Green Technology and Sustainability Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Green Technology and Sustainability Market Emerging Trends & Growth Drivers

Surge in Power Purchase Agreements (PPAs) in ICT Sector Is a Key Trend

The rise in the demand for 5G, IoT, AR, and VR is likely to accelerate the demand for low-latency computing and edge data centers. User devices, such as smartphones, which are increasingly equipped with ML accelerators, are set to increase the use of ML, which would, in turn, lead to greater data center usage in the coming years. Therefore, ICT companies are investing considerable sums in captive renewable power projects, to support a sustainable environment, protect themselves from power price volatility, and improve their brand reputation.

Expansion of Cloud Computing and Green Data Centers Are the Major Growth Driver

• Technological dependence on cloud computing and digital services generates an escalating need for efficient and sustainable methods to store data.
• Extensive data growth caused by digital service demand forces storage facilities to expand their available capacity.
• Data centers that use conventional power methods require substantial energy intake which forces cloud service providers to develop sustainable data centers.
• Modern companies are adopting captive renewable energy systems to operate their data center infrastructure.
• Major technology companies join worldwide sustainability initiatives through emission reduction initiatives in their data infrastructure systems.

Green Technology and Sustainability Market Segmentation Analysis

Component Analysis

• The solutions category held the larger market share, of 70%, in 2024.
• This is because it includes digital software for carbon footprint tracking and smart grid networks along with AI-powered energy management systems.
• More companies use IoT-based sensors together with AI-powered analytics and blockchain technologies to track carbon emissions for better regulatory compliance and corporate sustainability goals.
• The services category will grow at a higher CAGR, of 23%, during the forecast period.
• This is because deployment strategies and system integration solutions together with cloud migration services become essential for implementing IoT-based sustainability solutions and cloud computing platforms that use AI-driven analytics.
• Smart energy management and climate risk assessment require expert integration services because of growing company demand.

The components analyzed here are:

• Solutions (Larger Category)
• Services (Faster-Growing Category)
  • Consulting
  • Support and Maintenance
  • Integration and Deployment

Technology Analysis

• The IoT category held the largest market share, of 40%, in 2024.
• This is because it provides real-time system oversight and data-based choices that maximize energy usage minimize carbon footprints, and operate more efficiently.
• Smart grids together with utility meters industrial automation and building management systems implement IoT for their operation.
• The cloud computing category will grow at a highest CAGR, of 23.5%, during the forecast period.
• This is because it gives organizations scalable secure data management at reduced costs.
• Businesses move to cloud computing platforms to save expenses on infrastructure while gaining operational adaptability and lowering their power usage.
• AWS, Microsoft, Azure, and Google Cloud operate major provider facilities that utilize renewable energy to power their sustainable data centers

The technologies analyzed are:

• IoT (Largest Category)
• AI & Analytics
• Digital Twin
• Cloud Computing (Fastest-Growing Category)
• Blockchain

Application Analysis

• The carbon footprint management category held the largest market share, of 35%, in 2024.
• This is because of worldwide regulations and corporate promises and reduced emissions requirements.
• Large manufacturing sectors, the energy sector and the IT sector together with transportation fields are directing their investments into AI-powered carbon tracking software IoT-based emission monitoring systems and blockchain technology for carbon credit trading.
• Microsoft IBM and Schneider Electric along with other businesses invest substantially in carbon-neutral targets and net-zero objectives which creates market demand for solution implementation.
• The green building category will grow at a highest CAGR, of 23.8%, during the forecast period.
• There is a swift increase in demand for sustainable buildings combined with efficient energy management systems which now incorporate renewable energy integration into new construction standards.
• The implementation of IoT alongside AI and automation helps smart buildings reach enhanced optimization for their energy consumption and water management as well as indoor air quality control.

The applications analyzed here are:

• Green Building (Fastest-Growing Category)
• Carbon Footprint Management (Largest Category)
• Air Pollution Monitoring
• Water and Wastewater Management
• Weather Monitoring
• Soil Condition/Crop Monitoring
• Fire Detection
• Forest Monitoring

Organization Size Analysis

• The large enterprises category held the larger market share, of 60%, in 2024.
• This is because they possess the financial means to manage operations toward sustainability goals.
• Large corporations use their financial resources to implement sustainable energy solutions AI sustainability applications and carbon footprint reduction plans.
• Under existing environmental laws large business institutions need to speed up their green technology deployment to align with investors and consumers.
• Microsoft worked with Schneider Electric and Google to create standards for zero emissions initiatives combined with climate-positive program development.
• The SMEs category will grow at a higher CAGR, of 24%, during the forecast period.
• This is because they clearly understand the advantages of green technology in cost reduction and image enhancement.
• The government provides financial aid through tax credits and grants which motivates SMEs to implement sustainable energy solutions eco-friendly manufacturing processes and digital sustainability tools.
• Small and medium-sized businesses adopt green certifications together with eco-friendly practices because rising consumer demand for sustainable businesses enables them to maintain a competitive advantage

