TOP 25 Biggest Industries in the US by Revenue
We all know the US economy is colossal, but how big is it? In fact, with a GDP of more than $ 18 trillion in 2017, the US economy accounts for more than 20% – or more than 1/5 – of the entire global economy. The US economy is broken down into three broad categories, including the service sector, the manufacturing sector, and the agricultural sector. The United States is the world’s economic power with the largest nominal GDP in the world, valued at $ 18.46 trillion, which translates into 22% of the world’s nominal GDP. While emerging economic superpowers like China are significant, their economy is still 70% smaller than the US. However, not everyone pays much attention to the leading industries that generate the highest income in the US economy. The US economic recovery was in full swing in the decade following the Great Recession. Before the recent COVID-19 pandemic, jobs were being created by millions and wage growth was rising.
1. Retirement & Pension Plans
The Retirement and Pension Plans industry covers only private and public defined benefit (DB) pension schemes. While the industry experienced some volatility, the strong gains supported the overall uptrend in the industry. The industry was driven by increases in both investment gains and contribution amounts. The recorded decline was in 2020 due to the spread of covid-19. Retirement and pension sector revenues are expected to increase in the five years to 2026. Even so, as growth continues, the industry will face different challenges. It is likely to experience competition from available, alternative retirement plans that employers are more likely to choose. Industry profit will also be constrained by growth in benefit payments as more baby boomers reach retirement age. Revenue: $1,244.2 B
2. Health & Medical Insurance
The health and medical insurance industry is made up of private and public health, medical and dental insurance carriers. In five years until 2021. it was characterized by an increase resulting from the inflation increase in costs spent on healthcare and treatment costs. During the covid-19 pandemic, the industry saw an influx of customers following the expansion of allowances, and additionally due to lower operating costs. Industry also benefited from an aging population due to an aging baby boomer population. In the five years to 2026, medical cost inflation and increased demand for medical insurance are likely to impact the health and medical insurance industry’s performance. Moreover, potential policy changes can significantly impact the industry. Revenue: $1.165.8B
3. Drug, Cosmetic & Toiletry Wholesaling
In the five years to 2021, trends in the pharmaceutical product mix had an impact on the industry’s performance. Operators in the pharmaceuticals, cosmetics and toiletries wholesalers act as intermediaries between the manufacturers and sellers of a variety of products, from specialty medicines to toothbrushes. The industry obtains the vast majority of its revenue from the sale of both prescription and over-the-counter (OTC) pharmaceuticals. Several trends are expected to bode well for the drug, cosmetic and toiletry industry in the five years to 2026, including greater demand for pharmaceutical products due to the ongoing COVID-19 (coronavirus) pandemic. Revenue: $1.049.9B
4. New Car Dealers
The New Car Dealers industry is based on the sale of new and used passenger cars. It also provides repair, maintenance, financing and auto insurance options. It is susceptible to economic change and is highly cyclical. In the five years to 2021, industry revenues slightly increased. Per capita disposable income gains, consumer confidence and an aging vehicle fleet are expected to drive the industry’s revenue growth over the next five years. Moreover, as interest rates are expected to remain stable at the beginning of the period, financing for new and used vehicles is expected to become cheaper and therefore appears more desirable.
Despite the fact that Hospitals are the main providers of acute care in the U.S., industry revenues declined in the five years to 2021, largely due to coping with the covid-19 pandemic. As potential patients cancel elective treatments and postpone care without emergencies, industry revenues have declined in 2020 and are expected to continue to decline in 2021. After experiencing the financial challenges of the COVID-19 (coronavirus) pandemic, industry revenues are expected to Hospital will slowly return to growth over the five years to 2026. As the pandemic continues, the economy is unlikely to experience a rapid recovery resulting in relatively weak revenue growth.
6. Life Insurance & Annuities
In the five years to 2021, the Life Insurance and Annuity industry experienced various trends that influenced the demand for operator services during this period. The life insurance and annuity industry is one of the largest sources of investment capital in the United States. Professional operators generate income from three main sources: annuity benefits, life insurance premiums and investment income. In 2020, the industry was negatively impacted by the coronavirus pandemic as it caused a sharp decline in economic activity and led to an increase in unemployment. The life insurance and annuity industry is expected to grow steadily over the five years to 2026 as the economy recovers. Revenue: $886.7B
7. Pharmaceuticals Wholesaling
In the five years to 2020, the increase in the number of people with private health insurance and the number of medical visits contributed to the growth of the industry’s revenues. The pharmaceuticals wholesale industry is made up of companies that distribute both prescription, over-the-counter and over-the-counter (OTC) drugs. The pharmaceutical industry benefited from the combined effects of rapidly rising prescription drug prices and the rise in private health insurance. As the COVID-19 (coronavirus) pandemic subsides, the reduced need for drugs to treat the coronavirus is expected to slow industry revenue growth somewhat as the number of medical appointments drops in 2021, after a sharp increase in 2020. Later in the five years to 2026, this trend is expected to be counteracted by an increase in per capita disposable income and falling unemployment, which is likely to allow more people to receive treatment they left off earlier.
