If you’re involved with development or testing for all things internet or mobile, you’re sitting in a sweet spot in the economy, according to IBIS World. While the economy as a whole is starting to do better then it was five years ago, the industry research company says that many web-based industries are thriving and growing at an impressive rate. Not surprisingly, mobile will be an increasingly important driver for these industries.
IBISWorld has compiled a list of standout industries based on their annualized revenue growth over the past 10 years, as well as performance expected through 2018. One trend stood out above all: The internet is playing an integral and deciding role among these industries. For example, IBISWorld expects the number of mobile internet connections in the United States to rise at an annualized rate of 7.9% through 2018. Thus, a rise in the number of mobile internet connections, higher internet traffic and the proliferation of smartphones, tablets and other mobile devices across the US will help these 10 industries continue a meteoric rise that will outpace the rest of the economy.
Here’s a look at the fastest growing industries, according to IBIS World:
Social Networking Sites
Over the past decade, SNS [social networking sites] has exploded, recording 74.4% annualized growth since 2003, which included the beginnings of early SNS like MySpace and Friendster. … Over the next five years, SNS will further develop new ways to monetize, tracking user data and leveraging more lucrative advertising contracts. As a result, the Social Networking Sites industry is expected to generate growth of roughly 25.0% per year on average over the five years to 2018.
Social Gaming
Companies, such as Zynga and EA (Electronic Arts), have transformed well-known, classic games like Scrabble and Battleship into social attractions where consumers can play head-to-head over the internet. This trend has been enhanced by a surge in social game applications, which are being developed at a rapid rate to cater to those consumers looking to play games on their mobile device. The industry hardly existed in 2003, but has since posted annualized revenue growth of 134.4% over the past 10 years. Moreover, the industry is expected to grow an additional 16.9% per year on average over the five years to 2018.
E-Commerce
Online sales of fashion samples, greeting cards, photo printing, shoes and household furniture have exploded in recent years and look to maintain their strong growth in the long run. … Aside from well established firms, however, many specialized websites are gaining greater traction and maintaining a robust, loyal customer base. … Moreover, these sites have been enhancing their mobile presence, as many consumers continually access mobile e-commerce content from their smartphones or tablets. Each of these sites has shown impressive, swift growth over the past decade in revenue, establishments and in their overall contribution to the economy.
Online Payment Processing
Online Payment Processing Software Developers are strongly benefiting from the ever-increasing e-commerce activity. As more brick-and-mortar retail establishments created online retail websites over the past decade, the need for online payment processing software has increased dramatically. As a result, the Online Payment Processing Software Developers industry has experienced average annual revenue growth of 43.2% over the 10 years to 2013. … Additionally, as more niche, specialized firms continue to enter the e-commerce realm, online payment processors will continue reaping the benefits, with expected growth of 17.2% per year on average over the five years to 2018.
E-Publishing
With increasing smartphone and tablet penetration in the United States, e-book publishers have flourished. … these factors have lead to strong growth for the industry over the past decade, reaching annualized growth of 88.3% since 2003. Over the next five years, e-book publishers will continue to benefit from the improvement in the prevailing economy and its effect on consumer disposable income, as well as the gradual shift toward more books formatted only for e-readers. IBISWorld expects E-Book Publishing to grow 7.5% per year on average over the five years to 2018.
Fantasy Sport Services
Fantasy Sports Services have been gaining popularity as more consumers go to the internet to compete in these social sports games. The industry develops software, and markets an online platform for multiplayer fantasy sports. … These games have been around for more than 25 years and played in tight knit social circles, but the internet really helped push the envelope for transforming Fantasy Sports Services into a full-blown industry. Over the past 10 years, fantasy sports services have experienced explosive absolute growth of 241.0%. Fantasy Sports Service firms will continue cashing in on the general move toward more mobile content, which will help bring revenue up at an annualized rate of 7.6% over the five years to 2018.
Online Recruiting
Online recruitment sites have been taking to the internet and revolutionizing the Employment Recruiting industry. … Online recruitment sites have grown an annualized 11.9% since 2003. Over the next five years, these sites will grow another 3.0% per year on average by penetrating specialized, niche job markets and catering to specific markets of job seekers.
Read the full IBIS World report >>>
If you’re involved with any of those industries, hold on for the ride – things are only going to continue to grow! Also let this be a pre-warning: As the industries continue to grow, more competition will enter the ring. You need to stay vigilant and continue to put out the best product you can, don’t rest on simply being one of the first. Listen to users and make sure you’re continuously giving them what they want. If you don’t, someone one will certainly swoop in to fill the void – and take your customers/users while they’re at it.
Also keep an eye on what’s coming. Mobile has a long way to go and it will certainly go through many changes during that process. Take leaps and adapt to new technology as it comes out, you don’t want to be left behind if some wild new gadget like Google Glass makes it big.