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The Business of Expansion
How international businesses are harnessing growth and building resilience in an uncertain world
HSBC conducted a study of 2,700 businesses over a period of 18 months with responses from 18 markets, that have either expanded overseas in the past two years or have plans to do so in the near future. The study found that expanding into new markets remains a core strategic objective for ambitious decision-makers.
While recent upheavals in global trade and geopolitics have forced some businesses to delay their plans, many more are accelerating their expansion. These businesses are not waiting for conditions to return to a previous steady state; they are taking action to seize new opportunities and position for the future. This report offers practical insights into how international businesses are adapting their expansion plans offering new insights into the goals, drivers and strategies of internationally-minded businesses.
Download The Business of Expansion Report
International expansion is full of opportunity, but it’s rarely straightforward. This research shows where businesses are looking to grow next, what’s driving their decisions, and the real-world barriers they’re working through. We hope it helps leaders move from ambition to action with greater clarity and confidence.
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Expansion is urgent, but uncertainty is reshaping the “how” and “where”.
Overseas expansion remains a critical driver of growth and resilience, even in a volatile trade backdrop. 77% of surveyed businesses plan to expand into new overseas markets in the next two years. 48% say tariffs have hastened their expansion plans, while 20% say tariffs have held them back.
Regionalisation in practice: Diversification, near-shoring and “closer-to-home” corridors.
Businesses are often prioritising nearby and regional markets as a risk-management response to uncertainty (for example, Europe-to-Europe expansion; US to Canada/Mexico; Mexico to the US, reflecting near-shoring). Expansion appetite is especially strong in high-growth markets including Mexico, Southeast Asia, the UAE and India, and UK businesses also rank among the most expansion-minded.
Expansion drivers and constraints: What’s pushing firms outwards, and what’s slowing them down.
The two most common triggers are growth (38% cite as a top three driver) and supply chain management/resilience (35%). The biggest barriers are economic factors (35%) and regulation/trade policy (34%), with political factors also a major concern, reflecting ongoing tariff and geopolitical uncertainty.
Industry lens: TMT leads the charge, while motivations vary by industry.
Technology, Media and Telecoms (TMT) is the most expansion-oriented industry, with 81% planning to expand in the next two years. Industry priorities differ: Consumer businesses are disproportionately focused on supply chain resilience, while TMT firms are predominantly motivated by growth. For Healthcare, people resources are a primary driver, reflecting reliance on skilled workers when entering new markets.
Note
This study, a mix of quantitative and qualitative methods, took place over a period of 18 months across 18 markets, concluding in Q1 2026, and was conducted by Intuit Research. This study is not a product of HSBC Global Investment Research.
The quantitative survey comprised 2,703 financial decision makers who expressed plans to expand to new markets in the next two years or had done so in the past two years. All respondents represented businesses with annual turnover between USD50 million and USD2 billion across a mix of sectors, including: consumer; technology, media and telecoms; energy, materials and power; healthcare; commercial real estate; transport and industrials; conglomerates; professional services; and institutions. Responses were collected in December 2025 and January 2026. The sample was spread equally across all markets with at least 150 responses from each of the following: Australia, Mainland China, France, Germany, Hong Kong, India, Indonesia, Japan, Malaysia, Mexico, the Philippines, Singapore, South Korea, Thailand, Vietnam, the UAE, the UK and the US.