8 Hot Industries for Start-Ups in 2013
"With such rapidly increasing demand, traditional brick-and-mortar retailers have an opportunity to enter the online realm and recapture sales taken by retailers that operate exclusively online," the analysts write. "Although new industry entrants face competition from well-established incumbents, this threat to success is partially mitigated by the industry's fragmented nature."
Currently the industry's two largest players -- Amazon and Foot Locker (FL) -- control less than 16% of the market.
However, new entrants will need to differentiate, with either a unique product line or non-traditional strategy to drive traffic to their website.
3. TV and Home Theater Installation Services
The TV and home theater installation services industry is "highly fragmented," IBISWorld says. Yet with a low level of capital needed to start a business, those with transportation and proper tools can easily enter the industry. In order to be successful, though, startups must "keep up with the rapid pace of technology in the industry," the report says.
With 98% of today's households owning at least one television and 84% having at least one DVD player and another 25% that have home theaters, the industry has expanded rapidly. Revenue rose on an annualized basis of 4.1% to $12.2 billion over the five years to 2013, according to IBISWorld.
4. Virtual Data Rooms
Virtual data rooms provide clients with secure document sharing and storage services geared toward legal due diligence, mergers and acquisitions, initial public offerings, bankruptcies and other information-sensitive applications.
The industry is growing quickly, with industry revenue expected to reach $728.4 million in 2013, a 16% increase from 2012 and an annualized growth rate of 15.8% since 2008, according to the report.
"Driving this growth has been the economy-wide transition toward providing services online. In particular, the proliferation of access-limited document sharing infrastructures -- and programmers in the field -- has enabled this industry to flourish without requiring huge investments," IBISWorld says. "The time and money savings this industry offers have made
Industry revenue is forecast to expand at an annualized rate of 14.2% over the next five years.
5. Digital Forensic Services
Digital forensic service firms recover and investigate material found in digital devices. Its services are often in relation to computer crime, but they increasingly involve mobile devices, according to IBISWorld.
In the five years to 2013, IBISWorld estimates that revenue for the digital forensic services industry increased at an annualized rate of 11.9% to $976.2 million.
As consumers are spending more of their time online, the amount of electronically stored information is rising exponentially. A boost in demand for services is expected to contribute to steady revenue growth of 11.2% in 2013.
The report notes that while there are few "prohibitive governmental, licensing or regulatory barriers" to starting a digital forensic services firm, capital requirements are high in order to keep up with competition.