Megatrends

• Megatrends can be

  • Large transformative global force that impact everyone on the planet (govt, society and business)
  • A large scale change in circumstances or fashion
  • A major trend or movement
  • Once in place, megatrends influence a wide range of activities, processes and perceptions, both in government and in society, possibly for decades. They are the underlying forces that drive trends
• What is not a megatrend?

  • New fashion - popular (e.g. skinny jeans)
  • Fad/ craze - temporary period 
  • E.g Bubble tea 
• Megatrends - can show up suddenly or gradually (most of them are gradual)

  E.g changing demographics - gradual 

  • Knew in SG that population is aging → need wheelchair access, anti-skid designs on pathways 
  • China’s one child policy consequences → population age 
• What are the 5 megatrends?

  1. Global Market Place
  2. Changing Demographics
  3. Economic power shift

  • West to East & South
  • Rise of the middle class
  • Urbanisation

  4. Enabling Technology

  • Hyper connectivity
  • Rise of the individual

  5. Environmental impacts

  • Resource scarcity
  • Climate change, Pollution
• Once in place, megatrends influence a wide range of activities, processes, and perceptions, both in government and in society, possibly for decades. They are the underlying forces that drive trends
• Megatrends can show up suddenly or gradually, with most of them being gradual
• Since 1950, the world's urban population has risen significantly, leading to increased consumption and pressure on natural resources
• Groups of nations experiencing economic shifts

  • BRIC
  • BRICS
  • N-11
  • CIVETS
  • E7
  • F7
• Megatrend


  • Large transformative global force that impacts everyone on the planet (government, society, and business)
  • A large-scale change in circumstances or fashion
  • A major trend or movement
• The gulf between 'mature' and 'rapid-growth' countries continues to shrink, with expectations of rapid growth economies to rise and mature economies to shrink
• The world has become a global marketplace, with more countries trading with each other, connecting economically, and lifting more people out of poverty
• Examples of what is not a megatrend

  • New fashion - popular (e.g. skinny jeans)
  • Fad/craze - temporary period (e.g. Bubble tea)
• What is not a megatrend?
• Rise of the middle class

  • Urbanisation
  • Increased consumption
  • Double income families
• Examples of megatrends

  • Changing demographics - gradual
• Countries experiencing economic shifts

  • Asia (China, India)
  • Brazil
  • Russia
  • Africa
  • Latin America
• Double income families face higher cost of living
• Increased consumption

  Pushes economic growth
• Urban population surpassed those who live in rural areas

  2009
• Rising middle class impacts consumer behavior, boosts local and global demand, increases demand for various sectors like food, water, energy, education, transport, health, cosmetics, entertainment, sports, and tourism
• Large cities (5-10 million people)

  • In 1990: 300, by 2018: 460+, 2030: close to 600 cities
• World’s 750 biggest cities account for 57% of global GDP according to Ernst and Young
• Technology advancements include hyper-connectivity, big data, augmented and virtual reality, machine learning, blockchain, gene editing, nanotechnology, robotics, artificial intelligence, space technology, brain imaging, synthetic biology, augmented reality, and other emerging technologies
• Increased consumption

  Downside: pressure on natural resources - depletion
• The world's urban population has risen by almost 6/4 from 751 million to 4.2 billion in 2018

  Since 1950
• By 2050: India to add 400 million urban dwellers, China 250 million, Nigeria 190 million
• Growth in urban population

  Rise in urban hotspots (30+ mega cities in 2018 → 2030: 40+ mega cities) (cities with over 10 million people) e.g. NY, Shanghai, Beijing, Mumbai, New Delhi
• By 2030, 61% GDP - add 220 billion middle class consumers form 61% on global spending (88% growth on non-essential products - education, healthcare, tourism, entertainment)
• Rise of the Individual: Rising incomes lead to rising expectations, inter-connected population leads to faster dissemination of information through social media, empowerment through education
• Enabling technology drives radical change in user capabilities or culture, characterised by rapid development of subsequent derivative technologies
• Inter-connected population


  Faster dissemination of information through social media
• Blurring of public vs private boundaries due to social media and the internet
• Rise of the Individual
• Having as many women in the labour force as men could boost economic growth in many countries
• Acceleration of social media has led to uprisings in both developing and developed countries
• 80% of the world's middle class will live in developing regions by 2030
• The US could increase its economic growth by 5% if women in the workforce were equal to men
• 75% of the population have access to mobile phones
• Half of the world's population will have access to the Internet by 2030
• Inter-connected population


  Accelerates dissemination of information through social media