Home / Information & Technology / Hardware & Software IT Services / Green Technology and Sustainability Market

Green Technology and Sustainability Market Size, Share & Industry Analysis, By Component (Solutions & Services), By Deployment (Cloud & On Premise), By Enterprise Type (Large Enterprise and SMEs), By Implemented Technology (Internet of Things, AI & Analytics, Digital Twin, Cloud Computing, Blockchain), By Application (Air & Water Pollution Monitoring, Carbon Footprint Management, Crop Monitoring, Fire Detection, Forest Monitoring, Green Building, Soil Condition Monitoring, Sustainable Mining, Water Management, Weather Monitoring), Regional Forecast, 2024 – 2032

Report Format: PDF | Latest Update: Nov, 2024 | Published Date: Oct, 2024 | Report ID: FBI102221 | Status : Published

The global green technology and sustainability market size was valued at USD 17.21 billion in 2023. The market is projected to grow from USD 20.90 billion in 2024 to USD 105.26 billion by 2032, exhibiting a CAGR of 22.4% during the forecast period.


Green technologies and sustainability include advanced environmental solutions that are deployed to secure natural resources and atmosphere, mitigate or minimize undesirable impacts from human-made actions on the surroundings, and increase sustainable development. In addition, the main aim of the solution is to secure and maintain the environment and repair past damages.


The market is growing with a positive trajectory due to the increasing investment by key players in developing customized solutions and services. Key players are integrating their green technology solutions with emerging technologies, such as generative artificial intelligence (AI), advanced analytics, the Internet of Things (IoT), blockchain, cloud, cybersecurity, big data, and others. These technologies assist end-users in gathering, integrating, and analyzing data from numerous real-time data sources, such as sensors, a global positioning system (GPS), and cameras. For instance,



  • In April 2023, YvesBlue, an ESG as a Service Platform provider, successfully integrated generative AI expertise with ESG/Sustainability.


Moreover, governments, public organizations, and private enterprises across the globe are investing in technology to secure nature and lessen the adverse impact on the environment, which is enhancing the growth of the market.


The COVID-19 pandemic moderately impacted the market with supply chain concerns and halted projects. However, the rise in environmental concerns, the need for a sustainable future, and the governmental push toward implementing sustainable solutions positively pushed the trajectory of the market. According to an article published by ETTelecom, three things in the adoption of green technologies will define the new way businesses and would operate in the post-COVID world. The three things include collaboration with green technology firms, prioritizing sustainability in the company’s genetic code, and adopting digital equality and environmental responsibility.


Green Technology and Sustainability Market


IMPACT OF GENERATIVE AI


Integration of Gen AI into Existing Green Technology Solutions to Propel Market Growth


The wave of generative AI had a positive impact on the overall market. In 2024, the market is expected to witness several innovations and sustainability initiatives globally. Gen AI assets such as models, codes, designs, and other synthetic data majorly contribute to sustainability measures, business, and innovation KPIs.


As the market progressed through COVID-19, major efforts by companies were witnessed to track, measure, analyze, and optimize their ESG indices. In 2024, these efforts will be further transformed to check the status of socially responsible investments. As the technology evolves, it is expected that more accurate models and codes will reshape the market in the coming years.


The recent development mentioned below highlights the integration of gen AI into green technology and sustainability solutions.



  • In November 2023, Schneider Electric integrated the expertise of Gen AI, intending to help its end users revolutionize their internal operations. The company aims to transform its gen AI productivity and sustainability tools by integrating Microsoft Azure OpenAI.


Green Technology and Sustainability Market Trends


Organizations Confronting Climate-stable Future to Indicate a Growing Trajectory for the Market


Governments and private organizations have announced several programs for a climate-stable future. These initiatives are likely to drive the rapid adoption of green technology and sustainability practices. For instance,



  • India announced a National Action Plan on Climate Change covering eight key goals, including improved energy efficiency, solar, water, energy, sustaining Himalayan ecosystems, sustainable agriculture and habitat, Green India, and smart information for climate change. Around 33 states and Union territories have already taken steps to work toward these goals.


