Megatrends

What are megatrends?

Megatrends are fundamentally and sustainably changing the world

Our world is developing more dynamically than ever before. It’s impossible for anyone to predict exactly how the future will look. However, there are some emerging developments that have the potential to fundamentally change the world in a lasting way – so-called megatrends. Megatrends affect more than just a few specific areas: They have an impact at all levels of society and on individuals as well.

Megatrends don't just affect a few specific areas, they impact all levels of society, including individuals. To keep up with the future, companies need to quickly respond to these developments or ideally anticipate them. Companies that achieve this are of great interest to investors because they represent future viability and growth.

Megatrends not only provide an indication of what the future may hold, but also consistently create new investment opportunities. Characteristic aspects of megatrends include:

  • Long-term growth: Megatrends affect all levels of society. Companies that either anticipate these trends or can react to them quickly offer potential for long-term growth.

  • Innovation: Megatrends offer the opportunity to invest in innovative companies that focus on pioneering topics.

  • New business models: Some megatrends, such as AI, offer the potential for entirely new business models.

There are multiple, often interconnected megatrends: demographic change, climate change and technological change. These three megatrends also encompass a wide range of promising subtrends:

Demographic change is an inexorable reality that entails both challenges and opportunities. The spectrum of subtrends in this segment ranges from themes such as ageing and work-life balanceto urbanisation and many other areas, including smart food, animal well-being, and telemedicine.

Climate change requires urgent action in order to stop or slow global warming. More sustainable and environmentally friendly agriculture and food play a major role here, but are also important themes in their own right, particularly investments in green technologies and renewable energy. In addition to the latter, electromobility, energy efficiency, water scarcity, and plastics and recycling are key subtrends.

We are confronted with the megatrend of technological change particularly often in our day-to-day lives, and last year alone, one subtheme was of particular interest for investors: artificial intelligence(AI). The digital revolution is changing our world at a pace that has never been seen before. Some technology companies are taking on key positions because they operate in especially lucrative fields. Current promising subtrends in this area apart from AI include cloud computing, 5G, cybersecurity, gaming and streaming, semiconductors, and automation.

The three most important megatrends areas
The three most important megatrends areas and their subcategories

More details about the megatrends

You too can invest in megatrends with these investment funds:

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