Covid may prove a boon for US tech companies

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The pandemic has elevated the need for contactless technologies for human interaction as the risk of contracting the disease increased.

Although that may have become a reality eventually, the massive crisis has forced governments to amplify the urgency, which provides an opportunity for the tech companies to step up innovation.

The effect of that clarion call is already being felt in different areas of the US economy, such as healthcare, communication, transport, business operations, as well as education.

Technology pioneers stand to gain most from this new development, evident from the successive rallies of tech stocks in US markets, unseen in recent months.

The change from a traditional to a technology-driven business model would be more visible, at least in the short-term, in areas where some progress has already been made, until breakthroughs are achieved in other fields.

Here are some of the areas that may witness growth in the near future:

E-commerce

Although e-commerce has been around for some time, it is likely to see further growth in the coming years as more and more people grow accustomed to the new normal. It was one of the reasons why many people were willing to buy Amazon stocks even at a premium. As the demand for such services grows in the US, other competitors would emerge to fill in space.

Companies like Best Buy, Home Depot, and eBay, etc., are expanding their customer base. Besides the local competitors, Ontario-based Shopify has also made its presence felt in the US and rapidly growing.

Fintech

Demand for Fintech-based services may increase as the traditional way of doing business weans. Already companies like PayPal, Square, Coinbase, and Robinhood, etc., are seeing a favorable business environment in the US and elsewhere. PayPal is already a heavyweight in the category.

The ease of sending and receiving money through such services would make them indispensable in daily life.

Health-tech

The health tech companies are steadily growing over the past few years around the world with the help of innovation, but 2020 has brought in new energy into this community. Companies such as Oscar Health, Clover Health, 23andMe, Verily, and Amwell, etc. are proof of this emerging trend.

As more and more people begin to appreciate the virtual experience of such services, they will find themselves in a win-win situation, further cementing their position in the market.

Streaming Services

Video and music streaming services are becoming increasingly popular as they provide new releases and vast archives at nominal rates that people can enjoy from the comfort of their homes.

Companies like Netflix, Amazon Prime Video, Vimeo, and Spotify are already a big hit. Also, web conferencing platforms, such as Zoom, are becoming a part of life for working people, especially in the pandemic.

Social Media

Interests in social media have been growing and such platforms may see further growth. If the likes of Facebook, Instagram, LinkedIn, Twitter, and YouTube have ruled this decade, new avatars are also in the making which may carry forward the baton.

Transport

Depleting fossil fuel and climate change have made renewable energies the best bet going forward. Innovation and new research in green technologies for transportation are helping to build an ecosystem that can sustain such a shift.

From designing solar and electric cars to building high-capacity batteries, companies are joining the ride towards a greener future. The quest for a green future and an emission-free lifestyle would help promote the use of such vehicles in the future.