On-Demand & E-Commerce Unicorns Garner Highest Valuations in Tech World

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The technology industry is by far the fastest growing in the world’s economy with no signs of slowing down.

Always looking forward, the tech sector is undergoing new research, developments and innovation every day and even every hour across the world, driving us to an increasingly digital lifestyle both at home and in the workplace. With continuous breakthroughs in the likes of artificial intelligence (AI), big data, virtual reality (VR) and the Internet of Things (IoT), we are facing increasing contact and integration with technology as each second passes.

The industry’s drive for new innovation also makes it the highest spending sector, with 2016 seeing spending reach over a mind-blowing $6.3 trillion, making it the world’s ‘third largest economic force’ in GDP terms.

Breaking this down, this essentially sees the tech industry alone spending more than whole countries GDP in one year, with the United States taking first place spending $18.58 trillion and then China at $11.2 trillion.

From these figures it’s clear to see that technology really could be taking over the world.

But with the industry being so large and diverse, have you ever wondered which sector is the most successful?

RS Components have analysed 214 global unicorn companies valued at $1 billion or more to find out the top 10 most successful sectors in tech:

Rank

Sector

Valuation ($B)

1

On-Demand

178.75

2

E-Commerce

102.28

3

FinTech

91.22

4

Internet Software & Services

52.34

5

Big Data

31.2

6

Social

24.1

7

Digital Media

21

8

Consumer Electronics

16

9

Auto Tech

14.35

10

Cyber Security

13

 

At the top of the leaderboard by quite a way is the On-Demand sector, with a whopping valuation of $178.75 billion.

The On-Demand sector essentially involves economic activities centred around online platforms, where independent sellers are able to offer services and goods to customers.

The sector is booming and is only set to get even bigger, as companies such as Uber, GrabTaxi, Deliveroo and Gett increasingly grow in popularity.

What’s interesting about the figures for the On-Demand sector is that one company alone, makes up nearly half of its profits. Uber, the transportation network company many of us use to get around with just a quick click on our phones, has a seriously impressive valuation of $72 billion.

This comes as no surprise when looking at the rapid growth of the company over the last decade, since it was founded in March 2009. Uber continues to invest in a variety of business areas in the On-Demand sector, from food delivery, logistics, electric bikes and even self-driving cars.

This year, the company has a mind-blowing $1 billion budget for similar projects to invest in. With companies like Uber leading the way, the On-Demand sector is dominating the tech industry as it is becoming increasingly popular to the public.

The On-Demand company with the second highest valuation is another on-demand transportation company. Lyft, founded in 2012 in the US has a valuation of $11.5 billion.

Deliveroo, another rising online company is valued surprisingly low considering its popularity. Founded in 2013 in London, this online food ordering company is valued at $2 billion, which is 36 times less than the likes of Uber.

Founded just four years after Uber, will Deliveroo rise in the ranks over the next few years?

The next two most successful sectors in tech include E-Commerce and Fintech, with the former making $102.28 billion and the latter making $91.22 billion. Interestingly, of all 214 companies analysed, these two industries held the highest number of businesses, with E-Commerce at 37 companies and Fintech at 31.

E-Commerce, also known as electronic commerce essentially refers to the buying and selling of services online, and dates back to 1994, with the first ever online sale where a man sold a CD to his friend through his website NetMarket. Since then, E-Commerce has exploded, with the likes of Amazon leading the way and becoming the most famous and successful E-Commerce business today.

The most successful E-Commerce businesses analysed was Airbnb, with a value of $29.3 billion. To top it off, the sector’s success isn’t stopping any time soon, with global retail e-commerce sales expected to reach $27 trillion in 2020.

Over the next few years then, which will be the next most successful sector in tech? Only time will tell.

(Content Sponsored By: RS Components)

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