11 Fastest-Growing Tech Industries To Invest In 2025

Whether you’re looking to acquire a company, expand your portfolio, or position yourself in industries with long-term growth potential, these sectors represent some of the most promising for investment this year.

From artificial intelligence revolutionizing business operations and day-to-day life to software that drives efficiency, here's a list of 11 of the fastest-growing tech industries for 2025.

At a glance: 11 Tech industries to invest in 2025

​​1. Artificial intelligence: Driving innovation & future growth

Artificial intelligence (AI) continues to be a transformative force in 2025. The market is projected to reach $66.21 billion in the United States alone with a compound annual growth rate (CAGR) of 27.57% from 2025 to 2030.

Advancements in AI include natural language processing, predictive analytics, autonomous systems, and AI-specific hardware such as next-generation chips optimized for machine learning. Developments in AI agents will also be key.

"Every big (and small) tech company will hype up the promise of AI agents this year. So far, generative AI has mostly been about creating text, images, and videos. But in the next evolution, AI systems don’t just create—they do", according to The Wall Street Journal's tech predictions for 2025.

If you are seeking high-growth opportunities in the AI industry, focus areas include:

• Software solutions: Platforms enabling businesses to integrate AI into operations, such as machine learning models or AI-driven decision tools.
• Hardware development: Cutting-edge AI chips and scalable infrastructure supporting industrial and consumer AI applications. "The fight to dominate artificial intelligence is also spurring investment in infrastructure to generate the huge amount of electricity it requires", says The New York Times.
• AI deployment services: Companies offering end-to-end implementation for organizations transitioning to AI-enabled workflows.

With AI embedded in everyday life and business operations, you can capitalize on its upward trajectory by targeting companies at the intersection of innovation, scalability, and real-world application.

Key value drivers for sellers

• Proprietary technology: Unique AI algorithms or tools addressing specific industry challenges are highly sought after.
• Scalability: Buyers look for businesses with clear paths for scaling across multiple industries.
• AI integration services: Companies that help other businesses deploy AI solutions are especially attractive.

2. Software as a service (SaaS): Empowering enterprises

The US SaaS market is expected to generate $221.50 billion in revenue this year, with a compound annual growth rate (CAGR) of 19.09% from 2025 to 2029.

SaaS platforms are driving digital transformation across industries, offering scalable, subscription-based solutions that enhance efficiency and productivity.

Emerging market trends such as AI-powered features, low-code/no-code platforms, and API-driven integrations further amplify the appeal of SaaS solutions.

If you want to invest in this sector, focus on:

• Enterprise solutions: Platforms catering to business-critical needs such as customer relationship management (CRM), enterprise resource planning (ERP), and data analytics.
• Productivity tools: Applications focused on communication, project management, and remote collaboration, vital for hybrid and remote work environments.
• Industry-specific solutions: Niche SaaS offerings tailored to unique verticals such as healthcare compliance, legal case management, and financial planning.
• Scalable subscription models: Businesses with recurring revenue streams and high customer retention rates provide predictable cash flows and growth potential.

Key value drivers for sellers

• Customer retention: High retention rates indicate long-term stability.
• Product innovation: AI-driven features and difficult to replicate solutions stand out in the market.
• Profitability: Predictable cash flows boost valuation.

3. Data Centers: Supporting digital infrastructure

Data centers sustain the digital economy, powering everything from cloud computing to AI and IoT applications. In 2025, the US data center market is expected to generate $137.50 billion in revenue.

The market is forecasted to grow at a compound annual growth rate (CAGR) of 11.44% through 2029, reaching a total market volume of $212.10 billion by the end of the period.

“The more people learn about data centers, the more they discover what a vital service the industry provides. That awareness will only keep growing in 2025. Just look at the UK, which recently joined the US and several other countries in recognizing data centers as critical infrastructure”, said Andrew Schaap, CEO and Board Member of Aligned Data Centers, in a Forbes article.

Industries such as ecommerce, finance, the healthcare sector, and entertainment depend on data centers to support cloud platforms, edge computing, and high-speed connectivity.

Recently, Microsoft announced plans to invest $80 billion in fiscal 2025 to expand its data center infrastructure, focusing on supporting the training of artificial intelligence (AI) models and the deployment of AI-driven and cloud-based applications.

