New York, NY – The green technology and sustainability market is set to record transformative growth, with a projected market value reaching $177.08 billion by 2031. In the recent report from SkyQuest, the sector is poised for a 29.3 percent compound annual growth rate from 2024 to 2031. Such an expected spurt merely underlines the rising importance that the world is placing on various environment-friendly solutions and clean manufacturing processes where governments and businesses have equally embarked on sustainability to counter climate change.
Highlighting Green Technologies at the Forefront of Economic Development
Green technologies represent a wide array of environmentally-friendly solutions that significantly spur modern economic and social development. Accordingly, such technologies are defined as clean manufacturing, since they are powered by different alternative natural fuels, much less harmful compared to traditional ones, namely fossil fuels. The shift to green technology is not only a development but a phenomenon that solely evolves with the rising demand for environmental preservation and mitigation of adverse impacts that were brought by industrialization.
Due to this reason, various governments of the world are highly investing in green technologies. This investment has been included to such an extent due to the fact that people have started recognizing the importance of sustainable practices for the health of the planet in the long run. The technologies meant for reducing carbon footprints, energy efficiency, and minimal wastage that forms the major entity of sustainability.
AI Analytics and Green Building Segments Drive Market Growth
Among all the segments in the green technology market, Artificial Intelligence Analytics is likely to show tremendous growth. These industries were regaining momentum due to the relaxing infection rate of COVID-19, and this resuming momentum has been propelling many industries to accelerate their demand for AI-enabled analytics in order to optimize energy application and reduce wastage. AI acts as an accelerator in the development of green technology for handling data more effectively and making decisions that will be vital for sustainable resource management.
The green building segment also promises to top the list. Green building or sustainable construction is a general term for making ecology-friendly practices part of every step in the building’s life, starting from site selection and design, through construction and then operations, repair, and maintenance. This approach builds on the efficiency of traditional construction methods while offering additional benefits in terms of energy and water efficiency, material conservation, better indoor environments, and reduced environmental impact. Growth in the segment is supported through increasing regulatory support and incentivization in favor of sustainable construction practices.
IoT and Green Computing: Key Market Players
The IoT segment is expected to capture a major share in contributing toward the growth of the market, which will entail reducing energy consumption in many sectors. The segment of IoT dominated the market in 2022 by attaining the leading share of more than 41.0 percent in the global revenue. IoT technology is used in essential applications for smart grids and energy management systems that serve to optimize resource utilization and reduce environmental impacts.
Other technologies that are driving the green technology and sustainability market include cloud computing, digital twin, blockchain, and green computing. Green computing is mainly powered by designing and manufacturing computers with optimized emission and carbon footprint reduction. This segment is gaining traction as companies and consumers alike seek more sustainable computing solutions.
Regional Insights: North America and Asia-Pacific Lead the Charge
Geographically, North America presently dominates the green technology market with more than 39.0% revenue share in 2022, due to considerable investments in green technologies of the region, along with infrastructural development toward sustainability. The stringent regulatory framework and great awareness regarding environmental issues among the masses have also taken North America to the fore in this market.
In contrast, during the forecast period, the Asia-Pacific region is very likely to exhibit the highest growth rate. The fact that the region has put countries like India and China to the front in integrating new technologies for increased business efficiency and sustainability can be understood. For example, events such as Huawei’s Asia-Pacific Digital Power Green Energy Summit 2022 point toward the region’s commitment to forwardness in green technologies. Some, like India, are increasingly taking leading roles in the adoption of green technologies, part of a larger economic development strategy.
The Way Ahead
This, in turn, would have reflected a greater swing in the modern world towards environmental responsibility. The demand for green technologies will continue to grow as the public and private sectors increasingly take interest in such industries. This is indicative not only of an opportunity for growth but also a very important step toward addressing many of today’s serious environmental challenges.
In the future, AI, IoT, and green computing are some of the innovative technologies that will contribute significantly to the growth of the market. This will help industries reduce their carbon footprint and preserve resources, thereby promoting sustainability in industries.
Source: Inferred and condensed from SkyQuest reports.
Credits: Extracted and summarized from SkyQuest forecasts and analysis.