DWS Smart Industrial Technologies

Benefitting smartly from future trends

The future cannot be predicted. But trends and patterns can. These are structural growth trends that are not short-lived but rather long-lasting. We call them megatrends.

So what are the megatrends that will shape our future and how can investors profit from them in a smart way?

" Due to the advanced age of infrastructure and production facilities, the energy transition and the increasingly localised production of critical goods, we continue to see a great need for investment in industrial end markets. However, business models also need to be carefully selected in order to ensure that companies earn money with them.

Madeleine Ronner - Fund manager of the "DWS Smart Industrial Technologies"

Megatrends^[1] are changing our world

Whether it is digitalization, automation, globalization, urbanization, demographics or energy efficiency, it is important to recognize structural growth drivers, correctly assess their long-term opportunities and seize the corresponding investment opportunities.

Digitalization & data security

Increasing use of software applications to improve efficiency and quality, with the aim of differentiating products and services more distinctively. In addition to traditional software companies, industrial companies are also increasingly benefiting from the digitalization trend and the improvement of data security.

Automation & Robotics

The increasing use of automation and robotics is intended to increase efficiency, quality and the degree of product customization. Automation solutions are used in a wide range of industries, for example in the design of production processes, in production lines and as part of quality control processes.

Globalization & e-commerce

The uptick in air traffic and freight volumes have been driven by globalization, greater prosperity and the trend towards online shopping. Logistics service providers, container manufacturers, aircraft and ship handlers will be the main beneficiaries.

Urbanization & Infrastructure

Increased investment in new infrastructure and modernizing existing infrastructure has been driven by a shift in demographics as well as the trend towards urbanization. This should increase sales from cement plants, toll roads, airline and port operators to construction equipment and manufacturing companies.

Medical technology & demographics

Ageing and a growing middle class are raising demands in terms of diagnostics, medical care and equipment. Medical equipment manufacturers, laboratory equipment suppliers and implant manufacturers are at an advantage as a result.

Energy efficiency & building technology

Modernizing residential and commercial buildings to reduce energy consumption. Manufacturers of building technology, service companies for building management and air conditioning contractors are expected to profit from this trend.

Thematics

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Opportunity in crisis: enforced social distancing has accelerated the digital transformation. Growth stocks in the industrial sector also look set to profit from this trend.

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Future technologies II - Coronavirus losers catch up

Traditional industrial companies were not exactly in demand in 2020. However, a reviving economy and more investment in future technologies could create a turnaround this year.