Which tech sectors should you invest in next year?

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With 2021 soon approaching, many of us are looking ahead to the new year with high hopes. As tech fans, you are probably wondering what exciting new gadgets, apps, and services are poised for release and are going to change the world in the next year.

Some of you may also be wondering what possible investments to make. The tech industry is notoriously robust and is flourishing at a time when others are struggling. Here are some of our top tips for investment-ready sectors in 2021.

Streaming

As the world has experienced various challenges in 2020, it’s no surprise that streaming sites have grown in popularity and their companies have increased in value. Music, video, film, and podcasts are all in demand and the number of new accounts opened has increased by millions.

This means that investing in such companies is a smart move. Amazon, Netflix, Spotify, and Disney are all examples of streaming companies that have seen their revenues survive the pandemic. For investors on the lookout for solid investment opportunities for the year ahead, these are great options. You should also check out smaller streaming sites and ‘up-and-coming’ names to get ahead of the game. 

Communications

In 2020 there were a staggering 6.95 billion mobile phone users in the world. This is expected to increase to around 7.1 billion in the next 12 months and by a further 400 million by the end of 2024. Mobile phones are here to stay, and users will continue expecting bigger and better features from manufacturers.

At the time of writing, the market is dominated by Apple and devices running Android. There is great debate over which is better, but Android holds a narrow lead statistically in terms of market share. This is probably because Android can run on different brand devices whereas iOS is limited to Apple devices. But when we look beyond mobiles and consider tablets and laptops, Apple is a clear winner.

While their products are at the higher end of the market, they retain a loyal fanbase and are a hugely recognizable brand. This means that Apple stocks are expected to continue growing in value over the next year, despite a global economic downturn. Many investors are thinking to buy Apple shares to capitalize on the company’s status, following, and potential. Those that want to get their hands on a piece of Apple, will typically do so via a UK stockbroker that can give them access to US markets.

Blockchain

Blockchain technology started as the framework that underpinned bitcoin, the first virtual cryptocurrency. Over a decade later, it has been adapted for use in a growing number of industries and various purposes. Blockchain technology is now used in transport, logistic, messaging apps, sales, real estate, and even education. But one of the sectors where it’s found its feet is finance.

Banks and financial institutions which were once hesitant to embrace this innovative concept, are now scrambling to set up blockchain working groups, file blockchain patents, and onboard directors with experience in blockchain. Some have even launched blockchain apps and their virtual currencies.

Blockchain is a great sector to invest in as it is very much still in its infancy. Several smart, small investments now could reap big returns in the future as the industry goes on to enjoy widespread, mainstream adoption. Financial companies utilizing blockchain technology are particularly good bets, so keep your eyes out for blockchain finance apps and similar.

Tech Digest Correspondent