The last few centuries have seen tremendous growth in the global economy as we've evolved from an agriculture-based society to today's digital society. We've moved from being nomads and hunters to living in cities and trying to automate everything we see around us. And we're not done. Today, we are looking toward an even greater level of economic growth over the next ten years -- Industry 5.0 looms large and presents opportunities of over USD 35 trillion through 2035.
A new report from my Foresighting Team at MarketsandMarkets shows that the world economy, because of the 4 & 5th industrial revolution, will benefit USD 35 trillion through 2035 through 164 industries and technologies of the future.
The first industrial revolution, about 300 years ago, marked mankind's shift from an agricultural-based economy to an industrial-based economy. This was truly the start of the Industrial Revolution, which has continued till today, marking the rise and fall of not only nations and dynasties but also technologies and industries while changing the way we think, work, and live. Steam engines, the loom, and the beginning of factory-based production changed how goods were bought and sold; in fact, factory-based mass production would lead to a phenomenal increase in efficiency, which, in turn, would lead to the expansion of trade and the growth of capitalism. This starting point was the beginning of something that has carried on through 3 more revolutions, each building on the previous and leading to fundamental changes in the production, manufacturing, and consumption of goods and, more lately, services. Though the first industrial revolution was of major importance, the second was no slouch either. The discovery of electrons, aka electricity, was the major driving force of the second industrial revolution, leading to more efficient mass-production techniques in the form of assembly-line production and the rise of the steel, automobile, and telecommunications industries. Building on this, the third industrial revolution or the 'Digital Revolution,' characterized by the rise of personal computers and the internet, led to globalization via increased connectivity, automation, and labor shifts, and the creation of information technology and a knowledge economy, culminating in the dot com boom of the 2000s.
And here we are, bang in the middle of the fourth industrial revolution -- pushing the limits with breakthroughs in AI, ML, and IoT that have revolutionized the way we work, reshaping industries yet again and leading to a rise in data-driven industries. Together, the different industrial revolutions have driven economic growth and created a world economy of USD 115 trillion today.
My team at MarketsandMarkets studied over 6,000 markets across 8 industry verticals, shortlisting 164 markets of the future based on CAGR, market size, use cases, disruptions, and other factors. These markets were then further clustered into overarching 10 mega themes, as shown in the figure below.
These trillion-dollar mega-themes will drive our economy and change our future. Below is a breakdown of these mega-themes into the 164 industries of the future and their USD35 trillion contribution to the global economy.
Here's a brief on these top Mega Themes, including the potential opportunities and emerging markets in each.
Hyperconnected World
A hyper-connected world features ubiquitous connectivity, integrated devices and systems, and real-time communication in a data-driven ecosystem, allowing for global interconnectivity and the adoption and advancement of automation and smart technology. The push toward a hyper-connected world will impact the global economy by an estimated USD 12.3 trillion by 2035, driven by advancements in AI, 5G+, 6G, Industrial metaverse technology, and smart infrastructure.
AI Revolution
AI revolution refers to the increased adoption and use of advanced artificial intelligence technologies and automation. AI's biggest benefits include the automation of complex tasks, data-driven decision-making, closer integration among industries, the emergence of autonomous systems, and advancements in machine learning and deep learning. The AI revolution has a future potential of approximately USD 10.6 trillion by 2035, mainly riding on the success and growth of data centers and advances in healthcare, in addition to deepfake AI, rise agents (and double agents), and causal AI, which will transform the healthcare and manufacturing industries.
Energy Transition
Energy transition is the move from traditional fuel sources (fossil fuels) to cleaner, greener, and renewable energy sources. The main aim is to combat climate change and move toward a sustainable, low-carbon future. With a potential of USD 8.9 trillion by 2035, the shift to renewable energy will be mainly driven by decarbonization and green hydrogen initiatives, along with increased adoption of solar, wind, Nuclear, geothermal energy eFuels, SAF, CCU technology and energy storage solutions. Carbon offset and carbon credit market will provide the largest growth opportunity in this mega theme.
Future of Mobility
The future of mobility will be a game-changer, offering potential opportunities of USD 2.7 trillion by 2035. Advancements in battery technology will lead to the rise and proliferation of EVs and autonomous vehicles, changing the way the world travels, while the aggressive launch of software defined vehicle models by car companies will give rise to new vehicle features and revenues. Car companies can potentially generate $1600 per vehicle per annum in future from over 300 connected car services in the by 2035.
