Top 7 Hot Industries for Tech Startups in 2020

Having an ambition for a tech startup and having a particular idea or plan for it are two huge differences. This article is dedicated to those with abundant ambitions to succeed and thrive in tech niche, yet having doubts in their search and/or development of ideas in the area of wanted, perspective, and potentially profitable scopes of tech performance in the nearest future. Check out a list of top-notch seven industries recommended for tech startups in 2020.

1. Biotech 

This industry is rapidly evolving currently, attracting significant investments due to considerable effectiveness and revenue. The biotech trend will most probably escalate in the future, taking in consideration topicality of the area and potential of human resources to be discovered while demands and needs of the target audience grow, transform, and emerge. There are examples of the most promising and innovative tech startups in the given sphere: Biohope (a Spanish startup), AURUM Biosciences (a startup launched by the UK experts), 4HF Biotec and BioMed X (both German ones), and Cellevate (Sweden). Biohope is dedicated to the development of absolutely unique precision medicine IVD tools, whereas BioMed X functions in the spheres of cell biology, biomedicine, molecular biology, and consume care. The latter tech startup is a vivid example of a fruitful collaboration between academic and industrial experts. Actually, this is a significant insight to think about and eventually set as a background for your own tech startup. Cellevate is a startup engaged in the development of next-generation cell culture systems, and this is one more vivid illustration of the efficiency of innovative approaches.

2. Health/Personalized Health

The concern of health is a number one priority nowadays in advanced countries along with concerns for ecology and environmental safety. Despite this evident prioritizing all over the world, there are so many issues and problems that still need to be addressed and solved. Hence, this field for startup activity is a double win case: the niche is open and comparatively free due to incremental tasks and challenges; this is an opportunity to contribute to society and make this world healthier and, thus, better. It is relevant to mention recently born and already impressive due to results of their performance digital health care applications: Sopris Health, Fundamental IVR, RDMD, Parsley Health, Deep Lens Inc., Empiric Health, Pilleve, Hero, VitaScan, and Ignite. For instance, Sopris Health contributes to the transformation of the management of clinical documents. To be more precise, clinical documentation workflow is enhanced by means of the potential of AI and speech recognition.

3. On-Demand

On-demand apps are very popular now. Basically, on-demand economy is led by the following service industries:

•       traveling options and transportation;

•       food delivery;

•       healthcare;

•       provision of logistics;

•       e-commerce.

The ultimate advantage of the given niche is maximal customization and timely delivery of the products or services needed by customers. The providers should take into consideration local peculiarities and comfort of customers, offering them the widest range of options ever so as to attract more audience and expand the area of impact in the selected scope. Being located in the niche of on-demand startups, you should ensure that your products or services are quickly delivered, have affordable pricing policy, and rely on transparent business performance. Examples of effective startups developed as contemporary applications are:

1) E2P / B2C (Enterprise to Person / Business to Consumer) type has the following renowned icons – Starbucks and McDelivery;

2) E2E / B2B (Enterprise to Enterprise / Business to Business) type functions globally and connects businesses – Eventio and Cargomatic are good examples;

3) P2P / C2C (Person to Person / Consumer to Consumer) type is well-known for its capacity to connect people willing to exchange, buy or sell, and the excellent examples are eBay and BlaBlaCar.

4. Travel Tech 

Traveling is another high-scale priority of the contemporary community, beating the rates of material ones quite often. While the modern young generation is often ready to trade off owning property (the major target for the previous generations) for more traveling experiences, it is crucial to focus on the other two essentials they are ready to pay for: comparative affordability and novelty. Having captured that in your tech startup, all that is left to do is do good marketing and provide high-quality service, observing high level of conversion from inquiries to actual applications and payments.

Looking from the tech perspective: how can you upgrade, adjust or rearrange the given niche so as to attract more people and beat the rival initiatives currently enjoying an abundant flow of clients? Again, remember those priorities: comfort and scale. Customers appreciate being cared for and being offered alternatives and/or tips. Make more than just on app or service order – make it a platform for vivid experiences even while booking.

5. ITC/Voice search

Alexa and Siri phenomena are known worldwide. Well, aren’t we happy to have all those tools to even avoid typing nowadays? We most certainly are. As they say, all new developments come from people laziness. We won’t argue that, but we will definitely advise you join the niche and start working on some novel directions in this field. For instance, adaptation of the voice search tools is a topical one. Along with such, launching use of these tools in new spheres and development of correspondent software is also wanted nowadays. For instance, e-commerce is one of the target areas when it comes to use of voice search engines. While this may be obvious and known nowadays, small local businesses and even daily routine of average people will soon be rather closely connected with these instruments. Hence, whatever niche you may choose, this is the future, and time to start is now. Who knows how soon we will shift from voice search to the ones where search is triggered by means of thoughts =)

6. Media – VR, TV streaming

Media is always in demand – yet, the question of profitable tech startup in this sphere is how to present it to the target audience. VR, TV streaming are hot areas of impact and monetization having emerged in the recent course of time and featured essential growth of demand. For instance, check the VR streaming launched by Amazon Prime Video where users will be able to stream their favorite movies and shows by means of Oculus Quest, Oculus Go, or Gear VR. If you still need more examples they are here for you: VR viewing services are already available at such renowned giants, as YouTube, Netflix, and Hulu. VR games are also a hot new development aimed to provide the users with a ticket directly to a virtual reality via a smartphone – people need simple solutions available at minimal efforts and resulting in ultimate comfort – that is quite a portrait of VR, TV streaming.

7. Infrastructure/smart cities

This is huge – building the living space of the future! Tech element in this niche demands significant expertise and vision – in case you have both plus necessary resources to start with, do not hesitate to enter. As of 2018, there are more than 450 startups functioning in the smart city development space. This number reveals not only topicality of smart city solutions, but also the fact that there is more space available – and new startups with expertise and novelty in their vision are welcome to join the currently existing pool. There is a list of potential narrow focus a new tech startup may contribute to in the given niche:

•       environmental sensors,

•       parking,

•       smarter transport,

•       energy solutions,

•       water software, and related analytics,

•       waste and disaster management.

All these scopes need innovative, safe and effective tech solutions – and they need them now. There are some examples of startups in this sphere for your inspiration: CityLity, BIM-Y, EnergyElephant, 5micron, Cityrama, Moovee, SIUT, and Parquery.

All of the aforementioned examples of startups in tech scope have peculiarities, authentic innovations, and effective solutions when dealing with challenges – it will be useful to delve deeper in their histories. Now, all that is left to do is to find a tech partner, reliable and proficient enough to pass a challenging route from the planning stage to support of the final product. Good luck!