Key contents of McKinsey report for 2025

1. Population structure change and economic impact

 

McKinsey forecasted that low birth rates and aging populations will seriously hinder economic growth in advanced countries. It is expected that the population of 26 countries will decrease by more than one-third by 2100, and in particular, Korea, China, and Poland are expected to see their populations decrease by half.

 

 It pointed out that it would be impossible to maintain the standard of living of the 1990s without productivity improvement, and that France, Italy, etc. should increase their productivity growth rate by 3-4 times.

 

2. Technology trend outlook

 

• Generative AI: Google search volume increases by 700% from 2022 to 2023, investment increases by 7 times. The context window of large-scale language models (LLMs) is expanding from 100,000 to 2 million tokens, and is evolving into advanced multimodal functions.

 

• Electrification and renewable energy: Global investment in 2023 is expected to reach $183 billion. Continued growth prospects due to the need to strengthen energy security.

• Beauty industry: Generative AI creates a market worth 9-10 billion dollars, leading product development and customer experience innovation.

 

3. Global M&A market outlook

 

The M&A market in 2025 is expected to recover, centering on the AI, bio, healthcare, and semiconductor sectors. Small and medium-sized transactions (1-1 billion dollars) will increase by 46%, and AI-based acquisition target discovery is expected to become active. Optimizing the M&A structure in response to strengthened ESG standards and changes in EU and US regulations has emerged as an essential task.

 

4. Strategic direction by industry

 

• Fashion industry: Reorganization of the Chinese market, strengthening of marketing centered on consumer emotions, and innovation in sustainability are necessary.

• Korean economy: Diagnosis that labor, capital, and industrial competitiveness reorganization is urgent in order to leap to the world's 7th largest GDP by 2040. • Healthcare: Acceleration of new drug development using generative AI is emerging as a key trend .

 

5. Regional Outlook

• Hwaseong City: Expected to emerge as one of the world's seven high-income cities by 2025.

• Global Energy: Stabilization of the oil and gas supply chain and expansion of renewable energy investment are expected to coexist .

 

Comprehensive Outlook

McKinsey presented productivity innovation, population structure response, and AI and clean energy technology preemption as three key tasks. In particular, it emphasized that generative AI will accelerate the pace of innovation in all industries .