Three key insights
The technology sector alone has grown at a significantly faster pace than the global economy in recent decades. A similar development is expected in the future.
Investing in the opportunities of the digital economy
As a prosperity engine, the digital economy affects almost all areas of life and the economy: from global trade and communication to health and research. Digitalisation also acts as a driver for transformation, which promises great potential for both investment and greater sustainability. Read the analysis.
Three key insights
A trillion-dollar market waiting to happen
The digital economy is experiencing explosive growth and is forecast to increase yet further at this pace. For example, the consultancy company Capgemini expects the "eco-digital economy" to increase to USD 32.9 trillion or 26.2% of global economic output by 2028. The opportunities here seem as diverse as the possible applications (see chart below).
Increased security and productivity
In terms of sustainability, for example, digitalisation gives entrepreneurs the ability to monitor economic processes for their positive and negative impact on the environment or make them less carbon-intensive. Accordingly, the actors of the digital economy have the potential to address numerous Sustainable Development Goals (SDGs) of the United Nations directly – such as the goal of industry, innovation and infrastructure. Digital technologies can support a more sustainable and robust infrastructure; mobile networks can improve access to financial services. And sensors help measure and monitor emissions from industry. Meanwhile, applications such as cybersecurity and cloud computing can make a substantial contribution to achieving greater security, higher productivity and economic growth. We believe this should also benefit social prosperity.
Wide range of possibilities for implementation
The digital economy is closely linked to digitalisation, a long-term investment theme. According to our analysis, there are still considerable opportunities to increase the use of technology in the economy and society as a whole. The "digital economy" offers investors a wide range of investment opportunities. We focus on the areas of digital infrastructure and access, security, environmental protection and the empowerment of people. At the heart of this approach are the pioneering solution providers, as well as companies that use such solutions in their processes, plus the enablers (adopters). The latter provide software and technologies to support the digital economy (see chart below).
Summary
The pioneers of digitalisation regularly outperform the competition from traditional industries. The digital economy is extending this effect via the core technology sectors to areas such as infrastructure, health and precision farming. As the future theme of digitalisation is complex and spread across different industries, funds actively managed by experts can offer great added value. Swisscanto has many years of in-depth expertise in sustainable thematic funds.
