In this article, we’ll take a look at the 24 Biggest Industries in the World in 2024. The article also sheds light on what’s happening in the global economy and recent worldwide industrial developments. To skip the detailed analysis and have a quick overview of the top 10, read 10Biggest Industries in the World in 2024.
Global Industrial Market Outlook for 2024
OECD predicts the global economy to experience a significant slowdown in 2024, with growth rates dipping below historical averages. It projects the global economic growth rate at 2.7% in 2024, indicating a minor downturn from 2.9% in 2023. The International Monetary Fund (IMF) also forecasts a deceleration in global growth, from 3.0% in 2023 to 2.9% in 2024, well below the historical average of 3.8%.
However, Goldman Sachs Research forecasts a more optimistic outlook for the global economy in 2024 than many expect. The expectation is for continued income growth, cooling inflation, a robust job market, and a recovery in manufacturing. Central banks are predicted to have more leeway to reduce interest rates, providing a safeguard against recession. Global GDP is projected to grow by 2.6%, with strong performance expected across most of the world's largest economies, including the United States. This positive outlook hinges on the anticipation that major economies will successfully navigate the transition from inflation control to minimizing recession risks.
This shows that the global industrial market for 2024 is shaping up to be a year of both challenges and opportunities across various sectors.
For instance, the manufacturing industry is poised to capitalize on significant legislative developments in the United States. The US manufacturing industry is benefiting from significant legislative support, with investment in semiconductor and clean technology manufacturing nearly doubling from 2021 and about 20 times the amount allocated in 2019. The Inflation Reduction Act (IRA) has led to the formation of nearly 200 new clean technology manufacturing facilities, representing an investment of $88 billion and expected to create over 75,000 new jobs. As of July 2023, annual construction spending in manufacturing stood at $201 billion, a 70% year-over-year increase, indicating a positive trajectory for 2024.
From a macroeconomic and geopolitical perspective, 2024 is anticipated to be a year marked by volatility and potential geopolitical risks, particularly in energy markets. This volatility arises from the geopolitical fracturing of the global system, influencing oil prices and introducing more variables and sources of risk premia. The US's status as a net energy exporter and its relationship with Gulf states are also factors impacting global oil supply and prices.
The global trade markets show a resilient trend. Despite a projected 5% contraction in global trade, a $500 billion increase in trade in services reflects the resilience and adaptability of global markets. Developing economies, especially Mexico and East Asian countries, are seizing the opportunity to integrate more deeply into global supply chains, largely influenced by geopolitical factors.
Asia's dominance in the global economy is increasingly evident, as it now accounts for over 50% of global trade value. With 18 of the 20 fastest-growing trade corridors, Asia's economic significance is particularly notable in the trade growth observed along corridors between mainland China and regions like the UAE and Taiwan. The economic partnership between the UAE and China exemplifies this trend, with non-oil trade soaring to $72 billion in 2022, an 18% increase from the previous year, and overall bilateral trade reaching a record $99.3 billion.
Global Industrial Revolutions in 2023
2023 was a landmark year for technological advancements, especially in the field of AI. Generative AI, in particular, has captured the world's attention, finding applications in a variety of sectors from sales to software development. This innovative technology promises significant automation in tasks involving natural language, alongside substantial energy conservation, and it seems to remain the biggest trend in 2024. Google's DeepMind AI in data centers, achieving up to a 40% reduction in energy consumption, is a testament to this progress. Furthermore, R&D on 6G networks promises a new era of connectivity, poised to transform industries and societies with unprecedented speed and flexibility.
Sustainable and green technologies are also making significant strides. For instance, Virgin Atlantic's historic flight from London to New York in 2023 using 100% sustainable aviation fuel, made from plant and waste products, sets a new benchmark in reducing carbon emissions and addressing global warming.
Methodology
For our list of the largest industries in the world, We've ranked them in ascending order of their market caps. We have used data from the Finviz screener for this purpose.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders."
So if you’re wondering what is the largest industry in the world, below is our list of the 24 biggest industries in the world in 2024.
24 Biggest Industries in the World in 2024
A manufacturing floor filled with robotic arms working on a variety of precision projects.
24 Biggest Industries in the World in 2024
24. Oil and Gas E&P
Market Capitalization: $757.75 billion
Oil and Gas E&P is one of the fastest growing industry in the world. Dominated by players like Exxon Mobil Corp (NYSE:XOM) and Saudi Aramco, the oil and gas exploration and production industry plays a crucial role in the global economy. One of the largest companies in the industry is Exxon Mobil Corp (NYSE:XOM). Exxon Mobil Corp (NYSE:XOM) generated earnings of $9.1 billion in the third quarter of 2023, which shows the industry’s strong position in the global economy scenario.
