Most Profitable Industries in the US in 2021

1. Retirement & Pension Plans in the US

Total Profit for 2021: $660.7B

The Retirement and Pension Plans industry, comprising only private and public defined benefit (DB) pension plans, is estimated to grow at an annualized rate of 2.1% to $688.2 billion over the five years to 2021. Strong investment gains and steady growth in contributions have propelled the industry forward during the period. In 2017, revenue growth was particularly strong, increasing 115.6% due to substantial equity gains. This has helped ensure revenue growth on an annualized basis, including an expected growth of 19.1% in 2021 following the fall in revenue in 2020 due to the COVID-19 (coronavirus) pandemic and ensuing economic downturn.... Learn More

2. Commercial Banking in the US

Total Profit for 2021: $170.3B

The Commercial Banking industry is composed of banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC). Banks generate most of their revenue by accepting customer deposits and then lending these deposits out to individuals and businesses at a certain interest rate, which is influenced by different factors, including the federal funds rate (FFR), the prime rate and the debtor's creditworthiness.

Industry revenue finally returned to growth in 2015 after declining each year since 2008. The Federal Reserve's gradual process of interest rate normalization between 2015 and 2018 lead... Learn More

3. Life Insurance & Annuities in the US

Total Profit for 2021: $152.5B

According to the Federal Reserve and the American Council of Life Insurers, the Life Insurance and Annuities industry is one of the largest sources of investment capital in the United States. Holding 20.0% of all US corporate bonds, industry operators represent the largest source of bond financing for domestic businesses. As a result, many companies rely on life insurers for capital and liquidity. However, the primary obligation of life insurers is to their policyholders; consumers use life insurance policies and annuities products for wealth preservation, estate planning and retirement savings. Industry operators provide these services to both individuals and businesses... Learn More

4. Software Publishing in the US

Total Profit for 2021: $115.8B

Operators in the Software Publishing industry design, develop and publish software. Industry revenue expanded rapidly over the five years to 2021, as businesses and consumers increased their investment in software, computers, smartphones and video games. Rising private investment in computers and software stimulated demand from businesses, while higher consumer spending encouraged consumers to spend on software as well. Moreover, new internet-based solutions and the increasing popularity of mobile devices have triggered an explosion of mobile software applications. Industry revenue is estimated to rise at an annualized rate of 8.5% to $411.1 billion over the past five years. Moreover, in 2020,... Learn More

5. Portfolio Management in the US

Total Profit for 2021: $112.1B

Portfolio Management industry operators manage asset portfolios for a fee or commission. Over the five years to 2021, the industry has experienced countervailing trends. For the majority of the period, rising assets under management (AUM) as a result of rising asset prices and growing disposable income have increased the base of assets industry operators charge fees on. However, increased investor preference for passive asset management, including through exchange-traded funds (ETFs), has driven expenses charged for the management of assets down during the period.

Financial markets play an integral role in AUM growth and, consequently, base and performance fees earned by managers.... Learn More

6. Health & Medical Insurance in the US

Total Profit for 2021: $104.1B

The Health and Medical Insurance industry, which is made up of carriers of private and public health, medical and dental insurance, has been characterized by growth over the five years to 2021. This growth is a result of consistent increases in healthcare expenditure and medical cost inflation, in addition to a sharp decline in the uninsured rate. Industry revenue is correlated with total health expenditure, as operators increase premiums to maintain profitability. Moreover, amid the COVID-19 (coronavirus) pandemic, the industry experienced an influx of enrollment through expanded Medicaid eligibility, in addition to lower operating costs due to lower healthcare utilization.... Learn More

7. Property, Casualty and Direct Insurance in the US

Total Profit for 2021: $93.3B

Operators in the Property, Casualty and Direct Insurance industry support US consumers and businesses by providing protection against damage caused by a variety of events, such as car accidents, catastrophe and medical malpractice. General insurers can provide these services at a fraction of the potential loss by pooling premiums to pay for losses that some policyholders incur. As a result, the industry is an indispensable part of risk management in the domestic economy. General insurers derive income from insurance premiums and by investing in bonds, stocks and other assets. Most property and casualty premiums are obtained through the renewal of... Learn More

8. Trusts & Estates in the US

Total Profit for 2021: $86.4B

The Trusts and Estates industry is composed of trusts, estates and agency accounts administered on behalf of beneficiaries under the terms established in a fiduciary contract. Industry revenue, composed primarily of capital gains on trusted assets and ordinary dividends, exhibited an increase over the five years to 2021. The industry benefited from substantial yields in equity markets in addition to appreciation in house prices, leading up to the spread of COVID-19 (coronavirus). Overall, revenue is expected to increase at an annualized rate of 2.9% to $174.6 billion over the five years to 2021. Revenue is expected to increase 11.5% in... Learn More

9. Private Equity, Hedge Funds & Investment Vehicles in the US

Total Profit for 2021: $84.1B

The Private Equity, Hedge Funds and Investment Vehicles industry consists of funds that raise capital to invest in various asset classes. Industry assets have become increasingly integral to institutional investors' portfolios and the larger asset-management market over the five years to 2021. Institutional investors are individuals or organizations that trade securities in such substantial volumes that they qualify for lower commissions and fewer protective regulations, since they are assumed to be knowledgeable enough to protect themselves. Increasing demand from institutional investors has contributed to the surge in the industry's assets under management (AUM) and revenue during the current period.

Over the... Learn More

10. Real Estate Loans & Collateralized Debt in the US

Total Profit for 2021: $75.0B

The Real Estate Loans and Collateralized Debt industry is composed of nondepository institutions that conduct primary and secondary market lending. Operators in this industry include government agencies in addition to non-agency issuers of mortgage-related securities. Over much of the five years to 2021, rising per capita disposable income and low levels of unemployment helped fuel the increase in primary and secondary market sales of collateralized debt, reviving the industry from years of decline following the subprime mortgage crisis in the late 2000s. However, due to the outbreak of COVID-19 (coronavirus) and the subsequent sharp contraction in economic activity due to... Learn More