The tantalizing vision for global payments has long been that they’d be safe, simple, quick, inexpensive, and ubiquitous. This promise has come closer with each new technological advance. However, instant payments have ushered in the Decoupled Era, a term coined in last year’s Global Payments Report. In this environment, payments…
Over the past decade, the telecom industry has faced one daunting challenge after another. Telcos have endured relentless competitive pressure from fast-moving technology companies that entered their core sectors of communications, connectivity, and data transport. In the hopes of igniting revenue growth, telcos have sought to reinvent themselves. They have…
This transcript has been lightly edited for clarity.What is shifting in tech-enabling operational transformations? This is clearly the age of AI. With the rapid advances in generative AI, it has become very easy to consume AI, and therefore companies are making significant investments over the last few years in the…
This transcript has been lightly edited for clarity.What is causing so many consumer product leaders to rethink their products and portfolios? Jan Henrich: Renovating and innovating the existing portfolio has never been more important than it is these days. First, consumer discretionary spending is tightening. Second, passing on inflation costs…
Farmers worldwide are navigating challenges such as increased input prices, extreme weather events, and commodity price volatility. Given the current macroeconomic environment, the priority for farmers today is improving productivity, whether through agriculture technologies (agtech) for improving operations, biological products, or sustainable practices. This report offers insights for organizations collaborating…
Medtech value creation has been a story of haves and have-nots in recent years. Since 2019, the top value creators have outpaced the S&P 500, while the rest of the industry has struggled (Exhibit 1). Industry and capital market volatility during the COVID-19 pandemic masked the differences in performance between…
Data center real estate is such a hot topic that some have wondered whether it’s overhyped. But the digital and cloud revolutions—and the scale-up of AI—are fueling truly enormous demand for data centers. In turn, there are a variety of ways that real estate companies can participate in the growth…
Across private markets globally, there is persistent pressure to effectively deploy capital, generate higher-than-average returns, and exit investments profitably. Yet challenges remain daunting, including inflation and interest rate volatility in the macroenvironment and intense competition for assets resulting from investors holding significant dry powder aimed at a scarce number of…
Chemical players tend to have strong, ingrained sales functions. Over the past 18 months, however, a combination of long-standing internal issues and external shocks—such as the effects of inflation on chemical manufacturing and customer destocking—has caused revenues to plateau or even decline. In fact, our research shows that diversified chemical…
Do the math on generative AI (gen AI), and the numbers can seem heady. But according to recent research, only a small percentage of companies are beginning to deliver meaningfully on its promise—and many have succumbed to “death by a thousand pilots,” in the words of Rodney Zemmel, global leader…
Companies are entering a new phase with generative AI (gen AI), as they realistically ponder how to deploy the potent technology responsibly and profitably. The answer, says Navrina Singh, founder and CEO of Credo AI and today’s guest on this episode of the At the Edge podcast, is proper governance…
Climate technologies play a crucial role in the net-zero transition, with their potential to abate 90 percent of man-made emissions globally by 2050. According to McKinsey estimates, a successful transition will require the creation of 1,000 unicorns (start-ups valued at $1 billion or more) and 300 decacorns (start-ups valued at…
McKinsey: How have European banks started to implement gen AI? Gökhan Sari: Since we spoke last year, we’ve seen a tremendous effort to implement gen AI across most of our clients. Last year, it was more about, “Should we try it? Are we going to have hallucinations? What about the…
The last few years have been among the most successful in the recent history of retail banking, with a confluence of macroeconomic trends driving growth and profitability. In some geographies, pandemic-era government stimulus lifted economic growth, fueled consumer spending, created favorable conditions for balance sheet expansion, and helped keep credit…
Carbon emissions are a global challenge, but the way each company responds to the risks and assesses new opportunities should be highly case specific. While compliance is critical, strategy should matter most of all. CFOs must ensure that their organizations meet customer priorities, adapt to regulatory changes, and develop an…
The need for semiconductors has exploded since 2010, and despite a recent downturn in 2023, the semiconductor industry is trending toward recovery and long-term growth to more than $1 trillion in revenue by 2030. Comparable to previous market cycles, some segments of the semiconductor industry have grown, while others have contracted.…
Media executive and entrepreneur Uday Shankar has played a key role in the transformation of entertainment and media in India and the Asia–Pacific region over the past three decades. After getting his start in journalism, Shankar transitioned to the entertainment business in 2007 as CEO of Star India, part of…
E-commerce is undergoing a fundamental change that is reshaping how customers buy and companies sell. While generative AI (gen AI) has grabbed the attention of executives over the past year, a quieter wave of technology-driven innovation is washing over almost every aspect of e-commerce. This technology infusion is powering a…
Leadership is never easy—not for nothing did Shakespeare write, “Uneasy lies the head that wears the crown.” The job of leader may seem even more imposing these days given a range of micro- and macro- social, economic, and geopolitical forces. But amid the challenges, there is always the opportunity for…
The world needs more productivity growth. As a recent McKinsey Global Institute report argues, it’s the best possible antidote to wealth inequality, inflation, and exploding debt and could provide crucial funding for the net-zero transition and improved living standards. It’s also what every company needs. Yet productivity growth has largely…
