Transformative trends driving development

Sustainability, demographic changes and digitalisation are trends that are impacting Sweco in terms of demand for consulting services, as well as Sweco’s strategic priorities. The global environment is also marked by the current geopolitical situation and a greater need for technical expertise in the labour market. Strengthening readiness and resilience has become increasingly important in many sectors of society.

Sustainability and the green transition

The need to address climate challenges is the major catalyst for the green transition that is underway in Europe. Extreme weather events cause major stresses on buildings, infrastructure and supply chains, which increases the need for investments in climate adaptation and resilience. The green transition will therefore be a key driver of the EU’s investments for sustainable development and strengthened competitiveness. The European Green Deal, including the Clean Industrial Deal and RePowerEU, are important components of the growth strategy and financing initiatives that will stimulate the transition in Europe. In parallel with this, investors, clients and societal stakeholders are tightening sustainability requirements with stricter standards and regulations, which also apply to social and economic aspects.

Demographic changes

The share of the population living in cities in Europe is expected to rise to around 84 per cent by 2050. Cities and urban environments play a leading role in the green transition. This involves reducing cities’ environmental and climate impact, adapting buildings and infrastructure to climate change, electrifying and optimising sustainable transport, and applying an efficient and circular use of resources. It also involves managing social aspects such as integration, unequal living conditions, public health and new working habits. The major global trend is towards an ageing population and declining birth rate. The share of the EU population aged 65+ is expected to increase from 20 to 30 per cent by 2070. This will place demands on eldercare, healthcare and pharmaceuticals, while forms of housing, infrastructure and services will need to be adapted.

Digitalisation and AI

Digital technology is evolving rapidly, after generative AI’s big breakthrough in 2023. A new type of urban planning is emerging based on digital solutions combined with the green transition and optimisation of flows and resource use. Demand for data capacity and advanced connectivity services are driving increased demand for large data centres, fossil-free electricity and secure telecommunications infrastructure. Accelerated digitalisation and the use of AI are transforming business models, with data-driven insights and automated processes becoming crucial for supporting innovation and maintaining companies’ competitiveness.

Growing need for technical expertise

There is a skills shortage in Europe in a range of critical areas associated with the sustainable transition. To prevent countries and sectors from losing their competitiveness and innovation capacity, more engineers and experts are needed with the requisite expertise in areas such as energy, industry, transport and digitalisation. More young people need to complete STEM (Science, Technology, Engineering and Mathematics) programmes in order to meet the need for technical skills. Career realignment and further training opportunities for those who have already completed an engineering degree need to be improved. More action is needed to improve the mobility of workers within the EU and remove barriers for international competence sourcing.

Readiness and resilience in geopolitical and economic uncertainty

Global economic and geopolitical uncertainty has not subsided. While inflation stabi-lised somewhat at lower levels, the effects of the recession were felt during 2024. The situation is being handled differently in different countries in terms of supporting economic recovery with investments in growth, labour market measures and expanded welfare. The deteriorating security situation in several regions calls for stronger total defence and readiness, resulting in investments in infrastructure, energy supply, drinking water management, physical security, and information and cyber security. In times of uncertainty, clients are also stepping up their efforts to develop resilient business models and supply chains in which sustainability and the green transition play an important role.