Most Profitable Industries in the US in 2022

1. Commercial Banking in the US

Total Profit for 2022: $313.0B

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.

Over the five years to 2022, the industry has experienced mixed performance. Industry operators benefited between 2017 and 2019 due to interest rate hikes by the Fed and... Learn More

2. Life Insurance & Annuities in the US

Total Profit for 2022: $152.2B

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 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

3. Portfolio Management in the US

Total Profit for 2022: $145.5B

Portfolio Management industry operators manage asset portfolios for a fee or commission. Over the five years to 2022, 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

4. Trusts & Estates in the US

Total Profit for 2022: $111.9B

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 a marginal increase over the five years to 2022. 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 0.7% to $197.9 billion over the five years to 2022. Revenue is expected to increase 1.0%... Learn More

5. Software Publishing in the US

Total Profit for 2022: $106.1B

Operators in the Software Publishing industry design, develop and publish software. Industry revenue expanded rapidly over the five years to 2022, 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 7.1% to $442.5 billion over the past five years. Moreover, in 2020,... Learn More

6. Property, Casualty and Direct Insurance in the US

Total Profit for 2022: $100.2B

Operators in the Property, Casualty and Direct Insurance industry support US consumers and businesses by providing protection against damage due to 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 renewing policies that... Learn More

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

Total Profit for 2022: $99.8B

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 2022. 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

8. Health & Medical Insurance in the US

Total Profit for 2022: $87.7B

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 2022. This growth is a result of consistent increases in healthcare expenditure and medical cost inflation, in addition to a 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. However,... Learn More

9. Pharmaceuticals Wholesaling

Total Profit for 2022: $83.7B

The Pharmaceuticals Wholesaling industry consists of companies that distribute both prescriptions and nonprescription, or over-the-counter (OTC), medicines intended to treat and prevent diseases. Over the five years to 2022, a rise in the number of physician visits has fueled revenue gains for the industry. Additionally, the aging of the US population has also boosted industry revenue growth, as individuals generally require and purchase more medications as they get older. Reflecting these trends, industry revenue has increased at an annualized rate of 4.1% to $1.1 trillion over the five years to 2022. However, intense external competition from e-commerce pharmaceutical retailers has... Learn More

10. Law Firms in the US

Total Profit for 2022: $78.7B

Operators in the Law Firms industry range from sole practitioners to large, full-service legal firms mostly serving corporate clients. Industry revenue growth has been modest over the five years to 2022. Although the industry benefited from economic growth through most of the period, it was negatively affected by the COVID-19 (coronavirus) pandemic. Overall, industry revenue is expected to increase at an annualized rate of 1.2% to $365.3 billion over the five years to 2022, including an increase of 1.5% in 2022 alone.

Greater demand for practices tied to high-growth sectors has boosted industry revenue over the past five years. Industry revenue... Learn More