Trends Identified

Natural-resource management

Executives' concerns about the impact that increasing constraints on the supply or usage of natural resources will have on their companies' profits appear to be subsiding despite the prominence of these issues in the public debate today. Twenty-five percent of respondents now expect this trend to have a negative effect on their company's profits, down from 28 percent in last year's survey and 33 percent two years ago.

2010

Five forces reshaping the global economy: McKinsey Global Survey results

McKinsey

The increasing role of governments

Executives in Europe and North America are haunted by the perception of crippling public-debt levels: 54 and 61 percent, respectively, think that public-debt levels will have a "significant" or "severely negative" impact on GDP growth in their home markets. In contrast, 45 percent of respondents in China and 24 percent in India expect that the level of public debt will have a "positive" impact or "no impact" in their home markets.

2010

Five forces reshaping the global economy: McKinsey Global Survey results

McKinsey

Connectivity-driven business models

For years, companies shared business models and tried to outperform each other. Today, connectivity is enabling new business models. For example, more than half of the respondents expect to see pay-per-use models within their own industries, with data monetization by far the next most common business model. Software is becoming much more important than hardware, and customer interactions are increasingly digitized, in many cases managing without intermediaries. Consequently, connectivity-driven fields such as shared mobility are expected to grow significantly in the coming years.

2018

Disruptive forces in the industrial sectors - Global executive survey

McKinsey

AI and autonomous systems

Learning from data and developing smart algorithms has become a competitive advantage. Executives from all sectors believe that AI and autono­mous systems will affect the entire industry. Investment in AI is at unprecedented levels from both tech firms and traditional manufacturers. Driverless vehicles are AI’s poster child, but industrial companies are also investing in machine learning and robotics to develop specific technologies related to their core businesses.

2018

Disruptive forces in the industrial sectors - Global executive survey

McKinsey

Internet of Things (IoT)

This much hyped term refers to the sensor-enabled devices that can communicate with one another via the Internet. The possible uses are still being unearthed, but the McKinsey Global Institute predicts that the annual economic impact of IoT applica­tions could be as much as USD 11.1 trillion by 2025. MGI suggests that factories are likely to see the greatest potential impact from IoT use – as much as USD 3.7 trillion per year – with substantial productivity improvements, including 10 to 20 percent energy savings and a 10 to 25 percent improvement in labor efficiency.

2018

Disruptive forces in the industrial sectors - Global executive survey

McKinsey

Electrification

Replacing traditional energy sources with electric energy – most notably in vehicles – is being driven by regulatory and technological changes and by growing consumer demand. The growth in electric vehicles sales is expected to be 25 to 30 percent a year to 2025 (see Exhibit 4). A senior executive at a European OEM believes it will affect at least half of the sector’s revenues, both in vehicles and infrastructure. Stricter emission regulations and lower battery costs are all contributing to the flurry of activity in this area.

2018

Disruptive forces in the industrial sectors - Global executive survey

McKinsey

Cybersecurity

The increase in connectivity between companies and consumers as well as within organizations, production facilities, transportation systems, defense systems, etc. means that cybersecurity is critically important. Once closed systems are now open, increas­ing vulnerability and placing ever higher-value assets and processes at risk, leading to an annual growth in the market for cybersecurity of 5 to 10 percent until 2025 (see Exhibit 4). Our survey revealed widespread and growing concern on this topic, and many companies are starting to bring in the skills they need for tackling cybersecurity concerns. Some even see cybersecurity as a battleground for competitive advantage and differentiation.

2018

Disruptive forces in the industrial sectors - Global executive survey

McKinsey

Mobile Internet

Increasingly inexpensive and capable mobile computing devices and Internet connectivity

2013

Disruptive technologies: Advances that will transform life, business, and the global economy

McKinsey

Automation of knowledge work

Intelligent software systems that can perform knowledge work tasks involving unstructured commands and subtle judgments

2013

Disruptive technologies: Advances that will transform life, business, and the global economy

McKinsey

The Internet of Things

Networks of low-cost sensors and actuators for data collection, monitoring, decision making, and process optimization

2013

Disruptive technologies: Advances that will transform life, business, and the global economy

McKinsey