How Rapid Urbanisation is Shaping the Future
The world is constantly changing, and many of these shifts have the potential to alter the investment landscape.
While some of these changes can be temporary and fleeting, others can be powerful, transformative “megatrends” that shape how society is organized at a fundamental level.
One such megatrend that has been in place for decades is the rapid rate of population growth in urban areas – and while it’s been highly influential thus far, we’ve likely only seen the beginning of its formative impact on the global economy.
An Intro to Rapid Urbanisation
Today’s infographic comes to us from iShares by BlackRock, and it highlights the case for rapid urbanisation as being one of the most important overarching trends to watch in markets over the long term.
It’s a trend that originated in developed economies in the 21st century, as people transitioned from agricultural work to factory and service jobs.
|Region||Urban share of population (1900)||Urban share of population (2016)|
In these developed economies today, cities are major sources of innovation and wealth creation, and the World Bank estimates that over 80% of global GDP is now generated in cities.
A Global Shift
Over the coming decades, the large-scale role of cities will become even more amplified as rapid urbanisation spills over to the rest of the world.
Billions of people – especially in Asia and Africa – will be seeking opportunities in cities over the coming decades. Between 2018 and 2050, the global urban population will increase from 55% to 68%, adding another 2.5 billion people to cities around the world.
|Rank||Country||Urban population growth (2018-2050)|
|#1||India||416 million people|
|#2||China||255 million people|
|#3||Nigeria||189 million people|
Nearly 90% of this growth will be in Africa and Asia, with India alone adding 416 million new people to its cities – more than any other country in the world over this timeframe.
The Dawn of the Megacity
People are not only flocking to cities, they are flocking to megacities – urban conglomerations with more than 10 million people.
In just 40 years, the total amount of megacities will quadruple, gaining nearly 600 million residents in the process:
|Year||# of Megacities||Population||% of Urban Population|
With billions of new people living in urban areas – and many of them living in megacities – we will have to rethink how our cities are designed and engineered.
And as this happens, the city as we know it will be revolutionised.
The Urban Opportunity
Rapid urbanisation will create both opportunities and challenges for society, and a plethora of investment possibilities in the process.
As global cities become more integrated with technology, new business models will emerge as cities become smarter, denser, and more connected.
These potential opportunities include:
- Smarter cities
Cities will embrace technology to improve services and infrastructure, adding tech-driven features like smart lighting or real-time traffic updates.
- New infrastructure
Cities and companies will invest heavily to build next generation infrastructure, such as data centers, green energy, and citywide WiFi.
- A focus on personal security
With higher crime rates in cities than rural areas, governments will employ elevated levels of surveillance on citizens in cities. Increasing connectivity means that every activity is logged and monitored.
- New services
As cities become more connected, non-traditional players – such as cybersecurity experts or cleantech engineers – will be needed as a part of city planning processes.
- No car ownership
A lack of space and the rise of autonomous cars will mean fewer people will own a car, preferring to use ‘summon-able’ services instead.
- New healthcare systems
As population density grows to unprecedented levels, existing healthcare systems will need to be radically overhauled to deal with this influx.
Rapid urbanisation will have a wide-ranging impact on global economics, demographics, and society as a whole.
As rapid urbanisation and other megatrends collide and feed off each other, there’s no doubt that even more thematic investment opportunities will be created.
World Cities Ranked by Average Annual Sunshine Hours
While we all see the same sky, some see it differently, depending on where they live. Today’s graphic ranks world cities by annual hours of sunshine.
World Cities Ranked by Average Annual Sunshine Hours
View the high resolution of this infographic by clicking here
While we all see the same sky, we see it a bit differently depending on where we stand.
For those in the planet’s most extreme regions, the sun doesn’t follow the same pattern of seasons as it does in more temperate regions.
Today’s visualization comes from Sleepopolis and summarizes the top cities on each continent that receive the most and least annual sunshine hours.
Ranked: Cities with the Least and Most Sunshine Hours
While the graphic groups the top five cities from each continent, the tables below highlight the top 10 cities from around the world that boast the highest and lowest annual sunshine hours.
Top 10 Cities with the Most Annual Sunshine
|City||Country||Climate||# of Sunshine Hours|
|Calama||Chile||Arid, Marine West Coast, Tundra||3,926.2|
|Las Vegas||United States||Arid||3,825.3|
|El Paso||United States||Semiarid||3,762.5|
The sunniest city on Earth is Yuma, Arizona in the U.S. As the driest city in the U.S., Yuma receives less than 200 millimeters (8 inches) of rainfall and endures roughly 100 days of 40°C (104°F) weather every year. Yuma lies between the Gila and Colorado rivers, in a lush region that produces almost 90% of leafy vegetables grown in the U.S.
Arizona boasts three of the top 10 sunniest cities in the world, including Phoenix in the fifth spot, which is the 5th most populous city in the U.S. and is known as “the Valley of the Sun”.
Perhaps unsurprisingly, Egypt also has three cities in the top 10 list, with Marsa Alam, Dakhla Oasis, and Kharga claiming the 2nd, 3rd, and 9th sunniest spots, respectively. Dakhla Oasis, or “inner oasis”, receives practically zero precipitation each year.
