Fastest Declining Industries in the US by Revenue Growth (%) in 2021

1. Unmanned Aerial Vehicle (UAV) Manufacturing

2021-2022 Revenue Growth: -24.8%

Over the five years to 2021, the Unmanned Aerial Vehicles (UAV) Manufacturing industry has struggled, contending with government budget cuts. Industry companies produce and develop UAVs, or drones, which are remotely piloted or autonomously operated aircraft. Since most demand for drones comes from the US military, the overall decline in defense funding before and slow growth during the period led to a reduction of funding for industry products. Moreover, demand for new UAVs was further reduced because the industry supplied the military with an enormous fleet in the previous decade. Thus, industry revenue is expected to decline at an annualized... Learn More

2. Armored Vehicle Manufacturing

2021-2022 Revenue Growth: -17.3%

The Armored Vehicle Manufacturing industry experienced significant growth over the five years to 2020. Industry operators research, develop, manufacture, modify and repair military armored vehicles, including infantry fighting vehicles, armored personnel carriers, mine-resistant ambush protected (MRAP) vehicles, self-propelled artillery and armored utility vehicles. Prior to the five-year period, industry revenue declined dramatically as US spending on industry products fell. However, this trend reversed in the current five-year period as the United States began to increase defense spending and ramp up key industry programs. Consequently, industry revenue is expected to increase at an annualized rate of 3.6% to $2.6 billion over... Learn More

3. Department Stores in the US

2021-2022 Revenue Growth: -11.2%

The Department Stores industry has continued its long-term decline over the five years to 2020, with revenue expected to fall at an annualized rate of 9.0% to $111.0 billion. The industry's decline has been accentuated by an estimated 18.6% fall in 2020 alone due to the COVID-19 (coronavirus) pandemic. Additionally, while rising competition from e-commerce has accelerated declines, revenue contraction is primarily attributable to the increasing number of major players that have expanded their product ranges to include groceries, which transitions their revenue to the Warehouse Clubs and Supercenters industry (IBISWorld report 45291), a trend that is expected to continue.

Over... Learn More

4. DVD, Game & Video Rental in the US

2021-2022 Revenue Growth: -10.2%

The DVD, Game and Video Rental industry includes operators that primarily engage in renting DVD, videos and computer and video games. Over the five years to 2020, the growing popularity and dominance of video on demand (VOD) and streaming services have hampered demand for traditional DVD renting services, forcing brick-and-mortar operators, such as Blockbuster LLC, into bankruptcy. Furthermore, as online streaming services are able to competitively price their products, they have forced industry operators to accept lower rental prices. As a result, industry operators have struggled with consistently declining demand for their services. IBISWorld estimates that industry revenue has fallen... Learn More

5. Hand Sanitizer Manufacturing

2021-2022 Revenue Growth: -8.2%

Operators in the Hand Sanitizer Manufacturing industry produce hand sanitizer products in a variety of forms, including foam, gel, wipes and liquid, along with dispensers for industry products. Industry revenue has experienced healthy growth, rising an annualized 3.9% to $74.4 million over the five years to 2020, including an increase of 16.6% in 2020 alone due to heightened demand as a result of the recent COVID-19 (coronavirus) outbreak. Besides the ongoing coronavirus outbreak, growth can largely be attributed to heightened consumer health consciousness over the past five years leading to a rise in total health expenditure. Additionally, a renewed focus... Learn More

6. Postal Service in the US

2021-2022 Revenue Growth: -7.4%

Over the five years to 2020, the Postal Service industry, analogous with the United States Postal Service (USPS), experienced increasingly difficult operating conditions and ultimate revenue declines. Committed retiree payouts have resulted in the USPS posting negative profit since 2006, unable to reduce its largest operating expense. While economic conditions improved during much of the period, as demonstrated in part by rising disposable income and a low unemployment rate prior to 2020, the USPS remains mired in losses. The growth of online services, such as mobile banking and e-mail, has strained demand for traditional postal services during the five-year period,... Learn More

7. Data Recovery Services

2021-2022 Revenue Growth: -6.6%

The Data Recovery Services industry in the United States salvages computer files from damaged, failed, corrupted or inaccessible storage media. Although the increasing number of households with at least one computer and the rising popularity of electronic devices were expected to provide ample demand for industry services, options for data recovery and data loss prevention have expanded in recent years, and demand for industry services has declined. Over the five years to 2020, industry revenue is estimated to fall an annualized 9.5% to $9.1 million, with an expected decline of 14.2% in 2020 alone, accelerated by the effects of the... Learn More

8. Natural Disaster & Emergency Relief Services in the US

2021-2022 Revenue Growth: -6.4%

The Natural Disaster and Emergency Relief Services industry is expected to grow an annualized 7.7% over the five years to 2020 to $14.6 billion. Although dominated by nonprofit organizations, this industry is also composed of for-profit companies that provide direct assistance to communities affected by disasters. Industry revenue, which is generated mostly from government funding and private donations, exhibited a high level of volatility during the period due to the unpredictable occurrence of natural disasters. In 2020, industry revenue is expected to increase 25.1% due to the COVID-19 (coronavirus) pandemic and a strong wildfire season, despite a deteriorating economic environment.... Learn More

9. Oil Pipeline Transportation in the US

2021-2022 Revenue Growth: -6.0%

Operators in the Oil Pipeline Transportation industry primarily transport crude oil through pipelines. The industry grew in line with booming US oil production over the five years to 2020, although volatile external conditions were challenging. Advanced drilling techniques have increased the number of profitable oil reserves across North America over the past five years. The Permian Basin in Texas and the Williston Basin in North Dakota experienced particularly sharp increases in crude oil production. As production boomed, oil and gas companies demanded additional pipeline capacity to transport crude oil from extraction sites to refineries, where crude oil is refined into... Learn More

10. Apartment Rental in the US

2021-2022 Revenue Growth: -5.9%

Operators in the Apartment Rental industry have performed strongly over most of the five years to 2020; however, industry performance has decelerated in more recent years. Since the subprime mortgage crisis, the industry has undergone structural change. Leading up to the crisis, most investment in real estate was carried out by institutional investors (those that own 10 properties or more); whereas today, most properties for rent are single-investor owned and nonowner occupied. Historic lows in homeownership, decreasing rental vacancy rates and surging demand for rental units have enabled landlords to increase rents, aiding revenue and profit growth. Therefore, IBISWorld estimates... Learn More