The organization sizes analyzed here are:

• SMEs (Faster-Growing Category)
• Large Enterprises (Larger Category)

Deployment Mode Analysis

• The cloud category held the larger market share, of 55%, in 2024.
• This is because it enables efficient sustainability data management at lower costs through its scalable solutions.
• Companies implement cloud solutions to access AI big data analytics and IoT technology for real-time environmental checks energy management and carbon footprint assessment at affordable costs while eliminating infrastructure expenses.
• Sustainability solutions delivered through the cloud assist multiple IT industry organizations and manufacturing and energy sector companies to fulfill environmental standards at reduced operational costs.
• Major technology corporations including Microsoft and Google along with Amazon Web Services (AWS) increase market growth of sustainable cloud computing through dedicated program development.
• The on-premises category will grow at a higher CAGR, of 23.8%, during the forecast period.
• This is because they require complete control over sustainability measures and enhanced data security and regulatory compliance.
• The energy utility sector oil and gas companies and smart manufacturing operations opt for on-premises solutions because these solutions provide improved security capabilities together with enhanced customization possibilities.
• Companies that already have implemented IT infrastructure deploy green technology solutions within their facilities to achieve better resource utilization and environmental impact management through improved sustainability analytics facilitated by AI.

The deployment modes analyzed here are:

• Cloud (Larger Category)
• On-Premises (Faster-Growing Category)

Green Technology and Sustainability Market Regional Market Performance

North America held the largest market share, of 40%, in 2024, because government agencies promote sustainable practices through their policies while corporations actively invest in sustainability technologies. The U.S. represents the top regional leader through its substantial investments in renewable power systems as well as smart power grids alongside green building technologies and carbon reduction solutions. The acceptance of renewable energy projects along with emissions reduction targets through state-level and federal incentives has boosted the transition to sustainability. Large technology companies including Microsoft and Tesla together with Google continue to embed environmentally-friendly solutions into their business activities thus accelerating market expansion.

The combination of established AI, IoT, and big data analytics startups and research centers positioned in North America maintains its position as the leading market segment. Additionally, in 2021, President Biden established the National Climate Task Force, with different cabinet-level leaders from various agencies working together on addressing environmental depletion. The major goals include providing carbon-free electricity by 2035 and reaching net-zero emissions by 2050. Further, the 2021 implementation of the Bipartisan Infrastructure Law and inflation reduction act 2022 are crucial steps toward a clean economy.

The markets in the APAC region will grow at a higher CAGR, of 24.1% during the forecast period. This is because of its accelerating industrialization and increasing energy needs which receive strong backing from governmental entities focused on sustainable power. The solar and wind power sectors together with smart infrastructure and electric mobility represent China and India as leaders in this field due to their rapidly expanding industries. China maintains its position as the world leader in renewable energy production while working toward carbon neutrality by 2060 through its commitment and Indian governmental agencies execute significant solar development initiatives throughout the country.

The nations of Japan, South Korea, and Australia are rapidly accelerating their sustainability development through electric vehicle adoption as well as AI-powered sustainability solutions and smart cities. The Asia-Pacific territory stands as the speediest expanding sustainability market worldwide since local enterprises deploy green technologies and energy-efficient systems alongside carbon management solutions to fulfill growing environmental demands and enhanced emissions regulations.

The regions analyzed in this report are:

• North America (Largest Region)
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia-Pacific (Fastest-Growing Region)
  • China
  • Japan
  • Australia
  • India
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • U.A.E.
  • Saudi Arabia
  • South Africa

Green Technology and Sustainability Market Share Analysis

The green technology and sustainability market operates in a fragmented manner because it involves multiple businesses spread across renewable energy along with energy-efficient solutions alongside sustainable agriculture and carbon footprint management and green IT services. Competitive fragmentation exists throughout this market segment since companies lack dominance because of the wide range of applications together with regional differences in market requirements. Schneider Electric together with Microsoft and IBM as well as Siemens and General Electric are known as leading multinational companies because they remain dedicated to supporting sustainability projects through renewable power solutions and environmentally friendly product development. Industrial efforts to reduce worldwide carbon emissions and reach zero carbon goals will lead to substantial market expansion of green technology thereby establishing sustainability as a fundamental business approach for international industries.

Green Technology and Sustainability Market Developments

• In December 2024, Schneider Electric introduced new solutions to address sustainability and energy issues caused by AI implementation through enhancements in AI-driven systems power efficiency. The new solutions seek to integrate sustainable AI systems while their data centers maximize their power utilization efficiency.
• In March 2024, Schneider Electric joined forces with NVIDIA to build AI data center reference designs that improve both efficiency and scalability. The partnership works toward improving infrastructure systems for implementing AI and digital twin technologies.