Benzinga - by Piero Cingari, Benzinga Staff Writer.
ARK Investment Management LLC predicts that five disruptive technologies could reach a total market value of $220 trillion by 2030.
According to the latest white paper, “Platforms Of Innovation – How Converging Technologies Should Propel A Step Change In Economic Growth,” the Cathie Wood-led investment company explores the ascendance of five critical technologies: Artificial Intelligence, Energy Storage, Robotics, Multiomics, and Public Blockchains.
These innovations are not merely advancing in isolation. Instead, they are converging, setting the stage for an explosive increase in productivity and economic development.
“Our technological forecasts suggest that the time is now — that a new era of accelerating macroeconomic growth will begin this decade,” says ARK chief futurist Brett Winton, who authored the report.
Five Catalysts Of Economic Transformation
- Artificial Intelligence (AI): Now seamlessly integrated into various sectors, AI is set to turbocharge productivity worldwide. The growth in the AI industry is captured by ARK’s flagship fund, ARK Innovation ETF (NYSE:ARKK).
- Energy Storage: Innovations have leveled the playing field for electric vehicles, making them as economical as traditional gas-powered cars.
- Robotics: The proliferation of technologies from reusable rockets to autonomous delivery bots marks a new era in automation. This market is monitored through the ARK Autonomous Technology & Robotics ETF (NYSE:ARKQ)
- Multiomics: Advancements in this field are revealing new dimensions of life and health, promising breakthroughs in biology and medicine. These innovations are tracked by the ARK Genomic Revolution ETF (NYSE:ARKG)
- Public Blockchains: Led by the widespread adoption of Bitcoin (CRYPTO: BTC), blockchain technology challenges the conventional financial order, poised to redefine finance.
By 2030, the market value of these disruptive innovations could soar to an estimated $220 trillion, up from the current $19 trillion, marking an average annual growth rate of 42%.
Projected Annual Growth Rates (2023-2030)
- AI: 37%
- Energy Storage: 50%
- Public Blockchains: 48%
- Robotics: 78%
- Multiomic Sequencing: 39%
Currently, only a small fraction of S&P 500 companies (less than 2%), representing more than 35% of its market cap, exceed this valuation.
Looking ahead, ARK Investment expects these technological advancements to push real GDP to $170 trillion by 2030 and further to $470 trillion by 2040.
Cryptocurrency: Beyond A Digital Asset The white paper also sheds light on cryptocurrencies as potential stabilizers for renewable energy grids.
According to Winton, bitcoin mining should foster “the economic installation of large-scale renewable energy and battery systems, which, in a virtuous cycle, should increase the security of the Bitcoin blockchain.”
By 2030, the valuation tied to Public Blockchain innovations is expected to reach around $40 trillion.
“Cryptocurrencies—and, to a lesser extent, smart contract protocols—are likely to compete with fiat currencies,” ARK stated.
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Image created with photos from Ark and Shutterstock.
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