Where should we expand next? Which markets offer the best opportunities?

The world shifts constantly, presenting both challenges and unprecedented opportunities. Are you ready to seize them? As a business leader, you face the critical question: where do we expand next to secure sustainable growth and maximise impact? This playbook provides a strategic compass, helping you identify and capitalise on the most promising new markets.

The Global Growth Imperative: Finding Your Next Horizon

In today’s dynamic global landscape, relying solely on established markets can limit your potential. Stagnation is the silent killer of growth. Forward-thinking businesses actively seek new frontiers to diversify revenue streams, access untapped customer bases, leverage emerging talent pools, and achieve a competitive edge. The challenge lies in discerning genuine opportunities from fleeting trends and navigating complex international environments. We will equip you with a robust framework to make informed, data-driven expansion decisions.

1. Navigating the Landscape: A Data-Driven Approach to Emerging Markets Expansion

Successful emerging markets expansion hinges on a deep understanding of economic fundamentals, technological adoption, and evolving consumer behavior. Let’s delve into the data and expert insights shaping global opportunities as of mid-2025.

2. Global Economic Pulse: Shifting Growth Dynamics

The global economy currently navigates a complex environment of policy uncertainty and geopolitical risks. While global growth is projected to slow to 2.3% in 2025 nearly half a percentage point lower than initial expectations a global recession is not anticipated (World Bank, June 2025). This slowdown is more pronounced in developing economies, projected to grow at 3.8% in 2025 before marginally increasing to 3.9% in 2026-2027. However, this still represents over a percentage point lower than the 2010s average, highlighting the need for selective and strategic entry.

Key Regional Insights (ADB, World Bank, July 2025):

• Asia and the Pacific: Growth forecasts for developing Asia and the Pacific are trimmed to 4.7% in 2025 and 4.6% in 2026, primarily due to higher US tariffs and trade uncertainty. However, subregions like the Caucasus and Central Asia see an upward revision to 5.5% for 2025, driven by strong government spending and oil production in Kazakhstan.
• South Asia: This region projects moderation to 5.8% in 2025, firming to 6.2% in 2026-2027, with India playing a pivotal role.
• Sub-Saharan Africa: Growth is expected to edge up to 3.7% in 2025, averaging 4.2% in 2026-2027, driven by youthful populations and increasing digital adoption.

3. High-Potential Emerging Markets for 2025

As of July 2025, several emerging markets present compelling opportunities for emerging markets expansion due to robust economic fundamentals, favorable demographics, and proactive government policies:

• India: Positioned as a hub for IT and pharmaceuticals, India’s fastest-growing sectors include Information Technology (IT) and Digital Services, Green Energy and Renewables, Defense and Aerospace, and Electric Vehicles (EVs) (ICICIdirect, June 2025). The IT sector, benefiting from the global digital shift and remote work culture, continues its strong growth trajectory. The Indian IPO market is also booming, with Rs 2.58 lakh crore (approximately USD 30.9 billion) in IPOs lined up for the second half of 2025, signaling strong investor confidence and a vibrant business ecosystem (Times of India, July 2025).
• Vietnam: Benefiting from the “China+1” trend, Vietnam offers special deals on land lease fees, corporate taxes, and import/export duties, attracting manufacturing and export-oriented businesses (AQUIS Capital, July 2025; Briars Group, February 2025).
• Indonesia: Southeast Asia’s largest economy and a G20 member, Indonesia boasts youthful demographics, an expanding middle class, abundant natural resources, and a booming digital economy. The country is heavily investing in infrastructure and presents compelling opportunities for early investors in carbon-free energy (Briars Group, February 2025).
• Philippines: This market benefits from a proficient English-speaking workforce and competitive operational costs, particularly in the Business Process Outsourcing (BPO) industry, which contributed approximately US$32.5 billion in 2022 and employed over 1.3 million Filipinos (Briars Group, February 2025).
• Nigeria: With a youthful population and increasing digital adoption, Nigeria is a critical hub for fintech, agritech, and e-commerce. Every $1 invested in digital technology adds a remarkable $8 to the Nigerian economy, with major opportunities in connectivity, cloud computing, and AI (Briars Group, February 2025).
• Kenya: Offers attractive growth prospects due to youthful populations, increasing digital adoption, and favorable government policies promoting foreign investment (Briars Group, February 2025).
• Colombia, Chile, Peru, Brazil: These Latin American economies show strong momentum, attractive valuations, and are in the early to middle phases of their business cycles, particularly for long-term expected returns (The Emerging Markets Investor, July 2025).

