2024 and Beyond – Which Sectors are Primed to Evolve Most?

With 2023 now in the rearview, all eyes are set on what lies ahead in 2024 and which sectors look primed to evolve in a big way.  While the following examples could justifiably include areas like BioTech, Robotics, etc., the following look particularly well-positioned to turn heads in the coming months.

Blockchain

In 2024, the blockchain sector is poised for significant growth, primarily driven by the tokenization of real-world assets (RWA) and the expanding mainstream access to Bitcoin (BTC).

RWA Tokenization

The tokenization of RWAs, such as real estate, art, and commodities, onto the blockchain, is set to revolutionize asset management and investment.  Essentially, this process democratizes access to previously illiquid assets, enabling fractional ownership and enhanced liquidity.  Moreover, advancements in regulatory frameworks and technology are facilitating safer and more user-friendly platforms for investing in tokenized assets.

One company set to play an increasingly large role in the growth of RWA tokenization is Security Token Market (STM).  This company represents a pioneering force in the tokenization of real-world assets, providing a platform for trading and managing security tokens, among various other services.  Notably, 2023 marked the first year for the STM TokenizeThis Summit, which was a multi-day gathering of some of the most notable faces and companies playing a role in this sector.

Bitcoin Goes Mainstream

At the same time, Bitcoin, the forerunner of the entire digital asset sector, is gaining widespread acceptance.  Financial institutions are increasingly incorporating BTC into their portfolios, while payment platforms enable BTC transactions, and environmental concerns abate – all signaling a shift towards mainstream adoption.  This trend looks set to only ramp up with the approval of a spot Bitcoin ETF that will allow institutional investors and firms to enter the space easily.  Already, blockchain has become a talking point among Presidential candidates and a focus among marketing departments for massive asset managers – each of which only serves to continue spreading awareness of the technology and the benefits it affords.

When looking through the various companies that have become synonymous with Bitcoin over the past few years, there is one that stands out among the rest – MicroStrategy.  While this company is already a leader in business intelligence, mobile software, and cloud-based services, it is through its decisions surrounding the adoption of a Bitcoin-based treasury that MicroStrategy has become a darling in the world of digital assets.

MicroStrategy Incorporated (MSTR +0.15%)

As it stands, MicroStrategy holds in excess of 189,000BTC and counting.  The success of this strategy has resulted in MSTR becoming one of the best-performing stocks over the past year.

Artificial Intelligence: Exponential Growth in Everyday Integration

Alongside Blockchain, there is Artificial Intelligence (AI), which may experience more growth than any other sector in 2024.  Much of this is due to its flexibility, which will allow for AI to gain  influence in just about every other sector around the world.  Simply put, AI is at the cusp of an exponential growth phase and primed for increased integration into everyday life.

An example of a privately held company at the forefront of this growth is OpenAI – the creator of the wildly popular ChatGPT.  This company was founded in 2015 by a pair of notable names, including Elon Musk and Sam Altman.  In the time since, OpenAI has managed to establish itself as an industry leader in both AI research and development, despite the departure of Musk years ago. As it stands, OpenAI's emphasis on the advancement of AI technology, with a focus on openness and transparency, has positioned it as a key player in shaping the future of artificial intelligence.

Through the efforts of companies like OpenAI, our understanding of AI should continue to grow, with subsequent generations being developed even quicker.  This ability to grow is propelled by underlying advancements in machine learning algorithms, natural language processing, and computer vision – each of which improves AI's ability to understand and interact with the world in a more human-like manner.

AI's integration into daily life, from personalized digital assistants to autonomous vehicles and smart home devices, is not only making technology more intuitive and responsive to human needs but also driving innovation across multiple sectors. This seamless incorporation of AI into the fabric of daily living is setting the stage for a future where AI's capabilities and applications are limitless, underscoring its potential for continued exponential growth.

One publicly traded company with close ties to OpenAI is none other than Microsoft, which, since the mid-90s, has been synonymous with computing due to the prevalence of its software offerings like Windows.

Microsoft Corporation (MSFT -0.18%)

While Microsoft does not maintain ownership in OpenAI, the company is believed to be a significant investor with influential sway.  At the end of the day, Microsoft is a global leader in AI that continues to integrate the technology into its wide array of products and services.

Battery Technology

Finally, there is battery technology, which is anticipated to experience a surge in 2024, fueled by government mandates for sustainable energy solutions and breakthroughs in material science.

Government Mandates

Governments worldwide are imposing regulations and providing incentives to phase out fossil fuels and reduce carbon emissions, thereby accelerating the demand for advanced battery systems.  These mandates are particularly influential in the automotive and energy storage sectors, where the shift towards electric vehicles (EVs) and renewable energy grids is paramount.

Although traditional vehicle manufacturers like Ford and GM are increasing their efforts surrounding EVs, it is quite clear Tesla remains the industry leader at this point, and with government mandates set only to accelerate the adoption of EVs, its foothold in the industry should only strengthen.

Tesla, Inc. (TSLA +0.32%)

Not only did Tesla manage to far outpace all of its competitors in 2023 with EV units shipped, it also signed various contracts that will see its extensive charging network made accessible by all of the biggest industry names.  In doing so, Tesla is well positioned to capitalize on the growth of not only its own sales but those of its competitors, making it an appealing and obvious stock to watch in 2024 and beyond.

Materials Science

At the same time that governments continue to enforce a transition to EVs, there have been (and will continue to be) significant investments in the research and development of battery designs.  Simply put, if the push towards EVs is to be successful, battery technology must become more effective, more environmentally friendly, and cheaper.  Thankfully, recognizing this has led to innovations such as solid-state batteries and improved lithium-ion technologies, which are already enhancing energy density, safety, and longevity, making batteries more efficient and cost-effective.

For example, there is the privately held Sila Technologies, which has developed new solutions involving silicon-based anodes.  When used, these anodes offer various benefits from the more oft-used graphite variants, which include increased energy density, faster charging, and more.  Notably, Sila Technologies is also building a factory in Washington with a projected capacity of 20 gigawatt-hours production rate by the time it is completed in 2026.  This capacity will be sufficient to provide for 200,000 EVs per year, making it the largest silicon anode production facility in the world.  Sila Nanotechnologies has also signed agreements with Mercedes-Benz Group AG to be its first commercial customer.  Its advancements and partnerships stand to help Sila Nanotechnologies position itself as a key player among battery manufacturers.

There are also more environmentally friendly, lower-cost battery solutions that are just coming into production.  One example is Sodium-ion batteries, which manufacturers like JAC Yiwei have officially launched in production vehicles.

Between an ongoing regulatory push and scientific innovation – battery technology is set to become a cornerstone in the transition to a more sustainable and energy-efficient future.  With that in mind, the following examples of a pair of companies noted for leading the way in societies' push toward electrification.