The 25 Fastest Growing Industries in the US
In addition to being the world’s largest importer, the country, with its position as the world’s largest source of foreign direct capital, is a target market for both developed and developing countries. It is one of the most important markets in the world, with a population of 328 million and a GDP of over $ 19 trillion. The US economy has the power to influence the world economy. The first of the two fundamental components that play a structural role in the US economy is abundant natural resources, and the second is skilled labor. The United States also attaches great importance to educating the workforce in the field of communication and information technologies. The finance, healthcare, transportation, and real estate sectors are other sectors that are important in the US trade in services. The retail, IT, arts and entertainment sectors are among the fastest growing sectors. Experts also say most of the business areas that will open in the coming years will be in the service sector, especially health and social work.
1. International Airlines
2021-2022 Revenue Growth: 61.3%
By 2021, international airline industry demand has experienced significant changes in five years. In recent years, operators have been forced to lower ticket prices and lower freight rates due to increasing competition from foreign companies and the chronic overcapacity in the freight segment.
The widespread recovery from the COVID-19 (coronavirus) pandemic is likely to characterize demand in the International Airlines industry in the five years to 2026. Mass vaccination efforts implemented in December 2020 are likely to continue into 2021 and into the forecast period. Based on the effectiveness of mass vaccination, international air travel restrictions are likely to be lifted and industry revenues are expected to gradually return to pre-pandemic levels.
Number of Businesses: 379
Industry Employment: 70,776
2. Hotels & Motels
2021-2022 Revenue Growth: 57.8%
This industry is highly susceptible to changes in the domestic and global economic environment. This resulted in this industry experiencing major changes in the five years to 2021 due to the global covid-19 (coronavirus) pandemic. Normally, the industry benefited from increased travel spending, corporate profits, and overall consumer spending. On the other hand, the appearance of the coronavirus in the United States immediately reversed economic trends, which reduced spending and the suspension of travel. The hotel and motel industry is expected to bounce back over the next five years until the end of 2026. The recovery of the economy and the increase in the number of tourists and business travel will allow the industry to grow.
Number of Businesses: 93,690
Industry Employment: 1,324,939
3. Casino Hotels
2021-2022 Revenue Growth: 57.8%
In the five years to 2020, the revenues of the casino hotel industry declined. The US, which previously did not allow gambling, has loosened its laws and domestic competition has increased during this period. Competition from international gambling capitals attracts by offering tax breaks for new establishments such as Macau. In mid-March 2020, all casino hotels had to be temporarily closed due to the COVID-19 (coronavirus) pandemic. It is estimated that the casino hotel industry will improve over the next few years until 2026. Even though some regions are struggling with new competition, while other companies are doing well by adding casinos.
Number of Businesses: 386
Industry Employment: 294,791
4. Movie Theaters
2021-2022 Revenue Growth: 56.3%
The last five years until 2021, this industry saw blockbuster successes and an increase in disposable income per capita, drawing more viewers to theaters. Outside competition for this industry comes from alternative methods of watching movies, such as online streaming platforms and other forms of entertainment. The coronavirus pandemic has had a disastrous impact on the industry. The cinema industry is expected to grow again over the next five years. Restless consumers and a gradual increase in per capita income will contribute to an increase in spending on, among others, cinema tickets.
Number of Businesses: 4,647
Industry Employment: 115,695
5. Non-Hotel Casinos
2021-2022 Revenue Growth: 53.3%
Various factors, including increased competition, have limited spending at non-hotel casinos. Casino operators who have been in the market for many years have struggled over the past five years, largely due to an influx of new casino hotels in the states that bypassed casino restrictions in their form. As a result, industry revenues declined annually by 5.9% to $ 15.2 billion in the five years to 2021, of which 52.6% in 2020 alone. hotels are likely to increase. The forecasts of a rebound in the US economy after the negative economic effects of the coronavirus pandemic also include forecasting an increase in consumer spending due to an increase in per capita income. It is also estimated that young consumers will be more likely to move away from gambling in favor of other forms of interactive entertainment such as live shows and concerts.
Number of Businesses: 254
Industry Employment: 64,387
6. Tour Operators
2021-2022 Revenue Growth: 53.3%
The tour operator industry saw growth for the five years to 2021, benefiting from rising disposable income levels and a strengthening global economy. Domestic and international travel undertaken by US residents have increased as unemployment has fallen and consumer spending has increased. In addition, overseas travel by non-US persons has also increased as disposable income levels have also increased in European, Latin American and Asian countries. This industry experienced a moment of rapid decline in 2020, when lockdowns and travel restrictions in the US and around the world entered into force. Its growth is projected for the next five years to 2026.
