Green Technology & Sustainability Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Technology (IoT, Digital Twin, Cloud Computing, Blockchain), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global green technology & sustainability market size was valued at USD 15.85 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 22.7% from 2023 to 2030. The industry is expected to grow as environmental awareness and concerns about global warming rise among organizations and individuals. Green technology uses various forms of sustainable energy to safeguard the environment. Solar panels, LED lighting, wind energy, vertical farming, electric vehicles, and composting are a few examples of green technologies.

Furthermore, several countries worldwide employ green technologies to manage and recycle waste from industries and households. Green technology also aids enterprises in reducing emissions, conserving water, reducing waste, and using less energy than traditional technologies. These advantages of sustainable technology have had a substantial impact on its global adoption.

Nations worldwide are focusing on technological improvements to deliver more sustainable solutions. With the ongoing conflict in Ukraine, the EU aims to speed up its green transition to lessen its reliance on Russian fossil resources. For instance, the European Commission is expected to propose a new legislative package to increase renewable energy use and energy savings, albeit it will continue to rely on gas imported from other nations. It will also shorten the license processing time for renewable energy projects, which will not exceed one year.

Solar and wind farms bear a high capital cost of construction and installation. On the contrary, they are inexpensive to manage because their fuel is free and maintenance is minimal; thus, most of the money is spent on developing technology-based products or solutions. Carbon footprint management, air quality monitoring, and air and water pollution monitoring are just a few applications where cutting-edge technologies like Internet of Things (IoT) sensors and analytics need significant maintenance costs. For example, when it comes to air quality monitoring software, which is used to analyze and test air quality parameters, detecting chemical and biological components from the air necessitates advanced cutting technologies, such as gas sensors and PCR-based biosensors, which are both expensive.

The escalating COVID-19 pandemic situation worldwide has had a significant impact on the green technology and sustainability business. Over the forecast timeframe, altering consumer choices and behavior due to the changing worldwide pandemic environment will have a significant impact on the green technology and sustainability market. The World Health Organization declared COVID-19 a global pandemic in March 2020, putting numerous countries on lockdown. Reduced carbon emissions, improved solar energy output, increased rainfall received, and growing use cases of various technologies throughout various industrial verticals may result in expanded green technology use. Furthermore, a greater emphasis on environmental protection across many businesses will benefit the market for green technology and sustainability.

Component Insights

In terms of component, the solution segment led the market in 2022 and accounted for over 68.0% share of the global revenue. Solution and services constitute the component section. The solution segment is further expected to account for a more significant market share during the forecast period. The environment has been continuously exploited since the advent of globalization and innovative advancement.

Emerging technologies provide new opportunities for green technology and sustainable development, considering social, economic, and environmental factors. As a result, increasing awareness of technology's detrimental influence on the environment is a primary driver of green technology and sustainability solutions adoption across verticals worldwide, propelling the green technology and sustainability market forward.

For instance, in May 2023, the Germany-based global software provider, SAP, introduced the ‘GreenToken’ technology for energy companies operating in India. GreenToken is a SaaS-based solution for industries catering to operations associated with bulk-traded raw materials. The technology addresses important factors such as carbon footprint, certified sustainability, zero child labor, and fair-trade labor.

Technology Insights

The IoT segment led the market in 2022 and accounted for over 41.0% share of the global revenue. Technology in the green technology & sustainability market includes the Internet of Things (IoT), AI and analytics, cloud computing, digital twin, blockchain, and other technologies. A relatively new concept, green computing, is reducing energy consumption and carbon footprint by manufacturers, data centers, and end-users by designing and manufacturing computers, chips, and other technology components to reduce carbon emissions.

Choosing sustainably sourced raw materials, eliminating electronic waste, and promoting sustainability through renewable resources are all part of green computing. Several firms are also utilizing blockchain to make energy networks more accessible and sustainable by encouraging real-time data exchange. Energy-intensive cryptocurrency mining has increased carbon emissions, and blockchain has the potential to drive green technology innovation.

The blockchain technology category is predicted to have a very significant market size during the forecast period. The ability of the cloud to provide real-time remote access to data via sensors, satellite photos, and the weather has contributed to this expansion. According to the World Economic Forum, the launch of Ethereum 2.0 and the transition from a proof of work (PoW) to a proof of stake (PoS) consensus model for blockchain is expected to lead to the consumption of 99.0% less energy. PoS requires less hardware than PoW, and the amount of energy needed to support safe transactions will decrease.

