The Asian green technology and sustainability market is set to progress at a CAGR of 11.1% during 2024–2030, to reach USD 12,072.6 million by 2030.
Green technologies are permeating several sectors, including transportation, power generation, water management, energy, industrial and extractive processes, agriculture, and recycling.
The key factors propelling the market include the growing energy demand, unstable crude oil prices, formulation of promising government legislations, increasing demand for reducing operational costs for production, and booming utilization of building automation systems. Green technologies are being increasingly acknowledged worldwide owing to their foremost attribute of being helpful to the environment. A variety of technologies and activities that help in decelerating global warming and diminishing the greenhouse effect are labeled ‘green’.
The breadth and depth of environmental challenges and the pace with which they are evolving substantiate the need for governments, regulators, and businesses to adopt green technologies. The Fourth Industrial Revolution is offering market players a high potential to contribute to harnessing these rapidly evolving technologies for achieving sustainability and battling the pressing environmental challenges.
The energy industry is continually driven by innovations, including rooftop solar and smart metering. Emerging technologies, such as artificial intelligence (AI), digital twin, and blockchain, are steering the energy industry in the present scenario. Moreover, the market players in the region are continuously launching and updating the software, to meet the customer demand and follow government norms.
Asia accounts for 53% of the global emissions, dominated by China, which emits nearly 10 billion tons each year, as its manufacturing base is heavily dependent on non-renewable sources. Therefore, the government provides incentives for green building development or renovation of buildings for energy efficiency. Therefore, the country has been engaged in the construction of green buildings.
Usually, the main motive of an enterprise is to increase profits by cutting the operational costs incurred during manufacturing, which has increased the demand for green technologies across the region. Such technologies can reduce operating costs by increasing return on investment (ROI) from plant and equipment, by optimizing asset utilization and maintaining critical equipment in peak operating condition, along with improving the performance against key metrics, by tracking improvements in production yield, scrap/rework, and overall equipment effectiveness (OEE).
Owing to the rapid adoption of emerging technologies and higher IT budgets of multinational companies, the large enterprises category accounted for the larger revenue share, of more than 82%, in 2023.
The SMEs category is expected to grow at the higher CAGR during the forecast period, due to the potential increase in the acceptance of green tech solutions by the smaller firms in order to enhance their operational performance. The integration of IoT-enabled devices and solutions by small enterprises brings growth and development, with the increase in efficiency, security, enriched client relationships, and the development of new product offerings. Therefore, with the rising awareness of the advantages of advanced technologies, small enterprises are expected to adopt green solutions at a higher rate during the forecast period.
The most-significant Asian green technology and sustainability market players are Microsoft Corporation, Schneider Electric SE, Oracle Corporation, Salesforce Inc., International Business Machines (IBM) Corporation, ENGIE Impact, Xylem Inc., Wolters Kluwer N.V., Tech Mahindra Limited, General Electric Company, and Digi International Inc.