Navigating Uncertainty with Confidence Investment Priorities for 2025 – Report Summary

The offers a comprehensive analysis of global investment trends for 2025. It serves as a strategic guide for CEOs navigating the major uncertainties in the global economy including shifts in policies, technological advancements and the green transition which are accelerating and at the same time somehow hindering growth. Drawing on a survey of 2,500 senior executives from 17 countries across nine industries, the findings highlight areas for organizations seeking resilience and growth in the middle of unpredictability. Let’s look at some key insights from this report.

Key Insights

• 62% of large organizations are optimistic about their growth potential for 2025, up from 56% in 2024 and 42% in 2023.
• Only 37% of business leaders are optimistic about the global operating environment for the next 12-18 months in 2025, a slight increase from 30% in 2024.
• 56% of organizations expect to prioritize cost reduction over revenue growth in 2025.
• 50% of organizations plan to increase overall investment in 2025 to drive efficiency and long-term competitiveness.
• 71% of organizations are reducing or deferring capital expenditure in 2025 and 70% of organizations plan to curb operating expenditure (OpEx) in 2025.
• 68% of organizations will evaluate non-core aspects of their business to improve P&L in 2025.
• Customer experience remains a top investment area for 2025, with 78% of business leaders planning to increase investments in this area.
• Engineering, R&D and innovation are the second top investment area with 74% of business leaders planning to increase investments in 2025.
• 63% of business leaders plan to increase supply chain investments in 2025, a 15% increase from last year (48% in 2024).
• 62% of business leaders plan to increase sustainability investments in 2025, up 10 percentage points from last year (52% in 2024).
• The anticipated increase in sustainability investment among large organizations declined from 12.2% in 2024 to 10.5% in 2025.
• US organizations are projected to outspend their global peers on tech investments.
• AI and generative AI (Gen AI) rank as top technology investment priorities for organizations.
• 74% of business leaders ranked AI and Gen AI in their top three technologies for investment in 2025.
• Seven in 10 executives worldwide are worried about rising tariffs and trade disputes.
• 61% of business leaders agree that the lack of tech skills is severely hindering their organization’s competitiveness.
• 74% of organizations are reducing supply chain reliance on China in 2025, up from about half in 2024.
• 64% of business leaders say friendshoring will represent a significant proportion of their sourcing and/or production going forward, up from 45% last year.
• The average expected increase in supply chain investments in 2025 is 9.4% globally, down from 13% in 2024.
• US business leaders expect to increase their supply chain investments by 9.7% in 2025, compared to 9.2% for Europe and 9.5% for APAC.
• Climate technologies, sustainable product design, biodiversity and water are top sustainability investment priorities.
• 72% of business leaders will increase investment in climate tech in 2025.
• Batteries are the top climate tech investment in 2025, with 55% of business leaders ranking it among their top three.
• US organizations anticipate a 12.1% average increase in sustainability investments for 2025, outspending European and APAC counterparts.
• The International Monetary Fund (IMF) projects world real GDP growth of 3.2% in 2024 and 2025, slightly down from 3.3% in 2023.
• Globally, organizations will allocate 6% of their total annual revenues to overall IT/tech budgets in 2025, with 1.35% for technology investments.
• Mid-size US organizations are projected to invest 3.04% of their annual revenue in technology in 2025, outpacing European and APAC mid-size organizations.
• An investment gap of $165 billion is estimated between the US and Europe in technology investment.

Conclusion

Despite ongoing global uncertainties, business leaders maintain an optimistic outlook for their organizations’ growth potential in 2025, leading to continued investment in key areas. While cost reduction remains a primary objective, it also drives investment in efficiency-enhancing technologies and strategies. Supply chain transformation and sustainability are rapidly growing investment priorities alongside customer experience and R&D. The report recommends that CEOs focus on sustainability as a value driver, prepare for geopolitical shifts and build supply chains through diversification and technology to develop strong partner ecosystems. It also suggests active efforts in digital transformation with a focus on AI, cloud and advanced manufacturing to bridge skills gaps and enhance competitiveness.

You can read the full report here.