We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Sunrise Industry?

Mary McMahon
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A sunrise industry is a developing industry investors believe holds a lot of promise and will eventually become a large and potentially dominant market sector. Investor activity around such industries is usually brisk as people attempt to position themselves to take advantage of the industry's rise, and government regulators may also be interested in such growth industries. A closely related term is “sunset industry,” describing a formerly forceful industry in decline as a result of changing market conditions, the emergence of new technology, and the development of new interests and needs on the open market.

One example of a sunrise industry is the technology industry in the 1990s. Many investors recognized that the Internet and telecommunications industries were growing rapidly and would quickly become a significant market force. New companies mushroomed on the economic landscape and investors were eager to take part in fundraising efforts like initial public offerings, recognizing the potential for significant profits.

Sunrise industries benefit from innovations including new technology and new ways of looking at and solving problems. People of various ages may be involved, although many have a heavy proportion of young people with new ideas and business approaches. Funding is variable as companies struggle for a foothold and carve out niches in the industry and turnover of new developments is often very high. Trends in a sunrise industry wax and wane rapidly and eventually several companies and ideas emerge and rise to prominence in the industry.

Rapid growth, numerous opportunities, and quickly changing fortunes are all characteristics of sunrise industries. Investors cannot always predict the future direction of such industries but those who do make savvy predictions stand to benefit. People who invested in major technology companies when they were still relatively small, for example, experienced significant growth in their stock portfolios over time as company values rose.

Eventually, a sunrise industry will become a mature industry. Mature industries experience slow, stable growth and relatively limited innovation. The number of companies in the industry typically narrows over time and many companies rely on a core of flagship products to maintain their reputations and generate steady income. As new technology and ideas start to arise to replace the industry, it goes into decline and becomes a sunset industry.

Sunrise industries often represent a new way of approaching an old issue. For example, alternative energy in the form of wind and solar power was a sunrise industry in the 2000s, replacing coal and other nonrenewable sources of energy.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments

By Rundocuri — On Mar 01, 2014

Just like in the 1990s, I think that current industry market research shows that technology sunrise industries are still very promising. For example, small, up-and-coming software companies have often proven to be great investments.

Mary McMahon

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.