New Mega Trends Macro to Micro Opportunities on Future Business, Cultures and Personal Lives Sarwant Singh Mega Trend 1: Urbanisation - “City as a Customer” Mega Cities Mega Regions Mega Corridor Mega Slums Cities, and Not Countries, Will Drive Wealth Creation In the Future Cities like Seoul account for 50% of the country’s GDP; Budapest (Hungary) and Brussels (Belgium) each for roughly 45%. What are the Micro Implications? High Economic Power Hub and Spoke Business Model Transit oriented development New Mobility Solutions City as a Customer Siemens Focuses on “City as the Customer” Pre- October 2011 Independent Silos Post-October 2011 Integrated Competencies into One Division “City as the Customer” Energy Building Technologies Healthcare Smart Grid Infrastructure & Cities Rail Systems Industry Mobility & Logistics OSRAM Low & Medium Voltage Mega Trend 2: Smart is the New Green Convergence of Technology Will Lead to Convergence of Competition IT Players SAP HP Point of Convergence ST Electronics Oracle Microsoft Google Cisco Verizon Telecom Players IBM AlcatelLucent Senergy O2 Deutsche Telekom Siemens General Electric ABB Emerson Schneider Electric Honeywell Energy/Infrastructure Players Eaton Johnson Controls Rockwell Automation Automation/Building Control Players Note: This is an illustration and does not show all market players Mega Trend 3: Social Trends Surge in Asian Work Pool Geo Gen Y Socialization Middle Bulge “Sheconomy” Ageing Population Reverse Brain Drain Generational Political Shift Mega Trend 4: Economic Trends The Next Game Changers in 2025 Russia $6,189 Billion Turkey Poland $1,167 Billion $2,601 Billion $687 Billion $2,212 Billion Brazil Egypt Mexico $6,235 Billion $803 Billion $4,816 Billion Next Game Changers Note : The figure denotes GDP at market prices. Forecasts have been made based on Real GDP growth rates $654 Billion Argentina $709 Billion South Africa Indonesia China Thailand India $5,467 Billion BRIC Nations $38,526 Billion $323 Billion Vietnam $483 Billion Philippines Mega Trend 5: Connectivity & Convergence 80 Billion Connected Devices By 2020 10 Connected Devices for Every Household by 2020 5 connected devices for every user by 2020 5 billion internet users by 2020 500 devices with unique digital IDs (Internet of things) per square kilometre by 2020 Connectivity will Lead to Convergence of Products, Technologies and Industries Technology Convergence Industry Convergence Product Convergence UAV Unmanned Aerial Vehicle V2V Vehicle to vehicle V2H Vehicle to Home V2I Vehicle to Infrastructure Mega Trend 6: Innovating to Zero Snapshot of a “Zero Concept” World in 2020 Zero Defects and Zero Faults Carbon Neutral Cities Zero Waste/ Emissions Zero Emails Complete Recyclability from Households (Cradle to Cradle Concept) Carbon Neutral Factories and Retail Stores Zero Corporate Debts Zero Emissions from Cars Zero Accidents Zero Breaches of Security Zero Crime Rates Mega Trend 7: New Business Models: Value for Many Personalization & Customization Nike Personalization and Customization Co-Creation Quirky .com New Business Models Pay as you Fly Unmanned Aerial Vehicles One-off Experience (Thales) (red letter Days) Free = + Premium Freemium “Value for Many” Will Replace “Value for Money” Mega Trend 8: Health, Wellness and Wellbeing The 3 Cornerstones - The Body, Mind and Soul Contribute To Humans Definition of Health, Wellness and Well Being Mood Stress levels Mental health Sense of optimism Attitude Security Safety Personal values Personal fulfilment Self image / self actualisation Sight / vision Touch & feel Smell / breathing Sound Temperature Wellness Future of Health, Wellness and Wellbeing Mega Trend 9: High Speed Rail In Future, HS Rail will not only Connect Cities and Countries but will also Connect Continents China : 25,000 kms by 2025 (7,431 kms in 2010) 2020 Trans Siberian Link: New Route 66 Biggest Project: $68 billion California HSR UK project: £33 billion (by 2026) • • • • What are the Opportunities? • • • • • • • Copper-silver and copper-magnesium wires Steel Companies Construction tooling, spare parts Condition monitoring, security, surveillance, Data handling, Passenger information systems High Speed Logistics Mergers and Acquisitions From Macro to Micro: Taking Mega Trends from Information to Strategy Implementation Macro To Micro Mega Trend Analysis of Opportunities and Unmet Needs Selected trends that impact your business and markets Sub Trend Impact on Future Product/ Technology A sub-layer of trends that has a wide ranging impact Impact to Your Industry Visualising the roadmap of these critical forces through scenariobuilding and macro economic forecasts Contact Us Sarwant Singh Archana Amarnath Partner & Practice Director, Visionary Innovation Research Group and Automotive & Transportation Program Manager, Visionary Innovation Research Group (+44) 2079157843 (+44) 2079157893 sarwant.singh@frost.com aamarnath@frost.com