McKinsey has a post with a data visualization on industries it predicted in 2022 would be growing quickly by now (May 2026 as I write), versus how they actually turned out. I find it interesting both for the industries/technologies themselves and for which are overperforming and underperforming. Overperforming ones include, of course, “AI software and services” and semiconductors. Robotics, however, has not kept up with expectations at least in terms of widespread commercialization (I think it is still coming, just behind schedule). Electric vehicles are also both high-growth and overperforming, while “shared autonomous vehicles” are high growth and were not considered in the original study due to “negligible baseline revenue” – more evidence that in the U.S. we are being duped as this combination of technologies explodes globally. Interestingly, batteries have not kept up with expectations as a high-growth, profitable industry/investment even though we know the technology itself has seen massive improvements in cost-efficiency. Biotechnology is a mixed bag – “obesity drugs” have exploded while “non-medical biotechnology” has seen no growth in the profitable investment sense. The holy grail of turbocharging construction productivity by making it more like manufacturing (“modular construction”) is about 50 years behind schedule. Maybe the robots can help with this eventually. And finally, even with all our fossil fuel woes the nuclear energy industry never seems able to capitalize, probably because of its long lead times and public risk-aversion on this particular technology.

My big picture analysis – technological progress is slow and steady, but when it comes to which will “hit” in a widespread profitable commercialization/investment sense, it is hard to identify the needles in the haystack at least in any sense of precise timing. In a personal investing sense, you can either gamble and go for broke, or you can diversify and be patient. In a broader economic sense, governments can use policy to try to give a particular industry a nudge, but there is a gambling aspect to this too, and my view is they would be better off focusing on reducing economic friction (great infrastructure, ease of starting a business, predictability, level playing field in terms of taxes and regulation) while protecting the environment and workers. Maybe provide childcare, health care, and education so people can start a business without worrying about those things, and have healthy skilled workers available when they do.