The Rise of Asian Global Players
Asian companies have a chance to become global players and leaders of a new era. The region’s technological prowess, industrial strengths and market size are combining with increasing domestic savings and investment potential. This is creating opportunities across a wide range of industries: semiconductors, EVs, e-commerce, cloud services, renewable energy, and many more.
By 2040, Asia could contribute 42% of global GDP, be home to 60% of the Fortune Global 500 companies, and have 55% of the world’s total workforce. These factors form a favorable macro backdrop for Asian companies, driving the emergence of what we call Asian global players.
Asian companies are making rapid advances in areas such as digital services, fintech, healthcare, advanced manufacturing, and clean energy. Their success is increasingly driven by leadership, innovation, and influence, rather than sheer size. These companies are also characterized by strong domestic investment, a willingness to engage with artificial intelligence (AI), and a digitally aware consumer base.
To capitalize on these trends, we can leverage several strategic approaches.
Domestic Fixed Investments
One of the key drivers of Asia’s growth is rising domestic capital flows and investment, which are reshaping how Asia’s businesses operate and grow.
Asia's investment landscape is undergoing a meaningful evolution that we believe will influence the region’s global competitiveness over the next decade. We see a noticeable shift from Asia’s reliance on FDI towards increased domestic capital mobilization. Between 2019 and 2023, Asia was a significant destination for global capital, absorbing 30 to 54% of global FDI.[1] At the same time, its five-year historical average for FDI outflows was 47% of global levels during the same period, highlighting the region’s dual role as both a magnet and source of international capital.[2]
However, in the coming decade, we see that fixed investments in Asia could increase to $140 trillion, surpassing the combined investment forecast of $89 trillion for the United States and the European Union.
Asia’s AI Engagement
Further growth is being driven by the region’s AI adoption. Asia is making strides in integrating AI as both a global standard-setter and a locally adaptable lever, revolutionizing industries and creating scalable, cost-effective business models. In 2022, the region accounted for 75.2% of AI patents globally.[3] Moreover, investments in AI in this region are expected to surge to $110 billion by 2028, growing at a 24% compounded annual growth rate from 2023 to 2028.[4]
Many regional players are at the forefront of using AI innovations that can be scaled globally while still being tailored locally. This has the potential to bring greater efficiency to traditional industries such as healthcare, telecoms, insurance, fintech, e-commerce and logistics, while establishing international benchmarks that can be implemented worldwide. This will drive down unit costs and improve customer experiences.
Affluent, Tech-First Consumers
The third driver is that digital-native youth and affluent, digital-first consumers, are accelerating wealth creation across Asia. This, in turn, is driving demand for new products, services, and business models, of which Asia’s global players are at the forefront.
By 2040, Asia will be home to approximately 53% of the global youth between the ages of 18 to 24, which could add about 470 million new people to the workforce.[5] Furthermore, by 2030, Asia could account for two-thirds of the global middle class, with 700 million new members added between 2025 and 2030.[6]
This new class of consumer in Asia—wealthier, digitally savvy and with a penchant for luxury goods—is generating new business models. We see several Asian companies successfully using digital platforms to provide interactive, convenient, and community-driven experiences to engage with these demographic shifts.
Becoming Asia’s Global Players
These three drivers—the rise of domestic financial flows and investment, Asian AI leadership, and the new cohort of consumers and the business models that serve them—can be embraced by leaders of Asian companies.
Firstly, they can develop R&D centers in strategic Asian markets, acquire advanced technology capabilities such as AI startups, and establish supply chain ecosystems through regional alliances.
Secondly, they can then allocate capital to high-growth sectors such as renewable energy and automation, initiate regional venture funds, and improve ROI through strategic capital deployment.
The third vector of action could be to create scalable AI platforms, embed AI into operations to reduce costs and increase efficiency, and expand AI solutions globally to serve underserved markets.
Lastly, Asian companies can engage digital-savvy youth through hyper-personalization, gamified consumer experiences, growing digital-first brands on social commerce platforms, and investing in initiatives that build digital skills.
Asia’s transformation could reshape the global economic order in years to come. CEOs can seize this opportunity by recalibrating their strategies and operations, transforming themselves into Asia’s global players.
Gautam Kumra is Chairman of McKinsey’s Asia offices, based in Singapore. Semyon Yakovlev is a senior partner and leader of McKinsey's Strategy and Corporate Finance practice in Asia.
