The group also reflects the dramatic rise in online education services we saw when 91% of students worldwide experienced school shutdowns due to the pandemic, as UNESCO reported. But online learning is a long-established growth market in Asia and other regions that begun accelerating in the U.S. in recent years, as I know personally from having completed my MBA in 2015 partially online. The global digital education market is expected to grow from $8.4 billion this year to $33.2 billion in 2025, at a compound annual growth rate (CAGR) of 31.4%, according to Dublin market research firm, Research and Markets.
With remote health and well-being, the most nascent theme in some respects, we can see the rise of companies providing access to virtual healthcare services and wellness experiences. Telemedicine has seen dramatic growth and shows signs it’s poised for more growth—it’s forecast to expand by 64.3% this year, according to Frost & Sullivan.
I was introduced recently to the convenience of telemedicine when I scheduled an appointment for a minor consultation over Zoom—and received the care I needed without the hassle of a waiting room or crowded subway commute. I’m not likely to resume my pre-pandemic doctor’s office routine just because my doctor does. That industry is expected to reach a CAGR of 38.2% by 2025.
This category is also defined by the growth in companies like Peloton, which has been redefining the workout business model since 2012 with its online fitness classes. I bought my first Peleton bike in early 2018, and a second soon after, and plan to continue using them for years to come.
As investors, it’s beneficial to view the WFH and “connected consumer” trends as separate, but complementary trajectories. Otherwise, we could miss opportunities or overlook signs of change if we act on an oversimplified understanding of our transforming landscape. Tech stocks have done well and show signs they will continue to generate returns, but that doesn’t mean we should lose sight of emerging companies that aren’t part of the coveted FAANG circle.
In some cases, we may need to look for developments that lurk below the surface with technology that isn’t visible to the consumer. Twilio, for example, has seen its business rapidly expand with its technology enabling phones and messaging to be embedded into web, desktop and mobile software.
So, what will our future look like? We don’t know how we will spend our free time, consume information, or engage with our peers years from now. But we do know we hold vast potential for change, capable of assuming new identifies and forming complex relationships with the world around us. Many don't want to accept the new “normal.” It’s possible our new “normal” has yet to arrive.
David Mazza is managing director and head of product at ETF provider Direxion.