Fernando Academia Jr., CDMP, PCM’s Post

🧐📖 #FridayReading The latest report from the McKinsey Global Institute is a recommended read for leaders and innovation experts. The study identifies 18 high-growth arenas that could generate between $29 trillion and $48 trillion in revenue, capturing 10% to 16% of global GDP by 2040. These arenas are driven by technological advancements, changes in business models, and rapid, scalable investments, offering a highly desirable outlook for future growth. 📈💰📊 Emerging Arenas The 18 arenas that could shape the global economy include: E-commerce, Artificial Intelligence (software and services), Cloud Services, Electric Vehicles, Digital Advertising, Semiconductors, Shared Autonomous Vehicles, Space, Cybersecurity, Batteries, Modular Construction, Video on Demand (streaming), Video Games, Robotics, Industrial and Consumer Biotechnology, Future Air Mobility, Obesity and Related Conditions Medications, Nuclear Fission Power Plants. Key Insights ▶️ Strategic Insight 1 🔄 Need for Equitable Access to Education 💡 The transformation of emerging arenas demands a profound restructuring in education, focusing on promoting equitable access to learning opportunities and reducing gaps in access to academic and professional training. AI will not solve all problems—not yet. The focus must still be on people! ▶️ Strategic Insight 2 🔄 The Ingredients of Arena Creation 💡 There are three central elements in the “formula for creating arenas”: transformations in business models or technologies, large-scale investments, and growing markets. Additionally, a vehicle for innovation, with an increasing appetite for testing new areas, is essential for companies to quickly adapt and seize emerging opportunities. ▶️ Strategic Insight 3 🔄 Vectors of Technological Disruption 💡 Innovations such as cloud services and robotics are driving competitive dynamics, creating new business models that enhance operational excellence. Companies must invest in R&D to stay ahead of technological disruptions. ▶️ Strategic Insight 4 🔄 Regulatory and Compliance Impacts 💡 Mastering compliance requirements in new arenas is a prerequisite for maintaining market leadership and mitigating risks. The adoption of regulatory sandboxes allows companies to test innovations in controlled environments, while regtechs provide solutions that optimize compliance management. Skillfully navigating this complex landscape will be a decisive competitive differentiator. Here is a question before “calling it a day”: 🚀 How can your organization leverage emerging arenas to enhance its strategic positioning and drive value creation? For a more detailed analysis of the arenas, refer to the full report from #McKinsey. #MarketStrategy #BusinessTransformation #FutureOfBusiness #Education For a more detailed analysis of the arenas, refer to the full report from #McKinsey. #MarketStrategy #BusinessTransformation #FutureOfBusiness #Education

I have just listened to the McKinsey report on the future competitive landscape. Thanks to the McKinsey team for the valuable insights! Here's what stood out to me about e-commerce: 1) E-commerce could be one of the leading areas in the future: As digital technologies evolve and new product categories emerge, e-commerce is well positioned to drive the global economy. 2) In developed markets, e-commerce already accounts for about 20% of retail sales: In regions such as North America, Asia-Pacific, and Europe, about 20% of retail sales are made online, with room for even more growth. 3) Enormous growth potential in emerging markets: In places like Latin America, Africa, and the Middle East, e-commerce represents a smaller share of retail sales, but the growth of smartphones and Internet access creates great expansion opportunities. I believe that the same will happen in Moldova, and the MD market needs to change.

