What are the Most Popular Startup Industry Sectors in 2023?
Are you thinking about starting your own business? Or maybe you're just curious about what industries are hot right now. Either way, we're on the pulse for startup sectors, so you don’t have to be!
So, it's 2023 and the world of startups is constantly evolving.
One day it seems like every other company is a plant based meat alternative, and the next, it's all about virtual reality meditation apps.
But don't worry. We've done some digging to figure out what the most popular sectors are at the moment. These sectors are poised to lead the way in the startup landscape.
Let's dive right into it.
The recruitment industry matches job candidates with suitable job openings. In recent years, it has undergone big changes - and even bigger challenges. From mass cuts to increasing employee demands, the recruitment biz has taken hit after hit. Cut to 2023, and there’s a serious demand for skilled workers, and an even bigger need for efficient recruitment processes. The solution to this?
Innovative recruitment startups.
There are lots of areas within the recruitment sector that startups may focus on optimising. Take temporary staffing, for example. This involves providing businesses with temporary or contract workers to fill short term or temporary positions. It’s a great solution for companies with fluctuating workloads or needing to fill positions temporarily.
Another area within the recruitment sector is executive search, which involves helping companies identify and hire top level executives such as CEOs, CFOs, and CTOs.
Executive search firms typically use a combination of research, networking, and headhunting techniques to identify and recruit the most qualified candidates.
Talent management is another area of focus within the recruitment industry. This involves helping companies identify, develop, and retain top talent. Talent management can include various activities, such as performance management, career development, and succession planning.
In the past, this industry relied heavily on traditional methods like:
It’s time to shake things up - and we think 2023 will bring big things for this sector.
2. Streaming services
The streaming services industry has exploded in recent years. And it's no surprise that it's expected to be a popular sector for startups in 2023. Whether it's movies, TV shows, music, or games, streaming services allow users to access a wide range of media on demand and through the internet.
Some big names in the streaming world include Netflix, Hulu, and Spotify. These companies offer subscription based services that give users access to a huge range of content.
But the streaming industry isn't just limited to these heavy hitters - tons of startups also offer specialised streaming services too. There are streaming platforms for sports fans, fitness buffs, and lifelong learners.
If you're thinking about starting a streaming service, there's plenty of room for innovation. Maybe you could create a platform focusing on independent films and documentaries or a streaming service offering live concerts and events. The possibilities are endless.
If you're considering starting a business in this sector, you'll be in good company alongside established brands like Netflix, Hulu, and Spotify.
With the rise of remote learning and the increasing importance of digital skills, EdTech startups have the opportunity to create innovative solutions that meet the changing needs of students, teachers, and educational institutions.
Some examples of EdTech companies that have found success include Udemy, Coursera, and Duolingo. Udemy is yet another online learning platform that offers courses for different subjects, and as of 2022, it had over 52 million students and 57,000 instructors.
Coursera offers online courses, degrees, and certifications from top universities and companies. And as of 2021, it had over 113 million users.
Duolingo is a language learning app with over 300 million users and is available in over 30 languages.
EdTech startups have the opportunity to create new and innovative products and services that improve access to education and help people learn new skills. For example, you could develop a virtual reality platform that allows students to experience immersive learning environments. Another startup could create a mobile app that helps people learn a new language through gamified lessons.
EdTech startups have the opportunity to create innovative products and services that improve access to education and help people learn new skills.
4. ecommerce industry
With lots of people turning to the internet for their shopping needs, it's no surprise that ecommerce is expected to be a popular sector for startups.
The ecommerce industry includes a wide range of businesses, from online marketplaces like Amazon and eBay to retailers with their websites, like Target and Macy's. Tons of smaller ecommerce startups offer specialised products or services, like handmade crafts on Etsy or natural beauty products on Well.ca.
One of the great things about starting an ecommerce business is that you have the potential to reach a global market. Whether you're selling physical products, digital products, or a combination of both, you can reach customers worldwide with the right marketing strategies and a well designed website.
