Companies in emerging markets are tracking growth booms in their respective national economies and pushing established multinational firms (MNCs) out of key industries, fresh data show.
"The number of emerging-market-based companies with at least $1 billion in annual sales-the global challengers, as we call them-has more than tripled, to roughly 1,700 over the past decade," Boston Consulting Group (BCG) said in a report on Wednesday.
While emerging market firms are smaller than MNCs in size, BCG notes they are growing much faster.
Following an analysis of global competition in three industries - automotive supply, construction equipment and chemicals - BCG found that emerging market players (EMPs) are on the verge of overtaking the reigning MNC champion in each sector.
"In one scenario, which explores aggressive EMP growth and is based on the assumption that EMPs are able to maintain the growth rate of the past five years, EMPs would represent three of the five largest companies globally in terms of sales in the foreseeable future in all three industries," it said.