The growth of data centers offers several options for investment:

• Cloud computing and hybrid infrastructure: Businesses increasingly rely on cloud solutions, necessitating data centers that support seamless integration between on-premise and cloud environments.
• Edge data centers: Smaller, localized data centers that reduce latency and enhance real-time processing for applications like autonomous vehicles and smart cities.
• Energy-efficient technologies: With rising energy demands, investing in green data centers featuring renewable energy solutions and advanced cooling systems can yield significant returns while meeting sustainability goals.
• Network infrastructure: Companies specializing in high-speed connectivity, fiber optics, and 5G deployment are critical to the expansion of data center capabilities.

For investors, targeting companies that integrate cutting-edge technology, prioritize energy efficiency, and support emerging use cases like AI and edge computing presents an opportunity to capitalize on this high-growth sector.

Key value drivers for sellers

• Green technology: Energy-efficient data centers are in high demand.
• Edge computing: Proximity-based data solutions enhance real-time processing.
• Hybrid infrastructure: Solutions enabling seamless integration between on-premise and cloud environments are key selling points.

4. Online education: Transforming lifelong learning

The online education market is undergoing rapid expansion, driven by rising demand for accessible and flexible learning solutions. By 2025, the US market is projected to generate $99.84 billion in revenue, accounting for the largest global share. 

Notably, the Online University Education segment alone is projected to account for $94 billion in 2025, highlighting its dominance within the sector.

This growth is fueled by advancements in technology, increased internet penetration, and the rising need for skill-based training across industries. 

The online education market offers a variety of investment opportunities:

• Skill-based training platforms: Companies focusing on reskilling and upskilling for in-demand fields like technology, healthcare, and finance.
• AI-driven learning tools: Adaptive platforms that personalize learning paths based on user performance, enabling more effective education outcomes.
• B2B educational solutions: Platforms catering to corporate training and professional development needs, providing scalable solutions for businesses.
• Niche course providers: Specialized platforms targeting hobbyists or unique certifications, such as creative arts, coding bootcamps, or entrepreneurship programs.
• User engagement technologies: Tools that enhance interactivity and engagement, such as gamified learning, VR/AR experiences, and collaborative features.

The shift toward lifelong learning and continuous professional development is a significant driver of online education's growth. Platforms like Coursera and Udemy have seen exponential growth, with Coursera's user base skyrocketing from 21 million in 2016 to 92 million by 2021, according to the World Economic Forum. This trend reflects the growing acceptance of online credentials for career advancement.

Key value drivers for sellers

• Scalability: Platforms catering to a global audience are highly attractive.
• Corporate training solutions: Businesses targeting B2B clients with scalable products can command premium valuations.

5. Internet of Things (IoT): Connecting the future

The Internet of Things (IoT) market in the United States is set to lead the global stage, with projected revenues reaching $379.90 billion in 2025. Driven by rapid adoption across both consumer and industrial applications, the sector is forecasted to grow at a compound annual growth rate (CAGR) of 9.45% from 2025 to 2029.

The automotive IoT sector is expected to dominate the market, contributing $99.75 billion in revenue in 2025, underscoring its pivotal role in the industry’s expansion.

Transformative impact across sectors

• Consumer IoT: Smart home devices such as connected thermostats, energy-efficient lighting, and advanced security systems are enhancing convenience and sustainability for millions of households.
• Automotive IoT: Connected vehicles are transforming transportation with features like real-time navigation, predictive maintenance, and vehicle-to-everything (V2X) communication, paving the way for autonomous driving and improved safety.
• Industrial IoT: Industries such as manufacturing, agriculture, and logistics are leveraging IoT-enabled sensors and devices to optimize operational efficiency, enhance predictive maintenance, and streamline supply chain management, resulting in cost reductions and increased productivity.

Key value drivers for sellers

• Proprietary IoT technology: Unique solutions tailored to high-demand sectors such as automotive IoT.
• Data security integration: IoT businesses addressing cybersecurity challenges gain added value.

6. Digital Payments: Streamlining transactions

Digital payment systems are reshaping how consumers and businesses handle transactions, as we keep moving towards cashless economies. In 2023, the US Federal Reserve reported that only 12% of payments made by consumers under the age of 55 were in cash, compared to 22% for those aged 55 and older.

