The Top 20 Fastest Growing Service Industries in 2023


December 17, 2023

Kentley Insights has compiled the top 20 fastest-growing service industries. In 2023, many of the fastest-growing service industries in the U.S. benefited from post-pandemic dynamics but may be facing headwinds with a potential recession ahead. Below are the 20 fastest-growing service industries based on their 5-year total revenue compound annual growth rate from 2018 to their 2023 forecast.

Technology

Over the past 5 years, most technology industries have been rapidly growing, and the pandemic gave a few of them an extra boost, as people were at home working and entertaining themselves. Things haven't slowed down at all as tech dominates the top spots. The technology industries making the top 20 fastest-growing service industries are online publishers and search engines (#2),  and hosting and data centers (#4), software and games (#9), teleconferencing and video conferencing (#11), and scientific research and development (#19).

The Pandemic

The pandemic changed consumer behavior as they avoided indoor spaces. This dynamic boosted the growth of industries such as local deliver (#1), food trucks (#7), video conferencing (#11), recreational clubs (#14), and coffee and snack shops (#17). The pandemic also had a dark side as people needed a safety net provided by industries such as community food services (#5) and social welfare and local charities (#8). It also impacted mental health which drove the growth in the need for psychologists and counselors (#10) and alternative medicine (#20).

Arts & Entertainment

As we came out of the pandemic people wanted to be entertained which has stimulated the growth of independent label music production (#16), and media representatives (#12).