What are the best industries to invest in 2022?
With 2021 about to end, I think now is the time to start thinking about which industries are the best to invest in for 2022. In my experience, investing in the right sector at the right time can lead to explosive growth for my portfolio. So, with that in mind, here are my top picks for the best industries to invest in 2022.
Best industries to invest in: Cybersecurity leading the charge
The cybersecurity industry has been getting quite a lot of attention in recent years. And for a good reason. With more businesses becoming reliant on cloud infrastructure, the need to protect sensitive data has grown exponentially. And this trend doesn’t look like it’s going to be slowing down anytime soon.
With e-commerce becoming more popular, the number of cyber-attacks is expected to continue rising. But that’s not the only driver. While the pandemic is slowly coming to an end, remote working is still a norm for many people. In the meantime, Internet-of-Things devices are becoming more commonplace every day. It’s exciting to see technology continue to advance. But all of this growth leads to even more cybersecurity challenges to overcome.
Predicting how and when cyber attacks will occur is not easy. That’s why specialists are needed to protect a businesses operations. When looking at the recent report published by Research and Markets, the cybersecurity industry is expected to grow from $119.9bn in 2019 to $433.6bn by 2030, representing a 12.6% compounded annual growth rate over the next decade. That’s extraordinary, in my opinion. And it’s why cybersecurity is one of my best industries to invest in 2022.
The controversial hemp CBD sector
From cosmetics and skincare to dietary supplements, Hemp-based CBD products are gaining popularity around the globe. Ever since the passing of the 2018 Farm Bill, this industry has been growing incredibly fast. In fact, as per the Brightfield report, the CBD market is expected to reach $4.7bn in retail sales by the end of 2021. Furthermore, the cannabis market size is predicted to hit $97.35bn by 2026.
What makes CBD one of the best industries to invest in 2022 in my mind is its diversity. CBD is being used in a wide range of products, including food, medicines, and cosmetics, just to name a few. Being a relatively new industry, many investors might refrain from entering unknown territory, especially given the controversial nature of the product. But I view it as an opportunity.
I have previously discussed some of the best cannabis stocks to buy. But there are still some limitations to be aware of. Despite legalisation, CBD companies are unable to obtain capital from financial institutions. Also, its taboo reputation makes marketing CBD products quite challenging. Both of which are likely preventing companies in this sector from reaching their full potential.
However, with more countries worldwide legalising cannabis, these challenges may no longer be an issue over the long term. With that in mind, this is another one of my best industries to invest in 2022.
Being an investor, I jump at an opportunity when it shows itself. My picks for the best industries to invest in 2022 have explosive potential, which makes the risks worth taking, in my opinion. So, I’ll definitely be looking to these sectors for my next set of investments in the following and future years.
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Views expressed on the companies, assets and strategies mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.