Some well known examples of ecommerce companies include Amazon, eBay, and Target, but many specialised ecommerce startups have found success. If you're thinking about setting up an ecommerce business, you'll be joining a vibrant and growing industry.
Ready to learn the ins and outs of building and scaling a marketplace?
- The early years (the rise of digital advertising)
- Striking a balance between short and long-term goals
- Where the idea for MeasureMatch came from
- The hardships in their roles and how they manage with them
- The importance of having strategic conversations
- And much more…
5. MedTech and fitness
The demand for innovative medical technologies and fitness solutions is expected to grow this year. Why? To match the rise of chronic diseases and the increasing importance of preventative care.
Startups in the MedTech sector may focus on developing new medical devices, diagnostic tools, or digital health solutions. For example, a startup could develop a new wearable device that monitors a person's vital signs and sends the data to their healthcare provider for analysis. Another business could create a mobile app that helps people manage chronic conditions such as diabetes or heart disease.
In the fitness industry, startups may offer online workout programs, fitness tracking devices, or other health and wellness products and services. For example, you could develop a subscription based workout app that offers personalised workout plans and tracks users' progress. Another startup could create a line of fitness tracking devices that monitor a person's activity level, sleep quality, and other health metrics.
The use of wearable technology and telemedicine will play an immense role in the growth of these sectors. Wearable technology, such as fitness trackers and watches, can help people track their health and fitness goals and provide valuable data to healthcare providers.
Telemedicine, which involves the use of telecommunication technologies to provide healthcare services remotely, can make it easier for people to access medical care and improve the efficiency of the healthcare system.
Fintech has to do with the use of technology to improve and automate financial services.
Startups in the fintech sector may focus on a wide range of areas, like payment processing, personal finance management, lending, and insurance.
You could develop a mobile app that allows people to track their spending and manage their finances easily. Another startup could create a peer to peer lending platform that connects borrowers and lenders directly.
Fintech startups can also offer innovative solutions for businesses, such as streamlining the payment process or improving supply chain finance. For example, an entrepreneur could develop a payment platform that allows businesses to accept and process customer payments easily.
Blockchain technology and artificial intelligence are expected to play a significant role in the fintech industry's growth in 2023 and beyond. Artificial intelligence can be used to analyse financial data and make recommendations to customers, while blockchain technology can enhance the security and transparency of financial transactions.
Startups in this sector can focus on a wide range of areas, such as personal finance management, lending, and insurance. They can use technologies such as artificial intelligence and blockchain to enhance their offerings.
The cybersecurity industry, which includes developing and implementing security measures to protect against cyber threats, is expected to be a popular sector for startups in 2023. With the increase in tech and the growing number of cyber threats, cybersecurity startups have the opportunity to create innovative solutions that help businesses and individuals protect their data and systems.
Some examples of cybersecurity companies that have found success include McAfee, Symantec, and Kaspersky Lab. McAfee is a leading provider of cybersecurity solutions that protect against viruses, malware, and other threats, and as of 2021, it had over $1 billion in revenue.
Symantec is a global cybersecurity company that offers various products and services, and as of 2021, it had a revenue of over $4 billion. Kaspersky Lab is a Russian cybersecurity company that offers antivirus software and other security solutions, and as of 2021, it had over $700 million in revenue.
Startups in the cybersecurity industry can create innovative solutions that assist businesses and individuals in defending against cyber threats. For example, a startup might develop a platform that enables businesses to monitor and respond promptly to cyber attacks. Alternatively, a startup could create a tool that aids consumers in securing their online accounts and protecting their data.
8. Leisure and entertainment
As people are increasingly looking for ways to relax and have fun, startups in this sector may focus on a wide range of areas, such as sports, gaming, music, and travel.
Some examples of companies in the leisure and entertainment industry include sports streaming platforms like ESPN+, music streaming services like Spotify, and travel booking websites like Expedia. Apps like TikTok and Clubhouse have also become popular in recent years, as they offer users a way to connect with others and share content related to their interests.