Number of Businesses: 254
Industry Employment: 64,387
7. Domestic Airlines
2021-2022 Revenue Growth: 50.0%
The domestic airline industry saw significant declines in revenue over the last five years to 2020. While most of this period was expanded with broader economic growth, the COVID-19 (coronavirus) pandemic caused major negative shifts in the industry. Operators dealing mainly with scheduled passenger transport constitute one of the most exposed industry groups to the negative effects of the pandemic. As a result, industry revenues fell at an annual rate of 12.0% to $ 71.0 billion over the five years to 2020, including an estimated decrease of 53.8% in 2020 alone. Economic conditions are improving, and business and consumers are starting to travel again and the domestic airline industry is likely to recover in five years.
Number of Businesses: 1,608
Industry Employment: 290,195
8. Travel Agencies
2021-2022 Revenue Growth: 48.3%
Travel agents are experiencing a significant drop in revenue, profits and overall industry share in the five years to 2021. This reduction in demand and industry activity is due to the 2020 COVID-19 pandemic. The issuance of stringent travel restrictions was intended to contain the spread of the virus. As a result of these unforeseen complications, industry revenues are expected to decline at an annual rate of 6.4% to $ 32.1 billion over the five years to 2021. The next five years to 2026 are likely to continue to bring significant changes and challenges to the structure of the travel agency industry. Internet operators such as Expedia Group Inc. and Booking Holdings Inc., are likely to continue to expand their market share at the expense of their traditional counterparts. There is projected an increase in niche travel which requires the organization of complex travel needs.
Number of Businesses: 64,297
Industry Employment: 189,436
9. Concert & Event Promotion
2021-2022 Revenue Growth: 45.2%
In the concert and event promotion industry, operators manage and advertise various live events. Taking into account the five-year period until 2021. industry revenues saw significant growth. When the covid-19 pandemic came, the estimated decline in revenues in the industry was 69% in 2020 alone. The quarantine period also reached this year, so the results of this industry will depend on the effectiveness and speed in organizing events or other events, if the industry wants to generate income . A greater recovery of this industry from the pandemic and the demand for it is rather projected to be subdued. The restrictions that have emerged and are maintained this year regarding the organization of live events raise uncertainty and complicate. Live events are one of the last forms to be thawed in the national economy, as any threat of spreading the virus could extend the duration of the pandemic in the country.
Number of Businesses: 68,946
Industry Employment: 189,698
10. Taxi & Limousine Services
2021-2022 Revenue Growth: 42.8%
With the exception of 2020, the taxi and limousine service industry, which provides a range of non-scheduled transport services such as taxis, luxury cars and limousines, has been in demand over the past five years due to rising consumer spending and the level of private investment. In addition, the dissemination of applications enabling the sharing of rides, including Uber Technologies Inc. (Uber) and Lyft Inc. (Lyft), has allowed new drivers to enter the industry, which has greatly increased its growth. 2020 ended with an estimated 13.8% drop in revenue as many travel plans were canceled, people were not going to work, hotels, etc. By 2026, within five years, increasing demand from business travelers, tourists and private households will boost the taxi industry. The industry is heavily dependent on consumer and business spending estimated to increase.
Number of Businesses: 2,056,065
Industry Employment: 2,026,478
11. Water Parks
2021-2022 Revenue Growth: 42.1%
The economic expansion accelerated the growth of consumer spending on discretionary leisure and tourism activities, allowing the water park industry to experience significant revenue growth for most of the five-year period to 2021. By increasing the sale of admission tickets and licensed sales, it brought benefits and profits to the water park operators. Unfortunately, the coronavirus has significantly disrupted the activities of industry enterprises, leading to an overall decline in overall revenues. Demand for the water park industry will experience a broader economic recovery from the coronavirus pandemic within five years to 2026. The way the virus spreads between people has proved to be the most serious destructive force in the history of the industry, causing inevitable drops in revenues, job cuts and plant closures. In addition, the water parks business model faces unique challenges in implementing pandemic sanitation, social distancing and other preventive measures to reduce the risk of infection.
Number of Businesses: 107
Industry Employment: 29,010
12. Sightseeing Transportation
2021-2022 Revenue Growth: 41.8%
The Sightseeing Transportation industry provides tourist and sightseeing transport services at various levels: ground, sea and air. Operators in this industry typically offer bus tours, helicopter flights, boat trips, or locomotive tours. Improving economic conditions for most of the years until 2021. conducive to revenues in this industry through increasing consumer spending on recreation. As you know, the pandemic did not spare many industries, including this and in 2020. significantly reduced profits. The Sightseeing Transportation industry is predicted to recover from the crisis of the previous period and experience accelerated growth in the five years to 2026.
