It is an amazing time for change. In the past few years, we have seen massive disruption across many industries. According to The New York Post taxi medallions have dropped 80% in value in just 3 years due to ride sharing apps. Airbnb emerges as the largest hotel provider in the world and shakes up an entire industry and you can buy just about anything from the comfort of your home thanks to Amazon.
If you want to find what industries are next, look to where things are unnecessarily difficult or expensive. Below is a list of industries ripe for change.
Below is a list of industries ripe for change.
Every big name in the auto industry is investing in some form of self-driving cars. When cars drive themselves they will likely be faster, safer, have fewer parking issues and be more affordable.
Car ownership itself will change as many people will likely sign up for a ride-sharing service instead of actually owning a vehicle.
The changes we are likely to see in the next 5-10 years in the auto industry will likely shift everything we know about private ground transportation.
2. Real Estate
Prior to the internet, a residential broker provided a significant amount of value and insight into the market, comparable homes and unique guidance. But now the average home buyer is fairly well educated with sites like zillow that provide much of the information that was previously unique to brokers.
Despite providing less value brokers still make roughly the same amount. According bankrate.com the average commission on a residential property is 6%.
Paying 6% in commission without much value beyond giving tours doesn’t make sense in the long run. Companies like Sidedoor and OpenListings begning to capitalize on this and disrupt the market by eliminating the need to use brokers.
With the average price of Manhattan homes exceeding $2 million its easy to see why people are eager to avoid brokerage fees especially in high-priced cities.
Outside of brokerage, the shift in real estate is massive in almost every area. Technology has changed how we interact with physical spaces. This includes large industries like coworking to coliving . Obviously, AirBnB has already shifted the hotel real estate industry.
The insurance industry is a $1 trillion a year business.
Investors poured $1.7 billion into “insurtech” (i.e., insurance tech) in 2016, according to CB Insights. Despite advances in technology insurance companies are often using antiquated algorithms.
As the new businesses in the insurance industry evolve expect the market to become more efficient and people with lower risks to pay lower premiums than before.
Technology and clean energy are changing the way we create power. Solar prices are lower per kilowatt than ever before and with battery technology increasing living off the grid is becoming a viable option.
Check out this cool video on a product called the Smart Flower which follows the sun to provide more solar efficiency.
The healthcare industry is a $8.7 trillion industry that is ripe for disruption. This comes in many forms from private health care clubs for the wealthy to using AI to create better medical treatment.
Lumiata, for example, provides data to optimize healthcare interactions. Imagia leverages deep learning to provide more useful medical imaging. Modernizing Medicine seeks to build efficient electronic medical record systems.
The legal tech market is thriving. In 2016, spend reached $3 billion.
According to CB Insights, major investments are being made in platforms that offer online legal services, e-discovery solutions, practice management software, IP/trademark tools, artificial intelligence, litigation finance and legal research, among other areas.
Service promises to solve consumer disputes efficiently. Clio provides practice management software. Atrium LTS raised over $10 million to deliver corporate legal services effectively. Finally free Robolawyers are helping good citizens fight parking tickets with less hassle.
Technology and information are truly changing the face of the legal world.
Let us know your thoughts on industries you think we may have missed
Josh Bobrowsky-Cofounder & CEO