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The global green technology and sustainability market size was USD 9.57 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market will exhibit a lower growth of 19.3% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 11.43 billion in 2021 to USD 41.62 billion in 2028 at a CAGR of 20.3% during the 2021 -2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The demand for green technology solutions and services is growing due to increased environmental consciousness and concerns by organizations and individuals about global warming. Furthermore, increasing customer and industrial interest in the usage of clean energy resources is projected to drive market growth in the coming years. Governments worldwide are heavily investing in green technologies to preserve nature and reduce negative environmental effects, which is boosting the market's growth. For instance, in November 2018, India joined the Partnership for Action on Green Economy (PAGE) with UN agencies, Government, and other organizations. This partnership is aimed to contribute to India’s Green Economy, Sustainable Development Goals (SDGs), and Nationally Determined Contributions to the Paris Agreement plans. Moreover, the increasing demand for green technology and sustainability solutions among industry verticals is expected to drive the market during the forecast period.
COVID-19 to Have Mixed Impact on Global Green Technology and Sustainability Market
The demand for green technologies and sustainability solutions has grown significantly in recent years; but, due to the spread of the COVID-19 pandemic, the market declined slightly in 2020. Since governments in the majority of countries imposed a state of emergency, thus shut down numerous solar panel and wind turbine programs around the world. The construction of small solar panel projects in households has been halted due to the spread of the virus. Various renewable technology solution vendors worldwide are implementing innovative tactics and strategic models to initiate new projects and focus on the adoption of green technologies.
According to a blog published by Soulful Concepts Group Pty Ltd, global investment in green technologies has increased by nearly 20% in recent years in various energy, chemical, and manufacturing industries. Individuals, small & large businesses, and countries are transitioning towards greener technology to help out in the climate crisis. As it is an urgent issue and the world needs to focus on it. For instance,
Such 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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Growing Adoption of Electric Vehicles (EV) will be a Key Trend
According to the International Energy Agency (IEA) study, electric vehicle sales surpassed 2.1 million worldwide in 2019, surpassing 2018 to bring the total number of electric vehicles on the road to 7.2 million. The study also reported that electric vehicles accounted for 2.6% of total vehicle purchases and about 1% of global car stock in 2019, representing a 40% growth year on year. Electric vehicles are becoming more common as technology progresses in the electrification of two- and three-wheelers, buses, and trucks, and the demand for them expands. Aside from COVID-19 reducing global energy usage, one of the main sustainability trends for many companies is to reduce energy use.
Electric cars are being used in freight transport, LEED certifications are in high demand for many homes, and LED lighting is quickly becoming the latest standard. Automakers are expected to make significant investments to meet the increasing demand for electric vehicles and play a key role in the evolution of the green technology and sustainability industry. For instance;
Furthermore, the increasing sensitivity of various governments for a cleaner atmosphere is expected to boost demand for zero-emission vehicles. Electric car sales have increased as developed countries such as the United States, Germany, and the United Kingdom aggressively promote the use of electric cars to mitigate emissions.
Increasing Consumer and Industrial Interest about Climate Change to Boost Market Growth
Global energy consumption and greenhouse gas (GHG) emissions have increased in recent years. Thus, to counteract this problem, a resilient need for green technology and a sustainable development framework has become one of the prime goals of nations. The growing emphasis on renewable energy resources to minimize the carbon footprint has increased as awareness of pollution from manufacturing sectors such as mining and forest monitoring has grown. The push towards zero emissions has become a global concern, and consumers and industries are announcing green technology initiatives. In the business Ambition for 1.5°C — Our Only Future initiative, 177 businesses from various sectors have pledged to achieve net-zero emissions by 2050 to restrict annual global temperature increase to 1.5 degrees Celsius. Many companies are setting ambitious objectives for themselves, such as investing in renewable energy and transportation and fostering innovation in their activities and global supply chains. Companies are not only reducing their pollution, but they are also influencing consumers and politicians in their countries and territories. Or instance,
Therefore, the rising green initiatives by enterprises and governments are likely to drive the global green technology and sustainability market growth during the forecast period.
High Costs Associated with Green Technology and Sustainability Solutions to Limit the Market Growth
The capital cost for building and integrating green technology solutions and services such as solar and wind farms, forest and water monitoring solutions is high. Air quality control, carbon footprint management, and air pollution monitoring are applications where cutting-edge technology like AI, IoT sensors, Chips, and analytics necessitates a high level of maintenance and costs. For example, air quality monitoring software implemented to detect biochemical and chemical components in the air requires advanced hardware such as gas sensors, RFID chips, and other biosensors. The cost of this hardware is moderately high. Thus, associated high costs are expected to limit the adoption of green energy and sustainability solutions.
Solution Segment Captured Largest Market Share
Based on components, the market is segmented into solutions and services.
