Industries with the Biggest Increase in Profit Margin Global in 2024

1. Global Airport Operation

Percentage Point Increase for 2024: 5.4pp

Airport operators have faced complex operating conditions in recent years. Rising levels of airline passenger traffic before the COVID-19 pandemic enabled airports to earn significant revenue through passenger charges and services provided directly to airlines. At the same time, improving economic conditions increased corporate profit and fueled global manufacturing activity, causing airlines to operate more flights to transport greater quantities of cargo. The COVID-19 pandemic completely disrupted the industry in 2020, causing revenue losses of more than 40.0% in that year alone. Global airport operation revenue has increased at a CAGR of 1.5% to $254.7 billion through the end of... Learn More

2. Global Direct General Insurance Carriers

Percentage Point Increase for 2024: 3.6pp

The Global Direct General Insurance Carriers industry has faced challenges over the past five years, with issues such as a soft insurance market, low interest rates and numerous catastrophes affecting all operators in major markets. However, the rapid growth of emerging markets has slightly offset stagnating mature markets. An expanding middle class in countries like China has increased demand for insurance, driving industry growth. Therefore, global direct general insurance carrier revenue is expected to fall at a CAGR of 1.1% over the past five years – including an estimated 2.9% decrease in the current year – and is expected to... Learn More

3. Global Tourism

Percentage Point Increase for 2024: 2.4pp

The industry will increase at a CAGR of 0.8% to $2.3 trillion over the five years to 2023, including a growth of 13.9% in 2023 alone. Global tourism has performed well during most of the five-year period, with emerging economies stimulating growth. 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. But because of COVID-19, industry revenue collapsed 40.1% in 2020. The global outbreak had an enormous effect on all tourism-related industries as many countries suspended international travel and limited the... Learn More

4. Global Hotels & Resorts

Percentage Point Increase for 2024: 1.7pp

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

5. Global Airlines

Percentage Point Increase for 2024: 1.4pp

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

6. Global Engineering Services

Percentage Point Increase for 2024: 1.0pp

Engineering companies apply the physical laws and principles of engineering to design and develop structures, machines, materials, instruments and other processes and systems. Services also include providing advice, feasibility studies, designs and technical services for construction or development. The performance of the industry relies on investment trends and the overall health of the economy to fuel projects where engineering services are needed. Strong investment in major markets, such as the United States, Europe and East Asia, has driven industry growth in recent years. Global engineering services revenue has been expanding at a CAGR of 3.9% over the past five years... Learn More

7. Global Spirits Manufacturing

Percentage Point Increase for 2024: 0.9pp

The Global Spirits Manufacturing industry has benefited from premiumization trends in both developed and emerging economies over the past five years. Emerging markets like China and India have picked up the slack from declines in Eastern Europe resulting from political tensions and government intervention. Spirit consumption in emerging markets has flourished alongside population growth and urbanization, while consumers in developed economies have spent more on spirits by trading up to premium products. The rising trend of ready-to-drink cocktails has fueled growth in developed economies, staving off competition from substitute beverages like wine and beer. Over the past five years, revenue... Learn More

8. Global Automobile Engine & Parts Manufacturing

Percentage Point Increase for 2024: 0.9pp

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 Pharmaceuticals & Medicine Manufacturing

Percentage Point Increase for 2024: 0.6pp

Pharmaceutical manufacturers have benefited from an aging population in developed economies and a growing middle class in emerging economies, which has provided a larger customer base for companies in the Global Pharmaceuticals and Medicine Manufacturing industry. Many manufacturers have also tapped into regional demand for pharmaceuticals that may differ from developed markets and have expanded their global presence to tap into regional market needs and develop relationships with government entities that can accelerate drug approval or implement high reimbursement rates. The outbreak of COVID-19 presented drug manufacturers with new opportunities; however, only very few drug manufacturers were able to participate... Learn More

10. Global Travel Agency Services

Percentage Point Increase for 2024: 0.5pp

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