Top 5 High-Growth Sectors to Invest in Asia Right Now

The world economy has become more volatile and unpredictable due to the ongoing political and tariff imposition. Asia has been thriving due to its promised returns and unlocking the best investment opportunities. According to a report made by the Asian Development Bank (ADB) has projected the growth of the region is projected to grow by 4.6 percent by 2026.

All these qualities of Asia have made it a preferred destination for foreign investment among the present investors, encompassing high-growth sectors in which to invest.

But at present the due to the war and changing tariff imposition, the market predictability in Asia may confuse the investors about their planning, leaving them with one question, “Which sectors are best to invest in Asia?”, if you are also one such individual, then this article will be giving you the insights on investment sectors which will help you to get better investments.

Top 5 sectors to invest in Asia

Renewable and Green Energy Solutions

At present, green energy solutions are the most opted for ones due to the rising global concern for environmental safety. Asian countries have understood this and have been building eco-friendly businesses, which will not only support the rate of returns but also safeguard the environment from further exploitation. At present, the demand for renewable energy investments in Asia stands at 124.61 GW, which is expected to grow to 178.06 GW by 2030. 

Also Read: Tips for Using Loans to Fund Renewable Energy Projects

Innovation and research have been done about increased manufacturing in wind, solar, water energy, and EV manufacturing. Especially, this region's geothermal, hydropower, biomass, and wind energy are gaining more momentum due to the reliability of the sector. Companies like Runaya have made a name for themselves with their exceptional service in manufacturing green energy solutions.

Hence, green energy solutions and the renewable energy market are one of the major markets for investments, considering their rate of interest in the long term.

“All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.”- Warren Buffett, American investor and philanthropist.

Also Read: Asia-Pacific Renewable Energy Outlook For A Sustainable Future

Fintech and Digital Banking 

Many countries have invested in innovation and research into digital advancements. Advancements in blockchain-based payment systems and digital banking have revolutionized Asia's financial system. 

Countries like India, China, Japan, and South Korea have been witnessing the rapid digitalization and increased investments in financial technologies. With global fintech services like Gpay and more localized payment systems like PhonePe, BHIM, and Alipay. Rakuten Pay, Kakao Pay, Naver Pay, and other major payment platforms have been known globally due to their flexibility in payment.

Companies like Lufax, TransferWise, MobiKwik, and Freecharge are a few of the companies that are contributing to the fintech growth in the Asian region. Considering the growing innovation related to AI and digitization, the future of fintech and digital economy growth is promising.

“Technological innovations will be the heart and blood of the banking industry for many years to come, and if big banks do not make the most of it, the new players from Fin-Tech and large technology companies surely will.” – David M Brear, CEO at 11:FS Holdings.

Also Read: Connecting Billions: The Backbone Enabling Digital Financial Supremacy

Biotechnology and HealthTech 

Agriculture has always been the backbone of Asia. This region not only produces food for more than half of the world's population, but also supplies raw materials to major industries around the world. The recent innovation in the region about cultivation, Asian countries have adopted many innovative tools like AI, Drone farming, and blockchain cultivation into farming to adapt farming to the modern-day demand-supply chains. The Asian Pacific biotechnology market alone is estimated to reach USD 916.39 billion by 2030. Global biotech is estimated to grow up to USD 5.04 trillion by 2034, which will be fueled by Asian manufacturing.

A few of the well-known companies like Luca Science, Genscript Biotech, Nusantics, and BGF Platrix have been innovating the agriculture practices across Asian countries with innovative tools.

Considering the huge population Asia provides homes for, it becomes crucial for this region to provide a good healthcare system to its population. Due to the long-term knowledge system and manufacturing-friendly environment, the investment in healthtech is estimated to reach up to USD 5 trillion by 2030. This will also contribute to 40 percent of global healthcare growth.

Tata 1mg, mClinica, and Shenzhen Mindray Bio-Medical Electronics Co., Ltd are a few of the well-known Asian companies that are providing quality services in healthcare through technological mediation.

Also Read: Latest Business Environment Trends, Innovations,Concepts in the Biotech sector of Asia

AI and Cloud Infrastructure 

The latest innovation from mankind, AI, has taken the world by storm due to its instant, tailored solutions for major problems. Many Asian startups are focusing on building an AI-enabled digital infrastructure to enhance education, healthcare, agriculture, and finance to deliver advanced services to the population.  Companies like Baidu, Huawei, and SenseTime have been trying to integrate AI into their business services.

Cloud infrastructure is one of the blooming sectors in Asia at present. This particular hub has been employed in various sectors like banking, telecommunications, retail, healthcare, and government services. Due to its faster upgrade, this technology is in demand worldwide. According to Mordor Intelligence, this sector alone will be in a market size that is estimated to reach USD 510.30 billion by the year 2030.

Also Read: Building a Scalable Banking Infrastructure with the Cloud

Consumer goods 

A change in financial growth changes the investment patterns of one. The rising income has directly affected the lifestyle and food consumption of individuals, both in the urban and rural areas of the region. This has also affected the consumer goods sector in Asia. The rapid urbanization, changing consumer lifestyle, and increasing income of individuals have resulted in increased demand for products.

Consumer goods cover various items from food, beverages, to personal care, home care items, and many.  The market size of this sector is expected to reach up to USD 7 trillion by 2030. These sectors are the future of investment due to the revolution they are creating in the lives of the population. Investing in these budding sectors will ensure one gets secure returns.