US: How did the IT sector shape up this year, and could 2022 be the time to invest?
Technology and IT services are in constant development, and this notion of continuous innovation presents exciting opportunities in market spaces that did not exist the year before. Now, this is important not only for investors looking to diversify their portfolios, but also for business owners and everyday people who use technological devices or IT services in daily life as with innovation always comes competition. This idea of competition means different companies and platforms present their own pull factors for users and investors, and so background knowledge and understanding of the market is invaluable in helping you make the big decisions!
It will come as no surprise that tech investment is already big, and while we will get into some of the more specific numbers below, those of you looking to get involved with the US market may wish to pay close attention to projections for the coming year with new trends and opportunities surfacing, one of which may be the perfect choice for you. A good place to start is with the present, 2021, where despite COVID-19, tech has continued to grow. It has been forecasted that in the US, growth of the industry will amount to 7.4%, a significant growth considering the already huge scale of the market. In terms of the subsectors, it has been said that software will end up as one of the key players by the end of the year, seeing a 10% growth in 2021, perhaps down to an increased reliance on systems for remote working and intermediary solutions for people working between offices and home.
This changing work environment and ‘new normal’, as many of us are now accustomed to calling it, has probably been one of the main reasons IT has seen so much innovation over the past 18 months. Currently, there is an estimated value of US$1.6 trillion in terms of the technology market in the US. Now, this is not insignificant, however, such large estimations can be explained by the reasons we have already explored stemming from COVID-19. Adding to this, there are a number of other trends which are set to explode during a period stretching from the end of this year into the next, some of which we will outline below:
AI: Already popular, Artificial Intelligence is a common term understood by many. However, while it is seen in mobile phones and some televisions, it is still not quite seen everywhere we look, a fact which could be set to change in 2022 as more companies and developers look to integrate it into their products and act as the catalyst for integrating it into everyday life. More innovative companies are expected to release new smart devices with an increased reliance on AI based technology, an exciting potential investment opportunity within the US market next year.
Sustainability: This is as pertinent as ever, and with our recent article on initiatives within the US with regards to clean energy production, the framework is certainly in place to start making the IT sector more sustainable. The use is increasing (40% up on usual numbers during COVID-19 lockdown in the US), and the prices are decreasing, making the viability of this move to clean energy higher, and making investment more appealing as it is clear that the long-term future and wellbeing of the planet is being taken into account.
If you want to invest in technology in the US and have any questions, please feel free to contact us today. At Creimerman, our team of global citizens provide a bespoke service to our clients, and we would love to explore your opportunities in the US and be by your side on your personal and professional journey.