I just Finished McKinsey's Latest Report on Future Markets - Here's What Blew My Mind The future isn't coming - it's already here. The Big Picture: 👉 A staggering $29-48 trillion in potential revenues by 2040 across 18 emerging arenas 👉These sectors already dominate 50% of global economic profits (up from just 9% in 2005) 👉65% of US business R&D is now focused on these emerging markets The 18 Game-Changing Arenas:👇 Tech & Digital: 👉👉AI Software & Services 👉👉Cloud Services 👉👉Digital Advertising 👉👉Cybersecurity 👉👉Video Games 👉👉Streaming Video Mobility & Transport: 👉👉Electric Vehicles 👉👉Shared Autonomous Vehicles 👉👉Future Air Mobility Innovation & Infrastructure: 👉👉Semiconductors 👉👉Space Technology 👉👉Modular Construction 👉👉Nuclear Fission Power Plants 👉👉Robotics Health & Bio: 👉👉Industrial & Consumer Biotechnology 👉👉Drugs for Obesity Commerce: 👉👉E-commerce 👉👉Battery Technology 😳 What Caught My Attention: New players are dominating these arenas - companies founded after 2005 are taking the lead. Market share is highly volatile, showing massive opportunities for disruption The speed of innovation is unprecedented in these sectors. 🤔 My Take: As someone deeply interested in future trends, these numbers are mind-blowing. We're not just watching the future unfold - we're seeing the complete reinvention of the global economy. 💪 What This Means For You: Whether you're an entrepreneur, investor, or professional, these 18 arenas represent the next big wave of opportunity. The question isn't if these markets will grow, but how we'll position ourselves to ride this wave. Which of these 18 arenas excites you the most? Share your thoughts in the comments! #FutureOfBusiness #Innovation #Technology #McKinseyInsights #EconomicGrowth #FutureArenas For detailed insights, check out the full McKinsey report on their website. https://lnkd.in/g5q8EEjq

As we near the start of 2025, check out this McKinsey report to best position yourself for the future. Identify potential new business opportunities, stay ahead of market trends, develop innovative products and services, adapt to changing consumer needs, and even potentially create a new career path with significant growth potential! "Understanding potential arenas is relevant for entrepreneurs and incumbent companies that want to compete directly in arenas, other companies that would be affected by the emergence of arenas, as well as investors looking to allocate capital to these industries, along with people seeking jobs in the winning industries of the coming decades, and policy makers interested in how and where these industries affect their nations."

In a transformative report, McKinsey Global Institute has identified 18 future arenas poised to reshape the global economy, projecting up to $48 trillion in revenue by 2040. These high-growth, dynamic industries—from AI software to modular construction and future air mobility—are set to expand their share of global GDP from 4% today to as much as 16% over the next two decades. Defined by rapid technological shifts, intense competition, and substantial market opportunities, these arenas present significant value-creation opportunities for businesses, investors, and policymakers alike. Chris Bradley Michael Chui Kweilin Ellingrud Michael Birshan Suhayl Chettih #futureofbusiness #strategy #innovation McKinsey & Company #economictrends https://lnkd.in/deDcbuFp

📉German Automotive Sector Earnings Overview: 2024📉 Speaking with candidates and clients alike, one of the key factors always highlighted about why the freelance market has been difficult this year is the decline of Automotive. This year has been challenging for Germany’s automotive sector, as manufacturers face hurdles ranging from economic pressure to a slowdown in electric vehicle (EV) adoption. While earnings results vary, the overarching trends are shaping up as less optimistic than previously anticipated, with many manufacturers revising growth targets and adjusting to market demands. 💼 Key Takeaways 💼: 1. Market Demand & Production: Production volumes have slowed, especially in the latter half of 2024, due to rising inventories and a sluggish EV market in Europe. High prices for EVs, the reduction of consumer incentives in Germany, and a lag in infrastructure development have tempered growth projections for the year. Hybrid vehicles are gaining popularity, while EV growth lags behind expectations. 2. Earnings Adjustments: Leading automotive companies and suppliers, including ZF Friedrichshafen, have reduced their full-year earnings forecasts. For instance, ZF recently adjusted its EBIT margin target from 4.9–5.4% down to 3–4%, indicating broader pressures within the sector. Both original equipment manufacturers (OEMs) and parts suppliers are feeling the squeeze, with increased operational efficiencies being critical for sustaining profitability amid tighter market conditions. 3. Competitive Pressures: German automakers are grappling with rising competition from Chinese EV brands, especially in European markets. Some European automakers have faced stagnating sales, leading to further cost-cutting initiatives, layoffs and operational restructuring. While the recent EU tariffs on Chinese EV imports aim to level the playing field, the impact of these measures will take time to materialize fully. 4. Looking Forward to 2025: With expectations managed lower for the remainder of 2024, industry insiders are cautiously optimistic about stabilizing market conditions in 2025. Anticipated reductions in interest rates in both Europe and the U.S. may support consumer demand, and new policy interventions—such as potential EV subsidies in Germany—could provide a tailwind for the sector going forward. As Germany’s auto industry navigates these complex dynamics, all eyes are on how companies will adapt and reposition themselves in a rapidly evolving market. Operational efficiencies, policy support, and consumer preferences will play pivotal roles in shaping the industry’s trajectory over the coming year. Question is, is it too little to late? If you are looking for what industry is the most profitable, check out my previous post about "High Growth Industries to watch". #jakeittilyoumakeit #java #DACH #Germantech #Talent #THRYVE 🔗 Sources: PwC, Handelsblatt, ING

