Multinational companies need to focus more on smaller cities in emerging markets, where the next stage of global growth has begun…The next stage of global growth is playing out in 717 cities with populations that exceed 500,000. These cities are spread across the developing world. They hold one-third of the world’s population and are growing explosively, according to a new Boston Consulting Group analysis. They boast a middle class that will swell by 70 percent in five years, accounting for 30 percent of global private consumption, and they will require up to $40 trillion worth of infrastructure by 2030.
The fastest growth and biggest untapped markets are in cities with populations of 5 million or less, where 83 percent of urban dwellers reside. There will be an additional 371 such cities by 2030. They will add 1.3 billion inhabitants—compared to an increase of just 100 million city dwellers in developed nations.