Article by Kayla Matthews

One of the most important and satisfying things about investing is picking up on a trend before others do. It can help you make money by jumping on an investment opportunity before others realize what you have. And, let’s face it, picking up on a trend before others can be a nice boost to the ego. The challenge, of course, is identifying these opportunities and acting on them accordingly. Here are three niche industries to take a look at this year that could pay off in coming years a la Peter Lynch style.

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Niche Industries

Wearable devices such as the Apple Watch or Fitbit devices were supposed to be the next big thing. They do indeed have a niche following, particularly among those who use such devices to track their fitness. But there is also evidence the sector didn’t take off quite as quickly as some expected.

Many believe today’s wearables are simply ahead of their time, and technology will garner greater levels of adoption down the road. That makes this sector poised for long-term growth.

“A lot of investors tend to look for short-term gains and that’s not going to happen in the wearables market; wearables are a long-term play,” IDC Technologies analyst Jitesh Ubrani told The Street.

In addition to today’s range of wearable devices, look for others such as augmented reality eyewear and affordable, but stylish, apparel items to gain popularity in the coming years.

1. Machinery

The machinery industry is a wide-ranging sector, but there’s at least one segment within machinery that’s poised for long-term growth: industrial air compressors.

As one piece of research notes, the industrial air compressor market will enjoy steady compound annual growth rates through at least 2027. The combination of growing industrialization in developing countries and advancement in compressor technology will be a major factor in the sector’s growth.