Green Energy to AI: Key Sectors Riding Global Megatrends

The world is changing quickly, and some big shifts are happening across the globe. Known as megatrends, these powerful forces are transforming how we live, work and invest.

Some megatrends include the move towards green energy, the rise of artificial intelligence (AI), and the growing focus on sustainable living. These trends are already influencing daily life in many ways and may play an even bigger role in the years ahead.

For investors, megatrends can open up new avenues —especially if you're looking for opportunities that may have lasting relevance and long-term growth potential.

• Table of contents

• Green energy and the future
• AI is changing how businesses work
• Digital infrastructure is growing rapidly
• Sustainable living and smart cities are on the rise
• Education, health and agriculture are also being transformed

Green energy and the future

Industries and individuals across the world are trying to move away from fuels like coal and oil, which pollute the environment. Many countries are investing more in clean energy like solar, wind, and hydropower. This shift is not only beneficial for the planet but also creating opportunities for businesses and innovation.

• Solar and wind energy are growing fast because they are getting cheaper to produce.
• According to the International Energy Agency (IEA), global investment in clean energy technologies and infrastructure is expected to have reached $2 trillion in 2024, nearly double the amount projected for fossil fuels.
• Governments are also lending support in the form of subsidies and incentives for clean energy projects.

Companies that make solar panels, build wind farms, or help store clean energy in batteries may potentially benefit from this trend and investors with a long-term view may find opportunities in these areas.

Also Read: What is megatrend investing?

AI is changing how businesses work

Artificial intelligence (AI) is no longer just a buzzword and a thing of the future. It is becoming an essential part of the way businesses function in the everyday and make decisions.

Here’s how AI is making a difference in various sectors:

• Healthcare companies are using AI to find diseases early and suggest better treatments.
• Banks and finance companies use AI to detect fraud and help customers manage their money.
• Retailers and delivery apps use AI to understand customer behaviour and improve service.

A PwC report suggests that AI could add up to $15.7 trillion to the global economy by 2030. This indicates that companies using AI in strategic ways have potential for long-term growth.

Digital infrastructure is growing rapidly

As more people go online and more businesses use the internet, the demand for better digital infrastructure is rising. This includes things like faster internet, data centres, and cloud computing.

• People are watching more videos online, using video calls for work, and storing data in the cloud.
• 5G technology is also being rolled out, making mobile internet much faster.
• A McKinsey report indicates that cloud computing and AI are driving massive global investments in digital infrastructure. Cloud adoption alone could create up to $3 trillion in value by 2030, while meeting the growing demand for AI may require over $5 trillion in data centre investments by the same year.

Companies that build fibre networks, create cloud software, or manage large data centres could benefit from these developments over time.

Sustainable living and smart cities are on the rise

People are beginning to understand the impact their everyday choices have on the environment. They want cleaner air, less waste, and safer, smarter cities to live in. This is pushing governments and companies to act.

Smart cities and sustainable living are supported by:

• Electric vehicles (EVs) that reduce pollution.
• Smart homes with energy-saving lights and appliances.
• Recycling and waste management companies that help reduce landfills.
• Green buildings that use less water and power.

According to the United Nations, more than 68% of the world’s population will live in cities by 2050, so planning for smart, clean cities is becoming increasingly important, presenting potential opportunities in mobility, construction, and environmental technology.

Education, health and agriculture are also being transformed

Some of the most basic sectors like education, health and farming are also seeing big changes, thanks to technology and megatrends.

• Online learning is helping more people access education in a simpler and more flexible way. Start-ups and ed-tech platforms are growing fast.
• In healthcare, telemedicine and health apps are helping people get medical advice without visiting hospitals.
• In agriculture, smart farming tools are helping farmers grow more food with less water and effort.

These essential sectors are integrating technology to improve outcomes and accessibility, creating potential for long-term business development and innovation.

Also Read: What is Investing vs.Trading?

Conclusion

Big global shifts like green energy, AI, and digital change are not just buzzwords. They are shaping the world in real ways. For new and curious investors, understanding these trends may help in choosing sectors that have the potential to grow significantly in the years to come. What’s more, you don’t need to be an expert to start. Mutual funds that invest in these trends can be a convenient and accessible way to incorporate megatrends into your portfolio and potentially invest in the market leaders of tomorrow.

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.