Technology, environment, geopolitics: how to anticipate the future—and where it may be worth investing
Global megatrends are redefining investment strategies for 2025. Artificial intelligence, the energy transition, and smart cities are no longer just trends, but concrete economic realities offering long-term growth opportunities.
Although Italy ranks only 15th out of 29 European countries in terms of sustainability, several expanding sectors are emerging. For instance, the Smart City market reached €1.05 billion in 2024 (+5%), while the NRRP allocates €17.1 billion to digital projects.
Investors targeting:
- AI
- Clean energy
- Tech for ageing
- Sustainable mobility
can strategically position their portfolios around the forces shaping tomorrow’s economy.
AI, Clean Energy, Smart Cities: Buzzwords or Reality?
Artificial Intelligence has moved beyond being a buzzword—it is now a measurable economic force. Over 71% of U.S. companies are experimenting with generative AI, and OpenAI is projected to generate $13 billion in revenue by 2025. AI-focused ETFs saw gains of up to 38% in 2024, demonstrating how investors are capitalizing on this transformation.
AI is no longer a standalone investment, but rather a catalyst for innovation across all sectors: from digital healthcare to automated industrial production.
The energy transition has also reached a point of no return. According to the International Energy Agency, 25 million km of new power lines are needed over the next five years to achieve net-zero emissions. This infrastructure need represents one of the largest investment opportunities of our era, impacting sectors from electrical engineering to advanced materials.
Smart cities are becoming a reality in Italy. In 2024, the market reached €1.05 billion, up 5%. Comparing the 2022 and 2025 Smart City Index reveals a 22.7% improvement in Metropolitan Cities’ readiness, indicating a strong strategic commitment to urban digitalization.
How These Changes Impact Daily Life—and Your Portfolio
Megatrend-driven transformations generate new needs and investment opportunities, especially in response to demographic shifts.
Demographic change is perhaps the most underestimated yet most pervasive megatrend. Population ageing is driving demand for “tech for ageing”: including assistive robotics, telemedicine, biotech, smart medical devices, and innovative real estate approaches. The silver economy is now a growing market.
Smart living is reshaping construction and real estate. From buildings that automatically optimize energy use, to predictive security systems and homes that adapt to residents’ habits—these innovations are redefining housing, utilities, and telecom.
Sustainable mobility now extends beyond the automotive sector, involving the entire urban ecosystem. The integration of electric vehicles, sharing platforms, intelligent public transport, and charging infrastructure has created a competitive arena where traditional car manufacturers, tech startups, and energy utilities converge—and data becomes a key strategic asset.
Megatrends like digital infrastructure and the energy transition continue to attract retail investor portfolios, signaling their growing mainstream appeal.
The Italian Lens: Real Opportunities at Home
Italy offers concrete investment opportunities for those who can look beyond structural weaknesses. Metropolitan cities like Bologna, Milan, Turin, Venice, and Rome are attracting foreign capital thanks to European funding.
The NRRP allocates €17.1 billion to smart city projects, of which €2.9 billion is earmarked for digitalizing public administration (Mission 1). These public investments have triggered a virtuous cycle for companies involved in:
- Cybersecurity
- Digital public services
- IT infrastructure
Italy’s energy sector is also accelerating rapidly toward renewables, storage, and smart grids, fueled by EU climate neutrality goals. This reorients capital toward sectors such as renewable energy, energy storage systems, and intelligent networks. Italian companies operating in these areas—though often undervalued—could benefit from revaluations as global focus intensifies.
The agrifood sector is another strategic pillar. It embodies Italian excellence and demonstrates a unique convergence of environmental sustainability, precision agriculture, and product traceability. Though fragmented, the national AgriTech sector is drawing interest from specialized investors by offering innovative solutions in a highly competitive global market.
Concrete Opportunities with a Long-Term Outlook
Investing in megatrends requires a combination of:
- Direct investments in sector-leading companies
- Thematic ETFs for diversification
The Italian portfolio component can be enhanced by selecting companies active in traditional markets that adopt innovation and sustainability as strategic pillars. These are often overlooked in the context of global megatrends but hold undervalued potential.
It’s essential to remember that investing in megatrends requires:
- A long-term perspective
- The ability to tolerate volatility
Many technologies are still emerging, with non-consolidated business models and elevated regulatory and geopolitical risks, especially due to the geographic concentration of key players. Hence, diversification remains a crucial strategy.
Time horizon is the key variable. Megatrends unfold over decades, and investors who maintain their positions through market fluctuations are more likely to benefit from the structural transformations reshaping the global economy.
The future belongs to those who recognize today what will be evident tomorrow.
Investing in megatrends means aligning with the forces that will shape the world, transforming global challenges into opportunities for growth and innovation.