The solution segment accounted for the largest market share in 2020. The advent of globalization and technological development has exploited the environment creating a tremendous need for green technology and sustainability solutions. Emerging developments open up new avenues for renewable technology and sustainable growth, taking into account social, economic, and environmental factors. As a result, the consciousness of technology's environmental consequences is a major factor driving the acceptance of green technology & sustainability solutions across verticals worldwide, which fuels the green technology and sustainability industry development.
The services segment is expected to grow at a high CAGR over the forecast period. The segment's growth is mainly attributed to the rise in the adoption of green technology solutions among various enterprises and governments.
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Green Building Segment Accounted for Largest Share Driven by Growth of Sustainable Buildings
Based on industry, the market is segmented into air and water pollution monitoring, carbon footprint management, green building, crop monitoring, fire detection, forest monitoring, soil condition/moisture monitoring, sustainable mining and exploration, water management, weather monitoring, and forecasting, and other.
The green building segment accounted for the largest market share. The segment's growth would account for increasing awareness about sustainable or high-performance building and focusing on increased energy resources. According to the World Green Building Council, the construction cost of a green building will be less than a conventional building. The United Nations Environment Programme states that the adoption of green buildings has the largest potential to reduce greenhouse gas emissions compared to other industries significantly. This has prompted various governments to adopt green building initiatives and eliminate negative impacts on the environment by reducing energy and water use. For instance, in October 2020, European Commission (EC) launched the Renovation Wave Strategy to improve building efficiency. This initiative aimed to renovate 35 million buildings into green buildings and create 160,000 green jobs. Such initiatives have created strong awareness about the environmental advantages of green buildings among governments.
The crop monitoring segment is expected to witness the highest CAGR during the forecast period. Information on prospective crops growing in large regions is mandatory for food companies and government services dealing with import and export and organizations associated with a mandate of tracking global food supply and trade. This has necessitated the need for efficient crop monitoring solutions. Crop monitoring avoids pest development and spreads and ensures that pathogens and diseases are kept under control without triggering significant output and final product results. To assist with the increasing demand for crop monitoring solutions, key players operating in the market are launching various solutions. For instance, in May 2019, IBM Corporation launched the Watson Decision Platform for Agriculture integrated with AI technology for crops and regions to feed growing populations. Such initiatives have contributed to the growth of the segment.
North America Green Technology and Sustainability Market Size, 2020 (USD Billion)
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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America accounted for the largest market share in 2020 and is expected to contribute largely to the global market. The growth of the regional market would occur on account of the presence of a broad base of green technology vendors. Vendors are concentrating their efforts on R&D and the incorporation of emerging technology to address the challenges of climate change and rising carbon, pollution, and waste. Furthermore, the North American Climate, Energy, and Environment Partnership, which was formed in June 2016, promotes the greening of government policies and the procurement of more sustainable goods, renewable energy, and electric vehicles as required. The Procurement Canada and The U.S. General Services Administration and Public Services announced the plan to extend electricity purchase they make from clean energy to 100%. Such initiatives contributed to the regional market growth.
Europe is expected to hold the second-largest green technology and sustainability market share in the global market. Leading government initiatives to demonstrate innovation of low-carbon technologies is expected to fuel market growth. For instance, In July 2020, European Commission (EU) proposed an investment of EURO 1 billion 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. European Commission further planned to support energy storage, carbon capture and storage, and grid solutions to create green recovery leading to climate neutrality and restart 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 the growth of green technology. A competitive domestic market allows for 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 emerge as the fastest-growing regional market over 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've 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 the export of clean technology goods are inextricably related to these initiatives.
The Middle East & Africa, and Latin America regions are expected to showcase the strong potential for growth during the forecast period. As part of their national climate programs, governments have also worked to promote green energy sources. The Middle East and Latin American countries have pioneered new institutions at the national, regional, and international levels 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 Middle East Green to plant 50 billion trees worldwide. Under Green Saudi and Middle East Green initiatives, the region reduces regional carbon emission by 60% in upcoming years.
With emerging economies such as Qatar, Iran, Sudan, Kuwait, and Bahrain investing heavily in overhauling their domestic infrastructure, sustainability and green technology solutions are key for their growth. This 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, Engie Impact are launching different solutions integrated with advanced technologies. Also, the high competition in the market forces service providers to focus on acquisition strategies for strengthening their positions.
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 market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors contributing to the market's growth over recent years.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD Billion)
By Component; Industry; Region
According to Fortune Business Insights, the global market is expected to reach USD 41.62 billion by 2028.
Fortune Business Insights says that the market stood at USD 9.57 billion in 2020.
The market is expected to grow at a CAGR of 20.3% during the forecast period (2021-2028).
Based on the component, the solution segment is expected to lead the market during the forecast period.
The increasing industrial and consumer awareness and interest in climate change and valiant climate commitments are key drivers for market growth.
General Electric Company, Enablon, Salesforce.com, Inc., Microsoft Corporation, Schneider Electric, Engie Impact are the top companies in the market.
The green building segment holds the major market share.
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