BCG Identifies 100 Emerging-Market Technology Companies Driving the Next Generation of Innovation and Growth
In a new report on the leading companies in emerging markets, Boston Consulting Group (BCG) identifies 100 tech challengers that have grown into powerful forces in technology and other industries. Their impact is being felt in their home markets, regionally, and internationally. Most have weathered the COVID-19 crisis well, with many showing increases in both number of customers and frequency of usage.
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While previous emerging-market tech leaders came predominantly from China, the current generation is much more geographically diverse, encompassing Africa, Asia, Latin America, the Middle East, and Russia. More than 10,000 tech companies have been founded in emerging markets since 2014, 47% of them outside China. Among emerging-market tech unicorns (companies valued at $1 billion or more), one-third hail from countries other than China.
The BCG tech challengers represent 14 countries from all major regions and are active in multiple sectors that span both B2C and B2B. While two-thirds of the challengers focus on consumer apps or services, one-third are active in B2B, transforming how other companies work.
Slightly less than half of the 100 the tech challengers are active primarily in their home markets, while 16 are replicating their success in their emerging markets and 39 are pushing into mature markets. Ola, a ride-hailing company based in India, entered the UK market in July 2019 and acquired 3 million customers in more than 20 cities in just eight months.
“Tech challengers are reinventing their industries and charting their own paths to scale and success,” said Nikolaus Lang, BCG managing director and senior partner and report coauthor. “They are also gaining the attention of major industry incumbents—in the tech industry itself and in other industries—which must determine how best to deal with the rise of these new potential adversaries and allies.”
The tech challengers have an average valuation of $6.3 billion, putting most of them well beyond unicorn status. Despite averaging $2 billion in revenues each, they are still growing at an average annual rate of almost 70%, six times the rate of the tech sector in developed markets. Gaming challengers are growing at almost 130% a year, 30 times the average rate of developed-market gaming companies.
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