If you’re looking to start a business with high earning potential, you’ve probably looked into some tech business ideas.
And why wouldn’t you? In 2019, the estimated economic output of the technology industry was $1.8 trillion, comprising over 10% of the national economy, according to CompTIA. What’s more, the average successful startup exit (via either acquisition or IPO) has sat at $242.9 million since 2007.
However, for every successful startup exit, there are hundreds if not thousands of startups that have failed. So if you’re an entrepreneur hoping to hit it big in the technology sector, you need to start with a strong tech business idea.
In an industry defined by innovation and disruption, what constitutes a “good” tech business idea is constantly changing. That’s why we’ve compiled a list of tech business ideas that are poised for extreme growth in the coming years.
What is a tech business?
Tech businesses provide products and services that have applications across multiple industries — but at their core, they pertain to the research, development and distribution of technology-based goods. This includes businesses that manufacture electronics (like Apple), create software (like Salesforce), provide services relating to information technology (like Google) and more.
The best part about our technology business ideas is that they don’t require a lot of overhead—you can start small and grow over time. However, you will need some level of technical knowledge to be able to successfully start a business in the industry. If you don’t have any, we’d recommend enrolling in a coding bootcamp before you get started.
Here are some of the top tech business ideas, including some recommendations from tech entrepreneurs themselves.
1. Food tech
Our first recommendation comes from Phil Strazzulla, founder of HR software company SelectSoftware. Strazzulla sees the food tech sector as a major growth industry in the coming years:
“Companies like Beyond Meat are just the beginning of businesses engineering eco-friendly and healthy food that is as delicious as our current diet. The science is now there, and the market for next-generation food is literally in the trillions of dollars, and it grows just as quickly as the world's population.”
2. Web design
One tech business idea that will never go out of style is website design. That’s because pretty much every business needs a professional-looking website in order to appear reputable and build their brand.
Web design encompasses a range of different services, including graphic design, interface design, copywriting, UX design, and SEO. According to IBISWorld, the web design business has grown at a rate of 6.6% over the last five years, and generated $38 billion in revenue in 2019, meaning you can rely on there being a market for this tech business idea for years to come.
3. Extended reality
Extended reality technology encompasses both augmented reality, or AR, and virtual reality, or VR, technologies. Kenny Trinh, editor of tech review publication Net Books News, sees extended reality technology proliferating in the coming years.
"In 2020, we’ll see more and more businesses applying extended reality to their brands to stand out from the competition and deliver a better customer experience,” says Trinh. “In fact, some businesses have been doing that already.”
Trinh points to the eco-friendly water packaging project W-in-a-Box, which uses AR to further explain the benefits of their product.
Robotics is a bit of a catch-all term that encompasses mechanical engineering, electronic engineering, information engineering, computer science and other related disciplines. The goal of robotics is to create machines that can move and react to sensory input. According to Statista, this industry is expected to grow from $80 billion in annual revenue in 2019 to over $200 billion in annual revenue by 2025.
5. Customer experience management, or CXM
Ian Kelly, VP of operations for a CBD oil company called NuLeaf, believes customer experience management platforms like ZenDesk will soon make customer relationship management platforms, or CRMs, obsolete.
"While a CRM can help you manage customer details, a CXM unifies all sales, marketing and customer service conversations into a single silo so that your customers are treated like the loyal fan-base they are,” says Kelly. “No more hitting your customer over the head with repeat promos, selling them on services/products they already have or letting them slip through the cracks when they've bought and never been properly onboarded.”