Emerging Technology Investing In 2022 Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Our articles, interactive tools, and hypothetical examples contain information to help you conduct research but are not intended to serve as investment advice, and we cannot guarantee that this information is applicable or accurate to your personal circumstances. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Editorial disclosure
All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication. SHARE: Westend61/Getty Images June 13, 2022 Gio Moreano is a contributing writer, covering investment topics that help you make smart money decisions. Formerly an investing journalist and lead analyst for CNBC, he is passionate about financial education and empowering people to reach their goals. Bankrate senior reporter James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money. Investing disclosure: The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. The unprecedented pace of innovation has resulted in the almost non-stop emergence of new, potentially revolutionary technologies. As new tech firms compete with established companies to disrupt every industry, the trend presents a compelling opportunity for retail investors to get in on the action. A rise in investments in fintech start-ups, for example, has broadened the number of unicorns – the number of private companies valued in excess of $1 billion – to more than 116 at the end of 2021, according to GlobalData, a data analytics consultancy. Their combined value is about $529 billion, or about 50 percent more than the value of JPMorgan Chase, the largest U.S. bank. From healthcare to education, the constant development and reimagining of new technology applications have already revolutionized how we live and work. And there’s plenty more to come, according to tech experts. This handy guide covers some of the emerging technologies that should be on your radar. The rapid growth of disruptive technologies
Artificial intelligence AI – The AI market could generate sales of $190 billion by 2025, up from $67 billion in 2021, an increase of 184 percent, according to GlobalData estimates. Compound annual growth rate: 38 percent. Robotics – The industry could reach $568 billion by 2030, up from $45 billion in 2020, an increase of 1,162 percent, according to GlobalData. Compound annual growth rate: 29 percent. Cloud computing – The cloud market could rise to $791 billion by 2028, from $250 billion in 2021, an increase of 216 percent, according to Fortune Business Insights. Compound annual growth rate: 18 percent. Emerging technologies to consider investing in
Among the most impactful technology advancements are artificial intelligence, robotics and automation, and cloud computing. These top new emerging technologies not only power digital transformation in business, but set the stage for other solutions, including , , biotechnology, and many others. Artificial intelligence AI
At its core, AI attempts to replicate human intelligence in a computer or machine with faster speed and greater accuracy. Companies such as and employ the technology to program machines to solve problems, answer questions, and conduct tasks previously done by humans. And just like the human brain, the more information AI receives and stores, the greater its potential. For example, the banking industry uses AI to improve decision-making in high-speed trading, automate back-office processes such as risk management, or even reduce costs by using humanoid robots in branches. Similarly, AI powers and even movie recommendations from Netflix. But how does AI get incrementally smarter? Through processes like machine learning, a sub-field of AI. By combining big data, complex computational models, advanced mathematics, and other methods, machines have the capacity to store and analyze new information at lightning speed. And the more input they receive, the greater the accuracy. Consider an recently developed at the University of California-Berkeley, which beat a thousand of the world’s best human crossword solvers at the prestigious American Crossword Puzzle Tournament. According to the inventors, the computer program can achieve near-perfect performance on most American-style crossword puzzles. And it can do it exponentially faster than any human. Like other thematic investing — such as , cybersecurity and genomics — retail investors have access to AI exchange-traded funds (). For example, the fund Global X Robotics & Artificial Intelligence ETF (BOTZ) holds a basket of companies involved in all phases of AI, from development to implementation. Projected growth of AI capabilities millions of dollars
Segment 2021 revenue (est.) 2021 growth (%) 2022 revenue (est.) 2022 growth (%) Knowledge management $5,466 17.6 $7,189 31.5 Virtual assistants $6,210 12.0 $7,123 14.7 Autonomous vehicles $5,703 13.7 $6,849 20.1 Digital workplace $3,593 13.7 $4,309 20.0 Crowdsourced data $3,483 13.6 $4,171 19.8 Others $27,049 14.1 $32,827 21.4 Total $51,503 14.1 $62,468 21.3 Source: Gartner (November 2021) Robotics and automation
Companies are also turning to robotics and automation to program robots to mimic human tasks, such as driving or even making the perfect latte. These machines can perform jobs independently or with minimal human assistance, streamlining processes and improving efficiencies. The robotics industry comprises two main areas: industrial robots and service robots. By developing rule-based software and sleek user interfaces, robotics has the potential to disrupt much of the labor market. , for example, is developing a human-like robot called Optimus and it could be fully functional sometime in 2022, according to CEO Elon Musk. The robot is 5 feet 8 inches in height and weighs 125 pounds. It can perform jobs that would be tedious or risky for humans. Musk has labeled the project the “most important product development” for Tesla, highlighting that it could be one possible solution to the United States’ labor shortage. And over time, the billionaire investor believes it could even be even more significant than the company’s vehicle business. Likewise, companies such as and automation to improve productivity, reduce costs, build resiliency, and increase worker safety. Autonomous mobile robots could eventually take over most physical tasks, from delivering totes to employees to transporting carts or emptying packages. In the first quarter of 2022, American companies purchased the most robots ever in a single quarter, spending about $646 million, according to the Association for Advancing Automation. That figure is 43 percent higher than the same period in 2021. And the trend likely won’t change, according to analysts, who explain that the prolonged shortage in the labor market caused by the pandemic has propelled digital investments across industries. Retail investors looking to gain exposure to robotics and automation have access to ETFs such as ARK Autonomous Technology & Robotics (ARKQ) and ROBO Global Robotics Automation Index ETF (ROBO). Cloud computing
Cloud computing supports on-demand access to data and information via the internet, providing seamless connectivity and flexibility. Compared to traditional on-premises data storage, organizations have turned to the cloud to scale their digital ambitions, including AI, robotics and automation. In essence, the cloud provides the foundation for organizations to innovate faster. From achieving greater security to democratizing access to data across the organization, cloud computing continues to gain traction across industries. For these reasons, companies such as Amazon and Microsoft have aggressively expanded into the cloud market. Amazon Web Services, the retail giant’s cloud division, has become the dominant cloud-computing platform, generating revenues of $18.4 billion in the first quarter of 2022, up 37 percent. Similarly, Microsoft said that Azure and other cloud revenues grew 46 percent in the last quarter of 2021, following four consecutive quarters of gains at or above 50 percent. Projected growth of cloud services millions of dollars
Segment 2021 (est.) 2021 growth (%) 2022 (est.) 2022 growth (%) Cloud business process services (BPaaS) $50,165 8.7 $53,121 5.9 Cloud application infrastructure services (PaaS) $59,451 28.3 $71,525 20.3 Cloud application services (SaaS) $122,633 19.3 $145,377 18.5 Cloud management and security services $16,029 11.9 $18,006 12.3 Cloud system infrastructure services (IaaS) $82,023 38.5 $106,800 30.2 Desktop as a service (DaaS) $2,046 67.7 $2,667 30.4 Total market $332,349 23.1 $397,496 19.6 Source: Gartner Plus, the adoption of cloud computing transcends enterprises, as governments and other institutions around the world embrace the technology to keep up with the pace of innovation. As companies increasingly move their applications and operations into the cloud, some estimates place the cloud computing business as a $1 trillion opportunity. For those looking to gain exposure to the cloud market, the Global X Cloud Computing ETF (CLOU) and First Trust Cloud Computing ETF (SKYY) invest in this space. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. SHARE: Gio Moreano is a contributing writer, covering investment topics that help you make smart money decisions. Formerly an investing journalist and lead analyst for CNBC, he is passionate about financial education and empowering people to reach their goals. Bankrate senior reporter James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. Related Articles