2020 has been an unpredictable year. If one word could sum it up, it would be ‘uncertain.’ It has forced the majority of businesses to completely rework their strategy. Whether it is having to rapidly adapt their products or services to be made accessible online or perhaps transitioning an entire workforce to work from home.
Either way, the impact of the pandemic has been substantial. Whilst it has put significant strain on many sectors and organisations, some companies have adapted to the new business environment and have been able to create opportunities and provide solutions to the challenges brought about in 2020. These are some sectors poised for growth in 2021.
Renewable energy
With lockdowns, reduced industry activity and travel restrictions, the demand for oil, gas and coal have all fallen this year. Though the renewable energy sector has taken a hit, it has so far demonstrated resilience in the face of the Covid-19 crisis. The share of renewables in global electricity supply reached nearly 28% in the first quarter of 2020, up from 26% during the same period in 2019 1.
Globally, the world is set to add only 167 gigawatts (GW) of renewable power capacity this year – 13% less than in 2019. Part of this decline reflects delays in construction due to supply chain disruptions, lockdown measures and social distancing guidelines, as well as emerging financing challenges. Most delayed utility-scale projects are expected to come online in 2021.
Further to this, at the heart of many government’s Covid-19 recovery plan is a green focus. For example, the UK’s 10-point plan is seeing £12bn being spent on investment in the sector to help create jobs, decarbonise the economy and encourage innovation in technology 2.
President-elect Joe Biden is also planning to align US climate policy with the EU. He’s pledging a $2trn investment in climate-related spending over four years 3. China is also setting sights on reaching peak emissions before 2030 and carbon neutrality by 2060. South Korea, which has pledged carbon neutrality by 2050, is likely to advance its green agenda as well.
The graph below demonstrates the renewable electricity capacity additions into 2021.
Source: IEA
Healthcare
This one won’t come as a shock. As the fight against Covid-19 goes on, the healthcare sector is set for continued growth.
With the increased need for medical equipment including diagnostics and pharmaceuticals, the industry is requiring more equipment and staff members as the pandemic continues. As a result, governments look to continue to invest in the healthcare industry. Specifically, making investments in technology which enables virtual diagnosing, especially for minor and routine appointments.
The number of virtual visits has boomed during the pandemic and it’s been predicted by Forrester analytics to hit one billion in the US by the end of 2020 4. It’s also thought during 2021, one third of virtual care appointments will be related to mental health issues. Forbes has listed on-demand doctor apps as one of the biggest healthcare trends for 2021.
Along with helping to reduce the risk of spreading the virus, remote medicine and diagnosing enables an increase in patient consultations which can be particularly beneficial in highly populated countries like China and India where there is a need for more healthcare professionals 5. It is predicted that even after the pandemic, these digital technologies will be here to stay. Apps like Telehealth could become common place after the pandemic.
In 2021, we’re expecting to see the ongoing development of robotic and autonomous healthcare assistants for hospitals and nursing homes 6. These are being trialled in the UK to help with symptoms of loneliness and social isolation amongst patients. The digital health market and it is poised to grow by $207.34 billion during 2020-2024 7.
Cybersecurity
Cybersecurity has always been high on the list of growing sectors, but as we have begun to rely more and more on digital tools for work and home life, our data becomes increasingly susceptible to hacking. Google have said, since the pandemic they are blocking 100 million phishing emails a day 8. Covid-19 has proven to be one of the biggest threats to cybersecurity. Before the first lockdown, in the UK attacks targeting people working from home made up just 12% of malicious emails. That figure rose to 60% just six weeks later 9.
As the level of sophistication of hackers improves, along with the increased amount of data being collected, processed, and stored, there is a definite need for more refined and higher-level cybersecurity.
As more and more industries decide to adopt digital transformation, even beyond the pandemic, cybersecurity will be at the centre of this new era. Trends in the sector look set to be focused on the wide implementation of 5G, which is expected to cover 40% of the world by 2024 and the threat of ransomware, which involves holding a businesses’ database hostage in exchange for a form of compensation 10.
If cybercrime were to be measured financially as if it were a country, which is predicted to inflict damages totalling $6 trillion globally in 2021 11, it would be the world’s third-largest economy after the U.S. and China. The graph below highlights its forecasted growth until 2027.
eLearning and education
Anybody else attempt to take up a course during lockdown? Well, if you did you certainly weren’t alone.
Lockdown resulted in many trying to master some new skills to pass the time. The popular language app Duolingo saw a 148% increase in signups in the US in March 12. As many began to realise that face to face classes with tutors are not the only way to learn, it’s predicted this rise of eLearning platforms will continue into 2021. Whether you want cooking courses from Gordon Ramsay or acting classes from Natalie Portman, there’s something out there for everyone, at a pretty reasonable cost.
Plus, with children spending a substantial amount of time studying from home, it is unsurprising that some online learning platforms have seen an eightfold increase in enrolments for their courses 13. More than a billion students worldwide are currently unable to go to school or universities, due to the restrictions and physical distancing measures implemented to curb the spread the virus. This means eLearning is main solution to continuing their education.
Even before the pandemic in 2019, eLearning enjoyed high growth and adoption, with education technology investments reported at $18.66 billion 14. With the ongoing outbreak exposing the vulnerability of physical classrooms, as well as the recent technological improvements that make eLearning feasible, online education is poised to experience exponential growth, with projections for the market seen to reach $350 billion by 2025 15.
Although these are just predictions, it is clear Covid-19 has transformed the way we live and work, and the impact of the changing business environment will be felt for years. From the acceleration of new technologies, to the rapid adaptation to a new digital era. For businesses to survive and thrive post Covid-19 and into 2021, adaptability and flexibility will be key.