By 2025, the total transaction value in the digital payments market is projected to reach $3.57 trillion in the US, with an annual growth rate (CAGR) of 9.00% through 2028.

While the United States is a key player, global comparisons reveal that China will dominate the market, with a cumulative transaction value of $4.24 trillion in 2025, underscoring the competitive and rapidly expanding nature of this sector.

Mobile wallets, contactless payments, and digital remittances are becoming ubiquitous, and trends like buy-now-pay-later (BNPL) services, blockchain-based payments, and real-time cross-border transactions are gaining traction. 

Investors can explore opportunities in companies developing cutting-edge ecommerce payment gateways that support rapid scaling for online retailers, cross-border payment solutions that reduce transaction costs, and financial inclusion technologies targeting unbanked populations in emerging markets. 

Additionally, digital payment security, including fraud prevention and biometric authentication, represents a high-growth niche.

As businesses and governments push for digitized financial ecosystems, the digital payments industry is set to play a critical role in reshaping the global economy, offering robust opportunities for forward-thinking investors.

Key value drivers for sellers

• Consumer-centric features: Platforms offering advanced user interfaces, BNPL options, or seamless multi-currency support gain competitive edges.
• Scalable architecture: Payment systems that can support rapid transaction volume growth, particularly for ecommerce or cross-border operations.
• Fraud prevention technology: Sophisticated solutions for detecting and mitigating fraud, including biometric authentication and AI-driven anomaly detection.

7. Robotics: Innovating industries

Traditional robotics with machines that focus on physical tasks in manufacturing and healthcare have been introduced previously. However, Robotic Process Automation (RPA) is revolutionizing the digital workspace by automating repetitive, rules-based tasks.

In other words, RPA uses software robots, or “bots” that mimic human actions on computers, such as data entry, invoice processing, and customer service interactions. By eliminating manual work, RPA helps organizations save time, reduce costs, and minimize human error.

These solutions are enhancing productivity and reducing operational costs.

In healthcare, robotics is enabling groundbreaking advancements such as surgical robots that enhance precision and minimize recovery times, robotic exoskeletons aiding physical rehabilitation, and automated systems in pharmacies for dispensing medications.

The service sector is also adopting robotics, with robots being deployed in hospitality for tasks like concierge services, room cleaning, and food delivery, offering innovative customer experiences.

Additionally, startups developing modular robotics, which can be customized for various applications, can also be interesting.

Revenue in the Robotics market for the US is expected to reach US$10.45 billion by 2025, driven by innovations in both traditional and service robotics, with a CAGR of 8.12% from 2025 to 2029.

Key value drivers for sellers

• Specialized applications: Companies offering niche robotics solutions, such as healthcare robotics or robotic process automation (RPA), stand out.
• Scalability: Modular or customizable robotics that can address multiple use cases are especially appealing.
• Cost-saving innovations: Buyers prioritize robotics businesses that demonstrate clear operational efficiencies, such as automation tools that reduce labor costs.

8. Ecommerce: The retail revolution continues

Ecommerce remains a key sector in the digital economy. It will also be impacted by advancements in AI, with personalization, seamless payment systems, and localized logistics. 

The ecommerce market is projected to generate US$1.3 trillion in revenue in the US by 2025, with a compound annual growth rate (CAGR) of 8.01% from 2025 to 2029. 

Growth is supported by the expansion of SaaS ecommerce tools, the adoption of AI-driven fulfillment services, and the development of specialized market strategies. Sectors such as DIY and hardware, food, and fashion are projected to see steady growth, driven by consumer demand for convenience and efficient solutions.

Key value drivers for sellers

• Tech-enabled efficiencies: Demonstrating the use of AI tools for personalized recommendations or fulfillment optimization can set your business apart.
• Recurring customer base: High customer retention rates signal sustainability and long-term growth potential.
• Market niche: Ecommerce businesses with a well-defined market segment or unique product offering are highly sought after.
• Strong brand: While Amazon retailers will keep struggling with thinning margins, strong brands with their own distribution channels will thrive.