4. Industry-Specific Growth Trajectories

Beyond geography, certain industries consistently demonstrate high growth potential:

• Information Technology (IT) and Digital Services: Driven by the global digital shift, cloud computing, AI, and IoT adoption, this sector remains a powerhouse. Cybersecurity, in particular, is projected to reach $366.1 billion by 2028 (Volopay, January 2025).
• Green Energy and Renewables: The global push for sustainability and reduced reliance on fossil fuels fuels significant investment. India’s goal of 500 GW of clean energy by 2030 and Latin America’s $15B investment in solar and wind projects exemplify this trend (ICICIdirect, June 2025; Delphos, January 2025).
• Healthcare and Pharmaceuticals: Continues to grow rapidly, fueled by technological advancements like telemedicine and AI-powered diagnostics, addressing healthcare access and quality (Volopay, January 2025; Delphos, January 2025).
• Electric Vehicles (EVs) and Auto Ancillaries: Government incentives (like India’s FAME II policy), high fuel prices, and expanding charging infrastructure are driving this sector’s expansion (ICICIdirect, June 2025).
• Infrastructure and Urban Development: Urbanisation in emerging markets necessitates significant infrastructure investment, with projects like Indonesia’s $34B capital relocation project showcasing massive potential (Delphos, January 2025).

5. Expert Insights: Seizing the Momentum in Emerging Markets Expansion

“Businesses must embrace a ‘glocal’ strategy for emerging markets expansion – thinking globally but acting locally,” observes our lead strategist in Market Entry. “Successful entry requires more than just market size; it demands cultural fluency, regulatory agility, and a genuine commitment to localising operations and value propositions. Early movers often establish strong brand loyalty, which becomes a significant barrier to entry for later competitors.”

Industry leaders consistently emphasise the importance of deep market research and phased entry. As McKinsey often illustrates with examples like DBS’s digital transformation in diverse Asian markets, understanding specific consumer behaviors and regulatory nuances is paramount. Similarly, our own internal simulations in “game lab” scenarios highlight that agility in adapting to unforeseen local challenges dramatically impacts long-term success.

6. Structured Sections for Strategic Market Selection

To effectively evaluate and select your next expansion market, systematically assess these critical factors:

• Market Attractiveness

1. Market Size & Growth: Quantify the addressable market, focusing on projected CAGR for your industry. For example, the digital economy in Nigeria is seeing an $8 return for every $1 invested, indicating significant growth potential (Briars Group, February 2025).
2. Customer Demographics & Needs: Understand the target audience’s purchasing power, cultural preferences, and unmet needs. For instance, youthful populations in Sub-Saharan Africa and Southeast Asia represent future consumer growth.
3. Competitive Landscape: Analyse existing competitors, their market share, strategies, and potential vulnerabilities. Is the market underserved, or can your unique value proposition carve out a niche?
4. Regulatory Environment: Assess ease of doing business, foreign investment policies, intellectual property protection, and potential trade barriers (e.g., US tariffs impacting Asian growth, as noted by ADB, July 2025).

• Strategic Fit

1. Alignment with Core Capabilities: Does the market leverage your existing strengths, or does it require significant new capabilities?
2. Value Chain Synergy: Can you integrate your operations smoothly into the local supply chain and distribution networks?
3. Risk Assessment: Identify political, economic, operational, and cultural risks. The World Bank (June 2025) highlights heightened trade tensions and policy uncertainty as key global risks.

• Entry Strategy & Execution

1. Entry Modes: Evaluate options like exporting, licensing, franchising, joint ventures, acquisitions, or greenfield investments. Each has unique risk-reward profiles (TimesPro, May 2025). For example, exporting offers low cost and minimal risk, while wholly-owned subsidiaries provide complete control but require high investment.
2. Resource Allocation: Determine the capital, human resources, and time commitment required.
3. Local Partnerships: Identify potential partners who offer local market knowledge, established networks, and cultural insights.

7. Forward-Looking Perspective: The Decade of Emerging Markets

We anticipate the next decade will solidify the prominence of emerging markets as drivers of global economic growth. The ongoing digital transformation, coupled with significant investments in green energy, infrastructure, and healthcare, will continue to fuel robust expansion. Artificial intelligence, particularly in data collection and analysis, will become even more critical for predictive insights and personalised market approaches (Bastion Agency, 2025). Geopolitical shifts and evolving trade policies will continue to shape market dynamics, requiring businesses to maintain agility and diversification.

Actionable Takeaways for Smart Expansion

1. Prioritise Data-Driven Decisions: Conduct rigorous market research using the latest data from reputable sources. Avoid anecdotal evidence.
2. Embrace Agility and Localisation: Develop flexible market entry strategies that allow for adaptation to local nuances. Invest in understanding cultural contexts and building local teams.
3. Focus on Digital Transformation: Leverage digital platforms and technologies (AI, e-commerce, fintech) to optimise operations, reach new customers, and enhance efficiency in new markets.
4. Assess Risk Holistically: Beyond economic indicators, evaluate political stability, regulatory changes, and infrastructure maturity.
5. Build Strategic Partnerships: Collaborate with local entities to navigate complex environments, access local talent, and accelerate market penetration.

The Future Awaits: Chart Your Course for Emerging Markets Expansion

The global economy is recalibrating, and the most astute business leaders are already looking beyond traditional horizons. Emerging markets expansion isn’t just an option; it’s a strategic imperative for sustained growth and resilience. By embracing a data-driven, agile, and locally focused approach, your organisation can unlock incredible opportunities and secure its position as a global market leader.