In the world of today, there isn’t any way for guaranteeing the returns which can beat
up the average of the stock market. However, one can look to make an investment
within sectors that have been performing well historically. Some of the best sector
funds for the long-term investment might be the ones that come with the investment
within healthcare, technology, the financial sector, and alike. However, the one question
which still remains amidst the variety of industries available to make investments in is,
which sector will boom in next 5 years?

If you are one such investor who is looking forward to making changes within the
portfolio, there is a lot for you ahead. There isn’t any guarantee for sure, especially
considering the high volatility within the market, but if you are one who is willing to
take a chance, it can definitely pay off well.

We understand that just like all the other investors, you, too, look forward to the highest
possible returns with risk at a minimum. Well, it is taking into account the same that we
have prepared the list of sectors that will boom in next 5 years, based on the past
returns and making the guesses for the upcoming future. Make sure to consider the
below-mentioned and make a sound decision.

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1. Semiconductor

Increasing from the market size of $527.88 billion (2021), the semiconductor market
has truly met up the projected growth expectations. It is expected that by 2029, the
industry will continue to grow and exhibit a CAGR of 12.2% during the forecasted
period.

The growth of the market has been attributed to the increased consumption of the
consumer electronics devices worldwide. Apart from the artificial intelligence, machine
learning, and the Internet of Things, they are altogether offering better opportunities for
the market development.

ASML Holdings is one of the best stocks to consider within the Semiconductor sector. A
vivid picture of this stock can be read through the (Link).

2. Energy Sector (Renewable Energy & oil and gas)

The renewable energy sector today is one of the important ones, as human intervention
is definitely needed to curb the trends of global warming. It has been indicated by the
international renewable energy agency that the global jobs within the sector of the
renewable-energy sector have increased by more than 10 million (2018), and it is
expected to reach to 28 million by 2050. The best is that the industry giants like
Facebook, Exxon Mobil, and Google have shown a commitment towards the use of
greater renewable energy amount. One best company to consider within the sector is
Schlumberger Ltd., the share price of which has shown 40%+ year to date, making the
stock one of the best-performing ones.

As for the Oil and Gas industry, high profits were reported in 2022, and with sufficient
cash flow, the long-term growth herein is inevitable. As per the reports, Exxon Mobil
Corporation is one of the leading stocks which the investors can consider to have a
balanced portfolio.

3. Electric Car and Truck

The electric vehicle market size in the United States alone was $24.03 billion in the year
2020. It has been projected that it will continue to grow ahead at the CAGR of 25.4% between the years 2022-2028. Now, even when the covid 19 impacted this sector
highly, it recovered, and it continues to create demand and growth. Furthermore, the
period did accelerate the adoption of the electric vehicles, and new products are being
launched from time to time.

Ford announced that they plan to boost the performance of the all-electric F-150 by
around 50% in comparison to the original plans. Even Tesla (for detailed prediction of
Tesla stocks, refer Link) and other competitors have been functioning almost similarly
as they continue to see the increased sales. So, in consideration of it, the sales of the
vehicles did increase, and it will continue to influence the market in the upcoming time,
making it one of the Best Sectors to Invest in 2023 (Link).

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4. Financials Sector

Considering the financials sector, the insurance, banks, and the diversified financials, all
the three sub-divisions have shown a positive price change with +1.64%, +1.35%, and
+1.98%, respectively. With the global economy being still fragile and yet heading
towards 2024, the stagflation or mild recession high risk still exists but with the positive
movement within the financial sectors, it is still one of the strongest sectors to consider
when questioning which sector will boom in next 5 years.

PayPal Holdings Inc., one of the leading mobile and digital payment platform stocks, is
one of the most attractively valued and better-growing stocks that has got a “buy” rating
from the Bank of America.

5. Information Technology Sector (IT)

As per reports and personal research through our professionals, the IT sector has been
growing in revenue. The pace is maintained to date is around 15% per annum, and it isexpected that the same will reach to around $350 billion by the 2026-2027 financial
year-end.

