18 Future Arenas That Could Reshape the Global Economy by 2040
January 3, 2025
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The next big arenas of competition
The global economy is in a constant state of flux, with new technologies, industries, and trends emerging all the time. A new report by the McKinsey Global Institute has identified 18 “future arenas” that have the potential to reshape the global economy by 2040. These arenas are characterized by their rapid innovation, high growth potential, and ability to disrupt existing industries. They are poised to generate substantial economic value, create new jobs and industries, and drive significant social impact.
The report,”The next big arenas of competition,” identifies these arenas as:
- 1. Artificial intelligence (AI): AI is already transforming many industries, and its impact is only going to grow in the years to come. AI is being used to develop a wide range of applications, including self-driving cars, medical diagnosis tools, and fraud detection systems.
- 2. Space: The space industry is undergoing a period of rapid innovation, with new technologies being developed to explore and utilize space. These technologies include reusable rockets, 3D printing, and advanced robotics.
- 3. Cybersecurity: As the world becomes increasingly reliant on technology, the importance of cybersecurity is growing. Cybersecurity companies are developing new technologies to protect businesses and individuals from cyberattacks.
- 4. E-commerce: E-commerce is continuing to grow at a rapid pace, as more and more people shop online. E-commerce companies are developing new technologies to improve the online shopping experience, such as personalized recommendations and augmented reality.
- 5. Cloud computing: Cloud computing is becoming increasingly popular, as businesses and individuals move their data and applications to the cloud. Cloud computing companies are developing new technologies to improve the performance and security of cloud services.
- 6. Batteries: Batteries are essential for a wide range of technologies, including electric vehicles, smartphones, and laptops. Battery companies are developing new technologies to improve the performance, safety, and cost of batteries.
- 7. Modular construction: Modular construction is a new approach to building construction that involves assembling buildings from prefabricated modules. Modular construction can help to reduce construction costs and time.
- 8. Streaming video: Streaming video is becoming increasingly popular, as more and more people watch TV shows and movies online. Streaming video companies are developing new technologies to improve the quality and accessibility of streaming video.
- 9. Video games: The video game industry is a multi-billion dollar industry that is continuing to grow. Video game companies are developing new technologies to improve the graphics, gameplay, and social interaction of video games.
- 10. Robotics: Robotics is being used in a growing number of industries, including manufacturing, healthcare, and logistics. Robotics companies are developing new technologies to improve the performance, safety, and affordability of robots.
- 11. Non-medical biotech: Non-medical biotech companies are developing new technologies to improve the quality of life, such as new food sources and biofuels.
- 12. Future air mobility: Future air mobility companies are developing new technologies to improve air travel, such as electric aircraft and flying cars.
- 13. Obesity drugs: Obesity is a growing global health problem. Obesity drug companies are developing new drugs to help people lose weight.
- 14. Nuclear fission: Nuclear fission is a potential source of clean energy. Nuclear fission companies are developing new technologies to improve the safety and efficiency of nuclear power plants.
- 15. Advanced semiconductors: Semiconductors are the building blocks of the digital age, powering our computers, smartphones, and countless other devices. Advanced semiconductor companies are pushing the boundaries of Moore's Law, developing ever smaller and more powerful chips that enable new technologies and applications.
- 16. Shared Autonomous Vehicles (AVs): Imagine a world where transportation is on-demand, driverless, and shared. Shared autonomous vehicles promise to transform our cities, reducing traffic congestion, improving accessibility, and freeing up valuable time for commuters.
- 17. Digital Ads: Digital advertising is the engine of the online economy, connecting businesses with consumers in increasingly sophisticated ways. New technologies and platforms are constantly emerging, allowing advertisers to target their audiences with greater precision and personalize their messages for maximum impact.
- 18. Electric Vehicles (EVs): The automotive industry is undergoing a profound transformation, driven by the rise of electric vehicles. EVs offer a cleaner, quieter, and more sustainable mode of transportation, and they are rapidly gaining popularity among consumers. The transition to electric mobility is accelerating, promising to reshape our cities and reduce our reliance on fossil fuels.
The report argues that these arenas have the potential to create significant economic value and social impact. They could also lead to the creation of new jobs and industries.
The report concludes by calling on businesses and policymakers to take steps to support the development of these arenas. This includes investing in research and development, promoting innovation, and creating a favorable regulatory environment.
The report is a valuable resource for businesses and policymakers who are looking to understand the future of the global economy. It provides a comprehensive overview of the key trends that are shaping the business landscape and identifies the industries that are most likely to grow in the years to come.
“The best way to predict the future is to create it.”
~ Abraham Lincoln
16th President of United States
Note: This blog post is based on the McKinsey Global Institute report “The next big arenas of competition” (2024). The report can be accessed on the McKinsey website.