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Rapid Urbanisation Opening up Enormously Lucrative, Cross-Sector Opportunities in Cities
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Rapid Urbanisation Opening up Enormously Lucrative, Cross-Sector Opportunities in Cities

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Over half the world's population is expected to live in urban areas by 2025, with significant implications and opportunities for infrastructure, mobility, resources, and housing.

By 2025, 35 mega cities will contribute a massive $30 trillion to the global economy. The sheer economic scale of these mega cities will result in their wielding an economic and investment clout on par with that of countries.

New analysis from Frost & Sullivan, City as a Customer— Identifying Growth Opportunities in Cities of Tomorrow, has identified 4 mega trends in urbanisation that will evolve with population growth, planned investment, infrastructure and technology development.

"Cities, rather than countries, will be targeted as hubs of investment, wealth creation and economic growth and vie with countries in terms of their economic and investment influence," noted Frost & Sullivan Visionary Innovation Research Group Senior Research Analyst Archana Vidyasekar.

The top 10 mega cities alone are projected to contribute 13 percent of the global GDP by 2025. "Each city will become a customer," stated Archana Vidyasekar. "With different types of cities evolving, every city will be highly unique in its infrastructure demands. This will have cross-sectoral micro implications, presenting opportunities in industries as diverse as mobility, healthcare, logistics, smart products, security, and retail."

Various types of cities will emerge, each having a specific focus. These pivots will range from technological innovation, environmental efficiency, connectivity or safety and economic growth.

For instance, in some cities, green concepts are likely to be replaced by 'smart' concepts, creating smart cities built on smart initiatives. By 2025, Frost & Sullivan anticipates there will be 26 smart cities, with more than half of these based in Europe and North America.

Cities of the future are likely to aim for a low carbon economy and sustainable living. There will be more than 100 of these sustainable cities over the next 10-12 years.

"Greater urbanisation would mean sustainable business practices to ensure ample supply of energy and water in the future against increasing demand, or investment in R&D to identify new material for smart buildings," remarked Vidyasekar. "There are multiple opportunities for new products and solutions in the FMCG, real estate, retail and construction industries. The implications of urbanisation, therefore, are wide-ranging and cities are in the centre of this key phenomenon."

City as a Customer— Identifying Growth Opportunities in Cities of Tomorrow is part of the Mega Trends Growth Partnership Service program. Frost & Sullivan's related research services include Mega Trends in Turkey, India, Latin America and China. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.


 











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