The Origin Of Megatrends: How The Term Was Coined And Evolved

In today’s world of investment and finance, the term megatrend is making its way into conversations and news. But what does this word actually mean? And where did it come from?

The truth is that megatrend isn’t just a recent fancy synonym for ‘big change’. It has an origin, a definition, and a history that has shaped the way we now use it. In this article, we will understand the history of megatrends.

Table of contents

• Coining the term
• Evolution of the concept
• Relevance for investors
• The Indian lens
• Why definitions still matter

Coining the term

The story begins in 1982, when American author and futurist John Naisbitt releases a book with a strikingly simple title: Megatrends. To his surprise, the megatrends book became a bestseller. It sold millions of copies and was translated into more than a dozen languages.

Naisbitt defined megatrends as large, transformative forces that reshape societies, economies and cultures over decades.

His examples in 1982 may feel prophetic today: The move from an industrial society to an information society.

• Power shifting from central authorities to local communities.
• The beginnings of globalisation.

But this wasn’t fortune-telling, it was observation. In the early 1980s, when computers were clunky machines and the internet was just a notion in research labs, describing the rise of an “information society” required looking beyond the immediate moment. Naisbitt’s contribution was to recognise patterns early and frame them in a way that resonated with a wider audience.

Read Also: What Is a Megatrend & Why It Matters for Investors

Evolution of the concept

Once the term caught on, it travelled quickly. The evolution of megatrends over four decades mirrors the world itself.

• 1980s–1990s: Business schools adopted Naisbitt’s term. Corporates began planning not for the next quarter, but for the next twenty years. Globalisation, technology adoption, and demographics were seen as the megatrends to navigate.
• 2000s: After 9/11 and China’s rise, geopolitics entered the conversation. Suddenly, megatrends weren’t only about markets—they were about security, energy dependence, and shifting power.
• 2010s: Climate change, smartphones, and social media defined this decade. Fund managers started marketing thematic products around megatrends like ageing populations or green energy.
• 2020s: A pandemic, supply chain shocks, and war in Europe reminded us that megatrends can collide. Today, deglobalisation, artificial intelligence, and sustainability are considered major forces shaping the decade.

The core megatrend definition is still about slow, transformative shifts. But the list of examples keeps refreshing with each generation.

Read Also: Megatrends in Investing: AI, Climate & Clean Energy

Relevance for investors

So why should someone in India, scrolling through their investing app, know about the history of megatrends? Because in investing, catching the tide early has the potential to make a significant difference. It’s not just investing in today’s popular stocks but also buying into a structural shift that may eventually define the world.

A few current megatrends deemed to be shaping India’s markets are:

• Digital adoption: UPI transactions and mobile-first banking.
• Demographics: A young population and a growing women workforce.
• Sustainability: Solar energy, electric vehicles, green infrastructure.
• Deglobalisation: The China+1 strategy, with India as a key alternative hub.
• Artificial intelligence: Rewriting productivity in offices, hospitals, and classrooms.

Sometimes, investors may confuse hype with transformation, potentially risking chasing shadows. But using the megatrend definition as a filter—broad, structural, long-term—may help align their portfolios.

The Indian lens

Though coined in the US, the idea of megatrends makes sense even in the Indian context.

• 1991 liberalisation was a megatrend moment. It ended decades of protectionism and opened the economy.
• The IT boom turned Bengaluru into a global symbol of outsourcing. That was a societal shift, changing aspirations for millions of middle-class families.
• Urbanisation is visible in skylines with Gurugram’s glass towers, Hyderabad’s tech campuses, Pune’s sprawling IT parks.
• Financial inclusion has raced ahead. From Jan Dhan accounts to UPI, India has achieved in 10 years what many countries took decades to build.

Seen this way, the evolution of megatrends is not just an academic theory. It’s how we explain the last three decades of India’s transformation and how we may imagine the next several years.

Read Also: What Makes a Trend a Megatrend? Key Traits & Examples

Why definitions still matter

It’s easy to use the ‘megatrend’ label for anything new. But going back to the megatrends book reminds us, not every buzzword is a megatrend. A true megatrend, as per its definition, must:

• Cut across industries and geographies.
• Last for decades, not seasons.
• Alter how societies function, not just how companies operate.

For investors, this discipline is important. Fads will come and go. But megatrends? They are more like steady currents that unfold gradually and can widen into expansive waters over time.

Conclusion: From one book to a global lens

In 1982, John Naisbitt gave us a word. In the four decades since, that word has become a lens. The history of megatrends shows how a simple idea can have wide-ranging significance. The evolution of megatrends since then has proven that while the examples keep changing, the core idea of focusing on structural forces has endured.

In India, we are living through multiple megatrends at once: digital adoption, demographic shifts, sustainability, and deglobalisation. Each of these is influencing not only business and markets, but also the rhythms of everyday life.

Megatrends may not announce themselves with headlines -- they build slowly and those who learn to recognise them early may position themselves not just to invest in companies, but to invest in the possible future of the world.

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.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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