Number of Businesses: 9,592
Industry Employment: 33,425
13. Aircraft Maintenance, Repair & Overhaul
2021-2022 Revenue Growth: 41.4%
It is suspected that due to conflicting trends, the aircraft maintenance, repair and overhaul industry has performed poorly in terms of revenues in the last five years to 2021. Operators in this industry provide support services to aircraft and air transport operators. The most important and key services include aircraft inspection and testing, maintenance, repair and overhaul of aircraft and their parts. Industry demand is related to performance in a wider group of air traffic industries. Aircraft maintenance, repair and overhaul revenues are expected to return to steady growth in the five years to 2026, given the frequent flights and the hence industrial service needs. I also predict airlines will continue to invest in newer, more fuel-efficient aircraft fleets.
Number of Businesses: 4,390
Industry Employment: 98,298
14. Amusement Parks in the US
2021-2022 Revenue Growth: 40.5%
Driven by rising international and domestic visitors and rising consumer spending, the theme park industry saw strong growth in the five years to 2021. Amusement park and amusement park companies run mechanical rides, water rides, games, shows, themed exhibitions, drink stalls and other attractions. The industry is dominated by five major players: Walt Disney Company, Universal Parks & Resorts, SeaWorld Entertainment Inc., Six Flags Entertainment Corporation, and Cedar Fair LP. Following the COVID-19 (coronavirus) pandemic, the theme park industry is expected to improve significantly in the five years to 2026.
Number of Businesses: 415
Industry Employment: 122,576
15. Shoe Stores in the US
2021-2022 Revenue Growth: 40.5%
The industry’s profits depend on large consumer spending. The economy grew stronger for most of the five years until 2021, before the COVID-19 (coronavirus) pandemic started. The benefits of the increase in demand have not necessarily benefited industry participants due to the changing shopping habits of customers to buy footwear from online stores or department stores. The sharp economic downturn in 2020 and the temporary closure of many industrial plants resulted in a significant drop in revenues. It is expected that in five years to 2026. the footwear industry will face a strong recovery from the sharp declines in the wake of the pandemic. The growing popularity of online shopping and pressure from manufacturers selling goods directly to consumers are likely to hold back the industry. As e-commerce takes an even larger stake in the retail sector, consumers will still be able to compare prices easily, creating barriers to industry revenue growth.
Number of Businesses: 25,877
Industry Employment: 235,279
16. Online Hotel Booking
2021-2022 Revenue Growth: 37.7%
The online hotel reservation industry includes companies that primarily provide hotel reservation services through online platforms. Customers can search for and book hotel information via these websites. This industry excludes hotels that only offer direct bookings on their websites and through travel agencies. In the five years to 2021, the industry has benefited from strong growth in online business, indicating that more and more people are willing to book online. As an industry heavily associated with tourism and travel, it has also been hit by the coronavirus outbreak, which has led to a significant drop in profits. Online hotel reservation industry revenues are expected to grow significantly over the next five years by 2026. As the COVID-19 (coronavirus) pandemic has slowed down and a vaccine is introduced, travel restrictions have gradually been lifted.
Number of Businesses: 5,084
Industry Employment: 119,890
17. Ski & Snowboard Resorts
2021-2022 Revenue Growth: 37.1%
The ski and snowboard resort industry benefited from favorable wider economic conditions for most of the five years to 2020, before the COVID-19 (coronavirus) pandemic. Unfortunately, according to research by Geophysical Research Letters, it is known that the duration of the snow season in the West has decreased by 34 days since the early 1980s, which directly affects the activities of ski resorts. The ski and snowboard industry is expected to recover in five years to 2025. As the COVID-19 (coronavirus) pandemic is predicted to wane, increased household income is likely to enable many Americans to spend their vacations and activities such as skiing and snowboarding.
Number of Businesses: 300
Industry Employment: 58,452
18. Automobile Engine & Parts Manufacturing
2021-2022 Revenue Growth: 33.0%
The automotive engine and parts manufacturing industry has experienced a bumpy road in the five years to 2020. Operators in this industry are involved in the production of gasoline engines and related components that are necessary for the production of cars. The revenues and results of this industry are related to the production of vehicles. As sales of new cars slowed down in recent years, engine manufacturers’ revenues have declined. Additionally, in 2020. this decline was accelerated when the covid-19 pandemic broke out. Automotive engine and parts manufacturing revenues are expected to increase by 2026. with the sale of new cars in the United States. This increase is likely to be a result of renewed consumer confidence and sustained historically low interest rate increases, increasing consumers’ propensity to spend significantly and reducing the cost of purchasing loans.
Number of Businesses: 744
Industry Employment: 61,270
19. Medical & Recreational Marijuana Growing
2021-2022 Revenue Growth: 31.8%
The hemp industry has been proven to be one of the fastest growing industries in the US. In the five years to 2021, the medical and recreational marijuana industry, which includes both employers and non-employers that grow cannabis for medical and recreational use, flourished. In 2020, Arizona, Montana, New Jersey, and South Dakota passed legislation to legalize recreational marijuana. Legalization activities at the state level are also accelerated by consumer attitudes. The medical and recreational marijuana industry is poised to reach new heights in five years by 2026. While the industry will continue to benefit from an increasingly supportive view of medical marijuana treatment, industry growth will be driven by consumer demand for recreational marijuana.