Spiritual health, often overlooked in holistic well-being, deserves greater attention. While physical health has traditionally been the main focus and mental and social health are gaining recognition, spiritual well-being plays a critical role in enhancing overall health. McKinsey Health Institute’s (MHI) global survey of 41,000 people finds that spiritual health…
What will it take for the consumer goods industry to turn its fortunes around? Once a leader in total shareholder returns (TSR), the industry has fallen from the top to the bottom quartile in TSR performance. This episode of the McKinsey on Consumer & Retail podcast examines the reasons for that…
Executive summaryThe automotive industry has been a stronghold of the European economy for decades but is now facing disruption from electric mobility. In 2023, the industry contributed $1.9 trillion in gross value added (GVA), with technology and car exports creating $620 billion in value. Electric mobility could add $240 billion…
The narrative surrounding generative AI (gen AI), a moon shot, once-in-a-generation innovation, is that it could utterly reinvent how businesses—consumer-packaged-goods (CPG) companies among them—are run. CPG leaders are heeding the call. In a 2024 survey of CPG leaders, 71 percent said they adopted AI in at least one business function…
At a glance Micro-, small, and medium-size enterprises (MSMEs) are the bedrock of the US economy. They employ nearly six in ten workers, produce almost 40 percent of value added nationally, and grow into a meaningful share of very large corporations. MSMEs in the United States are only half as…
Consumer-facing companies across all types of sectors have already begun to harness the power of modern retailing techniques. Tactics such as bundled offers and dynamic pricing can provide a boost to an organization’s revenue and profit. At the same time, they are creating better, more relevant experiences for consumers. Airlines,…
No matter where one turns these days, engaging with some form of AI is likely. From the algorithms that power social media to virtual assistants that answer questions and control smart devices, AI is actively shaping how the world works. Opinions about AI’s impact on the workforce range from positive expectations…
At a glance A three-lens approach–on adoption, creation, and energy–is required to assess Europe’s competitiveness in the emerging generative AI (gen AI) economy. While much of the current discourse centers around large language models (LLMs), European policy makers and business leaders must look beyond LLMs. Adopting a holistic approach to…
Looking back over the past few months since our last China Brief update in April, not much has changed.China’s GDP grew at a steady 5 percent during the first half of the year, while retail sales ticked modestly upward by 3.7 percent during this period. We see few signs that…
Autonomous vehicles (AVs), with their potential to reduce shipping costs and address a scarcity of drivers, will likely be delayed by another year, according to McKinsey analysis. Major OEMs are continuing their commitment to autonomous trucking and are investing to bring the first vehicles of their kind on the road…
The real estate industry faces growing pressure to reduce the emissions caused by building operations. The good news is that the technology already exists to solve the problem, and a new way to formulate decarbonization plans can make it easier and cost effective to take action, as McKinsey partner Brodie…
On this page: Opportunity | Solution | Impact $0.5Tannual global cybersecurity damage by 20250+enterprise customers across sectors0%savings in cybersecurity spending The Opportunity A new way to source cybersecurity Cyberattacks are on track to cause $10.5 trillion a year in damage by 2025. In their efforts to fight back, business leaders…
The defense industry has long endeavored to equip forces with enhanced communication by connecting technologies across land, sea, air, and space. This goal might seem easily attainable in today’s smartphone-enabled world, but aging hardware, fragmented install bases, and inconsistent standards across devices and networks may weaken secure communications. As adversaries…
Momentum around connected and data-enabled services in commercial vehicles is accelerating. Data-enabled services are critical for new opportunities in charging energy solutions, connected insurance, the automotive aftermarket, advanced financing solutions, and transport as a service [TaaS]. Their potential to solve complex problems for OEMs, automakers, and fleet managers is too…
In an era marked by rapid technological advancements, the commercial vehicle industry stands on the cusp of a transformative evolution. The decentralized electrical/electronic (E/E) architectures that have long been the backbone of vehicle operations are now being redefined, and so is the software running on them. To master this evolution…
Electric two-wheelers, with their affordability, ease of access, and environmental benefits, are leading the charge to vehicle electrification around the world. Electric two-wheeler markets in Asia are loaded with potential. Annual sales in the Indian electric two-wheeler market, the second-largest globally, are expected to increase from one million micromobility units…
Road freight vehicles account for a significant share of global CO2 emissions. Hence, minimizing their carbon footprint is a vital step toward achieving global climate targets. Over the past decade, governments, fleet operators, and truck OEMs have realized this need for action and have gone to significant lengths to make…
As the end of ESSER funding approaches in September 2024, K–12 district leaders are reflecting on which investments were effective to help shape their priorities in the post-ESSER years ahead. In this third and final article in our series on K–12 district funding, we follow the flow of funds to…
Telcos worldwide want to evolve from traditional connectivity providers into customer-centric, platform-oriented innovators akin to today’s top tech players. Industry leaders and experts view this shift toward broader services and partner ecosystems as the most promising path to reignited and sustainable growth after many years of declining performance (especially in…
The expected global mass rollout of electric trucks is going to require a dense charging network to keep these zero-emission vehicles moving. For Europe, McKinsey estimates that, by 2030, more than 300,000 public and private charge points will be required across the continent for medium- and heavy-duty trucks, up from…