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    Top 10 Fastest Growing Industries

    Though the recession wreaked havoc on a myriad of businesses across the U.S., several industries experienced strong revenue growth; industry research firm IBISWorld has identified the top 10 fastest-growing industries.

    “After compiling the list of fastest growing industries, there were some apparent trends,” explained IBISWorld Senior Analyst Casey Thormahlen. “Each industry on the list experienced growth as a result of one or more of four drivers: Internet growth, environmental issues, cost cutting and evolving technology.”

    Internet Growth It is no surprise that voice over internet protocol (VoIP), e-commerce and online auctions, and Internet publishing and broadcasting top the list. Each is being supported by the increasing popularity of the Internet for communication and business transactions. The growth of these industries is of particular interest to IT management and will benefit major players like Comcast (CMCSA), Time Warner Cable (TWC), Cox Enterprises, Vonage (VG), Amazon (AMZN), eBay (EBAY), Google (GOOG) and Facebook.

    Environmental Issues Growing environmental concerns and favorable government assistance has boosted wind and solar power generation. A continued focus on lifting energy self-sufficiency and reducing greenhouse gas emissions is expected in the next five years, benefiting companies like Next Era Energy (NEE) and Xcel Energy (XEL). Additionally, increased government regulation with regard to the environment has opened up vast opportunities for environmental consulting firms to help clients with compliance.

    Cost Cutting Third-party administrators, insurance claims adjusters, and correctional facilities have all been experiencing growth as private and public entities seek out alternatives amid a slow growing economy. As insurance operators look to cut costs and improve profitability, they are outsourcing work to claims adjusters and administrators like Aon Corporation (AON), Marsh & McLennan Companies (MMC) and Willis Group Holding. Similarly, as government budgets tighten, correctional facilities are turning to less expensive options, such as the privatization of facilities like Corrections Corporation of America (CXW).

    Evolving Technology Biotechnology and video games are an unlikely duo, but both industries are benefiting from constantly evolving technology and product developments, like genetic engineering and 3D video games. Although each industry has taken considerable steps to cut costs in the past few years, diversified product lines and increased demand from an aging population (video games are seeing more female and older players) are key revenue drivers for both industries. Companies that stand to benefit include Syngenta (SYT), Monsanto (MON), Genentech (RHHBY) and Activision (ATVI).

    Top 10 Fastest Growing Industries - slide 1

    Industries on the Move

    Click through for the top 10 fastest growing industries, as identified by IBISWorld.

    Top 10 Fastest Growing Industries - slide 2

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Voice over Internet Protocol providers (VoIP)

     

    $

    12,498

     

    193.9%

     

    17.4%

    Top 10 Fastest Growing Industries - slide 3

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Wind power

     

    $

    3,388

     

    16.9%

     

    11.2%

    Top 10 Fastest Growing Industries - slide 4

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    E-commerce and online auctions

     

    $

    95,005

     

    12.2%

     

    9.4%

    Top 10 Fastest Growing Industries - slide 5

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Environmental consulting

     

    $

    18,153

     

    7.7%

     

    9.4%

    Top 10 Fastest Growing Industries - slide 6

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Biotechnology

     

    $

    86,971

     

    11.0%

     

    9.6%

    Top 10 Fastest Growing Industries - slide 7

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Video games

     

    $

    38,622

     

    6.2%

     

    8.3%

    Top 10 Fastest Growing Industries - slide 8

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Solar power

     

    $

    69

     

    2.7%

     

    7.9%

    Top 10 Fastest Growing Industries - slide 9

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Third-party administrators and insurance claims adjusters

     

    $

    57,530

     

    6.9%

     

    7.7%

    Top 10 Fastest Growing Industries - slide 10

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Correctional facilities

     

    $

    34,373

     

    9.1%

     

    7.5%

    Top 10 Fastest Growing Industries - slide 11

    Industry

     

    Revenue 2010
    (millions)

     

    Revenue Growth
    2000-11

     

    Forecast
    Revenue Growth
    2011-16

    Internet publishing and broadcasting

     

    $

    32,573

     

    25.2%

     

    6.8%

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