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Trends in patterns of urbanization in the next 5 years and its impact on vehicle usage and experience (Theme B)
Team Zoomvictors MICA, Ahmedabad
preferences and usage has changed.
The preferences of the mass have changed over years owing to changes in lifestyle technology, consumption pattern and disposable income. Even the target audience for categories has made a shift for the better. Thus the future of vehicles poses a great opportunity for companies to decode the trends and market their strategies accordingly. The report gives an overview of the entire vehicle industry with special focus on two wheelers market in India. The overview has been segregated into motorcycles, scooters and electric vehicle along with their trends.
Our report aims to study the Indian two-wheeler market from various perspectives. It entails a detailed analysis of the market in terms of segments. Each section sufficiently explains the current and future market trends, and the ongoing developments in the Indian two-wheeler market. Our research also foresees immense opportunities for various international and domestic players in this segment.
The report has also considered the preferences by gender, and income levels as part of macro-economic indicators to understand this market of India, which is one of the world's leading two-wheeler exporters.
Our report, has comprehensively analyzed the emerging trends, like reviving of scooter segment and shooting demand for executive and premium segment bikes in two wheeler markets, which are expected to prevail in near future. Our proposition in this report is likely to facilitate clients in understanding the present and future outlook of the two wheeler market and developments in the country.
Urbanization has been a trend, which defines change itself. It is an ongoing phenomenon, which takes place all around us. In fact, every change in society, to families, to people's life is somewhat related to urbanization. Urbanization changes the way we make choices in our lives and affects our present and future as well. This report highlights how urbanization has changed the way we view the world and our own lives. It highlights major factors of change like population, social life, disposable income, transportation and environmental factors, which highly constitute the phenomenon itself. The shift in population towards the much more advanced and well-equipped areas have been the spearheading contributor to urbanization. The migration has been backed by certain push and pull factors which have been discussed in the report.
The report further highlights how with increasing aspiration coupled by global trends have made people change their lifestyle and consumption pattern over the years. The second part of the report talks about effects of urbanization on transport and usage of vehicles. Automobile, being the leader in product and process technologies of the manufacturing sector, has been recognized as one of the major drivers of economic growth. The Indian economy has been growing around 8% for the past few years. This growth has enabled an overall change in the social status of the Indian population. Additionally, every year, many rural areas and Tier-III cities are progressing to a higher status, opening immense growth opportunities for the two- wheeler industry.
Commuting has been a necessity for people since ages and thus it is quite evident that with the changes in the pattern of urbanization even the vehicle
Urbanisation is basically the gradual increase in the population of people living in the urban areas and the way each society adapts to the changes.
It is predominantly the process by which towns and cities are formed and become larger as more people begin living and working in central areas.It is predicted that by 2050 about 64% of the developing world and 86% of the developed world will be urbanized. That is equivalent to approximately 3 billion urbanites by 2050, much of which will occur in Africa and Asia. Notably, the United Nations has also recently projected that nearly all global population growth from 2015 to 2030 will be absorbed by cities, about 1.1 new urbanites over the next 15 years.
There are two factors which make urbanisation possible. They are:
A) Pull Factors- The attractiveness of city lifestyle and infrastructure make people to move from one part of the place to the other part. Employment opportunities, higher incomes, joining other rural refugees, freedom from oppressive lifestyle, access to better health care and education are the main factors why people go from rural to urban.
B) Push Factors- The poverty, unemployment make people move from rural set up to urban setup to fulfil their financial status. Earning of living impossible, land deterioration, lack of adequate land, unequal land distribution, droughts, storms, floods, and clean water shortages are some of the other factors which make people to shift from one city to other.
The factors which have a direct effect on Urbanisation are as follows:
The word civilisation, civil, citizen were all derived from word city. The ethos of city has full potential to be driving force of change and is capable of finding new patterns of civilizations that are economically and ecologically sustainable.
The growth driver of this change is what we call the Urbanisation.
Urbanisation is the process by which rural communities grow to form cities or urban centres and by extension, the growth and expansion of the cities. Urbanisation began in ancient Mesapotamia in the Uruk period (4300-3100 BCE) where a village from other villages was very prosperous so there was lot of movement of people from one village to the other. The movement of people gave rise to the densely populated areas where trading and other economic activities took place and it gave birth to cities. First city that was formed during this period, Uruk was mainly due to the environmental issues. The earliest cities that were formed during this period were Uruk, Ur and Eridu. The fundamental reason of formation was new cities was that the cities had a good infrastructure and it provided more security which attracted people to move and set their living in a urban centre. The temple of Ur where all social gatherings take place is where the trading between two cities started.
The first phrase of Urbanisation in India is started with Indus valley civilization. Since 600 BC onwards, cities and towns started developing with either an Ariyan association or Dravidan association with them. Varnasi, Mathura, Madurai, Uraiyur were the cities that grew during this period.
Urbanisation and Trends
worldwide lived in rural settlements and less than one-third (30 per cent) in urban settlements. In 2014, 54 per cent of the worlds population is urban. The urban population is expected to continue to grow, so that by 2050, the world will be one third rural (34 per cent) and two-thirds urban (66 per cent), roughly the reverse of the global rural-urban population distribution of the mid-twentieth century.
Population and its effect on Urbanisation:Population growth is one of the primary reasons of urbanisation. In rural areas, In rural areas natural increase is not high. In 1950 there were only 30% of the population living in urban centres/ cities. Globally there are more than half the population (54%) living in cities and urban centres today and is expected that more than 66% of the population will be living in cities and urban centres. the most urbanized regions include Northern America (82 per cent living in urban areas in 2014), Latin America and the Caribbean (80 per cent), and Europe (73 per cent). In contrast, Africa and Asia remain mostly rural, with 40 and 48 per cent of their respective populations living in urban areas. All regions are expected to urbanize further over the coming decades. Africa and Asia are urbanizing faster than the other regions and are projected to become 56 and 64 per cent urban, respectively, by 2050.
The rural population of the world has grown slowly since 1950 and is expected to reach its peak in a few years. The global rural population is now close to 3.4 billion and is expected to decline to 3.2 billion by 2050. Africa and Asia are home to nearly 90 per cent of the worlds rural population. India has the largest rural population (857 million), followed by China (635 million).
Globally, more people live in urban areas than in rural areas. In 2007, for the first time in history, the global urban population exceeded the global rural population, and the world population has remained predominantly urban thereafter (figure 2). The planet has gone through a process of rapid urbanization over the past six decades. In 1950, more than twothirds (70 per cent) of people
Africa and Asia are urbanizing more rapidly than other regions of the world. The rate of urbanization, measured as the average annual rate of change of the percentage urban, is highest in Asia and Africa, where currently the proportion urban is increasing by 1.5 and 1.1 per cent per annum, respectively. Regions that already have relatively high levels of urbanization are urbanizing at a slower pace, at less than 0.4 per cent annually (figure 4). In general, the pace of urbanization tends to slow down as a population becomes more urbanized.
Lifestyle and Social Impact:In 1950's it was the creation of towns and districts
Global Urban Population Growth (1950-2050)
Source: World Economic Forum
In 2015, Network cities were formed
Probably most of the major environmental problems of the next century will result fr