The world is changing faster than we can imagine. New technologies, changing lifestyles, and global events are creating strong and long-lasting shifts. These are called megatrends, which are big changes that shape how people live, work, and spend money. They can also open up fresh investment opportunities.
Let’s take a look at the top 5 global megatrends that are expected to play out over the 10 years, and how you can consider incorporating these in your portfolio.
Technology and digital growth are transforming industries
We live in a hyper-digital world. From how we shop to how we learn, everything is
moving online. This change is only going to get bigger in the coming years.
- Artificial Intelligence (AI) is helping companies work improve productivity and scale.
- Digital payments, online learning, and e-commerce are becoming common even in smaller towns.
- 5G internet and cloud computing can further enhance connectivity, access and efficiency.
As of 2023, India had approximately 821 million active internet users, according to the Internet and Mobile Association of India (IAMAI). This number is expected to cross 900 million by 2025. Globally, McKinsey estimates that artificial intelligence and automation could contribute up to $13 trillion to the world economy by 2030, potentially boosting global GDP by about 1.2% annually.
According to the World Economic Forum, digital transformation is one of the top drivers of business growth worldwide.
Investing in companies that focus on technology, AI, software, and digital services can offer access to the growth potential that these changes can offer.
Also Read: What is megatrend investing?
Green energy and climate action are picking up speed
Climate change is real, and the world is now working hard to fix it. Countries are slowly moving away from coal and oil and turning to clean energy sources like solar, wind, and hydropower.
- Electric vehicles (EVs) are increasingly affordable and widely adopted.
- Solar panels and wind farms are growing quickly in India.
- Governments are giving tax benefits and incentives for green energy projects.
According to the International Energy Agency (IEA), global investment in clean energy technologies is projected to reach around $2 trillion annually by 2030. India, as part of its climate commitments, aims to achieve 50% of its installed electric power capacity from non-fossil fuel sources by 2030.
Sectors associated with renewable energy, sustainable transport, and environmental technology may benefit from this transition, offering a potential investment opportunity.
The rising middle class is changing the economy
More and more Indians are moving into the middle-income group. This means they have more money to spend and save. This is leading to big changes in how people live.
- Families are spending more on education, healthcare, travel, and entertainment.
- People want better quality goods, like branded clothes, smartphones, and vehicles.
- There is increasing demand for housing, insurance, and financial products.
According to research from the Brookings Institution and OECD, the global middle class is projected to expand significantly by 2030. Asia, particularly India and China, is expected to account for the majority of this growth. In India, this demographic shift is anticipated to drive a surge in consumer demand and economic activity.
Businesses focused on consumer products, retail, wellness, and financial services may see long-term potential from this demographic shift.
India is becoming a global manufacturing hub
The COVID-19 pandemic showed how risky it can be to depend on just one country for supplies. Now, companies around the world are looking for other places to make their goods.
- India is playing a growing role in global supply networks.
- Government programmes like ‘Make in India’ and PLI (Production Linked Incentive) are attracting foreign companies.
- Sectors like electronics, semiconductors, textiles, and defence manufacturing are getting a big push.
According to the McKinsey Global Institute, India's manufacturing sector could generate up to $1.25 trillion in GDP by 2030, provided current reforms continue. The International Monetary Fund (IMF) notes that India is among the emerging markets poised to benefit from global supply chain realignment, positioning itself as a potential global manufacturing hub.
Exposure to sectors such as capital goods, infrastructure, logistics, and industrials may align with this theme.
Financial services are becoming digital and inclusive
In the past, many people in India did not have access to banks or insurance. That’s changing quickly. Thanks to mobile phones and UPI, digital finance is now a part of everyday life.
- UPI (Unified Payments Interface) has made payments quick and easy.
- Fintech companies are helping people get loans, insurance, and investment options on their phones.
- More people are saving, investing, and protecting their families financially.
The International Monetary Fund (IMF) has praised India’s fintech revolution, saying it sets an example for other developing countries. Also, the World Bank notes that digital financial inclusion in India has helped over 400 million people access formal financial services in under a decade. The global fintech market is projected to reach $1.5 trillion in annual revenue by 2030, according to a joint report by Boston Consulting Group and QED Investors.
Banks, fintech companies, insurers, and digital finance firms may benefit from this evolving landscape.
Also Read: What is Growth Investing?
Conclusion
The five global megatrends, which are technology and digital growth, green energy and climate action, a rising middle class, India’s growing role in global manufacturing, and the rise of digital finance, are powerful forces that can shape the next decade.
These trends also offer long-term opportunities for retail investors. Mutual funds that are structured around such megatrends can offer diversified exposure to these themes, making it easier for investors to participate in long-term trends without having to identify or monitor them independently. As always, investors should review the fund strategy carefully, stay informed, and consider seeking professional financial advice before making investment decisions.
At Bajaj Finserv Asset Management Ltd, we aim to harness the power of megatrends by offering investors access to themes shaping the world’s future — from clean energy to technology, innovation, demographic shifts and more. Many of our funds follow a megatrends investment approach to help you participate in these long-term shifts, with a focus on growth potential and diversification. Build your future-focussed portfolio with Bajaj Finserv AMC.
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