Best types of technology startups to start in 2022

There is a lot to look forward to in 2022, especially if you are thinking about starting a new technology startup. It never hurts to have some informed inspiration about what areas you could go into. We will run through the types of technology startups most likely to be in high demand. 

There are four types of startups explored in this article:

• Digital reality (virtual and augmented)
• Wearable technology
• Smart homes
• Mobile apps

According to a report by Statista, the market for digital reality is forecast to rise to nearly $300 billion by 2024 (£226.8 billion). This presents a massive increase from the current value of $30.7 billion (£23.2 billion). So it stands to reason that a digital venture set up in 2022 could benefit from exponential growth.

To understand more about digital reality, here are the two main types:

• VR (virtual reality) – a world that is completely digital in which you immerse yourself in, usually involves a headset that displays a screen in front of your eyes.
• AR (augmented reality) – an experience that has been created for you to interact with the real environment differently using a phone camera or connected glasses.

These forms of technology offer promising entertainment experiences, but also new possibilities in other areas of life:

• Universities have begun teaching classes through virtual reality. 
• VR has even been helping treat some patients with pain and anxiety. 
• Some stores are experimenting with using augmented reality to make the experience of visiting more exciting. 

It’s no wonder that Facebook, Google and Apple have invested heavily in these technologies. Still, if you see a problem any of these technologies could solve that hasn’t been done yet, that could be your next startup.

Another industry projected for growth is wearable technology. According to a report by Statista, the global forecast spending on wearable devices for 2022 is $90 billion (£68 billion). This is going to be a rise from the $81.5 billion (£61.6 billion) spent in 2021. 

The types of wearable technology vary, but the most popular are:

• Smartwatches – often used for pairing with phones, using fitness apps and even paying using contactless.
• Smart clothing – jackets, yoga wear, socks and even swimwear that can pair with phones.
• Smart glasses – glasses that pair with phones, take pictures and utilise augmented reality.
• Wearable cameras – often used by police officers, security guards and people who enjoy extreme sports (skydiving, bungee jumping, rock climbing)

According to Statista, the expected growth for this industry is aligned with the development of 5G technology. The opportunity for faster internet creates the ability to bring connectivity to more of our daily lives. Currently, this technology is predominately tailored towards exercise, though there may be other areas you can identify that could benefit from wearing your interactive heart on your sleeve.

Another potential startup could be closer to home, with the prospect of connecting appliances and home devices. According to Statista, consumer spending in this area is also expected to rise. 

Currently, the global figure for 2021 is $62 billion (£46.9 billion) and is expected to be $88 billion (£66.5 billion) by 2025. Similar to the digital realities, this longer-term projection provides an opportunity for early adopters. The possibility of gaining a portion of the market share going forward would provide an exciting prospect to any startup.

Smart home technology refers to objects in your home that can connect to the internet or your smartphone; some examples include

• Home appliances – microwaves, ovens, fridges, coffee machines.
• Smart speakers – AI assistants like the offerings from Google and Amazon.
• Smart utilities – lighting, water, electric, heating
• Smart security – doorbells, locks, sensors

The appliances can offer more settings and convenience, and speakers provide the opportunity to control them using your voice. Smart utilities have become popular as you can monitor your usage more closely, allowing your home to be more energy-efficient and environmentally friendly. In addition, smart security gives you peace of mind with the ability to control and monitor your home, even when you are away.   

Given the number of options that are currently available, it opens up the possibility to identify where they fall short. Which areas of our home would benefit from innovation and allow us to lead happier, healthier and more sustainable lives? There are many areas of our homes that have gone unchanged for decades, so creating a startup today could shape our future living.

With all of the potential physical technology that you could centre around your new venture, it would still likely utilise a mobile application. According to Statista, the number of mobile app downloads in Europe was 29.2 billion in 2021. This is expected to rise to 30.4 billion downloads in 2023, following a very clear trend of growth since 2014 when it was only 21.4 billion. The role apps play in our lives constantly increases.

The main four types of mobile apps include:

• Social media – communication and entertainment combined (difficult to break into, but trends change very quickly with the platforms, which presents new opportunities)
• Lifestyle – food, dating, news, travel, music and fitness (easier to make an impact, especially if you approach one of these in a unique way)
• Gaming – mobile games are usually free to play, and the revenue is made through offering paid incentives or incorporating advertisements (also easier to break into, and they often see rapidly changing trends in popularity)
• Video entertainment – streaming services that charge subscriptions or online video that uses advertising (with the content being the main draw, it can be difficult for newcomers to gain market share)

Depending on the device you use, the developers also include their own applications. These include the calculator function and the ability to take notes. Check our article on the best working from home apps for small business owners.

The innovation among mobile apps often comes from taking something that is familiar to users and flipping it. For example, you could create Tinder for dog owners, using a similar swipe function to the dating app to allow users to browse dogs available for adoption in their area. This solution could present an easy way for people to find a furry friend to bring into their family. 

The possibilities for mobile applications really are endless, and the costs of setting them up are considerably less than physical products.

A new startup is going to have to deal with costs, and if your cash flow is not managed properly it can quickly lead to problems. When it is poor, your incoming cash flow can’t meet your outgoings. This could mean that you run out of money, affect future investments or impact the potential growth of the business. 

Having everything laid out for you and accounted for is crucial to running a successful business. Technology startups can often take a lot of investment, so having a way of being able to manage your cash flow is ideal.

When starting a business, it’s important to separate your personal and business expenses. It ensures that you know exactly where money is coming from and where it’s going. 

Countingup is the business current account with built-in accounting software that allows you to manage all of your financial data in one place. The app also generates accurate and up to date cash flow reports that you can access with a couple of taps on your phone.

On top of that, you also get features like automatic expense categorisation, invoicing on the go, receipt capture tools, and tax estimates, all designed to help you operate efficiently. 

You can also share your bookkeeping with your account instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple and straightforward.

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