Moreover, several economies are working successfully toward their net zero 2050 targets. For instance,



  • In September 2023, it was announced that India is successfully working toward achieving its long and short-term goals under the Panchamrit action plan. This plan includes minimizing carbon emissions by 1 billion tons, achieving a non-fossil fuel energy volume of 500 GW, minimizing carbon intensity below 45%, and completing at least half of its energy necessities via renewable energy by 2030. These targets will help the country pave the way toward attaining its net-zero target by 2070.


All these developments indicate that organizations are working toward attaining a sustainable future, which is expected to positively influence the market in the coming years.



Green Technology and Sustainability Market Growth Factors


Growing Implementation of Internet of Things (IoT) Technology to Make Way for Advanced Green Technology


Green technology refers to eco-friendly technologies and tools that enhance business operations. This technology also facilitates consumer applications such as charging systems, electric vehicles, smart homes, and other applications powered by IoT sensors.


The Internet of Things (IoT) is an important aspect of the green technology and sustainability industry. IoT in green tech enables sensor-based solutions, minimizes the need for human intervention, and provides rich data insights to enable service providers to constantly improve their services. The combination of IoT and green technology has been facilitating the use of renewable energy in recent years.


Green networks in IoT are likely to deliver a reduction in emissions and pollution, exploiting surveillance and conversation and minimizing operational costs and consumption. The Green Internet of Things (G-IoT) is projected to initiate significant changes that will support to realize the idea of green ambient intelligence. For instance,



  • According to GSMA Intelligence, the IoT connections are expected to reach approx. 24 billion globally by 2025, up from 13.1 billion in 2020. This shows that within some years, there would be massive clusters of sensors, devices, and things that would communicate through high-speed technology such as 5G.


Such growing proliferation of Internet of Things technology is likely to drive the market toward a higher growth trajectory.


RESTRAINING FACTORS


High Costs Associated with Green Technology and Sustainability Solutions May Limit Market Growth


In general, traditional technologies are less expensive than green technology solutions. The high costs of green technology solutions are constituted by the environmental expenses that are externalized in many conventional production procedures. In addition, as the technology is still new, the associated training and development costs are expected to be higher in comparison with existing technologies. High initial deployment costs are likely to restrict the adoption of green technologies among enterprises. For example, when using air quality monitoring tools to analyze and test air quality metrics, the detection of biological and chemical parameters from the air necessitates the employment of new-age technologies such as gas sensors, RFID, and PCR-based biosensors, all of which are costly.


Moreover, the estimated advantages of green technology are dependent on factors such as technology readiness, human resources capabilities, geographic elements, and availability of supporting infrastructure. Hence, to deploy green technology, businesses should satisfy all the requirements mentioned above. However, inadequate infrastructure is likely to impede market growth.


Green Technology and Sustainability Market Segmentation Analysis


By Component Analysis


Solutions Segment Held the Leading Position with Increasing Demand for Green Technology Solutions


By component, the market is bifurcated into solutions and services.


In 2023, the solutions segment dominated the market owing to an increase in the demand for green technology and sustainability solutions. This surge in demand is owing to consumers' inclination to become more environmentally conscious. The segmental growth is also majorly driven by the governmental push toward promoting green technologies.


On the other hand, in the coming years, the services segment is expected to grow at an accelerated pace owing to the increasing inclination of companies to invest in market-related service providers. For instance,



  • March 2023: A global sustainability consultancy firm, ERM, completed the acquisition of NINT, a Latin American-based consultancy. With this, the company aims to offer ESG advisory and sustainable finance services focusing on corporations, financial institutions, and other major companies in the financial sector landscape.


By Deployment Analysis


Cloud Segment Dominated Owing to its Increased Adoption Due to Several Benefits


By deployment, the market is divided into cloud and on premise.


