The Green Technology And Sustainability Market is estimated to be valued at US$ 15.99 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The green technology and sustainability market comprises products and services that help reduce the negative impact of businesses and human activity on the environment. This includes solutions for green building, carbon footprint management, renewable energy, water purification, green mining, and others. With the growing threat of climate change, businesses and governments are increasingly adopting sustainability solutions to lower their carbon footprint and energy costs. Green building technologies allow the construction of infrastructure that reduces water usage, relies on renewable materials, and lowers overall energy consumption. Carbon footprint management solutions help organizations track and reduce their emissions from operations. Renewable energy technologies include solar panels, wind turbines, hydropower, and others that generate clean energy from natural sources.
Market Dynamics:
The rising awareness about the severe effects of climate change and carbon emissions is a major driver for the green technology and sustainability market. According to the UN Intergovernmental Panel on Climate Change, urgent action needs to be taken to limit global warming to 1.5°C compared to pre-industrial levels. This has increased investments by governments and businesses in clean technology initiatives. Additionally, renewable energy solutions have become more cost-effective than fossil fuel-based power in many countries. For example, the levelized cost of energy for utility-scale solar PV and onshore wind fell by 13% and 15%, respectively, between 2020–2021 according to IRENA. Lower costs have further boosted the adoption of green technologies in various industries.
Moreover, governments across regions have implemented strict environmental regulations for industries. They offer various incentives like tax credits to promote investments in renewable energy and energy-efficiency projects. This is expected to stimulate market growth over the forecast period.
Segment Analysis
The green technology and sustainability market is segmented into energy, agriculture, transportation, and others. The energy segment dominated the market in 2022, accounting for over 30% of the total share. The energy segment is dominating as organizations are focusing on improving energy efficiency by implementing renewable energy technologies. Adoption of smart grid solutions, solar energy, and energy management systems are high in this segment.
PEST Analysis
Political: Government regulations and initiatives promoting renewable energy, emission reduction, and sustainability are driving the growth of the green technology market. Regulations regarding carbon emission from industries are compelling companies to adopt green technologies.
Economic: High initial investment associated with green technologies and lack of funding or incentives in developing regions can hamper the market growth. However, declining prices of renewable energy sources are making them economically viable.
Social: Rising awareness among public and organizations about climate change and its impact is increasing adoption of green technologies. Customers are inclined towards eco-friendly products and companies following sustainable practices.
Technological: Advancements in areas like renewable energy production, electric vehicles, green building, smart agriculture are providing opportunities for development of innovative green technology solutions. Artificial intelligence and IoT are enabling efficient resource utilization.
Key Takeaways
Global Green Technology And Sustainability Market Size is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing environmental regulations regarding carbon emissions and pollution.
Regional analysis: North America dominated the market in 2022 with a share of over 30%, due to stringent regulations and supportive government policies in the region for adoption of clean technologies. Asia Pacific is expected to be the fastest growing market during the forecast period, supported by significant investment by governments in China, India for development of clean energy sector.
Key players operating in the green technology and sustainability market are CropX Inc., Enablon France SA, Enviance Inc., General Electric, Hortau Inc., IBM Corporation, LO3 Energy, Inc., Oracle Corporation, Tech Mahindra Limited, and Trace Genomics, Inc. Key players are focusing on developing advanced smart solutions in areas of renewable energy, green buildings, sustainable agriculture using technologies like AI, IoT and blockchain.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
