Industries with the Biggest Increase in Profit Margin Global in 2023

1. Global Airlines

Percentage Point Increase for 2023: 10.3pp

Despite rising levels of airborne passenger and cargo traffic throughout much of the period, revenue for the Global Airlines industry has declined over the five years to 2023 as volatile fuel prices and growing competition, as well as COVID-19, have placed downward pressure on industry revenue. At the same time, recent growth in global per capita income and other solid macroeconomic indicators fueled demand for airline passenger transportation before the pandemic. Overall, industry revenue is estimated to decrease an annualized 3.8% to $762.8 billion over the five years to 2023, despite an expected expansion of 5.3% in 2023 alone, stemming... Learn More

2. Global Commercial Banks

Percentage Point Increase for 2023: 9.6pp

The industry closely follows global economic performance since demand for loans is heavily influenced by business and consumer confidence as well as the level of activity that requires financing. The strong global economic performance fueled by the United States and emerging markets, such as China and South East Asia, are expected to improve from increased aggregate private investment, which has supported loan origination. Global commercial banks revenue has been growing at a CAGR of 0.8% over the past five years – including an estimated 0.1% drop in the current year – and is expected to total $2.8 trillion in 2023,... Learn More

3. Global Coal Mining

Percentage Point Increase for 2023: 2.1pp

Coal mined by global coal mining companies plays a vital role in the world's ability to generate electricity and manufacture steel. Coal's position in global electricity markets stems from its relative accessibility, affordability and distribution across the globe. The world's largest coal producers are China, the United States and India, with these countries expected to retain their positions for the foreseeable future. Global coal mining revenue is a function of global production of coal mined products alongside global coal prices, with prices being closely tied to global economic conditions. Over the five years to 2023, prices of thermal and coking... Learn More

4. Global Oil & Gas Exploration & Production

Percentage Point Increase for 2023: 1.7pp

The Global Oil and Gas Exploration and Production industry has gone through major turbulence over the five years to 2023. The COVID-19 pandemic and accompanying socioeconomic restrictions significantly disrupted macroeconomic activity, leading to tremendous volatility within global energy markets. Industry revenue fell to multi-decade lows in 2020 before reaching all-time highs in 2022 as production and prices of hydrocarbons were completely unstable. Industry revenue has increased at a CAGR of 9.6% to $5.3 trillion over the five years to 2023, despite a decline of 19.8% in 2023 alone. During this time, the United States has emerged as a key player... Learn More

5. Global Insurance Brokers & Agencies

Percentage Point Increase for 2023: 1.7pp

Global insurance brokers and agencies play a critical role in the insurance market by distributing policies and consulting insurance underwriters and consumers. The revenue is mainly transaction-based and hinges on policy pricing, insurance demand and the use of agents and brokers in the distribution process. The pandemic negatively impacted the insurance industry, mainly driven by weakening per capita income, plunging consumer confidence and harming the health of the corporate sector. While technological changes have enabled brokers and agents to source products from multiple upstream underwriters, it has also enabled consumers to bypass agents and brokers during the insurance buying process,... Learn More

6. Global Hotels & Resorts

Percentage Point Increase for 2023: 1.2pp

Over the five years to 2023, the Global Hotels and Resorts industry has expanded. Initially, strong growth before the pandemic occurred as consumers and businesses became more confident about their finances and spent more liberally on luxuries, including travel. This factor resulted in a substantial increase in hotel rooms and occupancy rates, two indicators of a hotel's performance. Global tourist arrivals were also steadily increasing until a drastic drop in 2020 due to the worldwide spread of COVID-19. In 2020 alone, industry revenue declined 40.1% due to the pandemic effect. The pandemic has enormously influenced all tourism-related industries, as many... Learn More

7. Global Casinos & Online Gambling

Percentage Point Increase for 2023: 0.9pp

Global casinos and online gambling businesses are still reeling from the aftereffects of the pandemic, with some rebounding swifter than others, depending on their country of operation and specialization. Sinking tourism rates, especially in 2020, left many casinos in dire straits, even if they were able to remain open in some capacity. Many have since reopened, welcoming eager tourists, but some, like those in Macau, continue experiencing operational delays related to the pandemic in 2023. As a result, though revenue began rebounding as early as 2021, revenue has been declining at a CAGR of 1.8% over the past five years,... Learn More

8. Global Automobile Engine & Parts Manufacturing

Percentage Point Increase for 2023: 0.8pp

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 an annualized 3.9% to $324.2 billion over the past five years, including an expected 3.4% surge in 2023 alone. Ultimately, the industry is tethered to global car production, thus leaving automobile engine and part manufacturers vulnerable to a myriad of macroeconomic and political factors that affect the automotive sector in aggregate. Before COVID-19, an emphasis on engine efficiency and economic growth supported industry expansion. However, COVID-19 brought industry... Learn More

9. Global Reinsurance Carriers

Percentage Point Increase for 2023: 0.8pp

Global reinsurance carriers focus on assuming all or part of the risk associated with existing insurance policies originally underwritten by direct insurance carriers. The essential function of these carriers is to insure insurance companies. The industry performed well during the current period because rising healthcare expenditure increased premiums for health insurance companies. These insurers increased their demand for global reinsurance carriers to hedge against risk. The industry also performed well in the years before COVID-19, as soaring equity markets increased demand from insurance companies and boosted investment income for the industry. The pandemic reduced global consumer spending and per capita... Learn More

10. Global Travel Agency Services

Percentage Point Increase for 2023: 0.7pp

Global travel agencies' revenue has grown despite core services dramatically changing due to consumers using online channels to research and book travel. Online booking agents now play a much more significant role alongside traditional brick-and-mortar travel agencies. International tourism thrived before COVID-19, but it severely cut into revenue in 2020, followed by a rebound in 2021 as the economy returned to normal. Global travel agencies' revenue has expanded at a CAGR of 2.5% to $474.7 billion through the end of 2023, including a 9.9% increase in 2023 alone.

Brick-and-mortar travel agencies have reinvented themselves to remain relevant and competitive as online... Learn More