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The global green technology and sustainability market size was valued at USD 11.49 billion in 2021 and is projected to grow from USD 13.76 billion in 2022 to USD 51.09 billion by 2029, exhibiting a CAGR of 20.6% during the forecast period. Based on our analysis, the global market exhibited an average growth of 19.8% in 2020 as compared to 2019.
These solutions and services are deployed across applications such as green building, crop monitoring, air and water pollution monitoring, and carbon footprint management. For instance, CropX Inc.’s, – Variable-rate Irrigation Management & Automation, Crop-specific management, Schneider Electric – Smart Sustainability Solutions, Energy Data Collection, and others.
The potential for this market is projected to spike rapidly in developing economies and emerging markets in the coming years. Innovators across the globe are likely to capture market share for their own green technologies. To capture the addressable market, more international and domestic venture capital (VC) will be required to ramp up R&D spending and drive innovation in the market.
Climate Tech Venture Capital to Experience Progressing Post-Pandemic Investments
According to a report by Switzerland Global Enterprise 2020, the effects of coronavirus had a negative impact on cleantech investments globally. Similarly, many strong investments in the second quarter of 2020 were developed prior to the pandemic. Further, the third quarter of 2020 was observed to witness a sharp decline of nearly 23.6% in the deal amount while the number of deals was significantly reduced. This factor hindered the green technology and sustainability market growth in the short term.
As per a recent report by Switzerland Global Enterprise in March 2021, the overall Cleantech venture closed at USD 66.3 billion, representing nearly 50% increase from 2020. This major factor shows that the market will gain traction by 2021-2022.
In the post-pandemic scenario, initiatives and regulatory frameworks introduced by governments worldwide are expected to offer numerous opportunities for key players. Post the COVID-19 crisis, companies are expected to emphasize reducing carbon emissions to change operating processes and reduce prices, resulting in attractive opportunities in the global market. Additionally, electric vehicles are expected to see high demand in the near future due to advantages such as reduced fuel consumption and fewer greenhouse gas emissions.
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Governments’ and Businesses’ Prioritization of Decarbonizing Economy to Foster Market Development
The competing pandemic crisis and climate change significantly impacted power systems in the past year. Also, the energy consumption patterns of the individuals were observed to be dramatically changed as more than half of the workforce worked from home amid the pandemic. Such coinciding sustainability trends are likely to drive the need for affordable, clean and reliable technology solutions.
Increasing investment in critical infrastructure is likely to be a driving factor for the green technology and sustainability market. For instance, the Biden Government has committed a federal investment of USD 1.7 trillion in climate resilience and clean energy over the coming years. The government aims to leverage additional investments from state and local government and the private sector to total more than USD 5 trillion. Likewise, the European Union plans to invest recovery funds in a range of resilient infrastructure projects and clean energy resources.
Further, due to the proliferating trend of electrification across the industries, the utilities are likely to explore scalable new business models that deliver enhanced values to the consumers of storage, microgrids, and services that build intimate, intelligent, and stronger relationships with consumers.
Businesses and communities aiming to progress toward a decarbonizing economy are likely to invest in securing long-term zero-carbon power contracts and smart and data-driven energy solutions. This trend is expected to gain pace in the coming years and is expected to propel the adoption of green technology and sustainability solutions.
Growing Adoption of Green Data Centers to Expand Market Size
Green cloud computing mainly leverages green data center technology. A green data center, also called a sustainable data center, is primarily a service facility that leverages energy-efficient technologies for data management, storage, and operations on the data. According to the United States Data Center Energy Usage report 2020, the U.S. data centers were anticipated to consume nearly 73 billion kWh in 2020. Similarly, according to the European Commission, data centers in Europe were expected to utilize 259 TWh of electricity. Such high energy usage is likely to drive the adoption of green data centers across the regions that are expected to expand the green technology and sustainability market size.
High Costs Associated with Green Technology and Sustainability Solutions to Limit Market Growth
In general, green technology and sustainability solutions are more expensive than the traditional technologies it aims to replace as green technology constitutes the environmental expenses that are externalized in many conventional production procedures. As the technology is relatively new, the associated training and development costs are expected to make it costlier than established technologies. High initial deployment costs are likely to restrict the adoption of green technology and sustainability solutions among enterprises.
Rising Adoption of Environmental Monitoring and Renewable Energy Solutions to Propel the Market
In the scope of the study, we have included companies that are offering green technology and sustainability solutions & services. These solutions and services are deployed across applications such as green building, crop monitoring, air and water pollution monitoring, and carbon footprint management.
The solutions segment is projected to hold a major market share. Green technology and sustainability solutions provide real-time statistics, charting and monitoring tools, management services, and other services to the users. It includes environmental monitoring and renewable energy solutions that assist in developing robust and reliable infrastructure and further help create a healthy environment.
