Macro and industry trends

By 2030, global demand for water will outstrip supply by 40%, driven largely by the agricultural and manufacturing sectors. Unlike climate change, water is a local issue that is already affecting the well-being of some communities. Several regions around the world are experiencing severe water crises in the form of floods, polluted waterways or droughts. The availability of water is subject to growing government regulation, which is driving demand for solutions that reduce water consumption and improve wastewater quality.

To ensure global food security, the world needs to increase agricultural productivity significantly. The need to produce more from less is driven by a number of factors, such as increasing population, consumer pressure and climate change-related supply chain disruptions. In response, there has been an increase in the use of big data, sensors and digital farm management, microbial solutions and plant genetics.

Crude oil prices have plunged since mid-2014, hovering between USD 30 and USD 50 per barrel. The market expects low oil prices to persist in the short to medium term. Low oil prices create ripple effects throughout the economy, as they push down the price of gasoline and other conventional fuels as well as the petrochemical derivatives that serve as inputs in many manufacturing industries.

The main impact of low oil prices on the uptake of renewables has been seen in the transport and heating sectors, which are still heavily reliant on fossil fuels.

Changes in global consumption patterns are largely driven by shifting demographics and rapid urbanization. Each year, close to 70 million people move from rural areas to cities. By 2030, 81% of global consumption will come from consumers in large cities. Although urbanization in itself can be a positive force, poorly planned cities, urban sprawl and associated infrastructure result in high levels of air, water and soil pollution, and significant public health challenges. The most significant demographic trend is the growing middle class in emerging economies. Estimates show that the global middle class will increase to 4.9 billion by 2030, of which 64% will live in Asia while only 22% will live in Europe and North America. Another key shift is the aging of the global population due to falling birth rates and longer life expectancy.