Startups in the leisure and entertainment sector have the opportunity to create new and innovative products that meet the changing needs of consumers. For example, a startup could develop a virtual reality platform that allows users to experience immersive entertainment experiences from the comfort of their own homes.
There are many examples of companies and apps in this industry that are already successful, such as ESPN+, Spotify, and TikTok. Startups in this sector have the opportunity to create innovative products that meet the changing needs of consumers.
With the rise of online shops and the increasing importance of timely and efficient delivery, logistics startups have the opportunity to create innovative solutions that meet the changing needs of consumers.
Some examples of logistics companies that have found success include Amazon, UPS, and DHL. Amazon is a core brand in the eCommerce industry and has a significant logistics operation, with a network of fulfilment centres and delivery routes. As of 2022, Amazon had over 200 million Prime members and delivered over 5 billion items worldwide.
UPS is a global shipping and logistics company that delivers over 15 million packages per day, and as of 2022, it had revenue of over $76 billion. DHL is a global logistics company that offers various services, including air, sea, and road transportation, and as of 2022, it had a revenue of over $62 billion.
Logistics startups have the opportunity to create new and innovative products and services that improve the efficiency and effectiveness of the supply chain. For example, a startup could develop a platform that helps businesses optimise inventory management and transportation routes. Another business could create a real-time tool that helps consumers track their package deliveries.
The logistics industry is expected to be a popular sector for startups in 2023 due to the increasing demand for timely and efficient delivery.
10. Personalised travel and experiences
In 2023, despite financial fears, there’s a greater demand than ever for special and memorable moments. This means companies that offer customised and unique travel and leisure experience are in for a treat.
Some well known players in the personalised travel and experiences industry include Airbnb, Vayable, and Detour. Airbnb is a platform that allows people to rent out their apartments to travellers, and it has over 4 million listings in over 100,000 cities.
Vayable connects travellers with local experts who offer personalized experiences, such as food tours or art workshops. Detour is a mobile app that provides audio walking tours of various cities narrated by local experts.
If you're thinking about starting a personalised travel and experiences business, there's plenty of room for creativity. You could develop a platform that allows travellers to design their customized vacations or create a tool that helps travellers discover and book local events and activities.
Startups in this sector have the opportunity to create innovative products and services that offer travellers special and memorable experiences.
11. Online food delivery
Online food delivery is a popular service that allows people to order food from their favourite eateries and have it delivered to their doorstep. With the rise of smartphone apps and the increasing convenience of home delivery, it's no surprise that online food delivery is a popular choice for busy individuals and families.
Some well known online food delivery industry players include Grubhub, DoorDash, and Uber Eats. Grubhub is a platform that allows users to order from a wide range of restaurants and has over 14 million active diners. DoorDash is a food delivery app that partners with over 400,000 restaurants in the US and Canada, and as of 2021, it had over 18 million active users. Uber Eats is a food delivery app available in over 6,000 cities worldwide, and as of 2022, it had over 100 million monthly active users.
If you're thinking about starting an online food delivery business, there are a few things to consider. You'll need to establish partnerships with local restaurants and develop a system for processing and delivering orders. You'll also need a strong marketing strategy to attract customers and stand out in a competitive industry.
This can be a challenging but rewarding industry for startups, and with the right approach, you could create a successful online food delivery business.
In conclusion, the startup industry is expected to be diverse and dynamic in 2023, with various sectors expected to be popular amongst entrepreneurs.
Each of the sectors we've mentioned presents its own opportunities and challenges, and it's up to aspiring entrepreneurs to identify the right fit for their skills, interests, and resources.
Whether you're interested in developing a new product or service, creating a platform or app, or building a company from the ground up, there are plenty of opportunities in the startup industry in 2023.
With all that's been said so far, you'll agree it makes sense to have a resource library that can help your startup thrive.
So, take advantage of our School of Startups, where you'll find invaluable resources that can help scale your business.