Which industries are still highly fragmented, yet seeing fast growth and have a low barrier to entry? A recent IBISWorld reportspotlights eight industries with great opportunity for Startups in 2016 .
1. Social network game development
5 year compound annual growth rate: 184%
2013 forecast growth: 32%
Why it’s hot: Growth in the use of mobile devices means more people spending more hours on social media — and gaming is a favorite activity.
2. Virtual data rooms
5 year compounded annual growth rate: 16%
2013 growth forecast: 16%
Why it’s hot: Far-flung virtual teams and increasingly global deals make it harder for dealmakers to get in a room to view confidential documents, so more will rely on secure online data sharing.
3. Online shoe sales
5 year compounded annual growth rate: 16%
2013 growth forecast: 14.5%
Why it’s hot: More and more shoppers are getting comfortable with buying shoes online — Zappos’ owner Amazon.com and FootLocker, the two sector leaders, only have a 16 percent market share.
4. Digital forensic services
5-year compound annual growth rate: 12%
2013 growth forecast: 11%
Why it’s hot: More mobile Internet connections mean more opportunity for data breaches. Revenue for the sector is nearing $1 billion, and the sector is lightly regulated, making it relatively easy to start new firms.
5. Information-technology (IT) security consulting
5-year compound annual growth rate: 10%
2013 growth forecast: 9%
Why it’s hot: Recent, high-profile data breaches at companies including Sony, Zappos, and LinkedIn has more companies beefing up their security systems. As companies invest in more technology, the need for security expertise will only grow.
6. Travel agencies
5-year compound annual growth rate: 4%
2013 growth forecast: 6%
Why it’s hot: The rise of the online agency is bringing new opportunity, especially for sellers of more complex vacation packages. Costs are low to open an online travel site, so many new competitors are expected.
7. TV & home theater installation services
5-year compound annual growth rate: .5%
2013 growth forecast: 4%
Why it’s hot: This service business requires little startup capital, and a rising number of U.S. households are purchasing big-screen TVs or full-blown home theater setups.
8. Translation services
5-year compound annual growth rate: 2%
2013 growth forecast: 3%
Why it’s hot: It’s an increasingly global world, spurring demand for translation of materials for both business and pleasure (the graphic above advertises a Chinese translation of Finnegan’s Wake). The Internet has made it easier for translators to connect with customers, and industry revenue now tops $3 billion.
