Global Green Technology and Sustainability Market Size, Share by Component (Solutions (Cloud-based, On-Premise), Services (Professional Services, Managed Services)), By Technology (Internet of Things (IoT), Digital Twin, AI and Analytics, Cloud Computing, Blockchain, Others), By Verticals (Automotive & Transportation, Retail & Consumer Goods, Chemicals & Materials, Healthcare & Life Science, Agriculture, Energy & Utilities, Others), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2024-2033

Report Overview

The Global Green Technology and Sustainability Market size is expected to be worth around USD 102.2 Billion by 2033, from USD 16.5 Billion in 2023, growing at a CAGR of 20% during the forecast period from 2024 to 2033.

Green technology and sustainability are concepts focused on developing and using technologies that help protect the environment. These technologies aim to reduce waste, lower greenhouse gas emissions, and conserve natural resources. They encompass a broad range of practices and innovations, including renewable energy sources (like solar and wind power), energy-efficient appliances, and sustainable agriculture techniques.

The green technology and sustainability market is experiencing significant growth, driven by increasing awareness of environmental issues and the urgent need for climate action. This market includes companies and products that are involved in renewable energy, efficient energy storage, sustainable transportation, and eco-friendly materials. As consumers and businesses become more eco-conscious, the demand for green solutions rises, leading to advancements in technology and reductions in costs.

Governments around the world are also supporting this shift through incentives and regulations aimed at promoting sustainability. The growth of this market can be attributed to a collective effort to combat climate change and preserve our environment for future generations.

According to the International Energy Agency, renewable energy generation is expected to make up 38% of global electricity production by the end of 2024, rising from 29% in 2020. This significant increase underscores the rapid expansion and adoption of renewable energy sources such as solar, wind, and hydro power across the globe.

In addition, a survey by the World Green Building Council estimates that by 2024, 25% of newly constructed buildings will be designed to meet green building certification standards. This indicates a substantial move towards sustainability in the construction sector, emphasizing energy efficiency, resource conservation, and reduced environmental impact.

In the next five years, renewable energy, particularly solar PV and wind, is expected to drive a significant transformation in the global power mix. By 2024, wind and solar PV combined are projected to generate more electricity than hydropower.

Looking ahead to 2028, renewables are anticipated to account for over 42% of global electricity generation, with the share of wind and solar PV doubling to 25%. China plays a pivotal role in this expansion, expected to install more than half of the new capacity required globally by 2030​​.

The United States is witnessing a robust push towards renewables, with utility-scale solar capacity additions leading the charge. Between January and August 2023, the US added almost 9 GW of utility-scale solar capacity, marking a 36% increase from the same period in 2022.

This growth is supported by federal investments and the demand for decarbonization, with projections indicating that renewable deployment could grow by 17% to 42 GW in 2024, accounting for almost a quarter of electricity generation​​.

Key Takeaways

• The global Green Technology and Sustainability Market is anticipated to reach a substantial value of USD 102.2 billion by 2033, displaying a robust Compound Annual Growth Rate (CAGR) of 20%.
• In 2023, the Solutions Segment dominated the market, accounting for over 66.3% share. Both cloud-based and on-premise solutions play a crucial role in enabling organizations to monitor, manage, and reduce their environmental footprint effectively.
• The Internet of Things (IoT) segment held a prominent position in 2023, capturing more than 29.8% of the market share. IoT’s ability to connect devices and systems in real-time is pivotal in driving sustainability efforts across various sectors.
• The Energy & Utility sector led the market in 2023, holding over 21.3% share. This dominance is attributed to the increasing global demand for renewable energy sources and the imperative need for energy efficiency.
• In 2023, North America held a dominant market position in the green technology and sustainability market, capturing more than a 33.2% share.
• Electric vehicle sales are projected to hit 14 million units globally in 2024, more than doubling the 6.6 million sold in 2022.
• By 2024, it’s expected that 45% of global internet traffic will be hosted in cloud data centers that use advanced cooling and energy-saving measures.
• Investments in clean energy technologies are expected to surpass around $1.5 trillion globally between 2022 and 2024.
• By the end of 2024, over 60 million households globally are expected to have rooftop solar panel installations.
• By 2024, it’s estimated that over 50% of Fortune 500 companies will have pledged to reach net-zero carbon emissions by 2050.
• By the end of 2024, it’s anticipated that over 25% of global greenhouse gas emissions will be covered by carbon pricing efforts.

Component Analysis

In 2023, the Solutions Segment within the Green Technology and Sustainability Market held a dominant market position, capturing more than a 66.3% share. This segment encompasses both cloud-based and on-premise solutions, which have become integral in driving sustainability practices across various industries.

The prevalence of the Solutions Segment can be attributed to its pivotal role in enabling organizations to monitor, manage, and reduce their environmental footprint effectively. These solutions offer the tools necessary for energy management, waste reduction, and resource optimization, catering to the growing demand for sustainable operational practices.

