A megatrend is global in nature, broad in scope, transformative to society and long term in nature. Megatrends are often inter-related and can amplify each other like ripples on a lake. Megatrends present great opportunities but also great risks.
In this presentation, we have identified five global megatrends, being:
Demographics and social change - By 2050 the global population is projected to reach 9.8bn people. 1/4 of these people will be aged over 60 and 2/3 will live in urban areas (up from 1/3 in 1950). Meanwhile, 60% will be middle class and most will never have known life without the internet.
Sustainability - Growing populations that are increasingly prosperous will lead to increased strain on the planet's resources, particularly food, water and energy. Climate change could exacerbate these problems with droughts and extreme weather events. As a result, the public and private sectors are increasingly focused on ESG issues.
Technological change (the 4th Industrial Revolution) - First came Steam, then Electricity, then Information Technology and now the Digital Revolution is upon us, some 20 years after the Nasdaq tech boom first predicted such major changes to society.
Globalisation vs Nationalism - Globalisation has boosted the flows of goods and services, labour, capital and technology providing net benefits to global growth and reducing poverty in developing nations. But many are concerned about trade imbalances, wealth and income inequality, business disruption, job insecurity and harm to the environment.
Rising debt levels - Post GFC, debt levels continue to rise across the developed world and China. Austerity has been discarded for fiscal stimulus and higher debt levels. Are we all marching into the next financial crisis?
Click here for the Bluebird Global Megatrends presentation.