Population growth and scarce resources
The world’s population, currently estimated at close to 7 bn, will rise to nearly 9 bn by 2050. The growth will lead to higher demand for basic necessities such as food, water and shelter. Since resources are scarce and prices of raw materials are rising, increased productivity is necessary to provide for the growing needs.
It is estimated that more than 20 per cent of global population will be older than 60 years of age by 2050. While the effect will impact all parts of society, health care and demand for medical equipment for the elderly will be impacted most significantly.
Rising income and emerging middle class
The industrialisation of developing countries means rising income and the emergence of a middle class that demands non-durable and durable consumer goods. The capacity to manufacture anything from cars, household appliances, electronics and all types of consumable goods will have to expand. Plants and factories will be located close to consumers in primarily Asia and Latin America.
Urbanisation and infrastructure
Most of the population growth will take place in cities in the developing world. This trend in urbanisation requires cities to develop and organise housing, transport systems and water and power supply on an unprecedented scale.
All sectors in society require measurement, design and visualisation technologies to cope with change driven by megatrends, from infrastructure, power and energy, aerospace and automotive to public safety and security and defence.
Hexagon estimates the size of its addressable market at 11 bn EUR, with annual growth of approximately 8 per cent over a business cycle. These estimates are Hexagon’s assessment, based on internal industry knowledge.D
Hexagon’s competitive landscape encompasses global companies of varying size and with differing specialisations. Not all market players operate across the entire industry workflow. In fact, many of our competitors specialise within one phase or are limited to hardware or software. Hexagon alone operates in all application areas.
The table to the right summarises what Hexagon considers its most important competitors within each of Hexagon’s three application areas: Geosystems, Metrology and Technology.
Hexagon has achieved vast geographic coverage without sacrificing its strong local presence covering more than 160 countries around the world.
Hexagon supplies thousands of customers across a large variety of industries. Surveying is the single largest customer category and accounted for 21 per cent of net sales in 2012.