Green Technology and Sustainability Market Growth, Size - 2030

[Research Report] The green technology and sustainability market size is expected to grow from US$ 15.32 billion in 2022 to US$ 63.94 billion by 2031; it is estimated to grow at a CAGR of 19.6% from 2022 to 2031.

Market Analyst Perspective:

The world is experiencing a large number of challenges, such as extreme climate changes, global impacts of multiple diseases, extensive environmental pollution, energy and resource depletion, and serious food crises. To tackle such issues, the need for various interdisciplinary green technologies is increasing worldwide. Also, the growing environmental awareness and concerns regarding global warming have risen among organizations and individuals, fueling the growth of the green technology and sustainability market. In addition, the rising energy generation by constructing more wind and solar power plants is creating an opportunity for the growth of the green technology and sustainability market. For instance, in Q2 2022, the construction of a 5,230 MW integrated hybrid renewable energy project started in Andhra Pradesh, India, for which an investment of about US$ 2000 million was made.

The construction is expected to be completed in Q4 2031. This project is a combination of wind and solar and pumped storage facilities. Furthermore, the rising sales of electric vehicles to reduce air pollution and rising government initiatives to increase their adoption are propelling the growth of the green technology and sustainability market.

Market Overview:

Green technology or sustainable technology deals with the short and long-term impact of things on the environment. It includes recycling, renewable resources, energy efficiency, health and safety issues, and many more. Various eco-friendly technologies can help in creating a sustainable future. For example, with the help of modern technology, industries and households can adopt a zero-waste lifestyle by separating recyclable and non-recyclable waste. Also, the energy generated from tides, currents, and waves, known as ocean energy, is an excellent resource for sustainability. In addition, to solve food production issues, people can perform vertical farming, an eco-friendly way of farming. This farming can also help reduce greenhouse gas emissions as there is no need to transport the farm produce over long distances. Moreover, there have been massive cases of water wastage globally. To cater to these problems, various new green technologies, such as microbial fuel cells, natural treatment systems, membrane filtration, and biological treatment, can help in the water purification process, helping create a sustainable future. Thus, all the above sustainable technologies can help in reducing greenhouse gas emissions, propelling the growth of the green technology and sustainability market.

Strategic Insights

Market Driver:

Growing Government Initiatives for Net-Zero Emission is Fueling the Growth of Green Technology and Sustainability Market

Due to the restriction on people’s movement and the shutdown of most of the manufacturing and industrial activities, there was a drastic change in the climate. The pandemic led to reduced carbon emissions, increased rainfall received, improved solar energy output, and many more. Because of all these factors, the governments of various countries are taking various initiatives to have net-zero emissions. For instance, in April 2021, the governments of the US and Canada announced a new initiative to engage governments around the world in greening government operations. With this, both countries also announced that they will work together towards the shared goal of net-zero emissions government. Similarly, the European Union (EU) has set a target, under its European Green Deal and Fit for 55 initiatives, to reach Net Zero emissions by 2050. For this, countries like the UK and Germany have laid out different climate strategies to reach their national ambitions of reducing carbon emissions.

These strategies include increasing investments in areas such as carbon capture technology, efficient energy consumption initiatives, hydrogen projects, and expansion of renewable projects. Also, in April 2021, the government of Japan announced that they have raised their previously set goal of reducing emissions by 2031 to 46% from its 2013 levels, stepping up its efforts to reach carbon neutrality. To create such a virtuous cycle of economy and environment, the Japanese government launched the green growth strategy through achieving carbon neutrality in 2050. Moreover, in June 2022, the government of China set new targets to increase total renewable energy consumption to 1 billion tonnes of standard coal equivalent (tce) from 0.68 billion tce in 2021.

In addition, the government also set a target to increase the share of non-fossil fuel energy to 20% of primary energy consumption by 2031 from 15.9% in 2021, which could help reduce carbon emissions by an estimated 2.6 billion tonnes annually. Further, the country has also committed that they will stop building new coal power plants abroad. Thus, the growing number of initiatives by the governments of different countries is propelling the green technology and sustainability market growth.

