Where are the next world-shaking companies going to come from? A new report from the McKinsey Global Institute predicts that by 2025, most of the companies that achieve a market cap of $1 billion or more will be from emerging markets. Currently, 73 percent of such companies are based in the world's developed markets.
For a long time, the number of large companies in the emerging world remained dauntingly small. That percentage was tracked at just 5 percent in 1980, 1990 and 2000. By 2010, it was up to 17 percent, and McKinsey forecasts it will reach 46 percent by 2025.
The biggest driver of all of this is China, which dominates the emerging-markets landscape along with Brazil, India and Russia. As recently as 1990, only one of the world's 500 largest companies was based in China. The McKinsey report forecasts that by 2025, that number will be up to a whopping 120.
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