Industry outlook 2024
Challenges, opportunities and trends
to watch in six sectors
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INDUSTRY OUTLOOK 2024
CHALLENGES, OPPORTUNITIES AND TRENDS TO WATCH IN SIX SECTORS
Contents
Industry outlook 2024 2
Challenges, opportunities and trends to watch in six sectors
Automotive outlook 2024 6
EV market expansion—is China in the driver’s seat?
Consumer goods and retail outlook 2024 10
Higher footfall amid depleted savings
Energy outlook 2024 13
Surging demand defies wars and high prices
Finance outlook 2024 18
High interest rates trigger mixed fortunes
Healthcare outlook 2024 23
Stricter regulations, pricing pressures and climate concerns
Technology and telecoms outlook 2024 27
AI in the real world
1 © The Economist Intelligence Unit Limited 2023
INDUSTRY OUTLOOK 2024
CHALLENGES, OPPORTUNITIES AND TRENDS TO WATCH IN SIX SECTORS
Challenges, opportunities and trends to
watch in six sectors
Geopolitical tensions and a warming world will present
new challenges for businesses in 2024. Generative
artificial intelligence will bring new opportunities.
• Climate change will start to have an appreciable impact on countries and businesses. Sectors
relating to mitigation (such as renewable energy and electric cars) and adaptation (air conditioning
and healthcare, for example) will see demand increase, but insurers and governments will struggle
to price in the increasing risks.
• New regulations in the EU and US mean that companies will have to scrutinise their operations
and supply chains to improve environmental, social and governance (ESG) reporting. However,
scepticism about ESG will harden in the US ahead of November’s presidential elections.
• Corporate concerns over taxation will increase as the OECD introduces its global minimum tax rate
and individual governments try to reduce budget deficits and national debt levels that have widened
during the covid-19 pandemic.
• Geopolitical tensions between China, Russia and Western allies, as well as higher risks in the Middle
East, will complicate government and corporate responses to all of the above. Investment in supply
chains, particularly for technology and the energy transition, will adapt to minimise political risk.
• Increased adoption of generative artificial intelligence (AI) will reshape companies and jobs. Despite
notable disruption in sectors such as marketing, the arts, business services and education, most
companies will find ways to use AI to increase productivity.
Companies have been on a rollercoaster ride
for the past few years as the pandemic, soaring
Asia will see the strongest growth in 2024
commodity prices, high interest rates and political (Real GDP growth; % change; year on year)
disruption have resulted in good profits for many 2023 2024
5
and bankruptcy for a few. Most of these factors
will persist into 2024 in a more muted form, but 4
accompanied by the added twist of accelerated
3
climate change and El Niño. The year—expected
to be the hottest on record—will focus minds 2
on efforts to reduce emissions, rebooting
1
investment into renewables and electric vehicles
(EVs). It will also increase demand for products 0
to minimise the effects of climate change, such Africa Asia-Pacific Europe Middle East USMCA South
America
as air conditioning and the electricity needed to Source: EIU.
power it.
2 © The Economist Intelligence Unit Limited 2023
