As science keeps on evolving, many are wondering how to invest in emerging technology. Here’s a breakdown of several key sectors.
As technology continues to evolve, new investment opportunities are cropping up.
Sometimes referred to as disruptive technologies, emerging technologies can be defined as sections of the tech sector that are set to have a massive impact on 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.
This article continues below the Emerging Technology Investing Table of Contents.
Emerging Technology Investing Table of Contents
The articles listed below provide an overview of investing in emerging technology from Emerging Technology Investing News.
Start Here – Investing in Emerging Technology
- How to Invest in Emerging Technology
- What is Artificial Intelligence Investing?
- Investing in Mobile Technology
- What is Robotics Investing?
- How to Invest in Robotics
How to invest emerging technology: What is it?
Research firms like PwC and Gartner are tracking as many as 150 different technologies with the aim of identifying the tech sectors that are “showing promise” and could be impactful in the next few years.
Back in 2016, PwC identified eight emerging technologies that are set to converge in the virtual and the physical worlds. Dubbed the “essential eight,” these new technology areas are AI, robots, drones, virtual reality, augmented reality, blockchain, 3D printing and the Internet of Things.
For its part, Gartner publishes an annual report called “Hype Cycle for Emerging Technologies.” In 2020, it highlighted 30 emerging technology profiles and identified five trends driving the tech sector that are expected to have a significant impact on how we live and work over the next five to 10 years.
Those trends include composite architectures, algorithmic trust, beyond silicon, formative AI and digital me. That said, the Gartner document points to AI as the biggest technology trend.
For example, embedded AI involves the use of machine learning within embedded systems to analyze locally captured data; it has its biggest application in the manufacturing industry.
Meanwhile, formative AI uses machine learning techniques to alter existing content or create new content based on an original, generating thousands of variations. Real-world applications include synthetic drug discovery and even advancements in autonomous vehicles.
What’s the takeaway? Experts agree that emerging technology encompasses diverse areas of the market, although standouts are coming to the fore.
How to invest in emerging technology: Future prospects
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$733.7 billion by 2027, growing at a compound annual growth rate (CAGR) of 42.2 percent between 2020 and 2027.
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$170.08 billion by 2027. A report by Allied Market Research states that the segment will witness a CAGR of 13.5 percent between 2019 and 2027.
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’s 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$165 billion by the end of 2023; meanwhile, the global mobile wallet is projected to hit US$7.58 trillion by 2027. 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 technologies: 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:
- 5 Artificial Intelligence Stocks
- 7 Top Robotics Stocks for Investors
- 8 Surgical Robotics Stocks
- 8 Top Mobile Gaming Companies
- 5 Top Social Media Stocks
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. Is there any particular category, stock or ETF that you’re excited about? Let us know what you think in the comments.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.