Market Trends of Green Technology Industry
Green Building is Expected to Drive the Market
- The global green building market is expected to grow steadily due to increasing environmental concerns and stringent government regulations. Given its low operating and maintenance costs, a growing demand for green buildings in the manufacturing sector is foreseen. Demand for green buildings on the market is expected to grow due to the growing demand for energy-efficient technologies. Growing preference for green buildings in residential and commercial sectors is expected to be a significant factor driving the market's growth over the forecast period.
- The concept of Netzero energy design, which is gaining momentum in design and construction circles worldwide, is common. To satisfy the building's energy requirements, they use solar arrays, fuel cells, wind turbines, biofuels, and so on. Further, according to American Council for an Energy-Efficient Economy, in 2022, the Netherlands had the highest energy efficiency score for buildings worldwide. Meanwhile, France obtained 21 points out of the 25 maximum scores. On the other side of the spectrum, Thailand, Egypt, and Russia were at the bottom of the ranking. This score measures several metrics that impact the energy efficiency of buildings.
- According to International Energy Agency, the value of investments in energy-efficient buildings worldwide reached its peak in 2022. However, to meet the net zero by 2050 goals, the value of those investments would need to amount to over half a trillion U.S. dollars annually between 2026 and 2030. The level of investments would have to increase sharply for that scenario to occur. Such huge investments in energy-efficient buildings would drive the demand for green technology over the forecasted period.
- The government initiatives towards the development of green buildings would drive the demand for the studied market. For instance, in April 2023, The Confederation of Real Estate Developers Association of India (Credai) partnered with the Indian Green Building Council (IGBC) to build over 1,000 certified green projects across India in the next two years and 4,000 projects by 2030. The partnership with IGBC will allow Credai to strengthen its capabilities and knowledge, reduce its carbon footprint by 2030, and achieve carbon neutrality by 2050. This initiative aligns with India's vision of reaching net zero by 2070.
- Similarly, in 2022, the International Finance Corporation (IFC), an associate of the Brazilian Chamber for the Construction Industry (CBIC) and the World Bank Group, partnered to decarbonize the built environment in Brazil. The partnership aims to decarbonize the built environment by designing and constructing resource-efficient buildings using excellence in design for greater efficiencies (EDGE). IFC and CBIC will collaborate to disseminate knowledge, create capacities to design eco-efficient buildings and boost access to EDGE certification in the private real estate sector.
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North America is Expected to Hold Significant Share of the Market
- North America is expected to hold a significant market share and pose new business opportunities over the forecast period. It can be attributed to investments and initiatives in the green environment. For instance, the North American Climate, Energy, and Environment Partnership encourage governments to adopt more sustainable policies and to purchase more renewable energy and electric vehicles as needed. Carbon capture and storage technology pulls carbon from the atmosphere and uses it to make synthetic fuel. Right now, it's expensive and relatively small-scale. Still, a study by Stanford University predicts that the costs of this technology could even be reduced by a multiple of six, making it much more scalable.
- In July 2022, The United States Patent and Trademark Office (USPTO) became a technology collaboration with the global green-tech platform of the World Intellectual Property Organization (WIPO). WIPO GREEN is a public-private collaboration established by WIPO in 2013. Major technology companies, intellectual property departments, business groups, research institutions, and NGOs are among its 145 international partners. The partnership delivers an online platform for technology exchange, uniting providers and seekers of environmentally friendly technologies, and manages acceleration projects and international events highlighting green technologies' availability.
- The government's initiatives towards decarbonization technologies are expected to drive the market in the region. For instance, in September 2022, the United States announced USD 94 Billion Of Global Public Funding To Accelerate Clean Energy Worldwide. The Industrial heat shot aims to significantly reduce costs, energy, and carbon emissions related to heat applied for making our everyday products. The initiative aims to develop cost-competitive technologies for industrial heat decarbonization that at least 85 % reduce emissions of greenhouse gases by 2035
- Further, in April 2023, the Government of Canada and Saint Mary's University invested USD20 million in green technology and green energy. The addition of green technology in the Loyola Building, Homburg Center for Health & Wellness, and Patrick's Hospital is part of this investment at Saint Mary University. This includes new solar panels, a green roof, and other energy-efficiency features for many buildings.
- The regional players in the market are providing new solutions to cater to a wide range of customer needs. For example, recently, IBM Corporation announced the IBM Sustainability Accelerator. It's a professional social impact agenda that uses IBM technologies such as AI, hybrid cloud, and an ecosystem of experts to support government and non-profit institutions in improving and scaling their operations, focusing on people vulnerable to environmental threats such as extreme weather & climate change and pollution.
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