REPORT From vision to reality: Implementing masterplans Creating practical visions for urban and economic development in the Gulf Cooperation Council Management summary G ulf Cooperation Council (GCC) countries are undergoing an unprecedented wave of urban transformation, driven by the urgent need to diversify their economies beyond oil. National strategies - such as Saudi Arabia's Vision 2030, Kuwait's Vision 2035 and Oman's Vision 2040 - place spatial planning at the heart of economic and societal change. ...

Investment Rating - The report does not explicitly provide an investment rating for the legal services industry Core Insights - The legal services industry is undergoing significant transformation driven by technological advancements, evolving client expectations, and a persistent low-growth environment [6][10][12] - The rise of alternative legal service providers (ALSPs) is reshaping client expectations and the competitive landscape [13] - Law firms must adapt their business models to address increasing technology costs and changing client demands [14][22] Summary by Sections Industry Dynamics - Law firms are facing a rapidly changing landscape influenced by technology, client expectations, and geopolitical volatility [3][10] - Clients are demanding greater transparency, predictability in billing, and a clearer demonstration of value [8] Technological Evolution - The adoption of AI and technology is accelerating, enhancing legal workflows and client access to legal insights [7][18] - Technology costs are rising significantly, outpacing compensation growth for legal professionals [19][21] Client Expectations - Clients are increasingly interested in understanding the division of labor between human and machine contributions in legal work [8] - The demand for legal services is becoming more unpredictable due to geopolitical factors [9][10] Alternative Legal Service Providers - ALSPs are growing faster than traditional law firms and are beginning to handle more complex legal matters [13] - These providers are reshaping client expectations and the overall market dynamics [13] Business Model Transformation - Law firms need to reconsider their traditional business models, focusing on technology integration and cost management [14][22] - Options for addressing profitability pressures include passing technology costs to clients, reducing direct lawyer costs, or adopting a hybrid approach [25] Strategic Agenda - Law firms must prioritize digitization, competitiveness, talent acquisition, and client service while maintaining their core values [23][24] - The strategic agenda varies based on firm size, business model, and geographical presence [24] M&A Activity - The legal services market is experiencing an increase in M&A activity, with expectations to surpass previous records [27][28] - Firms are seeking greater scale to enhance competitive positioning and support technology investments [28][29] Future Outlook - Leadership teams in law firms must balance delivering value to clients with maintaining sustainable profitability [31] - Firms that proactively adapt to these changes will be better positioned to succeed in the evolving legal services landscape [31]

Investment Rating - The report indicates a positive outlook for the prefab housing industry, with expectations for continued growth in market share and production levels [2][28]. Core Insights - Prefab construction is projected to account for over 21% of newly built homes in the Netherlands by 2025, with expectations to reach 30-40% by 2030 [2][3][53]. - The industry is addressing labor shortages and housing shortages, with a total deficit of approximately 400,000 homes in 2025 [7][28]. - The majority of prefab homes are now apartments, with a significant increase in biobased materials usage, accounting for 30% of prefab homes in 2025 [4][32][41]. Summary by Sections Latest Market Developments - Prefab housing output has increased significantly, with a share of 21.2% in total residential construction in 2025, up from around 10% five years ago [12][13]. - The total number of prefab homes built in 2025 is approximately 14.7 thousand, reflecting an 8% increase from 2024 [4][14]. 2026 Market Outlook - Producers anticipate a 34% increase in output for 2026, projecting over 19,000 housing units, although a more conservative estimate suggests around 16,100 units [28][29]. - The industry has significant capacity for expansion, with current utilization at approximately 45% of total capacity [28]. Notable Points in 2025 - A majority of prefab players report that prefab construction is 10-20% cheaper than traditional methods, with a notable shift towards using wood as a primary material [32][33]. - The share of apartments in prefab housing has increased to 66%, with a growing trend towards biobased materials [32][41]. Player Landscape - The top 20 prefab housing producers account for 83% of total production, indicating a stable market concentration [22][24]. - The number of active producers has remained steady, with some smaller players exiting the market while others resumed production [22][24]. Key Characteristics of Prefab Housing Production - Most prefab homes are low-rise apartments, with a significant portion made from wood and a majority sold to housing associations [33][34]. - The production method is evenly split between on-site and off-site assembly, with a notable increase in automation levels [49][34]. Conclusion - The prefab housing sector is expected to play a crucial role in addressing housing shortages, with a collective effort needed to achieve the 2030 target of 50% market share [53][54].

