ARK’s top tech investment opportunities in 2020
Tech is developing faster than ever, and many investors are looking to tech opportunities.
That’s why future-focused investment management bodies like ARK Technology watch out for the long-term potential for disruptive tech innovations.
In their recent research annual report, ARK Technology shared their perspective on the biggest investment opportunities in tech for the coming decade. Let’s run through what ARK’s research says about the most promising opportunities you should keep an eye on this year.
1. 3D printing technology
3D printing technology is one investment opportunity to look out for. 3D printing makes manufacturing more cost, time, and resource-efficient. By 2024, ARK’s research suggests it will be worth $97 billion. That’s 65% annual growth since 2018.
2. Digital wallets
Investment in digital wallets is another promising opportunity. Compared to banks, digital wallets offer more affordable and user-focused services. More and more millennials and Gen Z’ers are switching to digital wallets and by 2024, ARK estimates there’ll be 220 million digital wallets in the US with a lifetime value of $800 billion.
3. Electric vehicle sector
In 2016, forecasting agencies like Energy Industry Administration (EIA) expected the total sales of electric cars to reach a few hundred thousand by the early 2020s. How wrong they were! In 2019, total sales hit 2 million.
Based on Wright’s Law which says with every 1% increase in production leads to a 1% decrease in cost, ARK estimates electric vehicle sales may reach 37 million by 2024.
4. DNA sequencing
DNA sequencing is an investment opportunity for the future-focused. In 2003, it cost $3 billion to sequence human DNA. Today, it costs $1000 and will drop further.
In the coming decade, next-Generation Sequencing (NGS) – a type of DNA sequencing – is predicted to become efficient and effective in personalised cancer treatments and medical R&D.
ARK estimates NGS revenue will grow 43% from $3.5 billion last year to $21 billion by 2024.
5. Deep learning
Deep learning is another game changer deemed investible by ARK.
A subfield of machine learning, deep learning is an attempt to mimic the structure and function of the artificial neural networks in the brain. Using brain simulations, developers hope deep learning will help progress towards AI.
This technology could change the way we use the Internet. Since 2000, the Internet has generated around $10 trillion. ARK predicts that it will triple that figure by 2040. And deep learning is, according to ARK, an important part of this trend.
As costs for robots and Internet of Things (IoT) devices reduce, automation is predicted to be big in 2020s.
Automated vehicles could reduce the cost of taxi travel by 90%. ARK suggests that the 10-year net present value (NPV) of ride-hailing cash flows will be $1 trillion more than today, and automated delivery drones could transform shopping behaviour and delivery times.
Automation could generate $275 billion in revenue by 2030.
Overall, ARK’s report says automation will add $800 billion to the US GDP by 2025 and could reach $40 trillion by 2035.
Although not on ARK’s list, The Internet of Things (IoT) is arguably an important tool for the advancement of automation. IoT is the idea that all objects can and should be connected via the internet – making them controllable remotely and without human involvement.
Internet of things (IoT) technology reached $100 billion in market revenue for the first time in 2017, and statista.com forecasts this figure will grow to around $1.6 trillion by 2025.
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