HP Innovation Journal Issue 06: Spring 2017 | Page 5

A
t HP, our work on Megatrends is focused
on directionally predicting where the
world is headed, and about boldly en-
suring a successful and relevant place in it for
HP and our customers.
In Issue 2 of the Innovation Journal, we
discussed how four Megatrends — Rapid
Urbanization, Changing Demographics,
Hyper Globalization, and Accelerated
Innovation —  w ill have a sustained and
transformative impact on businesses, soci-
eties, economies, cultures, and our personal
lives in the future.
Each year we revisit these four Megatrends
to identify which Megatrend themes are ac-
celerating, which are diminishing or changing,
and what new themes are on the horizon.
Here is a brief overview of our findings
this year:
Rapid Urbanization
By 2030 there will be an estimated 8.5 billion
people walking the earth. They will be drawn
to cities in massive numbers for the promise of
a better life. According to McKinsey, by 2025,
urbanization will welcome an additional 1.8
billion consumers to the world economy, 95%
of them in emerging markets.
As e conomic conditions improve and so-
cial attitudes change, more women will have
a major impact on the world economy, from
growing participation in the global labor force
to economic wealth and spending drivers. In
Middle class consumer spending
(in trillions of dollars)
32.9
Middle class consumption in
Asia-Pacific is expected to expand
rapidly, with India’smiddle class
reaching 256M by 2025
+571% growth
11.1
0.4
0.6
0.9
2.2
1.5
5.5
3.3
Sub-Saharan Middle East/ Central/South
Africa
North Africa
America
Source: OECD
2009
5.6
North
America
8.1
4.9
Europe
Asia-Pacific
2030 (projected)
the US, it is estimated that women controlled
an estimated $14 trillion of wealth in 2015,
and today influence 85% of all consumer
purchases.
While urbanization is also driving a growing
middle class in emerging economies, in de-
veloped nations a rift is developing between
haves and have-nots, with many consumers
driven more by value than quality.
As millions of people move to cities every
week, this will also put a huge strain on space,
city resources, energy requirements, and in-
frastructure costs, forcing homes, offices, and
cities to become smarter and more efficient.
From smart-city to micro-living initiatives,
there will be an increasing focus, around the
globe, on optimizing space, products, and
services for urban living.
At the same time, by 2030 we’ll have twice
as many people over age 65  — nearly one
billion. This is leading to a shrinking and ag-
ing workforce, putting a strain on economies,
government spending, and healthcare. We will
need to harness the exponential technology
growth of faster computing, artificial intel-
ligence (AI), big data, mobility, microfluidics,
and the Internet of Things to help us meet
these growing health challenges.
Changing Demographics
In the next decade
nearly 1 Billion women
will enter the formal
economy and become
economic contributors
We have a new generation about to enter
the workforce, Generation Z (Gen Z), born
between 1995 and 2010. Gen Z is about a
quarter of the U.S. population and predict-
ed to make up 36% of the global workforce
by 2020. This generation was raised on the
Internet, expects to communicate and digest
information instantaneously, and has a shorter
attention span for inbound information. As the
online generation, Gen Z is acutely aware of
the issues and global challenges happening
in the world around them.
In 2030,
13% of the population
will be over the
age of 65
Hyper Globalization
How and where we design, sell, and manufac-
ture products will become both hyper-global
and hyper-local thanks to a globally connected
Issue 6 · Spring 2017 · Innovation Journal 5