close

11 Jul 2023

Exploring Urbanization Mega Trend Innovations Supporting Urban Growth

Business Innovation Product

Unpacking Urbanization Megatrend and Innovations Facilitating Urban Growth

Have you ever noticed that the longer we live in a capital city, the more we feel the city is gradually shrinking and becoming more cramped over time? One reason for this is the allure of urban society, filled with conveniences, modernity, and job opportunities, which attracts a large influx of people. Furthermore, changes in global society and urban development are also influenced by population size. As the population increases, the trend of city growth correspondingly escalates.


The increasing population brings about issues related to limited resources and affects everyone's quality of life on Earth. This has led to the establishment of "World Population Day." This day is designated to stimulate awareness in many countries about the problem of rising populations, including proper family planning to reduce problems of inequality, poverty, and subsequent social issues.

Urbanization: A Megatrend, Urbanism, and Opportunities in Innovative Design

The increase in population gives rise to the megatrend of urbanization, a trend of city expansion expected to grow rapidly in the near future. An increase in per capita income propels this expansion. KPMG International Cooperation, a global business consulting company, has forecasted that the number of middle-income individuals on each continent will see evident changes in the population income structure by 2030. Specifically, the number of middle-income individuals in Asia may increase from 525 million in 2009 to 3,228 million in 2030. Africa follows, with an expected increase from 181 million in 2009 to 313 million in 2030. Although the income of this population group is not as high as that in Europe and the United States, it contributes to the expansion of urban growth as people move to cities seeking job opportunities typically offered by large businesses. Subsequently, they move to settle in these locations for convenience.


So, how does urbanization affect innovative design? The answer probably lies in the demand for infrastructure and public services that cater to the lifestyle of urban dwellers. Imagine a city densely populated with residents. Such a city would be filled with a wide array of conveniences such as shopping malls, offices, residences, public transportation systems, and the use of electricity, water, and telecommunication systems. Advancements in technology also promote the transformation of cities, following the footprints of large metropolises towards becoming smart cities that connect people from different towns. Hence, it is likely that in the future, innovations will be invented to accommodate the growth of the new age of cities, responding to the lifestyle of people desiring convenience and improved quality of life.

Innovative Solutions to Urbanization from SCGC

SCGC, a leading integrated chemical player in the region, keeps pace with every megatrend, especially urbanization. We have production bases throughout the ASEAN region, with a combined population of approximately 661 million. These countries tend to grow due to factors supporting the expansion of the middle class and city growth. Furthermore, SCGC continuously innovates, develops, and designs innovations that support the increasing demand for infrastructure.


An interesting innovation from SCGC is fire-resistant plastic cable jackets. This innovation, resulting from research and development in collaboration with business partners, aims to address the issue of fiber-optic cable fires, which often spread widely from the plastic materials wrapping conventional cables. With SCGC's proprietary technology, this problem can be solved by developing a plastic that can resist fire and is lighter in weight, reducing the potential dangers of cable fires.


But that is not all. SCGC has also designed a high-density polyethylene (HDPE) plastic innovation for high-pressure pipes, revolutionizing pipe installation with the trenchless method. This is suitable for infrastructure system work, helping to reduce the problem of laying pipes in cities which often involves road digging and ground-breaking. It is the first in the ASEAN region to be certified by the European Standard EN 1555-1.

How Will the World Change as Cities Transform?

Urbanization growth can be measured by the increasing population influx into urban areas. It was once predicted that by 2030, over 61% of the world's economic drivers would originate from activities in about 750 major cities, constituting 22% of the world's total cities. PwC estimates that by 2050, the proportion of the population living in cities will be around 72%, a rise from the current 50%. This surge is partially due to the economic expansion in these major cities.


The rapidly growing economy draws people to migrate to large cities, gradually transforming the surrounding areas into urban zones where the resident population enjoys better income and increased spending power. This transformation lures businesses to invest in these areas, creating jobs and further stimulating the economy. However, the downside of this urbanization trend includes accompanying issues such as overcrowding, resource scarcity, pollution, the cost of living, and inequality between city dwellers and rural folks.


As urbanization presents both opportunities and a myriad of problems, the concept of "sustainable urbanization" starts to play a more significant role. Sustainable urbanization does not focus solely on economic growth and urban transformation towards prosperity but also prioritizes social and environmental aspects to enhance people's quality of life and readiness for potential future changes. Examples of this transition towards sustainable urbanization include efficient energy use, promoting the grassroots economy by distributing income to distant localities, and planning to address problems that are likely to arise from city expansion, such as city planning, traffic management, waste problems, and pollution issues.


As the world's population continues to seek opportunities and improved quality of life, the constricted urban society must expand to accommodate people continuously. At the same time, it provides an opportunity to create innovations that support the urbanization megatrend, making it even better, more advanced, and continuously evolving. From now on, we are likely to see the design of innovations that are beneficial for all lives and ready for sustainable urbanization.


Is this article useful ?