- McKinsey predicts the IoT offers a potential economic impact of US$4 trillion to US$11 trillion a year by 2025.
- Investors should focus on industrial users in the initial stage of the trend, identify companies that supply the tools, and look offshore. It’s hard to find many direct winners from this trend on the ASX.
- Microsoft and Apple are the obvious choices and closer to home, think NextDC and Bulletproof Group.
Megatrends broadly fall into two categories: those with precedents in other markets, and those that are so new and disruptive that it is impossible to predict how they will unfold.
The ageing population, the middle-class Asian consumption boom and urbanisation are in the first category. Each is vast in scale and certain to surprise markets one way or another. But Japan’s experience with an ageing population, the development of middle-class consumers in western markets, and China’s urbanisation provide clues for investors on what to expect.