Top 10 Cities with the Least Annual Sunshine
|City||Country||Climate||# of Sunshine Hours|
|Totoró||Colombia||Marine West Coast||637.0|
|Tórshavn||Faroe Islands||Marine West Coast||840.0|
|Malabo||Equatorial Guinea||Tropical Wet and Dry||1,176.7|
|Buenaventura||Colombia||Tropical Wet and Dry, Humid Subtropical||1,178.0|
|Reykjavik||Iceland||Tundra, Marine West Coast||1,326.0|
|Bogotá||Colombia||Marine West Coast||1,328.0|
Although perceived as a sunny location, Colombia borders both the Caribbean Sea and the Pacific Ocean, exposing it to higher variety in weather patterns and precipitation. Colombia alone is home to three of the top 10 cities with the lowest hours of annual sunshine.
Ranking second-to-last in the number of sunshine hours, Torshavn lies between the Scottish coast and Iceland and receives roughly 37 days of sunshine every year; the average temperatures on this island barely reach above 5°C (41°F).
Our sun doesn’t shine at the same level of brightness all the time. NASA has observed that the sun goes through “solar cycles” that last roughly 11 years─brightening and dimming at relatively regular intervals and impacting how intensely we receive sunlight at any given time.
Sunshine Near the Poles
Humans typically need exposure to the sun to maintain healthy sleep habits, as our brain has been hardwired to follow natural waking and sleeping rhythms.
However, several cities experience no sun at all for several months at a time in what’s known as the “Polar Night”.
- Tromsø, Norway: winter darkness is enjoyed rather than endured, as it can last for over a month
- Svalbard, Norway: even indirect sunlight is absent, with no change in sunlight to help indicate a 24-hour day
- Dikson, Russia: receives no sunlight whatsoever in December
Wherever you live, people have been watching and tracking the movements of the sun with rapt attention for millennia, even when we couldn’t see it.
Mapped: The World’s Top 10 Cities in 2035
Cities are heavy hitters in the global economy. Where will the top 10 cities be in 2035—based on GDP, population, and annual growth?
Mapped: Where Will The Top 10 Cities Be in 2035?
Cities are the engines of the modern economy. Over half of the world now lives in urban areas, and urbanization continues to shape the trajectory of global growth in unprecedented ways.
However, the most important cities of today may be quite different than those leading the charge in the future. This week’s chart looks forward to 2035, using a report by Oxford Economics to forecast the top 10 cities by measures of economic size, population, and GDP growth rate.
Each map is categorized by one of these metrics—and depending on which one you look at, the leaders vary greatly.
Top 10 Cities by Projected GDP
The top 10 cities by gross domestic product (GDP) in 2035 will be fairly widespread. Three cities are expected to be in the U.S.—New York, Los Angeles, and Chicago. The Big Apple’s forecasted $2.5 trillion GDP likely stems from its strong banking and finance sectors.
|#1||New York||🇺🇸 United States||$2.5T|
|#3||Los Angeles||🇺🇸 United States||$1.5T|
|#4||London||🇬🇧 United Kingdom||$1.3T|
|#8||Chicago||🇺🇸 United States||$1.0T|
Four cities will be found in China, while London, Paris, and Tokyo are set to round out the last three. Interestingly, Tokyo is the #1 city today, with an estimated $1.6 trillion GDP in 2019.
Altogether, these top 10 cities will contribute an impressive $13.5 trillion in GDP by 2035. Clusters of such metropolitan areas are typically considered megaregions—which account for a large share of global economic activity.
Top 10 Cities by Future Population
Next, it’s clear that top cities by population will follow a distinct global distribution. By 2035, the most highly-populated cities will shift towards the East, with seven cities located in Asia.
|#1||Jakarta||🇮🇩 Indonesia||38 million|
|#2||Tokyo||🇯🇵 Japan||37.8 million|
|#3||Chongqing||🇨🇳 China||32.2 million|
|#4||Dhaka||🇧🇩 Bangladesh||31.2 million|
|#5||Shanghai||🇨🇳 China||25.3 million|
|#6||Karachi||🇵🇰 Pakistan||24.8 million|
|#7||Kinshasa||🇨🇩 DR Congo||24.7 million|
|#8||Lagos||🇳🇬 Nigeria||24.2 million|
|#9||Mexico City||🇲🇽 Mexico||23.5 million|
|#10||Mumbai||🇮🇳 India||23.1 million|
While Jakarta’s 38 million-strong population is expected to emerge in first place, the city may not retain its status as Indonesia’s capital for much longer. Rising sea levels and poor water infrastructure management mean that Jakarta is rapidly sinking—and the government now plans to pivot the capital to Borneo island.
On the African continent, Kinshasa and Lagos are already among the world’s largest megacities (home to over 10 million people), and will hold top spots by the turn of the century.
Population and demographics can be major assets to a country’s growth. For example, India’s burgeoning working-age demographics will present a unique advantage—and the country is projected to contain several of the fastest growing cities in the coming years.
Top 10 Cities By Estimated Annual GDP Growth
When comparing cities based on their pace of economic growth, there are some clear standouts. Average annual GDP growth across cities is 2.6%, but the top 10 surpass this by a fair amount.
The kicker? All of 2035’s major players will be found in Asia: four of the fastest-growing cities will be in mainland China, another four in India, and the last two in Southeast Asia.
At #1 by 2035 is Bangalore with an expected 8.5% annual growth forecast—its high-quality talent pool makes the city a breeding ground for tech startups. Jakarta makes another appearance, with its projected 5.2% growth at double the city average.
Shanghai finds its way onto all three lists. The commercial capital hosts the world’s busiest port, and one of China’s two major stock exchanges. These sectors could help boost Shanghai’s annual GDP growth to 5% in 2035.
Looking to the Future
Of course, any number of variables could impact these 2035 projections, from financial recessions and political uncertainty, to rapid urbanization and technological advances.
But one thing’s certain—in the coming decades, cities are where many of these factors will converge and play out.
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