The Asia-Pacific (APAC) region has once again proven its economic might, dominating the 2024 Forbes Global 2000 list. With 771 companies headquartered in APAC contributing to a significant 38.5% of the total revenue, the region’s influence on global business is undeniable. According to a report by GlobalData, these APAC companies generated an impressive $18.5 trillion out of the total $51.9 trillion in aggregate revenue across all listed firms.
In comparison, North America took second place, with 688 companies contributing $19.8 trillion to the global revenue pool. Europe followed with 420 companies, accounting for $11.5 trillion. The Middle East and Africa, though less represented with 67 companies, generated a combined revenue of $1 trillion, while South & Central America, with 55 companies, contributed $1.02 trillion.
When it comes to profitability, North American companies led the way, accounting for 43.2% of the total $4.6 trillion profit pool from the Forbes 2000 list. APAC was close behind, contributing 29.6%, while Europe managed 20.6%. The Middle East and Africa took 4.8%, and South & Central America contributed 1.9%.
Interestingly, despite having fewer companies on the list, the Middle East and Africa outshone other regions in terms of profitability per unit of revenue. The region boasted a net profit margin of 21.8%, a figure that dwarfs the 9.9% margin seen in North America. South and Central America posted an 8.6% margin, Europe 8.1%, and APAC 7.3%.
The top five sectors by revenue accounted for a significant 65.6% of the 2024 Forbes 2000 revenue pool. This means $34 trillion and 1,126 companies came from a select few industries, underscoring the concentration of wealth and influence within these sectors.
Among the sectors, financial services, technology & communications, and oil & gas were the standout performers in terms of profitability. These industries combined to generate over $1.5 trillion, $783.2 billion, and $585.7 billion in profits, respectively. The technology & communications sector also reported the highest net profit margin of 12.7%, closely followed by financial services at 12.4%. Pharmaceuticals and healthcare posted an 11% profit margin, consumer goods 8.8%, and oil & gas 8.5%.
This year’s Forbes 2000 list also saw some notable first-time entries. Companies such as GE Vernova, GoDaddy, and Jio Financial Services made their debut, highlighting the ever-evolving landscape of global business and the emergence of new players on the world stage.
Murthy Grandhi, a Company Profiles Analyst at GlobalData, commented on the dominance of the financial services and oil & gas sectors in the 2024 Forbes Global 2000 list. He pointed out that these sectors are essential to global economic activities and play a critical role in sustaining energy supply chains. Financial services, in particular, have thrived on innovations in digital banking, increased consumer access to financial products, and evolving investment landscapes.
Meanwhile, the oil & gas sector, despite the global push towards renewable energy, remains integral to meeting ongoing energy demands. However, the sector is increasingly focusing on sustainable practices and the transition to renewable energy sources. This shift is expected to play a significant role in the sector’s future, as it navigates the balance between traditional energy production and green energy initiatives.
Looking ahead, the financial services sector appears poised for continued growth, driven by technological advancements and evolving regulatory environments. The oil & gas sector, on the other hand, faces the challenge of adapting to changing energy demands while balancing its role in traditional and renewable energy sources. Economic growth, technology adoption, and shifting consumer preferences will be key factors shaping the future of these sectors.
As APAC continues to flex its economic muscle on the global stage, the region’s influence in key sectors like financial services, technology, and energy will only grow. The 2024 Forbes Global 2000 list is a clear reflection of this trend, showcasing the region’s ability to lead in revenue generation and profitability across a diverse range of industries.
