INDUSTRIES

In the automotive sector, demand for electric vehicles (EVs) will continue to be the only bright spot in a gloomy year. We expect EV sales to rise by 25% to 10.7m units—more than five times their pre- pandemic level—while sales of fossil-fuel cars and commercial vehicles will fall. Even EV makers will encounter challenges from supply-chain disruption as well as a lack of charging infrastructure. - EIU

Retail Outlook

For consumer goods and retailing, we expect inflation to push up global retail sales by nearly 5% in US-dollar terms, but the lower volume of sales and surging costs will weaken retailers’ profits. Real-world retailers will turn to automation to try to reduce labour costs. Growth in online sales, although slower than in recent years, will remain in double digits. Global luxury brands, meanwhile, will suffer from China’s slowdown. - EIU

Energy Outlook

Energy consumption will see its second year of sluggish growth, rising by just 1.3% as the global economy slows. Lower gas supplies and more extreme weather events will force many countries to fall back on fossil fuels, including coal, delaying the energy transition. Even so, renewable energy consumption will surge by about 11%, with Asia leading the way. - EIU

Financial Services Outlook

In the financial services sector, weakening economic output and rising interest rates will lead to more difficult conditions for banks, insurers and fund managers in 2023. However, new financial challengers, including fintech and cryptocurrency sellers, are likely to find the going even tougher, as their investors insist they start looking for profits. - EIU

Healthcare Outlook

Healthcare spending will fall in real terms given high inflation and slow economic growth, forcing hard decisions on how to provide care. The use of health data will come under stricter regulation. The pharmaceutical sector will face challenges, as price cuts, higher supply costs and patent expiries lead to narrower margins. - EIU

Technology Outlook

The technology sector will not be immune to economic headwinds, with profits falling. Companies will focus on investment in the metaverse, as well as the drive to standardization and the battle with regulators. Asian telecoms companies will continue to look for consolidation in 2023; markets such as Sri Lanka, Japan and India are the most likely to see deals. - EIU

Hospitality & Tourism Outlook

Global tourism arrivals will rise by 30% in 2023, following 60% growth in 2022, but will still not return to pre-pandemic levels. The economic downturn, sanctions on Russia and, above all, China’s zero- covid strategy will be among the factors weighing on the industry. Even so, we expect airlines to return to profitability. - EIU

Real Estate Outlook

Real estate leaders are finding political instability and economic uncertainty is replacing the worries of the pandemic. 2023 will be defined by real estate investors prioritising long-term stability and a renewed focus on how the industry conducts its business. - PWC

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Regent Financial analyzes key industry trends and drivers as part of its macro research. According to the Economist Intelligence Unit (EIU), “ever since the pandemic caused an unexpected slump in the global economy, companies have been waiting for the recovery. It has come, but it has been far from straightforward. In 2023, several industries—including automotive and tourism—will still not have recovered to 2019 levels. In others— including retailing and healthcare—spending growth will be robust in value terms, propelled by higher prices, but will be low or even negative in real terms.

Meanwhile, industries such as energy and financial services face geopolitical risks that were barely conceivable a year ago. The main reason for this disruption is Russia’s invasion of Ukraine in February 2022, and the sanctions that the US, the EU and their allies have imposed in response. Combined with China’s strict zero-covid policies, these have had a deleterious effect on global trade and energy flows, pushing up commodity prices and fueling high inflation.”

Industry Outlook 2023 (EIU)

Our services are industry agnostic. We have serviced clients in healthcare, health-tech, automotive, energy, retail, real estate, banking, fintech, hospitality, education, chemicals, manufacturing, steel, cement, technology, telecom, and aviation industries.

Industries can be grouped into various sectors based on their primary business activities. Here are some key industry groupings commonly recognized on a global scale:

Primary Industries:

Agriculture: Involves the cultivation of plants and the rearing of animals.
Forestry: Concerned with the management and logging of forests.
Mining and Quarrying: Extraction of minerals, metals, and other geological materials.
Fishing: Harvesting of fish from the sea, lakes, and rivers.

Secondary Industries:

Manufacturing: Converts raw materials into finished goods. Examples include automotive, textiles, electronics, and machinery manufacturing.
Construction: Involves the building of infrastructure and buildings.
Utilities: Supply of utilities like electricity, water, and gas.

Tertiary Industries (Service Sector):

Retail and Wholesale Trade: Selling goods to consumers and businesses.
Transportation and Logistics: Movement of goods and people.
Financial Services: Includes banks, insurance companies, and investment funds.
Real Estate and Property: Buying, selling, or renting property and real estate.
Tourism and Hospitality: Hotels, restaurants, travel services, etc.
Healthcare: Hospitals, clinics, and other health-related services.
Education: Schools, colleges, and educational institutions.
Information Technology: Software, hardware, and IT services.
Media and Entertainment: Television, radio, print media, online media, and film.
Professional Services: Legal, consulting, architecture, and accounting services.

Quaternary Industries:

Research and Development (R&D): Focuses on innovation, research labs, and scientific research.
Information Technology and Telecommunications: Software development, IT consulting, and communication services.
Financial and Business Services: Investment banking, management consulting, etc.
Education: Higher education, research-focused institutions.

Quinary Industries:

Healthcare Services: High-level health services like hospital management, medical research.
Education: High-level educational services, policymaking.
Cultural Activities: Arts, museums, literature, music, sports.
Non-Profit Organizations: Charities, NGOs, international bodies.
Public Services: Government services and administration.

Emerging and High-tech Industries:

Biotechnology: Research and development in biological substances.
Renewable Energy: Solar, wind, and other renewable energy sectors.
Space Exploration: Companies focused on space travel and exploration.
Artificial Intelligence and Robotics: Development and deployment of AI and robotics solutions.

What We Do

Regent Financial specializes in capital raising and M&A advisory services on a global scale, spanning diverse industries and sectors.

Our clientele includes middle-market and large customers who have annual revenues ranging from $10 million to $10 billion.

We follow latest developments around the globe on key drivers, accelerators, challenges, critical success factors across all key sectors.