Looking ahead: business trends for 2025

By Sussex Innovation.

As we stand at the start of another new year, 2025 looks set to be another year of transformative change. From political and economic upheaval around the world, to the widespread adoption of new technologies and the continuing push towards a more sustainable and equitable society – there are multiple interconnected trends that are sure to have long-lasting impact on how we do business.

Sussex Innovation’s in-house market research team have taken a look at some of these trends, drawing together insights from reports by Deloitte, CB Insights, Mintel, Ibis, and industry experts, dissecting their forecasts and demystifying the implications for SMEs looking to grow and scale.

The global political and financial landscape

The economic trends shaping 2025 will be deeply influenced by geopolitics, inflation, migration flows, and policy decisions that will have a profound impact on global businesses and consumer behaviour.

The US economy remains robust, driven by technological innovation and strong consumer spending. However, rising interest rates – a tool to combat persistent inflation – are likely to increase borrowing costs for businesses, potentially slowing investment growth.

Trump’s administration is expected to prioritise protectionist trade policies, likely reigniting tensions with China over tariffs and technology exports. For businesses in the UK and around the world, this could mean increased costs for goods reliant on Chinese components, particularly in sectors like electronics and automotive manufacturing.

Trump’s push for deregulation and tax cuts may boost US-based industries, but could create volatility in global financial markets. Consumer confidence within the US is projected to remain divided – and in the UK, Trump’s policies are likely to impact exports and create uncertainties for SMEs involved in transatlantic trade.

The EU continues its slow recovery from the pandemic, with GDP growth projected at 1.3% in 2025. Energy independence remains a priority following the Russia-Ukraine conflict, pushing investments in renewable energy and reshoring critical industries.

Policies such as the European Green Deal and the Corporate Sustainability Reporting Directive (CSRD) are reshaping industries, compelling businesses to adopt greener operations and increase transparency. Although the UK is not a signatory to these regulations post-Brexit, the new environmental and sustainability norms are likely to impact anyone intending to do business across EU borders.

Migration flows into the EU are reshaping labour markets, with industries like construction, healthcare and logistics benefiting from an influx of workers. However, political tensions surrounding immigration policies could create uneven labour distribution across member states.

Closer to home

The UK faces a unique blend of challenges and opportunities under the Labour government, which is prioritising health sector investment, sustainable infrastructure, and regulatory reforms to drive productivity and economic growth. Despite slow projected GDP growth in 2025, the government’s policies aim to address structural weaknesses while maintaining fiscal discipline.

The NHS remains a top priority, with the government pledging £8 billion in additional funding to reduce patient backlogs and improve staffing levels. This focus on healthcare modernisation is expected to boost medtech and healthtech opportunities, particularly for SMEs developing AI-powered diagnostic and patient management systems. However, questions remain about long-term funding sustainability and how easy it is to engage with procurement processes within the NHS.

Inflationary pressures are expected to ease throughout 2025, and while lower borrowing costs may support business investment, cautious consumer spending amidst the ongoing cost-of-living crisis will challenge B2C businesses to offer value-driven solutions.

The government’s proposed planning reforms aim to address housing shortages and boost residential investment. By easing restrictions on urban development, these changes could gradually improve labour mobility and productivity. However, the long-term impact on GDP growth depends on effective implementation and alignment with environmental standards.

Emerging technologies

Generative AI and AI agents are predicted to continue their rapid development in 2025, reshaping industry sectors on a larger scale than anything seen since the arrival of the internet. However, even as AI becomes more ingrained into our everyday lives, much of the technology is still unproven and evolving faster than our ability to keep up with it, creating thorny issues for any SME planning to use it effectively and ethically.

Healthtech and medtech

Healthcare is one of the industries that has been earmarked for transformation by these emerging AI technologies – but there is still uncertainty over how it might be implemented within an organisation of the scale and complexity of the NHS. Nevertheless, global technology businesses are investing in transformative healthtech and medtech innovations that may become a reality sooner than we think.

Sustainability and social purpose

With energy independence and the transition from fossil fuels becoming an ever more pressing concern, incoming legislation is prompting all forward-thinking businesses to act on their net zero plans. It’s part of a wider pattern of “for-purpose” brands not only supporting social causes, but embracing them as the foundation of their identity and business model.

More detailed information on Data and AI, HealthTech, Sustainability and Social Purpose can be found in a longer version of these trend reports on the Sussex Innovation website.