8. Public Schools
Due to the dependence of operators on state and local government funds, industry revenues are directly affected by changes in tax revenues, which are influenced by the general economic condition.
The public school industry includes traditional primary (kindergarten through fifth grade), middle school (sixth or seventh through eighth grade) and high school (ninth through twelfth grade) as well as charter and magnetic schools. Federal, state, and local governments fund these schools, which means the degree to which education prioritises governmental bodies determines the growth of industry revenues. As the pandemic subsides, public school industry revenues are expected to continue to grow in the five years to 2026 as federal education funding is set to increase in the coming years, albeit at a slower pace.
9. Property, Casualty and Direct Insurance
In the five years to 2021, the P&C insurance industry has benefited from a tightening price cycle and a boom in asset classes in which industry investors are investing. Property, accident and direct insurance operators support US consumers and businesses by providing protection against damage caused by various events such as car accidents, disasters and medical malpractice. The demand for insurance products provided by industry entities is relatively constant. Insurance is required by law if you own assets such as cars and homes, or run a business and employees. The P&C industry is expected to grow at a steady pace over the five years to 2026.
10. Commercial Banking
The US commercial banking industry is made up of banks regulated by the Office of the Currency Controller, the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC). In the majority of the five years to 2021, the commercial banking industry benefited from improved business sentiment and rising interest rates. Commercial banks obtain the majority of their revenues from the spread of interest rates between customer deposits and borrowed funds. In the five years to 2026, operators in the commercial banking industry are likely to experience continuously improving operating conditions. As the economy begins to recover from the COVID-19 (coronavirus) pandemic and subsequent recession, macroeconomic conditions are likely to begin to improve.
11. Supermarkets & Grocery Stores
In the five years to 2021, the supermarket and grocery industry revenues grew, benefiting from a strengthening economy for much of the period. Moreover, revenues increased during the COVID-19 (coronavirus) pandemic as the shutdown of insignificant businesses prompted consumers to spend more on groceries and ordering them home. Within five years to 2026, the supermarket and grocery store industry is expected to benefit from the strengthening US economy.
12. E-Commerce & Online Auctions
The e-commerce and internet auctions industry includes businesses that sell goods online. In the five years to 2021, it has grown and continues to grow rapidly as increasingly busy and cost-conscious consumers are tempted by the convenience of finding, comparing and buying products online easily and quickly. There is a growing number of households choosing to shop online instead of buying products in brick-and-mortar stores or through mail order catalogs. In the five years to 2026, the e-commerce and online auction industry is expected to continue to grow as convenience and the ability to compare items and prices encourage consumers to buy both everyday items and large purchases online.
13. Colleges & Universities
For most of the last five years, strengthened labor markets and better job prospects have held back industry demand, leading high school graduates to enter the labor market and drop out of post-secondary education. The college and university industry includes public and private non-profit colleges and universities that offer academic courses and award high school diplomas or degrees. However, the trend has reversed since the COVID-19 (coronavirus) hit, driving up demand in the industry. The college and university industry is predicted to show slower revenue growth over the next five years. As the labor market is set to develop over the next five years, this is likely to deter many people from going to or staying in school.
14. Online Computer Software Sales
In the five years to 2020, the performance of the online computer software industry slumped slightly, despite continued strong demand and, to some extent, sales. Operators in the online sale of computer software sell and distribute software for local installation and commissioning to customers over the Internet. Companies in this industry can also handle digital rights management for this software. Industry operators are expected to benefit from the positive demand conditions as businesses and consumers increase their spending on computer software. In the five years to 2026, the online computer software industry is expected to see consistent revenue growth. Nevertheless, it is anticipated that the industry will continue to face adversities.
15. Warehouse Clubs & Supercenters
Due to the low-cost, high-value products offered by warehouse clubs and supercenters, the industry tends to do well regardless of the macroeconomic climate. The Warehouse Clubs and Supercenters industry is dominated by large operators such as Walmart Inc. and Costco Wholesale Corporation (Costco), companies that primarily sell a general line of groceries and other essentials, including clothing, appliances, and beauty products. The Warehouse Clubs and Supercenters industry is predicted to continue to grow in the five years to 2026. Increased competition from online retailers will continue to threaten the industry.
16. Wholesale Trade Agents and Brokers
Companies from the Wholesale Trade Agents and Brokers industry act as intermediaries between buyers and sellers of goods. Agents and wholesale brokers shall refrain from seizing the titles of the goods. As a result, wholesale agents and brokers tend to avoid inventory costs. Wholesale agents and brokerage industry revenues are expected to continue to decline in the five years to 2026, albeit at a slower pace compared to the sharp decline in the previous five-year period. The industry is continuing to grapple with increasing external competition.