Cloud-based solutions, in particular, have seen a significant uptick in adoption due to their scalability, flexibility, and cost-effectiveness. They facilitate real-time data analysis and environmental monitoring without the need for extensive on-site infrastructure, thus appealing to a wide range of businesses looking to integrate sustainability into their operations.

On-premise solutions, while more traditional, continue to be relevant for organizations requiring customized control over their sustainability initiatives. The integration of advanced technologies such as IoT, AI, and analytics within these solutions further enhances their capability to provide actionable insights, leading to more informed decision-making regarding environmental sustainability.

Technology Analysis

In 2023, the Internet of Things (IoT) Segment within the Green Technology and Sustainability Market held a dominant market position, capturing more than a 29.8% share. This prominence is attributed to IoT’s unparalleled ability to connect devices and systems, enabling the collection and analysis of data in real-time to drive sustainability efforts.

IoT technology has become a cornerstone in monitoring environmental conditions, optimizing resource use, and enhancing energy efficiency across various sectors. Its capacity to provide precise and actionable insights into the operational aspects of sustainability has made it indispensable for organizations committed to reducing their environmental impact.

IoT’s leading role in the market is further reinforced by its synergy with other emerging technologies like AI and analytics, cloud computing, and digital twins. These integrations enhance IoT’s capabilities, facilitating advanced data analysis, predictive maintenance, and efficient resource management, which are crucial for sustainable operations.

For instance, when combined with AI and analytics, IoT can predict patterns in energy consumption and recommend adjustments to minimize waste. Similarly, cloud computing allows for the scalability of IoT solutions, enabling businesses of all sizes to implement sustainability initiatives without significant upfront investments in infrastructure.

Verticals Analysis

In 2023, the Energy & Utility segment held a dominant market position within the green technology and sustainability market, capturing more than a 21.3% share. This substantial market share can be attributed to the escalating global demand for renewable energy sources and the imperative need for energy efficiency.

The increasing emphasis on reducing carbon footprints and governmental mandates for sustainable energy practices have significantly propelled investments in green technologies within this sector. Moreover, advancements in energy storage, smart grids, and energy management systems have further reinforced the segment’s leading position by enhancing the integration of renewable energy into the existing infrastructure.

The Energy & Utility sector’s leadership in the green technology and sustainability market is further underpinned by its pivotal role in driving the transition towards a more sustainable energy landscape. The deployment of innovative technologies such as solar photovoltaic (PV) systems, wind energy, and hydroelectric power contributes not only to the reduction of greenhouse gas emissions but also to the stabilization of energy prices.

The integration of artificial intelligence and the Internet of Things (IoT) in energy systems has optimized energy distribution and consumption, fostering a more efficient and reliable energy network. This sector’s commitment to investing in sustainable practices and technologies reflects its critical contribution to achieving global environmental goals and securing a sustainable future.

Key Market Segments

By Component

• Solutions
  • Cloud-based
  • On-Premise
• Services
  • Professional Services
  • Managed Services

By Technology

• Internet of Things (IoT)
• Digital Twin
• AI and Analytics
• Cloud Computing
• Blockchain
• Others

By Verticals

• Automotive & Transportation
• Retail & Consumer Goods
• Chemicals & Materials
• Healthcare & Life Science
• Agriculture
• Energy & Utilities
• Others

Driver

Rising Demand for AI-Driven Recycling Technologies

The increasing demand for AI-driven recycling technologies stands out as a major driver in the green technology and sustainability market. These innovative technologies are revolutionizing the way materials are recycled, making the process more efficient and less resource-intensive. By leveraging artificial intelligence, recycling operations can sort materials with greater accuracy, reduce waste, and increase the overall rate of recycling.

This not only contributes to environmental sustainability but also propels the growth of green innovations, as businesses and governments seek effective solutions to manage waste and reduce their ecological footprints. The push towards AI-driven recycling reflects a broader commitment to sustainable practices and the pivotal role of technology in achieving these goals.

Restraint

Lack of Robust Infrastructure

A significant restraint in the green technology and sustainability market is the lack of robust infrastructure to support these initiatives. Many regions, especially in developing countries, face challenges in implementing sustainable technologies due to inadequate facilities, technological gaps, and insufficient investment in green infrastructure.

This limitation hinders the widespread adoption of sustainable practices and technologies, such as renewable energy systems, efficient waste management, and eco-friendly manufacturing processes. Overcoming this restraint requires concerted efforts to enhance infrastructure, fostering an environment where green technologies can thrive and contribute to sustainability goals.

Opportunity

Adoption of Advanced Technologies

The adoption of advanced technologies like AI, IoT, and big data presents a substantial opportunity in the green technology and sustainability market. These technologies have the potential to transform industries by optimizing resource use, reducing environmental impacts, and enhancing operational efficiency.

