The most profitable industries at the moment are as follows1:
- Retirement & Pension Plans in the US
- Total Profit for 2024: $231.6B
- This industry plays a crucial role in providing financial security and stability to individuals in their retirement years. It is experiencing growth due to shifting demographics, government regulations, and advancements in technology. The industry is focusing on offering more flexible and personalized retirement plans to meet the unique needs of different segments of the population.
- Portfolio Management & Investment Advice in the US
- Total Profit for 2024: $182.7B
- Operators of this industry manage asset portfolios for a fee or commission. The industry has experienced countervailing trends, with rising assets under management (AUM) due to rising asset prices and growing disposable income, which has increased the base of assets industry operators charge fees on. However, there has been a shift towards passive asset management, such as exchange-traded funds (ETFs), which has driven expenses charged for the management of assets down during the period.
- Trusts & Estates in the US
- Total Profit for 2024: $156.9B
- This industry comprises trusts, estates, and agency accounts administered on behalf of beneficiaries under the terms established in a fiduciary contract. The industry has benefited from substantial yields in equity markets and appreciation in house prices during the current period. Revenue has increased at a CAGR of 2.8% to $221.4 billion, with an expected 4.2% increase in 2023. However, profit is expected to dip to 50.5% of revenue in 2023 from 51.1% in the previous years.
- Private Equity, Hedge Funds & Investment Vehicles in the US
- Total Profit for 2024: $152.6B
- This industry consists of funds that raise capital to invest in various asset classes. It has seen a surge in assets under management (AUM) and revenue due to increasing demand from institutional investors. The industry has become more deeply enmeshed within the larger asset-management market in recent years.
- Commercial Leasing in the US
- Total Profit for 2024: $131.7B
- Operators in this industry serve as lessors of buildings for nonresidential purposes. The industry has benefited from rising per capita disposable income, which has encouraged more businesses to enter the market and incumbent businesses to increase their production and inventory levels to tap into the growing consumer demand, thus demanding more space.
- Apartment Rental in the US
- Total Profit for 2024: $94.0B
- Apartment lessors provide housing to renters either in a property or as part of a larger complex. This industry is likely to remain stable, providing consistent profits through renting out residential properties.
These industries are currently performing well and are expected to continue doing so in the near future, driven by various factors such as demographic shifts, technological advancements, and changing investor preferences.