Areas with 5G coverage will increase 7-fold from 2020 to 20251.
The APAC region, with its diverse demographic trends, energy transitions, digital revolutions, and urban growth, presents a landscape rich with investment opportunities.
By understanding and leveraging these future waves, investors can tap into the dynamic and evolving markets of APAC, crafting portfolios that not only weather the tides of change but thrive in them.
4 Mega Trends for APAC
Connectivity
Urbanization
More than half of the world’s megacities are in APAC. Annual investment into APAC’s infrastructure will be a multi-billion-dollar opportunity2.
Baby-bust economies
By 2050, 1 in 4 people will be over the age of 60, equivalent to China’s population today3. By 2040, the combined population decline of China, Japan, and South Korea could almost wipe out the entire population of France4.
Energy transition
APAC is home to 5 out of the 10 largest emitters in the world5. APAC produces half of the world’s greenhouse gas emissions6. APAC consumed almost 80% of global energy7 in 2023. APAC’s renewables investment is set to double over the next decade, matching Indonesia’s entire economy8, 9.
Hyper-Connectivity: The Digital Revolution
As the largest and fastest-growing market for these technologies, APAC is leading the charge. By 2025, 5G penetration is expected to soar from 3% to 24%, with 6G promising speeds up to 100 times faster by the 2030s10.
In China, 5G's contribution to GDP could reach nearly US$260 billion by 2030. Thousands of satellites will extend high-speed broadband to remote areas, bridging digital divides¹¹.
This digital revolution presents lucrative investment opportunities in IT, communication services, and consumer discretionary sectors, all set to grow substantially.
Urbanization: The Rise of Mega Cities
Currently, 17 of the world's 33 megacities, each with over 10 million people, are in APAC12. By 2040, the urban population is projected to grow by 600 million, increasing the urbanized share from 50% to 60%13.
Source: Analysis by Franklin Templeton Institute, UNDESA. Based on the United Nations’ Population Division’s World Population Prospects, 2022.
There is no assurance that any projection, estimate or forecast will be realised.
The Mega-regions of APAC
This urban growth is forming mega regions—vast economic and social zones integrating multiple cities.
56,000-km²
The Greater Bay Area14
1,350-km
The Delhi-Mumbai Industrial Corridor15
220 mil
People in China's Yangtze River Delta16
65 mil
People in Indonesia's Jakarta-Bandung Megalopolis16
A surge in infrastructure will be required
As these mega regions rise, the demand for infrastructure—roads, bridges, railways, airports, smart cities—surges.
The Asian Development Bank projects a US$459 billion annual investment gap until 2030 for infrastructure development17.
This signals enormous investment opportunities, with emerging Asia set to channel about 5-6% of its GDP into infrastructure annually18.
Investment in infrastructure, especially in low-carbon, climate-resilient projects and digital connectivity, is crucial for enhancing productivity, reducing economic costs, and boosting GDP, income, and employment.
Uncover APAC's Investment Potential
Our in-depth research offers actionable insights into APAC’s economic landscape, investment strategies, and emerging opportunities.
Baby-Bust Economies: A Tale of Two Demographics
The Asia-Pacific (APAC) region is a demographic powerhouse, where nations like India, Indonesia, Pakistan, and the Philippines boast large, youthful populations. These countries, with their high fertility rates and lower life expectancies, are on a rapid growth trajectory. By 2040, the APAC region is expected to welcome an astonishing 360 million new residents, with these young nations leading the charge19.
On one hand, there's the promise of a vast, dynamic workforce driving economic growth and innovation. On the other, there's a pressing need for investment in infrastructure—schools, hospitals, transportation networks—to support this burgeoning population and unlock its full potential.
In contrast, consider the "baby-bust economies" of China, Japan, South Korea, Hong Kong, Thailand, and Singapore. The United Nations projects that by 2040, the combined populations of China, Japan, and South Korea could shrink by 64 million people20. These aging societies face unique challenges, but also opportunities.
3 growth sectors supported by 3 key pillars
Aging populations are reshaping economies. As societies shift towards consumption, labor shortages drive innovation in sectors like healthcare, education, and technology, presenting lucrative investment opportunities.
Growth Sectors
Health Care to meet the demands of an aging population
Key Pillars
Strategic alliances in healthcare and pharmaceutical
Growth Sectors
E-commerce as part of a pivot towards a consumption-led model
Key Pillars
Network readiness
Growth Sectors
Education to drive economic competitiveness
Key Pillars
Digital infrastructure
India is a high conviction allocation for us...There's a lot of interesting opportunities there. As well as the very positive top-down macro drivers...there are some very interesting bottom-up companies.”
Energy Transition: Leading the Charge
Driven by technological advances, policy support, market dynamics, and social awareness, the APAC energy transition is a bold leap toward a diversified energy mix, improved efficiency, and enhanced security.
By 2040, the region's power generation from renewable sources like wind and solar is expected to rise significantly.
Investments in renewables are projected to double, reaching US$1.3 trillion between 2020 and 203021.
Varied Progress across APAC Countries
This energy revolution is not just about reducing emissions; it's about seizing new opportunities in technology and innovation, setting the stage for a greener, more efficient future.
Japan
Japan, despite limited natural resources, is leading in hydrogen technology, building a more sustainable energy system.
China
China is channelling resources into innovative technologies for energy efficiency
Indonesia
Indonesia faces hurdles due to lack of subsidies and unfavourable tariff mechanisms, yet strives toward ambitious goals
India
India is accelerating its transition, focusing on competitive manufacturing in low-carbon technologies.
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Uncover APAC's Investment Potential
The APAC region offers a wealth of opportunities for investors who are willing to embrace the challenges and opportunities of these fast-changing markets and sectors. We believe that by adopting a strategic and informed approach, investors can unlock the full potential of the APAC region.
Overview
Opportunities in APAC markets for today and the next 20 years.
A Diverse Landscape
APAC’s diverse landscape fueled by economic growth offers abundant opportunities for discerning investors.
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