Global Industry Outlook 2025: Resilience Amid Challenges

A report by Economist Intelligence Unit forecasts shifts across industries in 2025. Although geopolitical tensions pose challenges for fossil fuels, consumer goods, automotive, and renewables sectors are set for growth. E-commerce faces stricter rules, while AI and satellite internet industries expand despite regulatory pressures.

As global geopolitical tensions persist, the energy sector braces for ongoing challenges. Meanwhile, a report by the Economist Intelligence Unit, titled 'Industry Outlook 2025', highlights promising growth in consumer goods, automotive, and healthcare sectors. Despite risks to fossil fuel markets, particularly due to conflicts in the Middle East and Ukraine, investments in renewable energy are expected to remain robust, especially in China, reflecting a global shift toward sustainable energy solutions.

The financial sector faces a mixed forecast, with anticipated declines in interest rates likely squeezing bank profit margins and potentially resulting in reduced dividends for shareholders. However, some relief may come in the form of regulatory easing, with potential delays in the Basel III endgame easing pressures on banks amidst economic challenges.

In the consumer goods sector, global retail volumes are projected to grow by 2.2% in 2025, buoyed by easing inflation. However, the report anticipates stricter regulations on online retailing, focusing on high-volume, low-price retailers to ensure fair competition and consumer protection. The automotive industry is poised for a record year, with new-vehicle sales expected to hit 97.2 million units. This includes notable growth in electric vehicle sales, underscoring the sector's recovery and shift toward cleaner mobility.

The technology sector is on the cusp of a satellite internet boom, with more countries expected to adopt this technology. Amazon's Project Kuiper will challenge existing leaders like Starlink and EutelSat OneWeb, promising increased competition and growth in satellite connectivity. Yet, despite robust investment, technology firms face mounting pressures from tightened regulations, particularly in Europe, impatient investors, and growing scrutiny over energy usage.

(With inputs from agencies.)