Back in the 1940’s renowned economist Joseph Schumpeter even coined the term “Creative Destruction” to describe how technological developments can disrupt industries, create new markets and change the way we live.
In today’s age of accelerating change, creative destruction is everywhere. In this post, we’ll cover four industries that may be on the brink of being disrupted:
The transportation industry tends to go electric given fossil fuels are a limited resource, especially as companies like Tesla strive for cheaper, more powerful batteries. This shift should considerably reduce the automotive industry’s carbon footprint and may make having a car much more affordable.
Another technological development that may considerably impact the transportation industry is autonomous driving. For instance, ARK Investment Management published research suggesting that consumers could potentially be able to travel on autonomous ridehailing platforms for just $0.25 per mile if the technology reaches scale by 2024, or less than half the cost of driving a personal car today.
Developments in genomics and gene editing may take healthcare to a new level. In fact, on March 4th Editas Medicine and Allergan announced that they had just treated the first patient with a new experimental gene-editing drug that targets a rare eye disorder known as Leber congenital amaurosis (also known as congenital blindness).
This is a huge deal because it's the first time a patient's genes are being modified within the body, which is known as an in vivo treatment. As an investor, it might be worth keeping track of how these experimental treatments turn out.
As civic-minded millennials turn to plant-based foods, traditional players in the food industry will have to adapt to the emerging demands of vegan and vegetarian consumers. As an article from The New York Times points out, some incumbents aren’t too happy about this situation.
A wave of innovation has been going on in financial services for quite some time now. From near-field communication and zero-fee trading to machine learning and blockchain-based payments - traditional financial institutions are working hard to keep up with the developments of fintech startups.
In fact, 88% of global financial services companies express concern they will lose revenue to innovators, according to a PwC report.
You can start investing in innovation today. With Passfolio, you can invest in US stock with as little as $1 - all with no commission fees¹². We make investing in US assets accessible and even accept local deposit methods such as TEDs.
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