asia top investment trends 2020-2025

Asia Leads Top Five Investment Mega Trends of 2020 to 2025

The Most Anticipated Trends of the Near Future in Asian Markets

According to researchers, the top disruptive technologies currently are energy storage, robotics, blockchain technology and artificial intelligence. And as a result of the massive developments happening with these technologies, the top megatrends for investment around the globe will include increased connected living through automation, data analytics, virtual currency and sensory tracking. Based on this digital evolution, here are five anticipated megatrends and why investors should keep a close watch on the Asian markets.

  1. Electric Vehicles and Batteries
    One of the biggest jumps expected is in the market share occupied by electric cars. It is also anticipated that electrification will spread throughout the entire transport industry as we head to 2025 and eventually include e-bikes, e-scooters, e-trikes, e-buses, e-ships and even some e-planes. Because of this increase, energy storage is also forecast to grow exponentially. This will include lithium-ion batteries for home and light commercial use and vanadium redox flow batteries for large-scale utility use. Asian EV companies to watch for are Chinese companies Byton, Build Your Dreams (BYD) and Nio. China is also the dominator when it comes to the world’s battery production.
  2. 5G, The Internet of Things and Robotics
    Bolstered by 5th generation wireless internet (5G), the IoTs is set to grow rapidly. A major player in IoTs is Skyworks Solutions from the United States. China’s Alibaba is showing no signs of slowing down as is JD.com, also Chinese, and the Japanese giant Hitachi. Robotics is a bit slower on the uptake than IoTs so it would be wise to invest cautiously in this sector.
  3. Online Entertainment (E-Sports and Gaming)
    Most online gaming revenue comes from China, Japan and the United States and some of the key players are Sony,  Nintendo, Tencent, Apple, Activision Blizzard, Valve, Riot Games and Electronic Arts. A fast-growing sector to watch out for is E-sports.
  4. Blockchain
    Despite the fluctuations of cryptocurrencies, blockchain is continuing to gain in popularity. After featuring in the first episode of Now Go Build, the Indonesian company Hara jumped into stardom and is showing no signs of decline. Singapore-based Bluzelle is also a highly successful blockchain company.
  5. Artificial Intelligence
    Projected to hit $90 billion by 2025, the artificial intelligence market could be the biggest trend since the internet. With vast possibilities in terms of practical applications, from autonomous vehicles to fraud detection, machine learning, facial recognition, aeroplane autopilots and more, there are endless options for investment in this rapidly growing sector. Again, China’s Tencent is a company to watch for. They’ve recently founded an AI lab which has developed tools for natural language processing and facial recognition.

Demographics

Besides these trends to consider when investing, it’s also important to keep a close eye on the changing demographics of Asia. As the baby boomers are retiring, the Asian middle class is on the rise. Some of the top middle-class stocks to consider for investment are Alibaba, Baidu and Tencent.

Sources:
https://seekingalpha.com/article/4259036-5-mega-investment-trends-to-2025-and-main-players

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