Most Profitable Industries in the US in 2023

1. Commercial Banking in the US

Total Profit for 2023: $462.5B

The Commercial Banking industry is composed of banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board of Governors (Fed) and the Federal Deposit Insurance Corporation (FDIC). Banks generate most of their revenue through loans they originate to customers and businesses. Loans are made at various interest rates that are influenced by different factors, including the federal funds rate (FFR), the prime rate, debtors' creditworthiness and macroeconomic performance.

The industry experienced mixed performance. Industry operators benefited between 2017 and 2019 due to interest rate hikes by the Fed and increasing economic activity. In 2020, the COVID-19... Learn More

2. Life Insurance & Annuities in the US

Total Profit for 2023: $242.2B

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 domestic businesses' largest source of bond financing. Many companies rely on life insurers for capital and liquidity. 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 in various policy types.

In the past... Learn More

3. Portfolio Management & Investment Advice in the US

Total Profit for 2023: $200.0B

Portfolio Management industry operators manage asset portfolios for a fee or commission. In the last five years, 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. 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. Growth in... Learn More

4. Software Publishing in the US

Total Profit for 2023: $149.4B

This report is sitting on a computer with an industry-produced operating system. If this report was downloaded, it exists within industry productivity software. The major companies writing operating systems (Microsoft, Apple, Google) have become some of the world's most significant entities, primarily thanks to their omnipresence in the devices people use almost hourly. In the past 20 years, industry revenue more than tripled, untouched by the Great Recession and boosted by the pandemic. Microsoft Word and Adobe Photoshop have enabled executives and schoolchildren to easily command words and images. The industry has been richly rewarded for these world-changing applications, climbing... Learn More

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

Total Profit for 2023: $149.1B

The 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 in recent years. Institutional investors are individuals or organizations that trade securities in such substantial volumes that they qualify for lower commissions and fewer protective regulations, since it's assumed that they're 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.

In recent years, the industry has continued to enmesh itself more deeply within... Learn More

6. Regional Banks in the US

Total Profit for 2023: $147.7B

Regional banks are composed of commercial banks that have between $50.0 billion and $500.0 billion in domestic asset under management (AUM) and operations are not limited to one state. Banks that fall into this threshold provide the same services that the commercial banking industry provides. Also, regional banks have a significantly smaller scope of operations compared with large commercial banks that operate across the country.

Through the end of 2023, operators in regional banks have benefited due to increased consumer confidence and consumer debt levels. This coincided with the Federal Reserve raising the Federal Funds Rate (FFR) during the early portion... Learn More

7. Oil Drilling & Gas Extraction in the US

Total Profit for 2023: $137.1B

The Oil Drilling and Gas Extraction Industry includes companies that profit from extracting and selling fossil fuels. Producers have experienced a high degree of volatility in recent years. Steady growth was ripped away when COVID-19 halted the economy, as restrictions limited the need for oil and gas. The conflict in Ukraine added to the uncertainty, as the reliance on Russian oil and gas was distributed between domestic producers and other sources. Although, as the economy recovered demand shot up quicker than supply could match, causing prices to surge and generate substantial returns. Revenue has grown at a CAGR of 10.6%... Learn More

8. Commercial Leasing in the US

Total Profit for 2023: $124.0B

Operators in the Commercial Leasing industry serve as lessors of buildings for nonresidential purposes. Industry participants include owner-lessors of nonresidential buildings, establishments that rent real estate and then act as lessors in subleasing it, and establishments that provide full-service office space. Over the five years to 2023, rising per capita disposable income encouraged more businesses to enter the market. Moreover, incumbent businesses are inclined to increase their production and inventory levels to tap into the growing consumer demand, thus demanding more space. However, declining corporate profit in 2020 partially dampened demand for commercial leasing due to lower confidence in their... Learn More

9. Investment Banking & Securities Intermediation in the US

Total Profit for 2023: $124.0B

Strong returns in various financial markets and increased trading volumes have benefited businesses in the industry. Companies provide underwriting, brokering and market-making services for a range of financial instruments, including bonds, stocks and derivatives. Businesses benefited from improving macroeconomic conditions and interest rates remaining below historical averages. Overall, industry revenue has been growing at a CAGR of 11.5% over the past five years and is expected to total $492.1 billion in 2023, when revenue will jump by an estimated 22.3%.

While many industries struggled in 2020 as a result of COVID-19, businesses benefited from the volatility caused by the pandemic. Primarily,... Learn More

10. Trusts & Estates in the US

Total Profit for 2023: $111.8B

The Trusts and Estates industry comprises 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 past five years. The industry benefited from substantial yields in equity markets and appreciation in house prices during the current period. Over the past five years, revenue has climbed at a CAGR of 2.8% to $221.4 billion, including an expected 4.2% increase in 2023. Profit is expected to dip to 50.5% of revenue in 2023 from 51.1% in... Learn More