Most Profitable Industries in the US in 2022

1. Portfolio Management in the US

Total Profit for 2022: $140.7B

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

2. 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

3. 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

4. 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

5. Retirement & Pension Plans in the US

Total Profit for 2022: $73.0B

The Retirement and Pension Plans industry, comprising only private and public defined benefit (DB) pension plans, is estimated to decrease at an annualized rate of 8.4% to $914.7 billion over the five years to 2022. Despite the overall downtrend over the five years, strong investment gains and steady growth in contributions have propelled the industry forward during the period. This has helped ensure revenue growth for most of the period despite the COVID-19 (coronavirus) pandemic and ensuing overall economic downturn. Industry revenue is expected to increase by 1.5% in 2022 alone. Similarly, profit is expected to be positive in 2022,... Learn More

6. Law Firms in the US

Total Profit for 2022: $71.4B

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 in 2020. Overall, industry revenue is expected to increase at an annualized rate of 1.3% to $367.9 billion during the current period, including an increase of 1.9% 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

7. Colleges & Universities in the US

Total Profit for 2022: $49.4B

The Colleges and Universities industry includes public and private nonprofit colleges and universities that offer academic courses and grant baccalaureate or graduate degrees. Over the five years to 2022, strengthened job markets and better employment prospects hindered industry demand, causing high school graduates to enter the workforce and forgo postsecondary education. However, this trend reversed as the COVID-19 (coronavirus) struck, bolstering industry demand. Nonetheless, the shift to fully remote learning amid the pandemic somewhat hinders demand for colleges and universities, especially among private universities. This caused enrollment at private non-profit universities to decline in 2020 and this trend has continued... Learn More

8. Investment Banking & Securities Dealing in the US

Total Profit for 2022: $49.0B

Strong returns in various financial markets and increased trading volumes have benefited operators in the Investment Banking and Securities Dealing industry over the five years to 2022. Operators provide underwriting, originating and market-making services for a range of financial instruments, including bonds, stocks and derivatives. During the majority of the period, industry operators benefited from improving macroeconomic conditions and interest rates remaining below historical averages. This led to increased demand for industry operators' services during the period. Overall, industry revenue has increased an annualized 8.5% to $182.5 billion over the five years to 2022, including an expected increase of 17.6%... Learn More

9. Credit Card Issuing in the US

Total Profit for 2022: $45.0B

Over the five years to 2022, the Credit Card Issuing industry is expected to grow as a result of improving employment and consumer spending levels towards the end of the period. Industry operators' primary function is providing credit services to consumers and businesses by issuing cards with available credit lines that must be repaid in full to the issuer, often in installments. Commercial banks are excluded from this industry since their primary function is not providing credit cards. Industry operators generate revenue from cardholders primarily through fees, interest and other charges agreed upon through a contract. Issuers have increasingly adopted... Learn More

10. Wireless Telecommunications Carriers in the US

Total Profit for 2022: $40.4B

Over the five years to 2022, the Wireless Telecommunications Carriers industry has benefited from the rapid development of mobile devices. The popularity of smartphones has particularly bolstered growth. Households have chosen to disconnect their landlines to cut costs and enjoy network access away from home. The widespread adoption of mobile phones indicates they are becoming a necessary everyday good. Additionally, industry revenue growth continued post-2020, as COVID-19 (coronavirus)-induced travel restrictions gave way to travel and demand for mobile internet. As a result, revenue is expected to grow an annualized rate of 2.8% to $331.3 billion over the five years to... Learn More