Electrification
Electrification is one of the building blocks of the future of industries, with an estimated potential of USD 2.3 trillion by 2035. The shift to electrification -- in part due to most countries having an aggressive net-zero carbon emission target -- will transform multiple industries and infrastructure, especially the future of mobility, giving rise to a new generation of electric vehicles with greater range and zero emissions. Electrification will also boost the battery energy storage market and charging stations with about 24.1mn charging stations sold per annum in 2035 from about 5.6mn units sold in 2024. There will also be huge growth in electric depot charging solutions and growth of eForecourts replacing the traditional fossil fuel forecourts.
Future of Healthcare
The future of healthcare is exciting, to say the least. Healthcare spending in the Western world is already, on average, between 12 to 18% of GDP. To put things in perspective, the U.S. spent over $4.8 trillion on healthcare in 2023 , marking a 7.5% increase over 2022, and outpacing GDP growth of 6.1%.
Advancements in technology, coupled with data-driven insights, have allowed us to move towards preventive and value-based care. Robotics-assisted non invasive surgeries are becoming more common, increasing success rates and reducing recovery time. The increasing use of AI and ML in healthcare has resulted in quicker, more accurate predictive and preventive diagnoses, improving patient outcomes and reducing costs, and in breakthroughs in genomics and biotechnology, allowing for gene editing and targeted therapy. AI and ML will give rise to faster access to new life-saving drugs, while innovations in wearable technologies have greatly assisted doctors in real-time monitoring and consulting. As healthcare evolves, adding a potential USD 1.8 trillion to the economy by 2035, the focus on accessibility, affordability, and innovation is set to revolutionize how care is delivered and experienced globally.
Food and Materials
Advances in sustainability and the need to address climate change and resource scarcity will take the food and materials industry to new heights, creating potential opportunities of USD 1.5 trillion by 2035. Due to the increasing focus on health, food production will change significantly, with plant-based food becoming one of the fastest-growing markets. Innovations in biotechnology, precision agriculture, and lab-grown alternatives will change how we grow and consume food -- shifting the focus to feeding the growing population without depleting or harming the environment. When it comes to materials, similar advances have led to the development of sustainable materials such as bioplastics, plant-based composites, and recycled alternatives that are revolutionizing industries, reducing dependence on non-renewable resources, and cutting waste.
Autonomous Era
The future of the autonomous era will present opportunities worth USD 1.4 trillion by 2035, powered by innovation in AI, ML, and other related technologies. Autonomous systems, from driverless vehicles to autonomous home appliances, are on track to make our lives easier, more efficient, convenient, and safer. It took us 200 years to move from mechanical to automation but will take less than 25 years to move from automation to L4 autonomy. Autonomous systems are reshaping the way we work, right from agriculture (precision farming) to healthcare (robotic surgery and diagnostics), manufacturing (autonomous robots and drones), and logistics (automated delivery networks).
Future of Space
From putting men on the moon to the International Space Station, space has transfixed humans. Over the last few decades, there has been an increase in the number of satellites sent to space, and this number is only set to grow -- over 20,000 satellites are planned to be launched between 2022 and 2030, or an average of 1600 satellites every year. The future of space will present opportunities of USD 0.9 trillion by 2035.
Conclusion
We've come a long way from striking stones to light a fire. History is full of examples of leaders in their fields who thought that we had reached the limits of innovation, technology, and growth. But here we are, looking for alternatives to everything, from body parts to fossil fuels. While we may have had more success in some fields than others, one thing is certain. We will not stop. And we've barely scratched the surface. Arthur C Clarke famously said, "Any sufficiently advanced technology is indistinguishable from magic." Today, at the brink of the 5 industrial revolution, we may need to use this quote more often. For there is no question that the future is going to be anything but magic. From simple individuals bartering goods to fulfill needs, we've risen to create and command a global economy exceeding not just a trillion dollars but a hundred trillion dollars. Moving ahead will be tricky, riddled with challenges created by new technologies and ideas, but there will be no slowing down, let alone stopping. What we've been able to foresight is just the tip of the proverbial iceberg, and that itself is too large to fathom. A hundred and fifty trillion by 2030, 200 trillion by 2050. Who knows. Growth is inevitable and will make or break not just individuals, companies, and organizations but entire countries as well. The future is knowledge, and the future of industries is just the beginning.
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