Perspectives

Life in the time of COVID-19, the sectors set to change in the post-pandemic world

29 April 2020

The current near global quarantine as a result of COVID-19 has resulted in major shifts in work, technology and human consumption patterns. In a recently published report from Macquarie Equities Research, the team highlights the many ways today’s global health crisis is impacting core industries including software, technology, lifestyle, digital payments, media and more.

The team provides a high-level, “Think Tank” view of what happens next in a world post-COVID, and how we can prepare for and invest in the future.

Among the team’s key findings:

  • In software, there will be an acceleration in the move to a remote work force, as it can mean material real estate savings. The team expects a rise in new technologies, including cyber security for endpoints, remote access through VPNs or cloud enablement, collaboration tools, communications solutions and more overall cloud usage.

  • We’re seeing major shifts in media consumption that will lead to more streaming services, demand for better broadband and perhaps an acceleration of 5G. Broadband penetration in households will rise to nearly 100% at faster speeds as cord cutting will accelerate, with linear TV dwindling and streaming becoming the new standard. TV ad buying will have to become much more programmatic; and the concept of “reach” will change to targeting users.

  • Gym closures have made interactive, in-home platforms the centerpiece of daily fitness. Recent limitations on fitness experience have likely been a tailwind to interactive in-home platforms across verticals.

  • In many markets, hotels are experiencing occupancies well below the all-time record peak occupancies of >70% prior to COVID-19. And moving forward, the usage of universal communication and collaboration tools may result in less business travel overall.

Equities clients can access the full report here.

The data provided in this article is for information purposes only and should not be construed as investment or tax advice nor as a recommendation to buy, sell, or hold any particular security. Macquarie believes the data in this article is accurate but does not verify its accuracy independently and does not warrant or guarantee that it is accurate or complete. Macquarie has no obligation to provide any updates or changes to the data. No investment decisions should be made using this data.

To the extent this article includes material from the Macquarie Equities Division, please click here for information relating to Securities Division material and your reliance on it.