They can affect revenues, costs and profitability for businesses as well as affect commuting trends, social networking, and the availability of natural resources.

Smart is the new green

Smart technology is a great example of a mega trend. Enabled by the internet of things (IoT), machine to machine (M2M) communication and over 80 billion connected devices globally, ‘smart’ will be the key driver of efficiency and sustainability across a vast array of applications. This is leading to the growth in development of smart cities using the latest intelligent and green initiatives to reduce energy consumption and improve efficiencies in all facets of human life.

Smart technology is also at the heart of the emerging concept of Industry 4.0 – based on integration of virtual and physical production systems. Huge opportunities will exist for sustainable and efficient manufacturing by 2020 and beyond. Cyber-physical production will merge big data, artificial intelligence, and other advanced technologies to create the fourth industrial revolution. Industries of the future will witness humans and robots working hand-in-hand through sensorised human-machine interfaces without the need of safety barriers, providing for greater flexibility and efficiency in factories.

Mega Regions attract economic activity

Mega trends like connectivity and urbanisation will have a profound impact on personal and freight mobility and on the car/truck and transportation models of the future which will lead to new mobility business models. Companies that look at cities as customers and position themselves as partners and solution providers to cities will benefit from new business and investment opportunities.

By 2020 around 70 percent the world’s population lives in urban areas. This mass migration to urban areas is transforming cities into enormous economic hubs creating the phenomenon of ‘Mega Cities’. In the next 10 years the 40 largest urban Mega Regions will account for 66 percent of global economic activity and about 85 percent of global technological and scientific innovation. In the future cities, rather than countries, will be targeted as hubs of investment with each city becoming a unique customer with untapped opportunities in key industries such as mobility.

Analysis of the megatrends as a base of future strategy

A thorough analysis of the megatrends and their implications is a vital component of any company’s future strategy, development and innovation process. Effective megatrend planning supports long term sustainable growth and will provide the building blocks necessary to succeed and growth in a business environment shaped by the pressure to pursue a zero carbon future.

By assessing the megatrends, resultant sub trends and the factors arising it is possible to identify the high growth opportunities for businesses to take advantage of new products and services.

The opportunity and impact is greatest where existing systems or industries can be made efficient, vital processes can be made sustainable and ‘Value for many’ can be achieved through new business models. The future opportunities will be greatest for the companies that can bring together total solutions to address these multiple needs in a coherent, integrated manner.

Writer of this blog-post: Olivia Price-Walker  

Price-Walker is Principal Consultant, Visionary Innovation Group in Frost & Sullivan, London. 

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