2025 Forecast: Energy woes loom, but big gains for auto, healthcare and more

Geopolitical tensions are predicted to impact the energy sector while other industries like consumer goods, automotive, and healthcare are expected to grow by 2025, according to a recent report by the Economist Intelligence Unit titled "Industry Outlook 2025."

The report highlights that fossil fuel markets will face risks due to conflicts in the Middle East and Ukraine. However, investments in renewable energy will continue to be strong, especially in China. "Fossil-fuel markets will continue to face geopolitical risks amid conflicts in the Middle East and Ukraine, but investment into renewables will remain strong, particularly in China," the report states.

The financial sector is projected to have a mixed outlook. Anticipated lower interest rates could reduce bank profit margins and potentially lead to lower dividend payouts. However, regulatory easing, including delays in the Basel III regulations, might offer some relief to financial institutions.


The report notes that global retail volumes are forecast to grow by 2.2% in 2025, supported by easing inflation. Nonetheless, there will be stricter regulations targeting online retailers to ensure fair competition and consumer protection. "Global retail volumes will expand by 2.2 per cent, helped by disinflation, but regulations around online retailing will tighten further."

The automotive sector is expected to experience significant growth. Annual new-vehicle sales are projected to reach a record 97.2 million units in 2025. This includes a 2% rise in new car sales, a 4% increase in commercial vehicle sales, and a substantial 16% growth in electric vehicle sales.

In technology, more countries are likely to adopt satellite internet, primarily for enterprise clients, such as the military and maritime sectors. Amazon's Project Kuiper is expected to challenge the current dominance of Starlink and EutelSat OneWeb, introducing more competition and growth potential in satellite connectivity.

Investment in technology and artificial intelligence will remain strong, supported by government incentives and flexible supply chain strategies. However, technology companies will face increasing pressures from tighter regulations, particularly in Europe, impatient investors, and scrutiny over their energy usage.

(With ANI inputs)