Half of Fortune 500 companies will soon come from emerging countries

Fat cats beware: New tigers are prowling.

It would be an old story to tell you that global economic growth will come largely from emerging markets in the coming decade.

But here's a new twist on the theme: Not only will markets and manufacturing rise in the developing world, but so will powerhouse companies.

By 2025 nearly half  - 46 percent - of all Fortune Global 500 corporations will hail from countries like China and others that either recently arrived on the scene or are just now starting to find their mojo, consulting firm McKinsey & Co. predicts. In 2010, only 17 percent came from what McKinsey labels as "emerging" countries, up from a mere 5 percent in 2000 (see chart below).

For anyone who needs a primer: The Fortune Global 500 is a ranking by U.S. business magazine Fortune of the world's largest companies ranked by revenue. It evolved from Fortune's long standing Fortune 500, which is a list of heavy money spinners in the publication's home country. McKinsey notes:

"Emerging markets are changing where and how the world does business. For the last three decades, they have been a source of low-cost but increasingly skilled labor. Their fast-growing cities are filled with millions of new and increasingly prosperous consumers, who provide a new growth market for global corporations at a time when much of the developed world faces slower growth as a result of aging. But the number of large companies from the emerging world will rise as well....This powerful wave of new companies could profoundly alter long-established competitive dynamics around the world."

Remember, 2025 is a little over 11 years from now. While 75 percent of the world's 8,000 companies that exceed $1 billion in revenue today come from developed economies, 70 percent of the 7,000 that will join that club over the next decade will come from emerging markets, McKinsey forecasts.

Fat cats of the world beware: There are new tigers on the prowl.

Shifting fortunes. McKinsey forecasts a radical shift in the location of the world's largest companies.


Photo of Sinopec headquarters is from WhisperToMe via Wikimedia. Chart is from McKinsey.

More of the world according to McKinsey:

This post was originally published on Smartplanet.com