Application Insights

The green building segment led the market in 2022 and accounted for a 24.0% share of the global revenue. Green building, also known as sustainable building, is designing and implementing processes and structures that are environmentally resource-efficient and responsible throughout the life cycle, from site selection to design, maintenance, construction, operation, renovation, and deconstruction. It incorporates characteristics of economy, durability, usability, and comfort into the traditional building design. Energy and water efficiency, as well as resource efficiency, are key factors considered while designing a green building.

For instance, Zoomlion Heavy Industry Science & Technology Co., Ltd., a high-end equipment manufacturing firm, promoted Earth Day 2022 with specific steps for the construction machinery industry's green development. Zoomlion is leading the way in developing eco-friendly, energy-efficient products and building sustainable manufacturing in response to requests for bold, inventive, and widespread measures. Zoomlion's new energy aerial work platform (AWP) offers significant benefits in carbon emissions reduction, environmental conservation, and increased operational capabilities and accounted for 60% of AWP sales in 2021, with a prominent presence in 18 high-end markets. They were marketed in 58 countries and regions.

Regional Insights

North America accounted for the largest revenue share of above 39.0% in 2022 and is expected to pose new growth opportunities over the forecast period. It can be attributed to the rising number of investments and initiatives in the green environment. For instance, in June 2023, the U.S. Department of Energy (DOE), under the leadership of the Biden-Harris Administration, announced an investment of around USD 30 million to accelerate the sustainability of federal buildings and clean energy technologies.

In another instance, the North American Climate, Energy, and Environment Partnership has encouraged governments to adopt more sustainable policies and to purchase more renewable energy and electric vehicles as needed. Additionally, in partnership with the International Renewable Energy Agency, as part of a long-term global initiative, Mexico, Canada, and the U.S. are launching a Trilateral North American initiative to assist isolated, remote, and indigenous communities in transitioning to clean, renewable, and reliable energy sources.

Vendors are concentrating their efforts on R&D and the integration of innovative technologies to address the challenges of climate change and rising pollution, emissions, and waste. The APAC region is predicted to be an attractive investment market, advancing at a significant CAGR during the forecast period. This expansion is due to the rapid growth in countries such as India and China, with India focusing on integrating new technologies to improve business operations. For instance, India hosted the Huawei APAC Digital Power Green Energy Summit 2022. In addition to discussing green development trends, the forum offered a stage where industry experts, policymakers, and sustainability practitioners explored opportunities to accelerate the energy transition.

Key Companies & Market Share Insights

To obtain a competitive advantage, major companies in the green technology and sustainability market concentrate on developments, innovations, and acquisitions. For instance, in August 2023, Hitachi Energy Ltd. announced an agreement with Google Cloud. The agreement is aimed at collaborating and co-creating numerous cloud software services and products in order to support the global energy transition. The initial offering resulting from this collaboration is Hitachi Energy's new API-based application, Velocity Suite Power Prices, which will allow worldwide customers convenient access to energy market intelligence of the North American market.

In another instance, in June 2022, Accenture and Microsoft announced that their joint venture Avanade would be addressing climate change challenges for both organizations and people. The initiative aims to help organizations convert their products, operations, and services to help accelerate the net zero transition. Companies constantly invest resources in researching and developing new technology and features.

In May 2022, Bio Town Ag and lenders partnered with Green Rock Energy Partners LLC, and acquired a share in Bio Town Biogas LLC, a renewable energy producer venturing into sustainable natural gas. The company aims to upgrade one of the largest and most cost-effective renewable natural gas and energy projects worldwide in Indiana. As part of the circular economy, Green Rock invests in, builds, buys, and operates environmentally sound & commercially successful enterprises and infrastructure through equity capital. Some of the eminent players operating in the global green technology & sustainability market include:

• General Electric

• Wolters Kluwer N.V. 

• Salesforce, Inc.

• Microsoft

• Schneider Electric

• Engie Impact

• Cority (Enviance)

• Sensus, a Xylem brand

• LO3 Energy

• CropX, Inc. 

Green Technology & Sustainability Market Report Scope

Global Green Technology & Sustainability Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global green technology & sustainability market report based on component, technology, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

  • Services

    • Consulting

    • Integration and Deployment

    • Support and Maintenance

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Internet of Things (IoT)

  • AI and Analytics

  • Digital Twin

  • Cloud Computing

  • Blockchain

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Green Building

  • Carbon Footprint Management

  • Air and Water Pollution Monitoring

  • Weather Monitoring and Forecasting

  • Fire Detection

  • Crop Monitoring

  • Soil Condition/Moisture Monitoring

  • Forest Monitoring

  • Sustainable Mining and Exploration

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa