Volvo 2015 Annual Report Download - page 20
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RESPONDING TO TRENDS
IN THE WORLD AROUND US
As part of our business and sustainability strategies, we continually analyze global mega trends
as well as regional variations to assess their impact on the Volvo Group, seek new business
opportunities and be well positioned to meet the transport needs of the future.
A GLOBAL GROUP
STRATEGY
GLOBAL CONTEXT
Today over seven billion people live on the planet.
The United Nations Population Fund expects
there will be eight billion people by 2025, and
over nine billion in 2050. Half the world’s popula-
tion already lives in cities, but the levels of urban-
ization vary widely by region. In the next decade,
we will see a much greater rural-to-urban shift in
Asia and Africa in particular. As urban popula-
tions grow, cities face increasing social and envi-
ronmental challenges, including congestion,
noise, traffic accidents and pollution. This chal-
lenges the transport and infrastructure industry
to provide more sustainable and efficient solu-
tions for each type of urban development,
whether a small or medium sized city or a mega
city. The growth in emerging markets brings the
development of larger middle classes, and citi-
zens with rising disposable incomes will spend
more on consumption and housing. These are also
important factors for the increased demand for
transport and infrastructure in these parts of the
world.
#2 Urbanization
8BN
PEOPLE BY
2025
There is widespread agreement that the burning
of fossil fuels, including oil and diesel, is a major
source of greenhouse gas emissions, which
causes climate change. Governments, business,
and other stakeholders aiming for a sustainable
transport sector are responding by improving fuel
efficiency and moving towards lower carbon
alternatives. This challenge is driving interest and
opportunities in electromobility, as well as alter-
native and renewable fuels. Developments across
regions vary in speed and direction, depending on
the availability of natural resources and fuels,
infrastructure, political will, and incentives. We
expect to see governments and multi-stake-
holder partnerships place even greater focus and
incentives on renewable energy and lowering
emissions. We strive to manage resource scarcity
by finding better ways to recycle, remanufacture,
and refurbish products and components.
#1 Climate change and
resource scarcity
FUEL
EFFICIENCY
AND LOWER
CARBON
ALTERNATIVES
18