Biggest Markets / Industries in the World: Top 5 you should know about (2024)

The economic state of every country is very dynamic and depends on a number of factors collectively. Under such a situation, any specific financial market needs to prosper in every sector so as to be claimed as one of the biggest markets in the world.

However, there are still a few indications that can imply the economic and financial prosperity of any nation and that GDP plays a huge role. Generally, a rate of inflation of around 1-2% a year is considered to be acceptable, though anything more or less than this can be bad news.

Keeping the same in mind, let’s take a look at the 5 biggest markets in the world. These can be anything, from any economic superpowers to financial markets and specific industries.

1) Healthcare and Insurance industry

The two industries are somewhat interrelated. The main aim of the insurance industry is to provide policies regarding a person or his/her entire family’s life, health-related issues, accident, or any other form of medical risk. The insurance policies are made in favour of generating revenue for the company as well as the benefit of the customer.

In the last five years, that is, from 2015 to 2020, this industry had a net decrease in GDP by 2.4% (approximately). This is not major, but a serious loss. It was all due to the lack of proper knowledge among the mass. Medical insurance was not in much hype. People were saving money to cover their health support, but it was not invested judiciously. The monetary coverage that can be provided by health insurance is much higher.

But this year, people understood the importance of this health insurance industry. The global pandemic of COVID-19 really made belief the phrase “Health is Wealth”, without health there is nothing much to gain in life. The pandemic made countries invest in healthcare infrastructures. Many quarantine centres were set up at a fast pace. Government hospitals were given proper fundings along with a raise in salary of the doctors and nurses who worked day and night to save patients.

The symptom of COVID-19 is mostly like seasonal flu but it can get worse when pneumatic conditions occur. Post this, the patients are immediately shifted to the ICU. ICUs are expensive and this is where health insurance comes into the picture.

2) China and the USA - Two powerful nations

The two biggest forces of the world, China and the USA are the economic hubs. The rivalry is quite prominent between the trade countries, limiting the trade options and resulting in a Trade War. In the year 2019 and early 2020, the GDP of the USA was the topmost, contributing to one-fourth of the global GDP, which was 22 trillion dollars (approximately). The entire GDP was mostly service-based. The unemployment rate reduced to less than 4% and hike in the stock market was just perfect.

The GDP across the whole world started decreasing and the stock market of the entire world globally fell drastically. But the Chinese stock market did not fall at all. According to the Purchasing Power Parity (PPP), the GDP of China was 28 trillion dollars, which was the highest globally.

The blame of the pandemic was directed to China by most of the nations. Wuhan, in China, was the epicentre of COVID-19 and there were speculations that China initiated it intentionally. The neighbouring countries of India were bound to Chinese diplomacy of not returning the loan and had to give up their ports and other trade parts to China.

3) Japan - The third-largest market

Japan, an island country, has the potential to have the third-largest market in the world. This country has been a victim of the nuclear blast, which destroyed millions of lives. Not just that, the country is hit by earthquakes and tsunamis frequently.

In 2008 Japan faced a severe economic crisis, which continued for some years. With the arrival of Shinzo Abe, the Prime Minister, the GDP improved. The export continued without any hindrance.

Japan not only concentrates on the technological aspects, but on healthcare too. It contributes around 6% of the world GDP. The nation is self-sufficient in every way and holds a solid example of unity and modernisation.

4) India - The upcoming nation

Post Independence in 1947, India faced a lot of economic crises. The cost of partition was huge and also the war thereafter between China and Pakistan was tolling on India. Not just the war, other crucial factors, like slow activities of industries and fixed investments were major reasons for the downfall of the economy.

The political turmoil in India over the years was very grave. In spite of this, some strong decisions by the leaders put a positive impact on the GDP. Foreign exports and imports, and taxes on goods and services are some of the initiatives that boosted the global economy.

India still has a long way to go. From 2017, post the demonetisation, India’s GDP did fall. Now, due to the pandemic, the unemployment rate has shot up too. A lot of people in India are still illiterate, so physical labour is the need for them. There is a long way for India to go digital, but with some Government policies, it is not too far.

5) Automobile industry

The automobile industry, in the year 2020, was on a roller coaster ride. China is the manufacturing hub of most parts of the automobile industry. But, due to the outbreak of COVID-19, the export and import routes stalled. This impacted the industry and resulted in a severe loss.

But this industry revived back. Due to the practice of social distancing and other hygiene factors, people preferred to buy their own mode of transport. The public transport vehicles though suffered loss, but the personal mode of transport saw a hike.

Scooters and bikes were sold the most, though lesser than normal. Working individuals preferred two-wheelers to travel to their workplace. Since they have to go out often, they tried to avoid public transport. Many nuclear families bought mini four-wheelers for the family. So, the road to re-building is well on course.

Conclusion

The health and life insurance industry is now categorised as the biggest markets in the world, along with the healthcare facilities. The global pandemic of COVID-19 made a huge impact on the global economy. The lifestyle of the people changed, so did many industries. The travel industry suffered a huge loss and it is hard to revive it, though not impossible. The automobile industry managed the situation and still ranks among the biggest markets.

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FAQs

Q. Which industry is suffering the most amidst the global pandemic?

A. The travel and tourism industry is suffering the most. Transportation is closed completely. People are avoiding travel as much as possible. In this scenario, there is major unemployment in this industry. The loss is way more than severe.

Q. Why is China blamed worldwide for the global pandemic?

A. The epicentre of COVID-19 was in the Wuhan district of China. From there, it spread worldwide and the declaration of it as a pandemic was too late. Many theories have emerged since the start of the pandemic. Also the hike in the stock market of Chinese companies and the act of occupying territories of India and attacking led to more suspicions.

Q. How is the real estate industry suffering in this pandemic?

A. The real estate industry is always one of the most demanding ones. Due to the pandemic and unavailability of workers, many constructions stopped, and so did the lease and sale. But the resale of properties increased. Many are selling off their extra property at very reasonable prices. New properties too are sold off at discounted rates.

Q. The USA was always the topmost market in the world. However, has it been the same amidst the pandemic situation?

A. The COVID-19 cases in America surged exponentially. The lockdown was delayed too. Also, the killing of George Floyd in American custody aroused mass protest against the President. Amidst all this, the GDP did fall but it was manageable.

Q. How does the Indian Market need to buckle up to hike up their GDP?

A. Unemployment in youth is common. Now, most of the educated youths shift to freelancing. Since the lockdown, many activities have been frozen. The workers are suffering the most. The unemployment rate shot high as many industries are completely closed.

After the ban of Chinese products, India needs to increase its production in every sector. The automobile and other gadget parts, which come from China. India is already producing masks and PPE kits in abundance. But there is a long way to go!