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Key Investment Sectors in Europe

There are some industries that keep on growing for descartes. One of them is the online gambling industry, which becomes even stronger every year. We are sure that the online gambling industry will always continue to grow.

People are spending more and more time on sites like Vulkan Bet Online, and they are not only interested in casino games but also sports betting. In other words, VulkanBet sports betting will also continue to be popular. However, online gambling is not the only sector that offers an investment opportunity in Europe: when we look at the figures in recent years, we see serious growth in many different sectors. So, what sectors offer the best investment opportunities in Europe as of 2021? Below, you can find the answer to this question.

What The Market Wants

Let’s start with the market data first because we see quite remarkable figures. The table below shows the top 5 sectors in Europe and their total investment amounts as of 2019:

SECTOR TOTAL VALUE OF INVESTMENTS

FinTech                                     9.07 billion USD
Enterprise Software                7.51 billion USD
Healthcare                                3.62 billion USD
Energy                                       3.08 billion USD
Transportation                        2.31 billion USD

Interestingly, food and real estate markets are underperforming. In fact, the real estate market reached an investment size of only 1.13 billion USD: compared to previous years, this is an exceptionally low figure. Just to give you an idea, even Robotics, which is considered a niche industry, has a size of 1.39 billion USD. Investment sectors in Europe are gradually changing, and digital technologies are now in the first place.

FinTech is the biggest among them. It is almost as big as the second and third-ranked sectors combined, and we do not think that this is going to change anytime soon. FinTech is an acronym for “financial technology,” and it mainly focuses on offering innovative methods for money transfers. For example, if you can send or receive money using your smartphone, you are using FinTech technology. Basically, this industry makes the services offered by the traditional banking system (investment, money transfers, clearing, risk management, etc.) automated and easy to use.

The United Kingdom, California, New York City, Singapore, Germany, Australia, and Hong Kong are areas seen as “FinTech hubs”. However, it seems that the Eastern European countries will enter this list in a short time and even change it completely. Poland draws attention in this regard, as it is among the countries that received the most FinTech investments in 2020. In the near future, there is a possibility that the entire Europe will turn into a FinTech hub. Therefore, now and in the near future, FinTech will continue to be the largest and most ideal investment sector in Europe.

The second-ranked, Enterprise Software, may be one of the best investment alternatives. The term refers to specialized computer software developed for the needs of large organizations, not individuals. This organization can be a company, government agency or hospital. In any case, the purpose of this software is to digitize every job in the relevant organization, and for this purpose, they consist of multiple programs. So, there is no “single” Enterprise Software: there are dozens of programs developed for different departments, but they can all be managed from a single center using the same database. Compared to FinTech, the initial investment costs are greater, and the product takes longer to become usable (i.e., make money). However, once it is ready to use, it is possible to make more profit in the long run.

What The European Union Wants

Investors may prefer the FinTech sector, but the European Union has different priorities. For years, the EU has been financing the sectors it believes are most needed through the European Fund for Strategic Investments (EFSI). The sectors covered by this program are selected by the EU.

As of 2021, the EU considers Europe’s most important (or most needed) investment sectors to be:
● Transport and Energy Infrastructure
● Renewable Energy
● Urban and Rural Development
● Education and Training

If you have a good investment idea about one of these sectors, you can apply for a loan with the European Investment Bank (EIB). If your project costs less than 25 million Euros, the EIB will refer you to local banks in your country. It gives the loan itself for projects larger than 25 million Euros.

In any case, we can say that the sectors offering investment opportunities in Europe have changed significantly in the last few years. Food and real estate are no longer seen as safe havens: a new generation of investors want more and are focusing on digital services industries. We think this trend will continue for the foreseeable future as more and more people are trying to get everything done online.

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