What Is a Sunrise Industry?
Sunrise industry is a term that describes a burgeoning sector or business in its infancy stage that shows promise of a rapid boom. Sunrise industries have high growth rates, numerous start-ups, and high levels of venture capital funding.
These industries generate a lot of interest for investors as long-term growth prospects.
- A sunrise industry is a new business or business sector showing potential for substantial and rapid growth.
- Characteristics of sunrise industries include high-growth rates, start-ups, and venture capital funding.
- As a sunrise industry develops, it may transition to the maturity stage and then to the sunset stage.
Understanding a Sunrise Industry
Sunrise industry examples include the alternative energy industry highlighted in 2003 and 2007, the social media and cloud computing industries of 2011 and 2012, and blockchain industries established from 2013 to 2017. Other sunrise industries include information technology and clean energy.
A sunrise industry often has a high degree of innovation, and its rapid emergence may threaten a competing industry sector already in decline. The competing industry sector is commonly referred to as a sunset industry.
The Life Cycle of a Sunrise Industry
As an industry grows and matures, it may pass from the sunrise phase to maturity and, finally, the sunset stage. The compact-disc industry is an example of such a transition. It was a sunrise industry in the 1990s when compact discs replaced vinyl records and cassette tapes, but the rapid adoption of digital media in the 21st century saw the industry move into the sunset phase.
How Sunrise Industries Succeed
Sunrise industries must prove they are viable, lasting markets. The buzz they generate at the onset may be based on speculation of success rather than tangible business growth.
The mobile industry developed over a protracted period as the medium grew and became more stable. When the underlying wireless communications networks allowed for significant data transfers both smoothly and securely, it created a pathway for the development and sustainability of mobile applications.
Some sectors, however, lose momentum as they evolve from the sunrise phase. Oil and gas extraction, despite its importance to the economy, may be viewed as a sunset industry in the United States as alternative energy sources and industries enter the market.
What Is the Difference Between a Sunrise and Sunset Industry?
A sunrise industry is a new, emerging industry often characterized by innovative technology. A sunset industry is an industry that is declining or one that has passed its peak period due to changes in technology or automation.
What Is a Sunrise Industry In 2023?
Space tourism is an emerging industry creating investment and interest among investors. Companies like Virgin Galactic and SpaceX are working toward the development of feasible ways to travel in space.
How Do Sunrise Industries Benefit an Economy?
Sunrise industries often play a significant role in boosting economic growth and development in the future. These industries often create new job opportunities and growth in local and global economies.
The Bottom Line
A sunrise industry is a new business or sector with the potential for rapid growth. Sunrise industries often have high-growth rates, multiple start-ups, and high levels of venture capital funding. A sunrise industry commonly moves to a maturity stage and then to the sunset stage when its growth subsides.