9. Cybersecurity: safeguarding the digital space

In 2023, one in every three Americans fell victim to online financial fraud. In 2023, it was estimated that cybercrime costs would hit US$8 trillion, and according to the US Agency for International Development, some projections are that it'll be around US$23.84 trillion by 2027.

The global spending on cybersecurity products and services will grow to USD 1.75 trillion total from 2021 to 2025, according to Cybersecurity Ventures.

Artificial intelligence (AI), particularly genAI, has introduced a new and complex threat landscape that cybercriminals already leverage through techniques like prompt injection. Only 24% of generative AI initiatives currently have adequate security measures in place, according to the IBM® Institute for Business Value.

The risk, of course, will create a higher demand for AI solutions in the cybersecurity industry.

With increasing threats targeting businesses, governments, and individuals, this sector offers opportunities in endpoint security, fraud detection, and secure data ecosystems. Scalable, next-gen solutions tailored for AI, blockchain, and IoT environments can be an opportunity.

Key value drivers for sellers

• Proprietary solutions: Scalable AI or blockchain security platforms.
• Market relevance: Tools addressing generative AI-related vulnerabilities.

10. Digital health: Modernizing the healthcare sector

The surge in telemedicine adoption, driven by increasing demand for virtual doctor visits and remote monitoring, is reshaping the healthcare landscape.

The Digital Health market in the United States is projected to reach a revenue of US$54.00 billion in 2025, making it the global leader in this sector. The market is expected to grow at a CAGR of 6.71% from 2025 to 2029. 

Opportunities are found in fitness tech, online doctor consultations, and AI-driven diagnostics. Every day, it's becoming more common to meet your physician virtually. This new model is more accessible and convenient for doctors and patients.

When compared globally, the United States is set to generate the highest revenue in the Digital Health market, underscoring the rapid growth of telehealth and digital therapeutics in this region.

The COVID-19 pandemic played a significant role in accelerating this trend as a cost-effective solution that allows more patients to access care.

Fueled by the increasing adoption of video consultations and digital therapeutics, telehealth startups are addressing critical healthcare gaps. For investors, this industry offers opportunities in mental health services, AI diagnostics, and expanding telemedicine infrastructure.

Businesses such as BetterHelp or Talkspace are examples of these types of businesses.

“In competitive markets, like the US, health providers that fail to develop effective digital channels will lose out to those that do, especially amongst younger generations.”

Jeff Lin, who co-leads J.P. Morgan’s Healthcare Payments business.

Key value drivers for sellers

• Proprietary technology: AI-powered diagnostic tools, wearable health devices, and telehealth platforms command premium valuations.
• Scalability: Businesses with the infrastructure to expand into new regions or offer additional services are attractive to strategic buyers.
• Regulatory compliance: Demonstrating adherence to healthcare regulations builds buyer confidence.

11. Application development software: Powering innovation

The Application Development Software market in the United States is poised for significant growth, with projected revenue of US$97.64 billion in 2025, the highest globally. This market is expected to grow at a CAGR of 5.60% from 2025 to 2029, reaching a volume of US$121.40 billion by 2029.

The demand for application development software in the United States is driven by the country’s thriving tech industry and culture of innovation. Key growth areas include low-code and no-code platforms, which enable businesses to rapidly develop applications without extensive coding expertise, and DevOps tools that streamline the software development lifecycle.

As businesses increasingly adopt digital transformation strategies, the need for versatile and scalable application development tools continues to rise, presenting investors with opportunities in platforms catering to mobile app development, enterprise solutions, and cloud-based software services.

Key value drivers for sellers

• Low-code/no-code platforms: These tools are in high demand for their ability to democratize application development and reduce development time.
• Cloud-based solutions: Scalability and seamless integration with existing enterprise systems are critical selling points.
• Strong recurring revenue models: Subscription-based models offer predictable cash flow, which buyers favor.

Future-proof your tech business value

As demand surges in sectors like application development software, digital health, and ecommerce, strategic buyers are actively seeking businesses with strong growth potential and innovative offerings.

At Boopos, we specialize in helping tech founders go through the exit process seamlessly. With deep market expertise and global footprint, our bankers provide guidance to founders who want to achieve the maximum value for their business.

Explore your options today. Reach out to us for a complimentary advisory session and valuation of your business and find out how we can help you capitalize on your business's growth in these thriving markets.