Number of Businesses: 30,321
Industry Employment: 120,391
20. Ocean & Coastal Transportation
2021-2022 Revenue Growth: 31.0%
The marine and coastal transportation industry includes cruise lines and cargo carriers that transport people and cargo to and from US ports. Five-year range until 2021. showed that the industry experienced mixed results. The overcapacity in the deep-sea shipping market limited the development of the industry, and the growing U.S. trade activity in 2019. increased the demand. Spikes in crude oil prices have had a limiting effect on operators’ ability to generate revenue through fuel surcharges. The maritime and coastal transport industry is expected to grow again in the five years to 2026. Improving economic conditions both in the United States and abroad are projected to boost international trade activity, increasing the demand for water freight during this period.
Number of Businesses: 960
Industry Employment: 35,359
21. Hair Salons
2021-2022 Revenue Growth: 31.0%
Hairdressing salons benefited from the changing hairstyle trends for most of the five years until 2021. These trends have also led to an increased demand for ancillary services to standard hairstyles, i.e. hair modification treatments, grooming services, coloring and more. The temporary closure of showrooms due to the coronavirus pandemic has led to a decline in demand. As a result, industry revenue declined in annual terms by 3.2%. The hair salon industry is expected to return to growth in five years to 2026 and revenues will continue to increase.
Number of Businesses: 882,806
Industry Employment: 1,192,560
22. Merchant Banking Services
2021-2022 Revenue Growth: 31.0%
Until 2019. the commercial banking services industry has grown moderately in five years. Commercial banks provide equity, debt and trade finance to private midsize companies. Merchant banks provide downstream clients with a myriad of services related to capital raising and international transactions. Continued macroeconomic recovery is expected to increase demand for foreign corporate investment, trade finance and transnational facilitation services over five years by 2025. The rebound in capital markets, rising demand for alternative assets and improving asset valuations are expected to increase private equity investment volumes. Increasing emphasis on private investment opportunities in the middle market will further stimulate commercial banking financing activities.
Number of Businesses: 806
Industry Employment: 10,873
23. Trade Show and Conference Planning in the US
2021-2022 Revenue Growth: 29.9%
Typical customers of the trade fair and conference planning industry include corporations from nearly all sectors, as well as government agencies and non-profit organizations. Operators in the trade fair and conference planning industry organize, promote and manage conventions, conferences and related events. In the five years to 2021, growth across the economy increased demand for industrial services as business activity and consumer spending increased. It is expected that in five years to 2026. the revenues of the trade fair and conference planning industry will increase.
Number of Businesses: 5,810
Industry Employment: 88,961
24. Aircraft, Engine & Parts Manufacturing in the US
2021-2022 Revenue Growth: 29.8%
The aircraft, engine and parts industry develops and produces aircraft, engines and related components for the civilian and military markets. After years of growth, industry revenues have slowed recently. Most of this reversal was due to a slowdown in defense spending in the military sector, which reduced US demand for military planes and related components. In addition, in the face of the coronavirus pandemic, industry revenues are expected to decline significantly as demand for air travel will decrease drastically. It is expected that in five years to 2026. the aircraft, engine and parts industries will recover from the downturn. The growing domestic and international demand for air travel is likely to create further demand for more commercial aircraft and related parts, following a sharp decline in 2020 that decimated the commercial market. On the other hand, increased exports of military equipment and the anticipated short-term increase in the defense budget should revive the armaments segment.
Number of Businesses: 1,954
Industry Employment: 373,337
25. Real Estate Sales & Brokerage
Until 2020, the real estate sales and brokerage industry showed signs of strong growth. The pandemic created unfavorable economic conditions and had a heavy impact on the real estate market. The commercial real estate market has been hit hard by the economic downturn, social distancing efforts and working from home. The real estate sales and brokerage industry is projected to see solid growth in the five years to 2026. when the economy and real estate market recover from the coronavirus pandemic. As the pandemic subsides in the coming years, the economy is expected to rebound and the demand for real estate brokerage services to increase. More specifically, rising house prices, increased property sales and increased construction activity, coupled with higher demand to buy homes, are expected to boost industry revenues.
Number of Businesses: 977,014
Industry Employment: 1,098,986
Conclusion
Practically every industry, despite strong and rapid growth over the past five years, has been hit by a drop in profits and a stall of growth due to the outbreak of the 2020 pandemic. Forecasts in many of them are positive and point to further and equally fast, or even faster growth for the next 5 years. The returning to normal economic movement will certainly stimulate consumer spending and revenues in these industries again.