Industry Outlook 2025: Challenges and Growth in Energy, Automotive, and Technology Sectors
The ‘Industry Outlook 2025’ report by the Economist Intelligence Unit highlights the future of various sectors amid ongoing geopolitical tensions. The energy sector, particularly fossil fuels, will face challenges due to conflicts in the Middle East and Ukraine. However, investments in renewable energy, especially in China, will remain robust as the world shifts towards sustainable energy.
The financial sector is expected to experience a mixed outlook. Falling interest rates may reduce bank profit margins, potentially affecting shareholder dividends. However, regulatory easing could provide some relief, with possible delays in the Basel III regulations.
In consumer goods and retail, global retail volumes are projected to grow by 2.2% in 2025, aided by easing inflation. However, stricter regulations on online retailing will target high-volume, low-price retailers to ensure fair competition.
The automotive sector is set for a record year, with new vehicle sales expected to reach 97.2 million units in 2025. This includes a 2% rise in new car sales, a 4% increase in commercial vehicle sales, and a significant 16% growth in electric vehicle sales.
In technology, more countries will adopt satellite internet, with Amazon’s Project Kuiper challenging existing players like Starlink and EutelSat OneWeb. Investment in technology, particularly AI, will be strong, but companies will face regulatory pressures, especially in Europe, and scrutiny over energy usage.
Doubts Revealed
Economist Intelligence Unit -: The Economist Intelligence Unit is a research and analysis division of The Economist Group, which provides forecasts and advisory services through research and analysis.
Geopolitical risks -: Geopolitical risks refer to the potential for political events in different countries to affect global markets and industries, like conflicts or changes in government policies.
Renewable investments -: Renewable investments are funds put into energy sources that can be replenished naturally, like solar or wind power, which are important for reducing pollution.
Regulatory easing -: Regulatory easing means making rules and laws less strict, which can help businesses operate more easily and potentially increase their profits.
Retail volumes -: Retail volumes refer to the amount of goods sold in stores or online, and an increase means more people are buying things.
AI -: AI stands for Artificial Intelligence, which is technology that allows machines to learn and make decisions like humans.
Satellite internet -: Satellite internet is a type of internet connection that uses satellites in space to provide internet access, especially useful in remote areas.