Market Segmental Analysis:

Based on technology, the green technology and sustainability market is segmented into IoT, AI and analytics, digital twin, cloud computing, security, and blockchain. The IoT segment held the largest green technology and sustainability market share in 2022 and is anticipated to register the highest CAGR during the forecast period. IoT technology helps to provide real-time data and automation, which can help in decision-making processes. The speed of information delivery and the ability to automate various processes can help to use resources in any sector efficiently, including sustainability, where better use of resources is critical. Here, with the help of IoT devices, monitoring emissions or automatically collecting large amounts of data and analyzing it to find patterns has become easier. Through this, IoT technology can help create less waste and reduce environmental impact, fueling the segment growth in the forecasted period.

Market Regional Analysis:

North America is expected to witness significant growth in the green technology and sustainability market in the forecasted period. The US holds the largest green technology and sustainability market share in 2022. The market growth in this region is attributed to the growing electric vehicle sales in the region. According to the report by Cox Automotive, around 300,000 new full battery-electric vehicles were sold in the US in Q2 2023, which was an increase of 48.4% compared to Q2 2022. Tesla was the largest seller of EVs in the US, selling more than 175,000 EVs, which was an increase of 34.8% in Q2 2023 from Q1 2023. Also, as per NADA, fully electric vehicles accounted for almost 7% of North America's total car production in December 2022, which increased from 4.7% in December 2019. Thus, the growing adoption of EVs in the region is fueling the growth of the green technology and sustainability market. In addition, the governments of different North American countries are taking various initiatives for the expansion of renewable energy. The Bureau of Ocean Energy Management has created five new Wind Energy Areas in New York with a capacity of around 9,800 MW, which is one of the largest portions of the 2021 pipeline growth. Also, Massachusetts' Vineyard Wind I became the US's first approved commercial-scale offshore wind energy project. Thus, the growing EV adoption and rising demand for renewable energy are fueling the green technology and sustainability market growth in North America.

Market Key Player Analysis:

ConsenSys Software Inc., Cority, General Electric, IBM, LO3 Energy, Microsoft, Sensus, a Xylem brand, Taranis, Trace Genomics, Inc., and Wolters Kluwer N.V. are among the key green technology and sustainability market players. These green technology and sustainability market players are focused on continuous green technology product development and innovation.

Market Recent Developments: 

Inorganic and organic strategies such as product launches, partnerships, collaborations, and mergers and acquisitions are highly adopted by companies in the green technology and sustainability market. A few recent key market developments by these companies are listed below: 

• In April 2023, Fujitsu introduced its new AI platform, Fujitsu Kozuchi, which can provide global commercial users access to a range of powerful AI and ML technologies. The new platform aims to ensure the reliability of AI solutions to accelerate the social implementation of AI solutions and contribute to the realization of a sustainable society.
• In July 2022, DIC Corporation partnered with SAP SE to undertake a pilot project using blockchain technology to construct a waste plastics traceability system that will advance the recycling of plastic resources. The new pilot project will use GreenToken by SAP to track raw materials across the entire supply chain, from generation to production and inspection processes and of data about physical properties and quality.
• In May 2022, General Electric launched Lifespan, a new digital product portfolio enabling customers to optimize renewable asset performance and operations across the fleet. The Lifespan suite of products is fully integrated, technology agnostic, and was designed with operators to drive improved operations.
• In February 2022, GE Renewable Energy announced the opening of a new Renewable Hybrids factory in India. The site will manufacture the FLEXINVERTER and FLEXRESERVOIR products and will help integrate them with the FLEXIQ offering from GE’s newly launched FLEX portfolio, designed to solve customer needs through multiple applications to enable dispatchable, green MWhs.

REGIONAL FRAMEWORK

Green Technology and Sustainability Market Report Analysis

MARKET PLAYERS

Green Technology and Sustainability Market Report Scope