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Green Building Segment Accounted for Largest Share Driven by Growth of Sustainable Buildings
Based on industry, the green technology and sustainability market is segmented into air and water pollution monitoring, carbon footprint management, crop monitoring, fire detection, forest monitoring, green building, soil condition/moisture monitoring, sustainable mining and exploration, water management, weather monitoring and forecasting, and others.
The green building segment accounted for the largest market share. Green building technology has become one of the significant trends in the construction industry. Green building technology leverages access card readers, RFID sensors and scanners, motion detectors, and other sensors to monitor the residential status of building sectors.
Crop production is mainly dependent on dynamic weather changes; as a result, crop monitoring is becoming extremely crucial in the agriculture sector. In the agriculture industry, the convergence of advanced technology tailored to government initiatives is projected to drive the demand for crop monitoring in the near future.
Further, carbon footprint management is a significant part of environmental, social, and governance (ESG) management and is anticipated to hold a notable share in the global market. Similarly, weather monitoring and forecasting and air and water pollution monitoring are likely to gain traction due to increasing greenhouse emissions.
North America Green Technology and Sustainability Market, 2021 (USD Billion)
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Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America is expected to dominate the green technology and sustainability market share during the forecast period. The region's growth is primarily due to the presence of major players such as Microsoft Corporation, GE Electric, IBM Corporation, Oracle Corporation, Engie Impact, CropX Inc., and Taranis. Also, key players in the market are planning to expand their business presence globally by embracing business strategies such as collaboration, mergers, and partnerships.
Europe is expected to hold the second-largest market share in the global market. Leading government initiatives to demonstrate innovation of low-carbon technologies are expected to fuel the market growth. For instance, in July 2020, European Commission (EU) proposed an investment under its Innovation Fund for market-ready projects such as low-carbon and clean hydrogen solutions for energy-intensive industries such as chemicals, cement, and steel.
The European Commission further planned to support energy storage, carbon capture and storage, and grid solutions to create green recovery leading to climate neutrality and restarting the EU economy. European countries have emerged as world leaders in many green technologies, such as onshore and offshore wind power.
Competition from North America and the Far East is pressuring Europe to spend further research and development and provide an environment conducive to green technology and sustainability growth. A competitive domestic market allows large-scale solar energy deployment and a construction industry centered on high-energy buildings and green transportation.
The market in Asia Pacific is likely to witness the fastest CAGR during the forecast period. Over the last decade, East Asia has undergone a significant transition toward a renewable energy future. China, Japan, Taiwan, India, and South Korea are the major economic players in these shifts. These countries' governments have also made varying contributions to low-carbon, renewable development policies. They have put resources into building emerging renewable energy infrastructure production markets such as solar and wind energy, smart grids, electric vehicles, and green buildings. The rise of foreign markets and potential regional development in exporting clean technology goods are inextricably related to these initiatives.
The Middle East & Africa and South America are expected to showcase a strong potential for growth during the forecast period. As part of their national climate programs, governments have also promoted green energy sources.
The Middle East and South American countries have pioneered new national, regional, and international institutions to build and maintain support to reduce greenhouse emissions and contribute to renewable development policies. For instance, in March 2021, Prince Mohammed Bin Salman of Saudi Arabia announced that Middle East Green would plant 50 billion trees worldwide. Under Green Saudi and Middle East Green initiatives, the region will reduce regional carbon emissions by 60% in upcoming years.
With emerging economies such as Qatar, Iran, Sudan, Kuwait, and Bahrain investing heavily in overhauling their domestic infrastructure, green technology and sustainability solutions are key for their growth. This factor is expected to offer several lucrative opportunities for vendors in the region, facilitating the regional market's growth.
Key Players Focus on Developing Advanced Green Technology and Sustainability Solutions to Strengthen Competition
Companies operating in the market, such as General Electric Company, Enablon, Salesforce.com, Inc., Microsoft Corporation, Schneider Electric, and Engie Impact, are launching different green technology and sustainability solutions integrated with advanced technologies. Also, market players are observed to make significant investments in green bonds. For instance,
An Infographic Representation of Green Technology and Sustainability Market
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The green technology and sustainability market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading product applications. Besides this, the report offers insights into the key market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors contributing to the market's growth in recent years.
Value (USD billion)
By Component, Industry, and Region
According to Fortune Business Insights, the global market is expected to reach USD 51.09 billion by 2029.
Fortune Business Insights says that the market stood at USD 11.49 billion in 2021.
The market is expected to grow at a CAGR of 20.6% during the forecast period (2022-2029).
Based on component, the solutions segment is expected to lead the market during the forecast period.
Increasing industrial and consumer awareness, rising interest in climate change, and valiant climate commitments are key drivers for the market growth.
General Electric Company, Enablon, Salesforce.com, Inc., Microsoft Corporation, Schneider Electric, and Engie Impact are the top companies in the market.
The green building segment holds the major market share.
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