Investing in the future
with megatrends

Megatrends are powerful, transformative forces that can change the trajectory of the global economy by shifting the priorities of societies, driving innovation and redefining business models. They have a meaningful impact not just on how we live and how we spend money, but also on government policies and corporate strategies. 

Identifying the potential for structural change and investing in expected transformations early is key to positioning portfolios for long-term growth opportunities. We see five megatrends shaping our future – shifting the way we live and work.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. You may not get back the amount originally invested.

5 megatrends shaping our future

Technological breakthrough >
Technology is driving exponential progress in the tech sector and far beyond. 125 billion internet-connected devices are expected to be in market by 2030, up from 17 billion in 2017.1
Demographics and social change >
Longer lifespans and modern lifestyles will change medicine and consumer habits. 45% increase in the 60+ population worldwide is projected to take place as soon as 2030.2
Rapid urbanisation >
Mass migration to cities will require new business models and infrastructure. 2/3rds of the world’s population will reside in cities by 2050, double the percentage from 1950.3
Climate change and resource scarcity >
Demand for a clean, green tomorrow will advance energy and conservation. 50% of the world’s energy is predicted to come from solar and wind by 2050, up from just 7% in 2015.4
Emerging global wealth >
Newly affluent consumers will expand in Asia and across emerging markets. Emerging market economies today are predicted to represent
6 out of the 7 largest economies by 2050.5

Sources: 1IHS Markit: Internet of Things Research, Oct 2017. 2United Nations: World Population Prospects, Jun 2017. 3United Nations: World Urbanization Prospects, May 2018. 4New Energy Outlook: Bloomberg, Jun 2018. 5The Long View: PricewaterhouseCoopers, Feb 2017.

How are megatrends relevant to investing?

Megatrends also influence our investment decisions – from the businesses, industries and countries we invest in, to the way we go about finding opportunities.

Identifying the potential for change is a key driver of investment decision-making. Most of these changes occur in a cyclical manner and over the short to medium term. Occasionally, though, we’re faced with structural shifts that are longer term in nature and have irreversible consequences for the world around us. These are called megatrends.

Why invest in megatrends?

Long-term themes
Long-term themes
Investing in megatrends, structural shifts that have irreversible consequences for the world around us, provides a longer-term and less cyclical approach.
Intuitive investing
Intuitive investing
The prominence of these trends in every day life makes them recognisable, easy to understand and relatable.
Growth-focused
Growth-focused
The sorts of innovative companies at the forefront of driving megatrends and changing the global economy could be well positioned to experience significant growth.

Ways to invest in megatrends with BlackRock and iShares

Use our simple tool to see how our five megatrends
connect to investment themes and funds.

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Thematic investing with BlackRock & iShares
Learn more about thematic investing and why we believe in investing in the long-term trends transforming the way we live and work.
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