Report: Industries Entering 'Convergence Era'
A new industry trends report argues that the global business landscape is being reshaped by "convergence," as boundaries between distinct sectors blur. Technology like AI and cloud computing is creating a common backbone, enabling cross-sector partnerships between finance, healthcare, and manufacturing. The analysis suggests companies that fail to form alliances outside their core industry risk falling behind.
The trend of industry convergence is accelerating, with global M&A deal value in 2025 surging by 40% to an estimated $4.9 trillion, marking the second-highest year on record for deal activity. This growth was largely propelled by a resurgence in technology M&A, which saw a 77% increase, and a significant rise in "megadeals" valued at over $5 billion. This wave of convergence is heavily driven by the integration of artificial intelligence across all sectors. In fact, non-technology companies acquiring technology firms accounted for 12% of total M&A volumes in 2024, a notable increase from the long-term average of 7%. CEOs have identified AI as the single most impactful technology for their industries in the coming years. High-profile collaborations are becoming the norm as companies look outside their traditional domains for growth and innovation. A landmark partnership announced in early 2026 between Nvidia and Eli Lilly aims to build an AI-powered drug discovery lab, uniting experts from pharmaceuticals and computer science. This follows a trend of increasing partnerships between tech companies and healthcare providers to develop everything from telemedicine platforms to AI-powered diagnostic tools. The manufacturing and automotive sectors are also at the heart of this shift. Mercedes-Benz is leveraging Microsoft's cloud to connect its passenger car plants, creating a data platform to boost production efficiency and sustainability. Similarly, collaborations like the one between Tesla and Panasonic on battery technology have been pivotal in advancing the electric vehicle market. In the financial services sector, the lines are blurring with the rise of "fintech" and "healthtech." Financial institutions are increasingly partnering with IT firms to deliver secure and seamless mobile banking experiences. There is also a growing trend of collaborations between financial institutions and healthcare NGOs to improve access to medical services in underserved communities, recognizing the link between health equity and economic development. Looking ahead, business leaders see cross-industry collaboration as essential for survival and growth. As one CEO in the renewable energy sector stated, "The future is about working together to solve problems. No one can do it alone." This sentiment is echoed across industries, with executives emphasizing that agility and the ability to form strategic alliances are critical in a rapidly evolving global market. The convergence era is also reshaping the workforce. In 2024, 59% of CEOs saw a strong need to reskill their employees to maximize the results from AI, a significant jump from just 13% in 2023. For instance, in the manufacturing sector, 68% of CEOs now see a strong necessity for reskilling, compared to only 5% the previous year, highlighting the rapid pace of this transformation. This strategic shift is reflected in investment patterns, with a notable increase in "scope deals" designed to drive revenue growth by entering new markets and acquiring new capabilities. In 2025, these types of deals accounted for 60% of large transactions, making it the biggest year on record for such strategic moves.
