the demand for semiconductors continues to grow which is great news for the giants of the industry including Intel Corporation (NASDAQ:INTC) which is the biggest semiconductor company in the entire world.

9. Financial Services (Non-bank & Insurance)

Total market cap of the industry (in billions): $2,154

Total invested capital in the industry (in billions): $11,623

Total revenue of the industry (in billions): $805

The financial services industry is easily among the top industries in the world heading into 2023, with perhaps the biggest company in this sector being Berkshire Hathaway Inc. (NYSE:BRK.B) whose Trailing Twelve Month revenue is nearly $254 billion. This industry also includes some of the biggest audit firms in the world including Deloitte, KPMG, EY and PwC, with each firm earnings tens of billions of dollars in revenue each year.

8. Diversified

Total market cap of the industry (in billions): $2,111

Total invested capital in the industry (in billions): $2,350

Total revenue of the industry (in billions): $1,637

Companies in the diversified sector are engaged in various industries and aren't confined to a specific industry. Most of the companies in the diversified sector are conglomerates which have subsidiaries engaged in different businesses.

7. Food Processing

Total market cap of the industry (in billions): $2,251

Total invested capital in the industry (in billions): $963

Total revenue of the industry (in billions): $1,480

The food processing industry considers the transformation of agricultural produce into food and can include companies which grind grain to make wheat or companies that make convenience foods.

6. Computers/Peripherals

Total market cap of the industry (in billions): $3,962

Total invested capital in the industry (in billions): $641

Total revenue of the industry (in billions): $1,479

In a world which is continuously evolving with respect to technology, computers and peripherals are integral to the success of most businesses. This is why even though each product may not cost a lot, the revenues earned by companies in this industry are astronomical, with Lenovo being the largest laptop manufacturer in the world and another major company being HP Inc. (NYSE:HPQ).

 

Click to continue reading and see the Top 5 Industries in the World Heading into 2023.

 

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Disclosure: None. Top 20 industries in the world heading into 2023 is originally published at Insider Monkey.