Mickinsey's Global Institute published an interesting piece on 'arenas' just recently. The full report is hefty (213 pages!) so here's the link to the two pager. Take a look. Arenas are defined as areas of activity that have the potential for extra-ordinary growth, characterised as being places where there are technological step changes afoot, rising investment and large or rapidly growing addressable markets. These arenas, they predict, offer "unusually strong opportunities for new entrants to become powerhouses". A few things strike me as interesting about it, raising important questions for our clients, and executives broadly, searching for growth: 1. There are a large amount of current industries that don't have these characteristics. (The full article compares high growth arenas of the future with those of the recent past). So how to get extra-ordinary growth if your business is in one of these 'left behind' arenas? 2. The new (18) arenas of high growth aren't born equal! They offer mid-size businesses and low-growth industries more or less opportunity, especially if you're considering moving into the supply chain of one of these arenas, or directly building capabilities to compete. 3. And lastly, and most tricky of all is the importance of timing, or to put it more accurately: making sure your business is in the right place at the right time. So how to judge it and calibrate your early and lasting investment? Please DM if you want to chat more

McKinsey's new report highlights 18 industries they think will have the fastest growth rate. Should you care? They call them arenas. Arenas are industries with "high growth and high dynamism. Due to their growth, they capture an outsize share of the economy’s overall expansion; in terms of dynamism, market share within them changes hands to an outsize degree." So who are you? You are a leader at a company that has a history of success in a given market and has earned that history through a better product, better execution and better strategy. "But Jared, knowing the 18 arenas of the future early will allow me to pivot my business. A rising tide lifts all boats." That adage is only true in some industries. In other, a rising tide lifts one boat because of their ability to accrue monopoly power through IP protections, predatory pricing or regulatory advantage. The real opportunity isn't chasing high-growth arenas - it's understanding how your company's core capabilities can create value in a world of changing markets. This is where Strategic Renewal comes in. Rather than pivoting into hot new sectors, it helps established companies identify their fundamental capabilities and find new ways to apply them. Think of retailers who offer white label logistics. They realized their true capability, which opened up new growth opportunities in e-commerce while leveraging their existing strengths. The best companies don't chase trends. They use Strategic Renewal to: 1. Reframe their understanding of their capabilities and markets 2. Renew their strategy to capture emerging opportunities  3. Restart how they communicate their value to the world So should you care about McKinsey's arenas? Yes, but not to pivot - use them to understand how your core capabilities might create value in evolving markets. That's how established companies turn change into sustainable growth. #strategy #leadership #change #growth https://lnkd.in/gs6vTFbD

Arenas of competition are industries that transform the business landscape. Eighteen future arenas have been identified by McKinsey that could reshape the global economy and generate $29 trillion to $48 trillion in revenues by 2040. Check out the full McKinsey report here. https://buff.ly/3YcPQPI #business #strategy #competition #mckinsey

Arenas of competition are industries that transform the business landscape. Eighteen future arenas have been identified by McKinsey that could reshape the global economy and generate $29 trillion to $48 trillion in revenues by 2040. Check out the full McKinsey report here. https://buff.ly/3YcPQPI #business #strategy #competition #mckinsey