According to the report, the global economy is entering what researchers call the fifth industrial revolution, where AI and digital technologies transform production, infrastructure and society. This shift is expected to trigger a series of smaller investment waves across different sectors.
The first phase is already visible in areas such as hyperscalers, data centres, semiconductors and AI systems, which have seen rapid growth in recent years. As these segments mature, new sectors are likely to enter what the strategists describe as an “explosive growth phase”.
“We expect a sequence of sector supercycles as the economy transforms and new supply shortages emerge”, says Thomas Thygesen, Head of Strategy Research at SEB.
Unlike previous cycles dominated by US technology companies, the next phase is expected to focus more on physical industries. These include autonomous capital goods, clean energy systems, defence technology and mining – areas where Europe has a stronger position.
The report highlights that large-scale economic transformations have historically been linked to geopolitical competition. Such “arms races” to deploy new technologies have often led to long periods of rising equity markets alongside weaker bond markets.
This pattern is now reappearing, according to SEB’s analysis, suggesting a supportive long-term environment for equities.
To explain the process, the researchers use a simplified “30-30-30 model”, based on past industrial revolutions. It describes how technological change begins with innovation, moves through rapid expansion, and eventually becomes widely adopted across society.
As the cycle progresses, early-stage technologies give way to broader applications, from factory automation to energy systems and infrastructure.
For investors, the key challenge is timing. Identifying which sectors are about to move from preparation to rapid growth could determine future returns.
“We believe the focus will gradually shift towards the physical build-out of the new economy”, Thygesen says.
In addition to Thomas Thygesen, equity strategists Elizabeth Nørgaard Mathiesen and Mads Bossen have contributed to the report. The full version of the report is only available to SEB’s equity research clients.