In this industry, one of the biggest growths has been seen from the AI, analytics, and
cloud computing and the growth of the associated sector like the growth from e-
commerce and banking. So, keep an eye on it all, as it can definitely yield right if the
decision gets taken in a sound and balanced way.

Microsoft, the world’s largest software company, is one of the best stocks one can make
an investment within to derive better returns on a portfolio (for detailed predictions of
the stock, refer Link).

Read More :- 5 Best Growth Stocks of 2023

6. Healthcare Sector

With the aging population, and the rapid advances in biotech, the healthcare industry is
one tempting option. It is one of the three sectors that has shown great results in terms
of growth between 2012 to 2022, and there exists a great chance for the healthcare to
continue to evolve in the upcoming future too.

Note that the healthcare sector is quite broad, and it includes hospital conglomerates,
institutional services, insurance companies, biomedical companies, medical instrument
makers, and alike. Now, many sectors might have been impacted due to the economic
conditions but the healthcare industry, it tends to perform very well even during
economic downturns as people would still need to see the doctor and take medicines,
irrespective of the economic state. Now, this is what makes it one of the best sectors to
invest in 2023 (link), apart from other important sectors.

One of the best stocks to invest in AbbVie Inc., which declared $1.48 per share as part of
its quarterly dividend, and this was a 5% increase since the previously declared dividend. Even Pfizer has been doing its best with the provided financial flexibility for
investment and development of pipeline and opportunity ahead.

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FAQs

Best Sectors to Invest in 2023?

Semiconductors, computer software- pre-packaged software, biotechnology-
pharmaceutical preparations, etc., are some of the best sectors to invest in 2023. For
more information and further details, refer (Best Sectors to Invest in 2023?)- link

What are the 5 Best Growth Stocks of 2023?

Based on analyst suggestions, research and considering the historical data, the 5 best
growth stocks of 2023 are

• Amazon
• FleetCor Technologies
• Alphabet Inc.
• United Rentals, and
• Block

To get an insight into the forecast of each of the stocks, refer (5 best stocks of 2023)-
link.

Which sector will grow in 2025?

• Energy sector
• Financial sector
• IT sector
• Semiconductor
• Electric Vehicles
• Healthcare sector, etc., are some of the sectors that will grow in 2025. For more
  details, refer above.

What is the fastest growing industry in the United States?

Oil Drilling and Gas Extraction in the United States with 87.0% of revenue growth
(expectations for growth between 2022-2023 FY). Apart from it, some other industries
with their revenue growth percentage are,

• Cruise and Travel Agency Franchises- 76.4%
• Wedding Planners- 75.5%
• International Airlines- 64%
• Travel Insurance- 62.1%
• Tour Operators- 57.1%
• Hotels and Motels- 56.6%

Final Words

Hopefully, the answer to which sector will boom in next 5 years has been received. Just
make sure to consider the detailed analysis that has been provided on our website and
on other websites to make a sound and informed decision. Furthermore, if you plan to
wait for a month, we suggest you do research back again as market is subject to change,
and even when we are quite sure that the above sectors to have a boom in the upcoming
years, we do not guarantee anything. It is just a suggestion based on historical data and
expert analysis.

Lastly, do not forget to take a little risk, as for these are the ones that can fill in your
pockets by offering better value to your portfolio that you wouldn’t wish to miss on.

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Disclaimer

The stocks forecast/target given/price prediction on the website, it is all for just to offering information and also to educate the stock market participants/investors/traders.
The content offered herein through the website, it must not be considered as any kind of financial advice or advice for making investments. So, one must make sure to do personal research as well as analysis instead of acting on comments for stocks.

Investing and Trading, they involve very high risk, and therefore, it is suggested to consult a financial advisor before you go ahead and make any decision. No responsibility would be taken by us for the consequences that result from acting on the comments.