Your Thematic Partner
Who would have imagined 20 years ago that today a smartphone can be personalized using facial recognition? Or the city air can be improved by CO2 vacuum cleaners? There are many developments that will fundamentally change our world.
At Amundi, we have been developing innovative thematic solutions for more than a decade, and we believe four particular megatrends are not only shaping the future, they are also providing investment opportunities. These megatrends are Environmental challenges, Demographic and social challenges, Technological Revolutions and Economic shifts. We believe they will inform the way the world develops and, together, bring about seismic shifts in societies, ecologies, technologies and economies.
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Megatrends determine our future
So what are Megatrends? Megatrends are big, far-reaching changes that have enormous social, ecological, technological and economic effects. They allow conclusions to be drawn about the areas, sectors and regions in which economic value creation will take place in the future. Recognizing the potential of megatrends and investing in future-oriented companies and business areas today may give investors the opportunity to align their portfolio with long-term growth.
Demographic and social change, technological revolutions, shifts in the global balance of power or ecological challenges - four megatrends that will have a major impact on our future. At the same time, these megatrends seek to offer sustainable growth opportunities from which you as an investor can benefit.
Megatrend 1: Environmental Challenges
Populations and cities are growing - a major task with regard to the environment. In 2030, 50%3 more energy will be required in the world, while by 2025 1.8 billion3 people will be living in regions with acute water scarcity. The challenges are diverse and open up opportunities for companies that are developing solutions today for the ecological problems of tomorrow. 6
For example, companies benefit from this in the following areas:
- Renewable energy: Energy Transition and Circular Economy
- Water supply and technology: Biodiversity
- Sustainable agriculture
Biodiversity: Biodiversity is all around us. It underpins not only our economy but also our very existences.
Circular Economy: A new model of production and consumption, seeking to deliver a broad variety of environmental and societal benefits.
Energy Transition: The pathway towards transformation of the global energy sector from traditional energy sources to zero-carbon.
Discover more about the Environmental Challenges Megatrend:
Nobody can turn back time. But everyone can shape the future. Question consumer decisions, reduce your own CO2 footprint or invest sustainably.
Achieving the global net zero objective means an opportunity to invest in organisations and projects that seek to preserve Earth’s natural resources.
Megatrend 2: Demographic & Social Challenges
Metropolises are growing more and more and our society is getting older and older. In 2050, it is believed 68% of the world's population will live in metropolitan areas - in India alone that will be around 416 million more people.3 At the same time, 2.1 billion people worldwide will be over 65 years old, 130 times more than in 2015.4
Companies in the following sectors, for example, could benefit from this growth trend:
- Infrastructure developments
- Medical equipment and services
- Age-appropriate mobility
Discover more about the Demographic & Social Challenges Megatrend:
Megatrend 3: Technological Revolution
We are in the middle of a rapid technical change. Two examples - in 2030, 15% of all newly sold cars in the world will drive autonomously1. And already today 100 million consumers are shopping using augmented reality2. This requires huge amounts of data to be processed in real time and networked with one another using intelligent systems.
This may create opportunities for companies in the following areas, for example:
- Processing of large amounts of data (big data)
- Artificial Intelligence (AI)
- Electric vehicles and autonomous driving
Megatrend 4: Economic Shifts
India, the largest democracy in the world, could replace the USA as the second largest economy by 2050.5 In general, the strong population growth and a new middle class in the emerging countries could become the economic engine.
In 2050, half of global gross domestic product (GDP) could be generated in the seven largest emerging countries - and only 9% in Europe4 . Including:
- Brazil and Mexico
1 McKinsey & Company, Automotive Revolution - Perspectives towards 2030, 2016
2 Gartner's Top 10 Strategic Predictions for 2017
3 United Nations, World Population Prospects, 2017 revisions
4 PWC, The World in 2050
5 National Intelligence Council, Global Trends 2030: Alternative Worlds
6 National Intelligence Council
Views and opinions are as of February 2022 and are subject to change.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of March 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Date of first use: March 2022. Doc ID#2010730