Based on experts’ analyses of data taken from over 70 global industries, it is apparent there are industries that will require players to double their efforts to survive a bullish outlook. The twin evil of viral outbreak and consequent economic lockdown has made industry re-engineering’ or strategic rethink, and pivoting where necessary, imperative across.
A glimpse into the industries should serve not as deterrent but a tool to help existing players and intending entrants measure their preparedness in tackling challenges that lie ahead.
IBIS World, a research firm that offers deep knowledge of industries provides findings that reveal the status of the 10 fastest declining industries in the world in the current year:
· 1. Global Commercial Real Estate
2019-2020 Revenue Growth: -24.4%
The Global Commercial Real Estate industry grew over much of the five years to 2020 after a slow start. Investor confidence took a hit in 2015, which continued into 2016 largely due to global political uncertainty and low oil prices. This negatively affected investment in the industry and revenue declined 0.6% in 2016. Global investment has since rebounded strongly amid strong global economic growth, which propelled industry revenue to recover. However, the outbreak of COVID-19 (Coronavirus) is expected to severely constrict demand as economic uncertainty skyrockets. As a result, industry revenue is expected to fall at an annualized rate of… Learn More
· 2. Global Car & Automobile Sales
2019-2020 Revenue Growth: -14.5%
Over the five years to 2020, revenue for the Global Car and Automobile Sales industry is expected to fall, mainly due to the economic fallout as a result of the COVID-19 (Coronavirus) pandemic. The industry experienced growth during the beginning of the period as rising global per capita income and increased global consumer spending encouraged global auto sales, primarily in emerging economies. However, several factors have limited industry expansion. For example, several European nations experienced weak economic growth. The United States also experienced a slump in auto sales going into 2020 after previously posting strong sales between 2009 and 2016…. Learn More
· 3. Global Marine & Container Terminal Operation
2019-2020 Revenue Growth: -13.9%
Ongoing trade liberalization, global economic expansion and growth in Asian economies have been the main factors propelling growth for the Global Marine and Container Terminal Operation industry. However, stagnating growth in many developed economies, supply chain disruptions, the appreciation of the US dollar and the recent slowdown in emerging market growth have tempered industry performance in recent years, with industry revenue declining in both 2015 and 2016. Furthermore, the COVID-19 (Coronavirus) pandemic is expected to hinder demand due to trade restrictions and supply chain disruptions. As a result, IBISWorld projects industry revenue will increase at an annualized rate of 1.9%… Learn More
· 4. Global Airlines
2019-2020 Revenue Growth: -12.8%
Despite rising levels of airborne passenger and cargo traffic, revenue for the Global Airlines industry has declined over the five years to 2020 as volatile fuel prices and growing competition, as well as the COVID-19 (Coronavirus) pandemic, have placed downward pressure on airline ticket prices and freight shipping rates. Moreover, the total value of world trade has increased slowly over the past five years, limiting demand for cargo transportation services. At the same time, recent growth in global per capita income has fueled demand for airline passenger transportation. Overall, industry revenue is estimated to decrease an annualized 1.8% to $686.0… Learn More
· 5. Global Casinos & Online Gambling
2019-2020 Revenue Growth: -11.7%
Over the five years to 2020, the center of the Global Casinos and Online Gambling industry has shifted from the United States, specifically Las Vegas and Atlantic City, to China, more specifically, Macau. A wave of recent casino openings in Macau has propelled this shift. As of 2020, there were 50 casinos located on the island. Additionally, casino openings in other parts of Asia are expected over the five years to 2025. Two mega casino developments in Singapore already rival casinos in Las Vegas, and Japan recently legalized casinos, raising the potential for billions of dollars in new investment. However,… Learn More
· 6. Global Automobile Engine & Parts Manufacturing
2019-2020 Revenue Growth: -11.0%
Over the five years to 2020, revenue for the Global Automobile Engine and Parts Manufacturing industry, which produces motor vehicle engines and other engine parts such as valves, crankshafts, camshafts, fuel injectors and pistons, is expected to fall at an annualized rate of 0.1% to $276.7 billion. Ultimately, the industry is tethered to that of global car production, thus leaving operators vulnerable to a myriad of macroeconomic and political factors that affect the automotive sector in aggregate. During most of the period, an emphasis on engine efficiency and economic growth supported industry expansion. However, the rapid spread of COVID-19 (Coronavirus)… Learn More
· 7. Global HR & Recruitment Services
2019-2020 Revenue Growth: -10.6%
The Global HR and Recruitment Services industry relies on an organizations’ demand for outsourcing its recruitment processes and human resource management activities. Industry performance largely depends on economic conditions in major markets and the effect these conditions have on demand for labor worldwide. Labor market regulation, particularly relating to temporary employees, is also important to industry performance. While the liberalization of labor laws in developed nations has historically been essential to industry growth, large players have now focused on emerging markets. Industry growth in these regions has expanded as the industry’s largest companies expand into developing economies to connect employers… Learn More
· 8. Global Deep-Sea, Coastal & Inland Water Transportation
2019-2020 Revenue Growth: -9.8%
The Global Deep-Sea, Coastal and Inland Water Transportation industry, which transports cargo and passengers across the world’s waterways, has experienced strong growth over most of the five years to 2020. Rising global per capita income and increased production activity among the world’s most developed economies has increased demand for industry services, though COVID-19 (Coronavirus) is forecast to severely constrain demand in 2020. These strong market conditions have offset an excess of maritime carrying capacity relative to downstream demand, which has constrained international freight rates and hindered industry growth. Additionally, industry revenue has been sustained by the strong performance of the… Learn More
· 9. Global Hotels & Resorts
2019-2020 Revenue Growth: -8.4%
Over the five years to 2020, the Global Hotels and Resorts industry experienced strong growth as both consumers and businesses became more confident about their finances and spent more liberally on luxuries, including travel. This culminated in a substantial increase in both travel rates and hotel room and occupancy rates, two indicators of a hotel’s performance. Travel spending has also picked up quickly, especially in emerging economies where tourism is on the rise. Global tourist arrivals were steadily increasing between 2015 and 2019 until a drastic drop in 2020 due to the global spread of COVID-19 (Coronavirus). As a result… Learn More
· 10. Global Tourism
2019-2020 Revenue Growth: -7.2%
The Global Tourism industry is expected to increase at an annualized rate of 0.2% to $1.5 trillion over the five years to 2020. Global tourism has performed well during the five-year period, with emerging economies continuing to stimulate growth. Moreover, countries in Asia and South America have experienced robust growth in per capita income, which has enabled consumers in these regions to take overseas trips in increasing numbers. However, due to the global spread of COVID-19 (Coronavirus) in 2020, industry revenue is expected to decline 8.9% over the year. The global outbreak is expected to have an enormous effect on… Learn More