Investment Rating - The report indicates a positive outlook for infrastructure investments in 2026, driven by renewed enthusiasm for large transactions and evolving value creation expectations [2][3]. Core Insights - The infrastructure investment landscape is expected to be shaped by two cross-industry trends: the revival of large transactions and the evolution of value creation [2]. - There is a robust demand for large transactions across various sectors, with improved financing channels and a backlog of quality assets contributing to this optimism [3]. - Value creation has become a fundamental expectation for both large and mid-sized infrastructure funds, reflecting a new standard in asset management [10][12]. Summary by Relevant Sections Investment Outlook - The report emphasizes a broad perspective on infrastructure investment trends, particularly focusing on the anticipated hotspots for mergers and acquisitions (M&A) in traditional infrastructure sectors such as transportation, energy, digital infrastructure, and social infrastructure [13][14]. Key Hotspots for Investors - **Transportation**: Interest in intermodal rail, bus operators, and aviation equipment leasing [14]. - **Energy and Utilities**: Focus on district heating, midstream assets, and water and wastewater assets [15]. - **Digital Infrastructure**: Investment in AI data centers, edge computing, and subsea cables [16]. - **Social Infrastructure**: Emphasis on healthcare equipment leasing and private hospitals [17]. Value Creation Evolution - Value creation is increasingly viewed as essential rather than optional, with a shift in focus towards operational improvements and asset performance [6][7]. - The importance of exit strategies in value creation plans is highlighted, particularly for core assets with lower capital costs [8][9]. Challenges and Strategies - Companies face complexities in balancing cash flow risk mitigation with organic revenue growth amid macroeconomic pressures [11]. - A targeted approach to value creation is necessary, involving detailed market analysis and prioritization of capital expenditures [12]. Hybrid Infrastructure Insights - Hybrid infrastructure assets, which do not neatly fit into traditional categories, are gaining attention for their critical service offerings and recurring demand [18][19]. - The report outlines the characteristics of hybrid infrastructure assets, emphasizing their importance in the evolving investment landscape [18]. Future Trends - The report anticipates a growing ecosystem of cross-sector investors, with private equity firms raising specialized funds that align with infrastructure expectations [29]. - The integration of private equity and infrastructure investments in hybrid asset areas is expected to be a key feature in the coming years [29].

Investment Rating - The report indicates a positive outlook for infrastructure investments in 2026, driven by renewed enthusiasm for large transactions and evolving value creation expectations [1][2]. Core Insights - The infrastructure investment landscape is expected to be shaped by two cross-industry trends: the revival of large transactions and the evolution of value creation [1]. - There is a robust demand for large transactions across various sectors, with optimism returning to the mid-market after years of stagnation [2]. - Value creation has become a fundamental expectation for both large and mid-sized infrastructure funds, reflecting a new standard in asset management [5][9]. Summary by Relevant Sections Investment Outlook - The report emphasizes a broad perspective on infrastructure investment trends for 2026, focusing on the impact of large transactions and value creation evolution [1]. M&A Hotspots - Key sectors driving M&A activity in 2026 include transportation, energy and utilities, digital infrastructure, and social infrastructure [12]. - Specific M&A hotspots identified are: - **Transportation**: Intermodal rail, bus operators, aviation equipment leasing [13]. - **Energy and Utilities**: District heating, midstream assets, water and wastewater assets [14]. - **Digital Infrastructure**: AI data centers, edge computing, subsea cables [15]. - **Social Infrastructure**: Healthcare equipment leasing, private hospitals [16]. Value Creation - Value creation is increasingly viewed as essential, with a shift from being optional to a core expectation for mid-sized infrastructure funds [5][6]. - The focus on exit strategies is becoming crucial, particularly for assets with lower capital costs [7]. Challenges and Strategies - Companies face complexities in balancing cash flow risk and organic revenue growth amid macroeconomic pressures [10]. - A targeted approach to value creation is necessary, involving detailed market analysis and prioritization of capital expenditures [11]. Hybrid Infrastructure - Hybrid infrastructure assets, which do not neatly fit into traditional categories, are gaining attention for their attractive qualities [17]. - Key characteristics of hybrid infrastructure include critical service provision, significant capital expenditure requirements, and high customer retention [17]. Evolving Investor Landscape - There is a growing trend of private equity firms preparing assets specifically for infrastructure funds, necessitating alignment with value creation expectations [20]. - The report anticipates an evolution in the investor ecosystem, with more funds crossing traditional boundaries between private equity and infrastructure [27].