In 2023, the market was led by the cloud segment. Cloud offers a myriad of sustainability benefits by promoting energy-efficient systems, reducing hardware needs, and minimizing environmental impact. It enables organizations to optimize resource usage, leading to lower energy consumption and carbon footprints. Along with this, general awareness among the population is increasing the adoption of cloud-based green tech and sustainability solutions. For instance,



  • February 2024: The U.S. Department of Energy announced over USD 366 million for 17 ventures across 30 Tribal States and societies across 20 states. These investments align with President Biden’s agenda to propel clean energy deployment in rural and remote areas across the country.


In addition, cloud services often use renewable energy sources, contributing to a cleaner and greener ecosystem. Owing to these reasons, the cloud segment is expected to continue its dominance in the coming years.


The on premise segment is expected to grow at a steady pace, yet slower than the cloud segment. The need for on premise green technology solutions is rising as they generate lesser environmental impacts and CO2 emissions. Also, IoT technology plays a critical role in on-premises green technology adoption. Sensors and smart devices are used to monitor energy consumption, water usage, and emission in real-time. This data enables companies to make informed decisions to optimize resources and reduce their environmental footprint.



  • March 2024: The European Parliament made significant enhancements to the building energy operation rules with the aim of achieving a climate-neutral building sector by the end of 2050. Following this, the REPowerEU project intends to introduce 10 million heat pumps by the end of the same year.


In addition, there is a rise in demand for air-to-water (A2W) systems across the European region. These systems produce fewer CO2 emissions and environmental impacts, and thus, these reasons validate the surging demand.


By Enterprise Type Analysis 


Large Enterprise Segment Witnessed Major Share with Heavy Investments in Green Technology


By enterprise type, the market is categorized into large enterprise and SMEs.


In 2023, the large enterprise segment held the majority of the overall green technology and sustainability market share. For large enterprises, investing in the green technology market brings several benefits.


According to a study by Veolia North America, over half of the U.S. companies surveyed are expected to have ambitious goals for addressing the net zero carbon, zero liquid discharge, and zero waste to landfill, among others. The survey was conducted by studying responses from 245 large U.S. companies and found that most have already set specific targets in the sector. These findings represent a higher adoption rate of green tech and sustainability solutions by large enterprises.


However, the SMEs segment is expected to grow with the highest CAGR during the forecast period. Several SMEs globally have been incorporating sustainability goals, indicating a positive future outlook for the market.


According to a recent study, “Sustainability in the Latin American Leadership Agenda,” over 69% of large and medium-scale firms already have a sustainability strategy in progress.


By Implemented Technology Analysis


Rise in Adoption of Smart Devices for Energy Optimization Fuels the Demand for IoT Devices among Consumers


By implemented technology, the market is classified into internet of things (IoT), AI and analytics, digital twin, cloud computing, blockchain, and others (edge computing, cybersecurity, and others).


In 2023, the Internet of Things (IoT) segment captured the largest share of the market. IoT devices, such as smart meters and sensors, are used to monitor energy consumption in real time. This data allows businesses and households to optimize energy use, reducing waste and lowering costs. For example, smart thermostats can adjust heating and cooling systems based on occupancy, weather conditions, and energy prices. By enabling real-time monitoring, data-driven decision-making, and automation, IoT is playing a crucial role in the global transition to promote sustainable practices.


The AI and analytics segment is expected to grow at the highest CAGR during the forecast period. AI-driven analytics are used to process vast amounts of environmental data, such as air and water quality readings. This helps in identifying pollution sources, predicting environmental hazards, and enforcing regulations to protect public health and ecosystems. In addition, AI systems can analyze the carbon footprint of different activities and products throughout their lifecycle, helping organizations reduce emissions and move towards carbon neutrality. As AI continues to evolve, its role in promoting sustainability is anticipated to grow during the forecast period.