23. Aerospace and Defense
Market Capitalization: $825.29 billion
The Aerospace and Defense (A&D) industry is one of the top 25 industries in the world. The industry's revenue in 2022 was $741 billion, up 3% from 2021, with a 9.1% operating margin. The U.S. defense sector sees robust demand due to geopolitical challenges and military modernization efforts, while commercial aviation benefits from a rebound in air travel post-pandemic.
22. Medical Devices
Market Capitalization: $828.53 billion
With a focus on digital transformation and the integration of advanced technologies like generative AI, the medical devices industry is expected to boom in 2024. This growth is driven by a range of devices, from mainstream wearables like Fitbits and Apple Watches to more specialized ECG and hydration sensors, allowing consumers to manage their health more actively.
21. Specialty Industrial Machinery
Market Capitalization: $845.26 billion
With a focus on automation, sustainability, and the ever-evolving needs of niche markets, this sector is predicted to reach a colossal $1,041.6 billion by 2032. Companies like Rockwell Automation and Siemens are leading the charge, developing intelligent systems that optimize production, reduce waste, and boost efficiency.
20. Discount Stores
Market Capitalization: $849.76 billion
Aimed at lower to middle-class customers, the discount store market is one of the biggest industries in the world in 2024. Mobile apps like Aldi and Lidl's lead the charge, offering convenience and targeted savings.
19. Information Technology Services
Market Capitalization: $879.59 billion
The Information Technology (IT) sector is one of the top 20 biggest industries in the world, expected to reach a size of $9.8 trillion by 2031, per Industry Arc. Cloud-based solutions, AI, and Generative AI (GenAI) are fueling software market growth.
18. Asset Management
Market Capitalization: $885.89 billion
Asset management is one of the top industries of 2024. Emphasis on ESG strategies is bifurcating, with some firms integrating ESG broadly and others focusing on real-world impact through sustainable investments.
17. Utilities - Regulated Electric
Market Capitalization: $887.29 billion
The regulated electric utilities industry witnessed record-high capital expenditures of nearly $171 billion in 2023 for major electric and gas utilities, making it one of the largest economic sectors in the world. This investment focuses on modernizing and decarbonizing the grid, with utilities planning to roll out advanced metering infrastructure (AMI) to replace aging “smart” electricity meters.
16. Healthcare Plans
Market Capitalization: $898.25 billion
The healthcare-plans industry focuses on efficiency, health equity, and patient-centered care. Major companies like United Healthcare, Aetna, and Cigna Group (NYSE:CI) play pivotal roles in offering robust healthcare solutions tailored to their customers. Cigna Group (NYSE:CI), for instance, provides healthcare plans to around 165 million customers across 30 countries around the world. Cigna Group (NYSE:CI)’s total revenues in Q3 2023 amounted to $49 billion, which shows the industry’s robust position.
15. Telecom Services
Market Capitalization: $1103.68 billion
With advancements in 5G technology and an increased focus on sustainability, the telecom services industry is going to boom in the coming years. Telecom companies are leveraging cloud-based solutions and edge computing to enhance connectivity and performance, catering to both consumer and enterprise needs.
14. Biotechnology
Market Capitalization: $1197.24 billion
With solutions like the development of new weight-loss drugs, CRISPR-based therapy, and cell and gene therapies, the biotechnology industry is witnessing significant advancements and trends that are reshaping healthcare and medical research.
13. Regional Banks
Market Capitalization: $1281.24 billion
Though the regional banks' sector faced certain challenges in 2023, it still stands as one of the biggest industries in the world heading into 2024, led by players like JP Morgan Chase & Co (NYSE:JPM) and Bank of America. JP Morgan Chase & Co (NYSE:JPM), for example, alone has a current market cap of $484 billion. JP Morgan Chase & Co (NYSE:JPM)’s revenues (ttm) amount to around $142.43 billion, exemplifying the stronghold of the industry.
12. Credit Services
Market Capitalization: 1316.35 billion
With around 1.25 billion credit card holders across the globe, the future of the credit services industry looks strong. The industry is also experiencing a shift towards digital and instant payments, with a decline in cash usage.
11. Auto Manufacturers
Market Capitalization: 1452.14 billion
The global light vehicle sales increased by 12% year-on-year in the first quarter of 2023, reflecting a growing trend in the auto manufacturing industry. China, the world’s largest auto market, is leading with an annual auto sales rate of 26.3 million units as of March 2023.