For example, AI can predict energy demand, IoT devices can monitor and manage resource consumption in real-time, and big data can uncover insights for improving environmental sustainability. As industries embrace these technologies, they can drive significant progress towards sustainability objectives, opening up new avenues for innovation and growth in the green technology sector.

Challenge

Lack of Regulations for Green Technology

A major challenge facing the green technology and sustainability market is the lack of comprehensive regulations governing the use and development of green technologies. Without clear regulatory frameworks, there is uncertainty around the implementation of sustainable practices and the deployment of eco-friendly technologies. This uncertainty can deter investment and innovation in the sector, slowing down the pace of progress towards environmental sustainability.

Addressing this challenge requires policymakers to develop and enforce regulations that support the adoption of green technologies, ensuring they contribute effectively to sustainability goals while providing a clear direction for businesses and industries.

Regional Analysis

In 2023, North America held a dominant market position in the green technology and sustainability market, capturing more than a 33.2% share. This substantial market share can be attributed to several key factors that underscore the region’s leadership in this sector. Primarily, the aggressive investment in renewable energy sources, such as wind and solar power, has been a significant driver. The demand for Green Technology and Sustainability in North America was valued at USD 5.4 billion in 2023 and is anticipated to grow significantly in the forecast period.

The United States, within this region, has been at the forefront, with the government implementing favorable policies and incentives to foster growth in the green technology sector. These initiatives have facilitated a robust infrastructure for sustainable technologies, attracting substantial private and public investments.

Furthermore, North America’s commitment to reducing carbon emissions and mitigating climate change impacts has spurred innovation and development in sustainable technologies. The region’s focus on research and development (R&D) has led to advancements in energy efficiency, waste reduction, and sustainable agriculture technologies. With a well-established technological ecosystem, North America boasts a high adoption rate of electric vehicles (EVs), smart grids, and energy storage solutions, further cementing its leadership in the green technology domain.

The presence of leading technology companies and startups focused on sustainability solutions has also contributed to the region’s dominant market share. These entities have been instrumental in driving the adoption of green technologies across various sectors, including transportation, industry, and residential. Coupled with a growing consumer awareness and demand for sustainable products and services, the market for green technology and sustainability in North America is poised for continued growth and innovation.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

In the green technology and sustainability sector, several key players have emerged as leaders due to their innovative solutions, strategic partnerships, and global outreach. These companies are pivotal in driving the market forward, offering a range of products and services that cater to the growing demand for sustainable and environmentally friendly technologies. Their efforts are crucial in shaping the future of industries ranging from renewable energy to waste management and sustainable agriculture.

Top Market Leaders

• GE (US)
• IBM (US)
• Salesforce (US)
• Microsoft (US)
• Schneider Electric (France)
• Sensus (US)
• Wolters Kluwer (Netherlands)
• SAP (Germany)
• Siemens (Germany)
• Oracle (US)
• Engie Impact (US)
• AWS (US)
• Google (US)
• ABB (Switzerland)
• Huawei (China)
• BT Group (UK)
• AMCS Group (Ireland)
• Cority (Canada)
• Intelex (Canada)
• Treeni (India)
• IsoMetrix (US)
• ConsenSys (US)
• CropX Technologies (Israel)
• Hortau (US)
• Pycno (UK)
• Wint (US)
• Envirosoft (Canada)
• Trace Genomics (US)
• Taransi (US)
• Oizom (India)
• Treevia Forest Technologies (Brazil)
• Factlines (Norway)
• ENECHANGE (Japan)
• EcoCart (US)
• AquiPor Technologies (US)

Recent Developments

• Schneider Electric (April 2023): Introduced their “EcoStruxure Microgrid Advisor” software, designed to help businesses make better use of energy and include more renewable energy sources. This tool aims to improve energy efficiency and sustainability.
• Siemens (July 2023): Took a major step by acquiring a majority stake in “EMachineFactory,” a firm that focuses on producing sustainable electric motors. This move underscores Siemens’ commitment to advancing sustainable manufacturing practices.
• Microsoft (October 2023): Launched the “Azure Sustainability Service,” a new cloud platform dedicated to helping organizations manage their environmental data and achieve their sustainability goals. This platform represents Microsoft’s effort to support global sustainability efforts through technology.
• IBM (December 2023): Entered into a partnership with “OneMind” to create AI solutions aimed at enhancing the distribution of clean energy and improving the management of power grids. This collaboration highlights IBM’s role in promoting the use of technology for sustainable energy management.
• Engie Impact (February 2023): Merged with “Recycle by Republic Services” to form a leading provider in the sustainable waste management sector. This merger reflects Engie Impact’s dedication to offering comprehensive solutions for waste reduction and recycling, contributing to a more sustainable environment.

Report Scope