By Application Analysis



Green Building Segment Dominated Owing to a Significant Trend of Green Building Technology


By application, the market is divided into carbon footprint management, air and water pollution monitoring, fire detection, crop monitoring, green building, forest monitoring, sustainable mining and exploration, soil condition/moisture monitoring, water management, weather monitoring and forecasting, and others.


In 2023, the green building segment dominated the market as green building technology has become one of the significant trends in the construction industry. This technology leverages RFID scanners and sensors, access card readers, motion detectors, and other sensors to monitor the residential status of the building sector. According to a study by JLL, there has been a rising demand for sustainable buildings, and occupants and tenants are willing to pay more for environmental performance pointers such as electrification and energy intensity.


The crop monitoring segment is expected to grow with the highest CAGR during the study period. 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 with government initiatives is projected to drive the demand for crop monitoring in the near future.


REGIONAL INSIGHTS


The market for green technology and sustainability has been studied by categorizing it into five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.



In 2023, North America held the largest market share owing to advancements in technology, consumer awareness, effective sustainability goals by companies based across the region, and regulatory measures. Moreover, the government is taking several initiatives to achieve regional sustainability goals in the coming years. For instance,


In August 2022, the U.S. implemented the Inflation Reduction Act, establishing the country’s largest-ever climate investment to decarbonize the country’s economy and boost jobs in green industries.


Europe lags behind the American market due to the lack of investments related to the market. For instance, in February 2024, The Parliament and Council of the region approved the Net-Zero Industry Act. This Act intends to accelerate domestic green tech; however, it lags behind the U.S., which invests over USD 369 billion in the market’s landscape. Europe will make the same efforts; however, no money will be attached to the EU Act. Moreover, strong government backing and the need to achieve sustainability goals are expected to propel Europe’s market growth in the coming years.


In the near future, the Asia Pacific is expected to display the largest regional green technology and sustainability market growth. This growth is attributed to the growing smart city initiatives, sustainable agriculture projects, and increasing demand for electric vehicles, which prove to present lucrative opportunities for the regional market.


The Middle East & Africa and South America showcase a slower pace of growth than other regions. However, several initiatives are being observed across the regions that indicate positive growth for them. These initiatives and the adoption of green technologies are responses to environmental concerns and a strategic necessity.


The chart below represents the export of green technologies in the years 2021 and 2018. It shows that USD 75.00 billion of green technologies was exported to developing countries and USD 156.00 billion was exported to developed countries in 2021. Thus, these results highlight an increase in demand for green technologies across the globe compared to 2018.


Key Industry Players


Key Players are Prioritizing Effective Business Strategies to Expand Their Position in the Market


Companies operating in the market have been prioritizing business strategies such as strategic collaborations and partnerships with the aim of expanding their business operations and client base. These key players are also investing in emerging technologies to integrate and introduce green technology and sustainability solutions. Besides this, several small-scale players are securing funding to launch better solutions and expand their global reach.


LIST OF TOP GREEN TECHNOLOGY AND SUSTAINABILITY COMPANIES:



  • IBM Corporation (U.S.)

  • Sensus (Xylem Inc.) (U.S.)

  • Microsoft Corporation (U.S.)

  • ENGIE Impact (France)

  • General Electric Company (U.S.)

  • Schneider Electric (France)

  • Oracle Corporation (U.S.)

  • CropX Inc. (Israel)

  • Taranis Visual Ltd. (U.S.)

  • Cority (Canada)


KEY INDUSTRY DEVELOPMENTS:



  • March 2024: Schneider Electric announced the addition of advanced sustainability reporting to its EcoStruxure IT data center infrastructure management tool. This feature will be available starting next month and will help data center operators meet the European Energy Efficiency Directive (EED) requirements.

  • February 2024: IBM Envizi updated its Scope 3 emissions accounting solution with extra functionality. The part of the IBM Envizi ESG Suite, Supply Chain Intelligence module, collects Product Carbon Footprint Data (PCF) and high-volume supplier and product-level transactional data for Scope 3 reporting and calculation.

