Green Technology Market Size

Green Technology Market Analysis

The Green Technology Market is valued at USD 23.71 billion in the current year and is expected to register a CAGR of 24.30% during the forecast period to become USD 70.37 billion by the next five years. The market is being driven by growing consumer awareness of the environment, which has also increased demand for environmentally friendly and less harmful products. Consumers are asking for products that don't harm the environment. Manufacturers, therefore, started implementing green manufacturing to produce products and solutions. Smart technology operates within its parameters and offers green IT and environmental protection.

• There is a great deal of growth in greenhouse gas and carbon emissions. This is leading to an increasing market for green technology around the world. In this respect, the Government is applying positive guidelines in favor of environmentally friendly technologies and sustainable solutions. Moreover, a continuous effort is being made to reduce carbon emissions and encourage zero-emission vehicles by the Governments of developed and developing countries. For the development and growth of green technologies markets, market players are also cooperating with government agencies. Therefore, over the forecast period, an increasing interest in environmental protection is resulting in lucrative opportunities for growth in the global green technology market.
• The collaborations between the nations to enhance the usage of green technology are expected to drive the market. For instance, in March 2023, The UK and Canada signed a deal to significantly enhance green technology supply chains, with both countries collaborating on critical minerals. Launched by the UK's Business and Trade Minister and Canadian Minister of Natural Resources, the historic partnership will drive cooperation on essential minerals, such as cobalt and lithium, that will be pivotal in developing a range of green technologies. The agreement will enable UK green technology developers to become more resilient to global supply chain interruptions. The partnership will also help to accelerate research and development between the two nations' businesses, helping to advance and expand the sector.
• Further, corporations have evolved their corporate responsibility initiatives to focus more on sustainability. For instance, Apple made its operations carbon-neutral and is working toward a 2030 carbon-neutral goal. This means encouraging suppliers to use clean energy and focusing on its Power for Impact program, designed to help get clean energy to communities worldwide. Intel has committed to net-zero greenhouse gas emissions in its operations by 2040. The company is also working toward net-positive water, zero waste to landfills, and 100% renewable electricity. These initiatives by the firms would drive the demand for the studied market.
• Conversely, adopting green technology and sustainability solutions and services is quite expensive. It requires proper infrastructure to install and implement green technology, sustainability solutions, and tools. Technologies such as blockchain, artificial intelligence, and the Internet of Things are high-cost and are used in green technology and sustainability solutions. Thus, high capital costs restrict the growth of the global green technology and sustainability market.
• The COVID-19 pandemic, which slowed down investment and put a brake on deploying crucial energy technologies, enormously impacted energy systems worldwide. According to the IEA, investment in effectiveness and end-use applications was set to decrease by 15% during the pandemic as sales of vehicles and construction activity declined due to weak demand for more cost-effective appliances and equipment. In this context, there was a pressing need to support economic efficiency, job creation, and economies through policies that promoted upgrading buildings, technologies, and infrastructure across different parts of the economy.