Top Insights Shaping Future Markets

Top Insights Shaping Future Markets

It’s a very tough call as to what tomorrow’s markets are likely going to be like, however, there are several facts and phenomena that indicate what the markets of the future are likely to probably be like. From demographic transforms to techno-innovations, from social revolutions to environmental challenges many factors are in motion that dictate business and commerce.

The result is ageing and urbanizing populations.

Most large economies such as USA, Europe, China, and Japan for instance present themselves to demographically aged economies due to both relatively rising longevity and lowering birth rates. Older people mostly move to urban areas, thus causing tremendous urban development particularly in Asian and African countries. According the UN, the above trend is expected to persist, and more than two thirds of the global population is expected to be living in cities by 2050. This segment of elder carbohydrates residing in urban areas will greatly influence and shape property market, health care, transportation and even entertainment. As the population of dog owners changes both in terms of age and life stage they will need products and services to suit their requirements.

Rising Middle Classes

In tandem with this on-going rapid urbanization in the developing countries is the growth of middle income consumer market. The discretionary spending power is increasing progressively, according to McKinsey, the global middle class consumer expenditure is set to rise from $29 trillion in 2015 to $64 trillion in 2030. From food consumption and beverages to cars, and from tourism to insurance many industries will benefit from these new black middle classes who are desperately waiting to spend. Getting household penetration with these new middle classes early on will prove to be advantageous.

Sustainability Revolution

Population demands for climate change, eco-degradation and ethical manufacturing issues are pressing towards environmentally friendly products as never before. This means that from ESG investment and carbon credits fully to finer realms of green supply chains circular economic modes and other transparent labeling, corporations now have to realign and recalibrate themselves to this newly emerged reality. Those who are willing to use green solutions in today’s environment needs to prepare for the future market that operates with sustainability in mind.

Platforms, Digital Ecosystems

Such clouds, 5G, IoT, blockchain, and AI are allowing for diverse co-dependent ecosystems of producers, businesses, and customers for marketplaces throughout digital platforms. These could be global retail chains or even fragmented food distribution chains – producers selling directly to end consumer facilitated by digital leads and logistics interfaces. These platforms capture value by facilitating exchanges, funding, analytic services, productivity tools, and a lot of other things. As seen above, accumulating expertise in creating active digital systems with robust network effects will become essential for controlling markets in the future.

Blurring Industry Boundaries

Industry boundaries are also blurring as diverse players rely on largely common digital and technology infrastructures to deliver what are often both products and services, and at times experiences, that overlap with other categories. For instance, the auto industry in the today’s world competes as much with technology players in autonomous cars and mobility services as it does with mechanized car makers. Big pharma companies are signing deals with insurance and med-tech ventures for value-based health products. Investment advisory and financial planning once provided by wealth managers, is now available directly by banks themselves. Open innovation and versatile partnerships must therefore be created to enable the firms to shift into new categories.

Here are but some of the key directions that seem to be re-writing markets of the future and suggesting a linked, digitized, sustainable, humanistic economic architecture that the vertical industry framework of the past does not fit into. CEOs today are advised to resynchronize strategic planning time horizons with these disruptive forces that are predicted to be the growth engines.