The green technology and sustainability market size is expected to advance at a CAGR of 10.7% during 2022–2030, to reach USD 43,453.9 million by 2030.
The demand for green technologies is driven by the rising worldwide electricity consumption, growing uncertainty in oil prices, and increasing environmental awareness. Additionally, the market is significantly propelled by the numerous steps taken by the governments of various countries to reduce the greenhouse gas emissions produced from the extensive use of fossil fuels.
The majority of the non-renewable resources used to meet the world's energy needs contribute considerably to climate change. The environmental harm caused by human activity has been somewhat reduced and overcome over the past few years due to the development of cutting-edge green technologies and solutions. With the rampant increase in the rate of industrialization and commercialization, emissions from the building and construction sector have risen massively.
As per the Global Status Report for Buildings and Construction, a document published by the UN Environment Programme (UNEP), in 2021, CO2 emissions from the building and construction sector have risen to a record high of over 10 Gt, up about 5% from 2020, despite a considerable increase in the investment in lowering the energy intensity of buildings at the global level.
Green buildings, which are constructed to be sustainable, use onsite renewable plants to generate their own electricity, thus lowering the carbon emissions caused by the use of fossil fuels for heating and other purposes. There are various rating agencies, such as LEED, WELL, Fitwel, Green Globes, and BREEAM, that offer certificates to encourage the construction of green buildings. Because an increasing number of building rules and policies are mandating minimum levels of energy efficiency, green construction is picking up in both the residential and commercial sectors.
Among the existing green technologies, IoT has become rapidly significant. It is a telecommunication network that connects numerous systems and gadgets to one another via the cloud. It is influential in various verticals, such as healthcare, smart homes, smart cities, manufacturing, and transportation. Additionally, the energy sector is currently undergoing a transformation, which is largely dependent on IoT solutions for maximizing the generation and optimizing the distribution of electricity.
In addition, the manufacturing industry has a strong base in the APAC region. This industry has also undergone a change in recent years, specifically digitalization and the implementation of the IoT technology. IoT-based solutions have proven efficient for high operational and business efficiency, and proactive government initiatives for smart city projects.
Based on deployment, the cloud is highly preferred as it is cost-effective, more secure, and financially less risky than an on-premises solution. Additionally, cloud services are often more user-friendly and much easier to integrate into the enterprise workflow.
To achieve zero emissions, governments globally are investing in green technology and sustainability projects. For instance, in the U.S., the Inflation Reduction Act of 2022 supports domestic green energy production and energy reliability, via significant expenditure. It earmarks more than USD 60 billion for on-shore renewable energy generation in the country.
The biggest green technology and sustainability market players are Microsoft Corporation, General Electric Company, International Business Machines Corporation, Salesforce.com Inc., Schneider Electric SE, Wolters Kluwer N.V., Engie Impact, Industrial Scientific Corporation (INTELEX), Isometrix, CropX inc., and Xylem Inc.