  • February 2024: Microsoft introduced AI and data tools to enable companies to advance their sustainability goals. The company also added Microsoft Sustainability Manager with Copilot and intelligent insights to help companies efficiently report, record, and reduce waste and emissions or water impact. Microsoft Sustainability Manager is a solution for sustainability within Microsoft Cloud.

  • December 2023: CropX Technologies completed the acquisition of Green Brain, which specializes in providing digital irrigation management tools and is based in Adelaide, Australia. The company expects to expand its customer base and market expertise with this acquisition.

  • May 2023: ENGIE introduced the largest agrovoltaic park developed in Italy. This new plant combines solar panels with agricultural farming. The renewable energy created will be transported to Italy’s national grid, further powering Amazon’s set-ups in the country.


REPORT COVERAGE


The report offers its end-users a detailed analysis of the market, majorly focusing on factors that influence the market growth. Factors such as key market players, flagship solutions, and related services, and the major use cases of these solutions are considered while studying the market. The report also provides insights into market opportunities, trends, and recent industry developments. Besides this, the report provides an overview of government initiatives and information on R&D investments.



Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 22.4% from 2024 to 2032



Unit



Value (USD Billion)



 


 


 


 


 


 


 


 


 


 


Segmentation



By Component



  • Solutions

  • Services


By Deployment



  • Cloud

  • On Premise


By Enterprise Type



  • Large Enterprise

  • SMEs


By Implemented Technology



  • Internet of Things (IoT)

  • AI and Analytics

  • Digital Twin

  • Cloud Computing

  • Blockchain

  • Others (Edge Computing, Cybersecurity, and others)


By Application



  • 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

  • Others


By Region



  • North America (By Component, Deployment, Enterprise Type, Implemented Technology, Application, and Country)

    • U.S.

    • Canada

    • Mexico



  • South America (By Component, Deployment, Enterprise Type, Implemented Technology, Application, and Country)

    • Brazil

    • Argentina

    • Rest of South America



  • Europe (By Component, Deployment, Enterprise Type, Implemented Technology, Application, and Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Benelux

    • Nordics

    • Rest of Europe



  • Middle East & Africa (By Component, Deployment, Enterprise Type, Implemented Technology, Application, and Country)

    • Turkey

    • Israel

    • GCC

    • North Africa

    • South Africa

    • Rest of the Middle East & Africa



  • Asia Pacific (By Component, Deployment, Enterprise Type, Implemented Technology, Application, and Country)

    • China

    • India

    • Japan

    • South Korea

    • ASEAN

    • Oceania

    • Rest of the Asia Pacific




Frequently Asked Questions

How much is the green technology and sustainability market anticipated to be worth by 2032?

Fortune Business Insights says that the market is projected to reach USD 105.26 billion by 2032.

What was the value of the global green technology and sustainability market in 2023?

In 2023, the market was valued at USD 17.21 billion.

At what CAGR is the market projected to grow during the forecast period (2024-2032)?

The market is projected to grow at a CAGR of 22.4% during the forecast period.

Which component segment led the market in 2023?

By component, the solutions segment dominated the market in 2023.

What is the key factor driving the market growth?

The benefits associated with green cloud computing are one of the major driving factors.

Who are the top players in the market?

IBM Corporation, Sensus (Xylem Inc.), Microsoft Corporation, ENGIE Impact, General Electric Company, Schneider Electric, Oracle Corporation, CropX Inc., Taranis Visual Ltd., and Cority are the top players in the market.

Which region held the largest market share in 2023?

North America held the largest market share in 2023.

Which application segment is expected to grow at the highest CAGR during the forecast period?

By application, the crop monitoring segment is expected to grow with the highest CAGR during the forecast period.

  • Global
  • 2023
  • 2019-2022
  • 150
  • PRICE
  • $ 4850
    $ 5850
    $ 6850
    Buy Now

Information & Technology Clients