How to Invest in Emerging Technology (Updated 2022)
As technology continues to evolve, new investment opportunities are cropping up.
Sometimes called disruptive technologies, emerging technologies can be defined as tech sector segments that are set to massively impact human lives in the next decade.
Many types of technology fall under that umbrella, but a few of the best-known categories are artificial intelligence (AI), robotics and mobile technology. Read on for a look at the overall emerging technology space and how investors can jump into those three specific arenas.
What is emerging technology?
As mentioned, AI is a key part of the emerging technology space, and some of the biggest growth is forecast in this arena. In fact, the market is predicted to reach a market value of US$1.81 trillion by 2030, growing at a compound annual growth rate (CAGR) of 38.1 percent between 2022 and 2030.
A report published by Grand View Research highlights that the advent of big data and demand for image processing and identification technology are set to fuel the growth of AI.
Robotics has been tipped to achieve a market value of US$149.86 billion by 2030. A report by Allied Market Research states that the segment will witness a CAGR of 27.7 percent between 2021 and 2030.
Robotics technology has a wide range of applications across various industries, including healthcare, agriculture and manufacturing. The increasing need for automation and safety in these industries, along with the availability of affordable, energy-efficient robots, is the main driver of growth.
Then of course there’s mobile technology, which encompasses everything from smartphones to tablets to laptop computers. In short, it’s technology that can follow users wherever they go.
With mobile devices becoming more and more integrated into everyday life, it is no surprise that projections for this market are riding high. However, because the space encompasses so many types of technology, it’s difficult to grasp exactly how much it could grow.
For instance, the mobile application market is expected to reach a value of US$565.4 billion by the end of 2030; meanwhile, the global mobile wallet market is projected to hit US$51.53 billion by 2030. All in all, there are a plethora of opportunities in the mobile technology space that investors could be able to get in on.
How to invest in emerging technology stocks?
For investors looking to enter the emerging technology space, stocks are the obvious choice. And considering that emerging technologies involve multiple sections of the tech sector, there’s certainly no shortage of companies for investors to look at.
As a starting point, check out our lists of stocks in the AI, robotics and mobile spaces:
How to invest in emerging technology ETFs?
For investors who want to put money into the emerging tech space as a whole rather than a specific company involved in the sector, exchange-traded funds (ETFs) are a popular way to go.
They provide exposure to a basket of products, such as stocks, and reduce risk by ensuring that investors are not overexposed to any one asset.
To find out about some of the ETFs on offer in the AI and robotics segments, check out our lists below:
Overall, it’s clear that emerging technology is set to make an impact in the near future, and investors have plenty of options to consider.
This is an updated version of an article first published by the Investing News Network in 2017.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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