Megatrends: Future Growth Industries

 

The term Megatrends is used for investment sectors which are expected to experience an above-average growth, unlike other, more traditional investment opportunities. These megatrend sectors are usually less affected by crises like the Covid-19 pandemic or political conflicts.

 

Popular megatrends are, for example, technology, health science and sustainability. Companies in these sectors could be a great choice for your investment portfolio. Not without reason is “Trends are your friends!” a popular saying in the investment sector. In this article, you can find out more about various megatrends, in which you can choose to invest.

 

Technology: Digital Revolution

 

 

Technology has become an integral part of our lives. The internet and technological innovations have fundamentally changed the way we live, work, spend our free time and socialise. Technology plays a vital role in each and every part of our lives, which is why investing in such an innovative sector could be the right choice for you.

 

In recent years, technology has increasingly become the answer to many questions and problems. The Covid-19 pandemic also played its part in this. This becomes clear when you think of things like home office, distance learning, e-commerce, e-banking and, of course, social media. As we become more connected virtually, we also become more decentralized which leads to certain dangers: decentralised systems are often based on cloud computing systems, which have frequently become victims of hackers and cybercrime in the past years. Because of this, cyber security service providers are becoming increasingly important.

 

Innovations in the areas of telehealth and telemedicine are expanding the scope of health care. For example, basic medical care as well as help in mental health emergency and with chronic diseases can take place partially – and in some cases even completely – on digital platforms.

 

The e-mobility sector is also constantly growing. In 2020, 10% of all vehicles sold had electric motors. According to forecasts, this percentage could rise up to 50% until 2030. Hydrogen-fuelled engines could have a great impact on the heavy transport industry.

 

One of the biggest players in the field of technology today is Artificial Intelligence (AI). AI systems are fed with data on the basis of which they can replicate human thought to carry out tasks. This can be useful for the financial sector, traffic, medicine, logistics and robotics. In the future, we will surely see further developments in this area.

 

Health Science

 

 

Health is considered one of the most important things in our lives. Events in recent years, especially the Covid-19 pandemic, have made us realize how essential our health really is. Humanity will always want to cure diseases, which is why it is not surprising that health science as an investment sector is particularly resistant to crises and has great potential for growth.

 

A major contributing factor for this industry’s success is evolutionary: people are getting older. Demographic trends show a clear increase in life expectancy, and more elderly people thus lead to a higher necessity of medical care. According to experts, the health science sector’s value can be expected to have at least quadrupled by 2060.  

 

In addition to that, people are becoming more conscious of their health, not least due to the Covid-19 pandemic, and are therefore more willing to spend money on their health. There is a general shift towards a more active, healthy lifestyle that enables us to stay agile in later life.

 

The health sector has great potential for growth and new technological innovations in the field of research, development, treatments as well as cost efficiency. In recent years, for example, we have experienced massive breakthroughs in cancer research, genome editing, operation room technology, 3D printing (hearing aids and implants) and minimally invasive surgery.

 

 

Renewable Energy

 

 

More and more often we come across the word “energy transition” as there is a general tendency to move away from fossil fuels towards clean, renewable energy. This is due to the fact that renewable energy sources, like wind, water or solar energy, are essentially inexhaustible and less harmful to the environment than conventional energy sources like coal and natural gas.

 

We cannot yet predict which energy source is going to be the ideal one. The general, international tendency is to promote energy production from renewable sources. A vast amount of money is still being invested in this sector, which will lead to many new companies being founded.

 

We can also expect further research and development in this field. It is still a quite young industry that has great growth potential and thus also offers good investment opportunities.

 

 

Infrastructure

 

 

Infrastructure and public transport are becoming increasingly important due to the growing population, urbanisation und the intended transition to an emission-free economy. The sectors of transport infrastructure (e.g. roads, bridges, ports and airports), utility infrastructure (water, energy, oil and gas supply) and communication networks are frequently invested in.  

 

In addition to its growth potential, this sector also provides a regulated market environment: entry to the market is limited, long-term contracts ensure controlled pricing, constructions are durable and require time, effort and very precise planning. Future developments in this sector focus on sustainability; main objectives are decarbonisation and electrification.

 

Infrastructure as an investment opportunity provides stability in times of recession and high inflation as drinking water and telephone lines, for instance, will still be in demand.

 

 

Blue Economy

 

 

The main objective of blue economy is the sustainable use of ocean resources to benefit economies, livelihoods and ocean ecosystem health. This includes, amongst others, the sectors of fishing and aquaculture, coastal tourism and maritime shipping. Marine biotechnology provides new opportunities in the areas of pharmacy and cosmetics.

 

If the oceans were a state, they would be the eight largest economy in the world. As more jobs are created in this sector, it provides great growth potential. Currently, around five million full-time jobs in Europa are directly dependent on oceans.

 

Measures for improving sustainability and protecting the environment also play a vital role:

 

• Renewable energy production (e.g. offshore wind and wave power)
• Reduce greenhouse gas emissions from shipping (low-carbon energy)
• Reducing the pollution of oceans by improving waste management