17. Automobile Wholesaling
The wholesale automobile industry experienced a decline in revenue in the five years to 2021. Automotive wholesale industry performance was strongly correlated with that of major domestic automakers. The 2020 COVID-19 (coronavirus) pandemic resulted in a decline in demand and an anticipated decline in industry revenues. The economy will begin to recover from the COVID-19 (coronavirus) pandemic while per capita disposable income will continue to grow. These factors are expected to drive growth in downstream demand over the five years to 2026.
18. Petroleum Refining
Crude oil is the main input cost for refineries, and due to its sensitivity to micro and macroeconomic factors such as supply and demand, and the health of domestic and foreign economies, crude oil is a highly volatile commodity. The oil refining industry experienced unstable conditions in the five years to 2021. While international demand determines both the price of crude oil and the price of petroleum products, regional differences create opportunities for industrial actors. Crude oil prices and refined oil production are expected to rise, boosting revenue growth. The oil refining industry’s revenues are predicted to continue growing over the five years to 2026.
19. IT Consulting
In the five years to 2021, changing technology trends towards cloud computing and data analytics saw larger operators acquiring smaller companies and developing new products to stay current. The IT Consulting industry includes companies that help companies design and implement information systems and infrastructure (IT). As the world becomes increasingly driven by technology, companies in all industries rely on external IT support to operate more efficiently. The IT consulting industry is projected to see relatively steady growth in the five years to 2026 as the impact of the 2020 COVID-19 (coronavirus) pandemic gives way to economic recovery.
20. Electronic Part & Equipment Wholesaling
In the five years to 2021, the electronics wholesale industry benefited from the introduction of new electronic products, renewed consumer spending and increased corporate investment. However, the electronics manufacturing movement, combined with the economic downturn caused by the COVID-19 (coronavirus) pandemic, has somewhat reduced the industry’s share of the electronics supply chain. Growing corporate earnings, downstream growth and increased demand for electronic products and components are predicted to continue over the five years to 2026.
21. Gasoline & Petroleum Wholesaling
The industry experienced very volatile conditions in the five years to 2020 as it is operating largely in line with oil price movements. Gasoline and crude oil wholesale operators distribute petroleum and refined products such as motor gasoline, residual heating oil and jet fuel. Gasoline and crude oil sales revenues are expected to rebound from the COVID-19 (coronavirus) pandemic in five years to 2026.
22. Pharmacy Benefit Management
The operators of the Pharmacy Benefit Management industry act as intermediaries between healthcare payers and the rest of the US healthcare system. Rising drug prices, especially specialist drugs, have prompted health insurers to turn to PBM for cost management services. According to the Pharmaceutical Care Management Association (PCMA), Pharmacy Benefit Managers (PBM) implement prescription drug benefits for more than 250.0 million Americans, making them an essential part of cost management and the delivery of prescription drugs to consumers in the US healthcare system.
It is expected that in five years to 2026. The Pharmacy Benefit Management industry will develop, albeit at a slower pace compared to the five-year period until 2021.
23. Gasoline & Petroleum Bulk Stations
In the five years to 2021, the bulk petrol and oil station industry was subject to significant volatility. The industry is tasked with operating storage facilities for crude oil, gasoline and other petroleum products in bulk to resell these products to downstream suppliers. As a wholesale industry, the bulk petrol and crude oil industry is dependent on the mining industries. These bulk stations are often located close to major refineries, ports and industrial centers to receive products quickly and efficiently and unload them from customers, playing an important role in the crude oil and petroleum product supply chain. The mass gas station and petroleum industry is expected to grow in five years to 2026. This growth is supported by global demand for oil and petroleum products.
24. Real Estate Loans & Collateralized Debt
The consequences of the subprime mortgage crisis have largely disappeared in the five years to 2021. Operators in the industry are government agencies and non-agency mortgage issuers. The real estate loan and secured debt industry is made up of non-deposit institutions that lend in the primary and secondary markets. Commercial and residential construction companies took advantage of historically low interest rates and saw continued revenue growth. The outbreak of COVID-19 (coronavirus) in 2020 caused a sharp increase in uncertainty, leading to a decline in industry revenues. Projected increase in access to credit, home ownership and per capita disposable income over five years to 2026. bodes well for primary lending throughout the economy.
25. Electric Power Transmission
Due to declining per capita energy consumption and weak price increases, electricity transmission sector revenues likely fell in the five years to the end of 2021. Prior to this period, the federal government and state public utilities (PUC) provided rate increases to industrial operators, partially by easing the income lost due to lower consumption. The Electricity Transmission Industry provides transmission, distribution and wholesale electricity services for residential, commercial, industrial and transport customers. Electricity consumption is expected to increase in five years to 2026. after the COVID-19 (coronavirus) pandemic.
Revenue: $411.4 Conclusion
The effects of covid-19 will be felt over the years, some industries are and will be forced to change forever, and others, especially digital, are using the pandemic as a starting point in preparation for the years to come. A significant proportion of industries continue to show forecast increases in revenues as the economy recovers. It is possible, especially when disposable income is growing. Many industries predict per capita disposable income gains and consumer confidence over the next five years.