As economic tides ebb and flow, some industry sectors thrive while others struggle to keep up with the evolving environment. Expect more of the same in 2025 as new market trends, business challenges, and opportunities emerge.

The industry sectors that are poised for growth in 2025 include:

  • Cybersecurity providers. In 2023, U.S. companies lost $12.5 billion to cybercriminals—up from $4.2 billion in 2020—according to the FBI’s Internet Crime Complaint Center.[1] Demand for robust cybersecurity tools is accelerating along with rising cybercrimes. This creates opportunities for companies that develop and/or sell protection against cyberthreats like phishing, ransomware, and supply chain attacks.
  • E-commerce marketplaces and online stores. Worldwide e-commerce sales will exceed $6 trillion in 2024 and then are expected to hit $8 trillion by 2027, with more than 20% of all retail sales now being conducted digitally, EMARKETER reports. Online sales revenues are expected to continue climbing and hit $8 trillion by 2027.[2] This upward trajectory could continue to create opportunities for e-commerce marketplaces, online sellers, and brick-and-mortar retailers that invest in their e-commerce storefronts and logistics infrastructures.
  • Telehealth services. Visit a walk-in doctor’s office these days and you may not even see or be treated by an in-person physician. Instead, doctors are covering the bases using videoconferencing setups that allow them to “see” patients across multiple locations at once. With patients growing accustomed to the accessibility and convenience of virtual care, the industry that supports it will be called upon to develop more tools, mobile apps, and services.
  • Educational services. Professionals who want to brush up on current skills, college students who need tutoring, and high school students looking for test prep help are all driving demand for educational services. In 2023, the global educational market was valued at $1.3 trillion and is expected to nearly double to $2.4 trillion by 2032.[3] As technology continues to advance and companies invest in more digital tools, employees will likely need continuous learning and upskilling. This and other factors could contribute to continued growth in the educational services industry.
  • Alternative energy companies. Environmental sustainability was a hot topic in 2024, and the buzz isn’t expected to wane anytime soon. Companies that support the global shift toward alternative energy could continue to see ample opportunity, including those in the wind, solar, and hydroelectric power sectors (among other green alternatives).

Preparing For the Year Ahead

Regardless of which industry you’re operating in, there are some steps you can take now to prepare for 2025. Here are six steps for you to consider to help you establish a strong foundation for the year ahead:

  1. Review your supplier contracts and adjust as needed. Look for ways to incorporate some "win-win" negotiations into those adjustments. For example, you may be able to get price breaks in exchange for placing more frequent orders.
  2. Check your payroll and see if there's any opportunity to cut back. Eliminating excess staff, reducing hours, and/or investing in some automation tools might help you free up some cash and cut costs.
  3. Watch your accounts receivables. Consider collecting outstanding invoices quickly (don't wait until they're 30 or 60 days past due). Ignoring this step may impact your company’s income statement, equity, and cash flow.
  4. Entice customers to pay faster. To boost your cash reserves, you can offer customers discounts for early payments (e.g., 1% discount for net 10-day payment terms).
  5. Use tech to save money and operate more efficiently. Technology is often a powerful tool for boosting efficiency, improving productivity, and cutting costs. For example, manufacturers and distributors are using automation and robotics to optimize their warehouses without added staff.[4] And, service companies rely on chatbots that work around the clock, addressing customers’ questions and concerns.
  6. Review your physical inventory. Consider selling any stagnant merchandise and/or ask suppliers if they’ll take back any unused inventory that's languishing in your stockroom or warehouse. You may have to pay a restocking fee for the latter, but the payoff could be worth it.

Preparing For the Unknown

The business landscape continues to evolve at a fast pace, with new challenges and opportunities continuously emerging. Smart companies understand this and are taking steps to both anticipate and adapt to new trends and roadblocks. You can position your company for success in this dynamic landscape by staying up to date on current market conditions, maintaining open lines of communication with customers, and exploring some of the high-growth opportunities mentioned in this article.

PNC has something for every small business. To get ahead of the competition in 2025, visit us online, stop in one of our branches, or give us a call.