Investment Rating - The report does not explicitly provide an investment rating for the consumer retail industry Core Insights - The consumer retail industry is undergoing significant transformation, with a focus on Direct-to-Consumer (DTC) models driven by user value, which is essential for brands to remain competitive in the evolving Chinese market [2][4] - The DTC model emphasizes understanding and meeting consumer needs, enhancing brand perception, and creating growth opportunities for distributors and partners [4][14] - The report identifies three stages of DTC transformation: initial exploration, integration of online and offline channels, and ecosystem upgrades [12][14] Summary by Sections 1. From Fast-Moving Consumer Goods to Durable Goods: The Imperative of Excellent Retail Transformation - The foundation of excellent retail transformation lies in channel integration and digitalization, which must evolve to meet consumer demands [4] - The DTC model represents a shift from traditional business models to user value-driven approaches, influenced by competition, industry development stages, and digital penetration [4][5] 2. Different Industries' Exploration of DTC - Various industries have adopted DTC strategies tailored to their specific contexts, yet common success factors exist [18] - The report highlights the challenges faced during the DTC transformation, including resource allocation and channel conflict [18][21] 3. Case Studies of DTC Transformation Across Industries - Case studies illustrate successful DTC implementations, such as a sports fashion brand achieving revenue growth from 14 billion to over 25 billion from 2019 to 2023 through effective management and digital integration [31] - Another example includes a consumer electronics brand that expanded from 200 billion in revenue in 2019 to over 360 billion by 2024 through a three-tiered store layout and digital tools [32] 4. Insights and Future Outlook on DTC Transformation - The report emphasizes that DTC remains a crucial strategy for brands to maintain competitiveness amid market pressures [44] - Successful DTC transformation requires a focus on ecosystem upgrades rather than abandoning traditional distribution channels, highlighting the importance of collaboration with distributors and enhancing service quality [44][46]

Investment Rating - The report does not explicitly provide an investment rating for the OTC pharmaceutical industry Core Insights - The OTC pharmaceutical market is highly competitive, and strong commercial relationships with customers are critical for success [1] - Effective trade terms management is essential for optimizing profitability while providing competitive incentives [5] - A holistic approach to trade terms optimization is necessary to navigate complexities in the OTC market [9] Summary by Sections Commercial Policies and Financial Impact - Commercial policies significantly impact commercial margins, with discounts, rebates, and operational expenditures affecting triple net performance [2][4] - Companies can achieve up to a 20% increase in triple net profitability through optimized trade terms management [16] Challenges in Trade Terms Management - Diverse customer needs, regulatory constraints, competitive dynamics, and the necessity for robust data analytics complicate trade terms management [6][7][8] - A tailored approach is required to meet the distinct expectations of pharmacy chains, independent pharmacies, and wholesalers [6] Benefits of Efficient Trade Management - Transitioning from on-invoice to off-invoice discounts enhances transparency and aligns incentives with sales outcomes [11] - Focusing on sell-out performance improves inventory turnover and reduces overstocking risks [12] - Increased investment in trade marketing boosts customer engagement and drives end-user demand [13] - Customized trade terms strengthen customer relationships and build long-term loyalty [14] Methodology for Trade Terms Optimization - The report outlines a comprehensive methodology for optimizing trade terms, including performance diagnosis, industry benchmarking, and tailored optimization roadmaps [15][19][20] - Financial impact modeling provides clients with insights into potential ROI from gross-to-net improvements [21] Case Study Insights - A case study revealed that a global pharmaceutical client faced inefficiencies in trade terms, leading to a decline in sell-out despite significant gross-to-net investments [24][26] - Implementing seven levers for gross-to-net optimization resulted in freeing up approximately 20% of gross-to-net investments, enhancing sell-out and driving sustainable sales growth [32] Conclusion - OTC pharmaceutical companies must prioritize trade terms management optimization to enhance gross-to-net performance while maintaining competitive commercial policies [33]

Investment Rating - The report does not explicitly provide an investment rating for the humanoid robotics industry Core Insights - The humanoid robotics market is driven by demographic trends and technological advancements, presenting both opportunities and challenges for various industries [2][4][8] - The potential for humanoid robots to address labor shortages and enhance productivity is significant, with projections indicating a market revenue potential of up to $1.5 trillion by 2050 if widespread adoption occurs [4][14] - The report outlines two scenarios for market development: a conservative scenario with limited application and a more ambitious scenario where humanoid robots achieve broad applicability [13][16] Summary by Sections Market Drivers - **Demographic Trends**: The global working-age population (ages 15-64) is projected to decline from 65% in 2020 to 58% by 2050, with significant reductions in countries like Japan (27%) and China (22%) [4][5] - **Technological Advancements**: Continuous improvements in AI, software, and hardware are enhancing the capabilities of humanoid robots, making them more versatile and user-friendly [8][9] Market Scenarios - **Ambitious Scenario**: If humanoid robots achieve general applicability by 2030, the market could see the production of approximately 50 million robots and annual revenues reaching $1.5 trillion by 2050 [14] - **Conservative Scenario**: If development is delayed, the market may stabilize at around $200 billion in annual revenue by 2050, with robots primarily used in specialized applications [13][16] Current Limitations and Challenges - **Hardware Challenges**: Humanoid robots face significant limitations in achieving natural and reliable movement across various environments, relying on complex actuator technologies [21][24] - **Software Challenges**: The integration of AI and machine learning is crucial for humanoid robots to develop cognitive and communication abilities comparable to humans [24][25] Competitive Landscape - The humanoid robotics industry is characterized by a mix of private companies and research institutions, with North America being the largest market driven by early adopters [27][29] - The report suggests that industrial players should evaluate the impact of humanoid robots on their business and consider partnerships or acquisitions to leverage market opportunities [31][32]

