Yahoo Finance 9 Huge 2025 Moonshot Tech Investing Ideas
The next big thing is right around the corner.
Tech investors are always looking for the next big idea that could completely change the world and line investors' pockets along the way. Just 20 years ago, ideas such as streaming video, smartphones and online shopping may have seemed like moonshot projects. Today, they are some of the largest and fastest-growing segments of the economy. Bank of America analyst Haim Israel recently performed a deep dive into a number of moonshot technologies that could represent a combined $48 billion market opportunity for investors by 2025. Here are nine moonshot tech investment themes for long-term investors to consider.
Quantum computing
Quantum computing uses the physical-mathematical traits of sub-atomic particles to complete extremely complex calculations. Incredibly, Israel says a quantum computer can easily solve problems that it would take a traditional computer billions of years to complete. Within the next five years, companies such as IBM (ticker: IBM) and Alphabet (GOOG, GOOGL) are expected to bring the first commercial quantum computers to the market, a move that Israel says could revolutionize cybersecurity, financial markets and health care. In fact, Bank of America estimates quantum computing could impact all industries that currently use computers and could be a $5.85 billion market by 2025.
Deep sea mining
Israel says the world's next gold rush could take place 6,000 meters under the sea. Deep sea mining at depths below 200 meters can be extremely technologically challenging, but mining the ocean floor for resources such as cobalt could completely change the mining, electric vehicle battery and commodities industries. Israel estimates that by 2023, mining startups such as DeepGreen will begin exploring the ocean floor. BCC Research estimates the deep sea mining market could grow from around $650 million in 2020 to $15.3 billion by 2030, a 37.1% compound annual growth rate.
Nanosatellites
Nanosatellites are small satellites that are much cheaper than traditional satellites and could ultimately provide universal satellite internet access around the world. Amazon.com (AMZN) is taking an aggressive approach to the field and has already asked government permission to launch 3,236 satellites. Amazon's Project Kuiper, SpaceX's Starlink and OneWeb's constellation project could truly connect the entire world for the first time. OneWeb estimates its 650-satellite system will be up and running in 2021. Each OneWeb satellite weighs less than 330 pounds. Bank of America estimates the nanosatellite industry could be worth $5.2 billion by 2025.
Hyperloop
Transportation is one of the biggest global problems in densely populated metro areas. Fortunately, Hyperloop could be a very profitable solution. Hyperloop is an extremely high-speed system of travel in which passengers and cargo move at nearly the speed of sound inside pods that pass through low-pressure vacuum tubes. Top Hyperloop speeds could exceed 700 miles per hour, potentially cutting a seven-hour drive down to just 40 minutes. Hyperloop began testing in Nevada in 2017. Bank of America estimates the first commercial Hyperloop service will be approved in 2023 and the 2025 Hyperloop market could be worth $4.13 billion.
3D bioprinting
Investors may be hesitant to dip their toes in 3D printing after stocks like 3D Systems Corp. (DDD) and Stratasys (SSYS) each lost more than 80% of their value over the past five years. But while the typical American household still doesn't have a 3D printer, Israel says 3D printing is still poised to disrupt the medical industry in coming years. In fact, Bank of America is predicting that by 2021, the first in-human, 3D-printed liver patches and corneas will begin clinical trials. By 2025, Bank of America estimates 3D bioprinting could be a $4.32 billion industry.
Mass vertical and greenhouse farming
Israel says the tech world will bring its innovation to the agriculture business in the next decade to help feed urban populations. Today, food production generates up to 30% of global greenhouse gasses, according to the Ellen MacArthur Foundation. Vertical farming is the practice of producing food in vertically stacked layers or in non-traditional locations, such as in or on skyscrapers. Vertical farming typically involves controlled-environment agriculture technology. Allied Market Research estimates the vertical farming market will grow 24.6% annually from $2.23 billion in 2018 to $12.77 billion in 2026.
Nanotechnology
Nanotechnology is technology that operates on a nanoscale, which is between 1 and 100 nanometers. For perspective, there are roughly 25.4 million nanometers in one inch. Materials often demonstrate unique properties at the nanoscale compared to the macroscale, creating useful industrial applications. Unique nanoscale materials such as graphene and carbon nanotubes could have a range of uses in products such as batteries, solar panels and industrial coatings. Israel says there will be a market for precision nanomedicine by 2025 and nanoscale robots by 2030. Bank of America estimates the nanotechnology market will be worth $2.23 billion by 2025.
Li-Fi
Li-Fi is the use of light and light bulbs to transmit data, potentially offering safer and faster communication. Li-Fi technology may seem futuristic, but Israel says it could be deployed on planes within the next year and could help ease the demand burdens on 5G, wireless and Bluetooth networks. Bank of America anticipates official Li-Fi standards will be announced in 2021, opening the door for broad market adoption. Israel says Li-Fi is potentially the fastest-growing moonshot technology, on track to grow 71% annually from $170 million in 2018 to $36 billion by 2028.
Behavioral biometrics
Biometrics such as fingerprints and retinal scans are already used in security. But behavioral biometrics involves the use of dynamic behavior rather than static biological traits. For example, the unique way a customer swipes his or her credit card can be a way to verify identity. Passwords, pin numbers and signatures can be much more vulnerable than behavioral biometrics, a field Israel estimates will grow at around 24% annually to reach $4 billion by 2025. Companies may eventually use data on the way an individual interacts with a device, their swipe patterns and their finger pressure to verify identity.
Top moonshot investing ideas:
-- Quantum computing
-- Deep sea mining
-- Nanosatellites
-- Hyperloop
-- 3D bioprinting
-- Mass vertical and greenhouse farming
-- Nanotechnology
-- Li-Fi
-- Behavioral biometrics
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