A global update on the impact of the Covid-19 outbreak across various sectors. As per the report from the World Health Organization on Coronavirus Disease 2019 (COVID-19) on 29th March 2020, total confirmed cases accounted as 634835 and total number of deaths were 29,957 as of 29th March 2020. The global pandemic has already impacted the global economy considering various sectors. Report Ocean studied various sectors and the intensity of impacts witnessed by the sectors.
Banking segment will witness moderate risk considering potential disruptions in the form of liquidity squeeze, lower trading revenue, bank closures and deposit runs among others.
Insurance segment will be at high risk owing to increasing rate of mortality, loss in businesses and other issues that increase the rate of claims.
Upstream segment valued to be at high risk, owing to increased financial distress and reduced production by major countries such as the United States and Middle East.
Midstream segment analysed to witness medium-paced risk as lower oil consumption by major countries lead to reneging the contract led by Chinese LNG importers. Also, the U.S. and Asia are majorly impacted regions considering the midstream domain of the energy sector.
Downstream segment calculated to be at high risk considering the U.S. and Asia as highest impacted regions. Global slowdown will lead to decline in demand of crude oil in majority of regions. Lockdowns in major countries impact the demand of aviation turbine fuel that falls significantly.
The biopharma segment will witness moderate risk majorly disruption area includes novel product commercialization and biologic or drug supply. Although vaccine businesses will witness a substantial growth rate, owing to sudden outbreak of COVID-19 worldwide and continuous growth in mortality rate with no particular medication to treat disease (until now). Moreover, the infectious disease category is estimated to record high research and development expenditure and other competitive strategical developments by related companies.
The diagnostics segment of the Healthcare sector will face limited level of risk, as lockdown hinder the demand of routine lab testing. Although, in the long-term the diagnostic business is likely to witness steep growth rate owing to growth in uptake of preventive measures by population of almost every age category.
The Medical Device segment is analysed to witness moderate risk as large MedTech companies are highly depends upon China for businesses. On the other hand, the sector will witness short-term growth in demand form face masks, hazmat suits, nursing gowns, medical gloves, sanitizers and disinfectants among others.
The telecom segment is analysed to witness moderate risk with North America, APAC and EMEA as highly impacted region. Difficulty or delay in paying bills by customers and impact on equipment supply will be the reason of impacts. The segment is likely to witness a possible delay in 5G network rollouts and lack in bill payments by some customer segments will result in decline in revenue collection for operators. Although, some regions have witnessed surge in usage of data during the lockdown period.
B2B software segment will leverage opportunities during the time of Coronavirus pandemic, owing to increase in remote working and downstream effect of disruption in hardware supply.
IT and Enterprise Hardware segment is estimated to witness high risk specifically in North America, EMEA and APAC region. Increase in remote working, delayed in product launches, supply chain hinderances and less in-office demand of IT solutions.
Auto Parts Suppliers, Original Equipment Manufacturer, Ride Hailing and Vehicle Retailers are at very high risk. The high risk is attributed to shutdown of supply chain in major regions and closure of manufacturing plants and retail outlets in some regions due to lockdown. The automotive segment may shift their supply chain to the less infectious regions.
Consumer, Retail and Hospitality
The consumer segment is high at risk due to factory shutdowns and supply chain disruptions. Panic buying is putting significant pressure on manufacturers to increase the manufacturing of hygiene-related products and high dependency of countries considering imports from the APAC regions will delay the product availability.
The retail segment is also at high risk owing to lockdown in major developed and developing regions, major decline in store traffic and supply chain disruptions. Social distancing and pandemic status will highly impact the business of this segment and in the long-term, lack of workers will also hinder the operations across the industry. The retail industry can seek opportunity by focusing on delivering products at doorstep through delivery channels or unmanned deliveries.
Hospitality segment is analysed to be at severe risk during and even after the pandemic. Social gatherings and events will not be allowed by various countries owing to the risk of coronavirus. This will be the worst hot sectors among many for the long-term.