Investment Rating - The report does not explicitly provide an investment rating for the automotive industry Core Insights - The automotive industry is undergoing a long-term transformation driven by new technologies and geopolitical factors, with significant changes expected over the next 15 years [2][3] - The future of the automotive industry will be shaped by four key trends summarized as "PACE": Polarization, Automation, Connectivity, and Electrification [2][9] - By 2040, the penetration rate of new electric vehicle (EV) sales is projected to reach 68% in a baseline scenario and 63% in a conservative scenario [2] Summary by Sections 1. Industry Transformation - The automotive industry is experiencing profound changes that challenge traditional perceptions, with new players capturing market share from established manufacturers [10][11] - The anticipated shift towards shared mobility solutions may be limited to urban areas, which contribute less than 10% of global private vehicle mileage [12][15] 2. Key Trends Reshaping the Automotive Industry 2.1 Polarization - The market is shifting from globalization to regionalization, with different regions developing at varying speeds due to geopolitical developments, regulatory differences, and consumer preferences [22][25] - The growth of the "Global South" is notable, with emerging markets like India expected to see significant GDP growth, while mature markets are reaching sales peaks [26][27] 2.2 Automation - Automation and artificial intelligence (AI) are expected to reshape the industry, with advancements in automated driving technologies facing challenges in scalability and consumer acceptance [35][36] - By 2040, various levels of automated vehicles are anticipated to be on the roads, but the process will be gradual and dependent on regional factors [37][39] 2.3 Connectivity - The concept of Software-Defined Vehicles (SDV) will dominate, requiring manufacturers to adapt their electronic and software architectures to enhance user experience and reduce costs [53][61] - The shift towards SDV will necessitate a new approach to vehicle development, emphasizing software updates and functionality throughout the vehicle's lifecycle [53][54] 2.4 Electrification - Electrification is becoming a central theme, with the rise of electric vehicles and their integration into future energy systems, such as vehicle-to-home and vehicle-to-grid technologies [64] - The global share of electric vehicles is increasing, with structural changes in the supply chain and emerging business models as the market evolves [64]

Investment Rating - The report does not explicitly provide an investment rating for the battery industry, but it highlights significant challenges and opportunities within the sector, indicating a cautious approach to investment in the current climate [5][11]. Core Insights - The battery industry is experiencing turbulence due to volatile demand and challenges in production ramp-up, particularly in Europe and North America [11][12]. - Cost reduction is a dominant theme in the battery market, driven by structural overcapacity in China and profitability challenges for automotive OEMs [17][18]. - Sustainability remains a focus, with European CO2 reduction targets achievable through various optimization strategies [18][28]. Summary by Sections Overarching Market View - The battery market is characterized by a need for cost competitiveness amid volatile demand and overcapacity, particularly from Chinese manufacturers [17][58]. - The report forecasts a significant increase in LFP-based technologies, projecting a market share of up to 43% by 2030 due to their cost advantages [43][44]. - The competitive landscape is evolving, with Western OEMs needing to adapt to remain viable against cheaper imports from China [58][81]. Battery Materials - The slowdown in EV sales is impacting the battery materials supply chain, leading to falling raw material prices and potential supply constraints [100]. - Innovations such as LMFP and silicon-rich anodes are being explored to enhance battery performance and sustainability [100]. Battery Production - The report emphasizes the challenges of production ramp-up and the need for sustainability in manufacturing processes [14][19]. - It highlights the importance of integrating new cell chemistries into production roadmaps to remain competitive [22][53]. Product Performance - The report assesses the drivers of EV adoption and the challenges that remain, particularly in terms of battery performance and cost [14][19]. - It discusses the implications of shifting to LFP and LMFP technologies, which may require adaptations in production and supply chains [50][55]. Circular Battery Economy - The chapter on the circular economy addresses battery recycling and reuse, emphasizing the influence of EU regulations on sustainable practices [15][28]. - It identifies challenges in implementing effective recycling strategies, particularly for new battery chemistries [15][28].