The best way to check the pulse of an industry is to take a deep dive into the key statistics and recent developments. The green industry market is exciting because its growth depends on dynamic factors.
Therefore, if you want to discover the most relevant trends regarding the green industry market, you’ve come to the right place. Below you can find the market size, forecasts, the latest trends, key factors, etc.
What is the green industry market?
Green Industry Market includes all industries and organizations currently using green technology and sustainability solutions and services. These solutions and services have a wide range of use cases, including:
- Carbon footprint management;
- Green buildings;
- Crop monitoring;
- Air pollution monitoring;
- Water pollution monitoring;
While the newly adopted solutions and use of third-party services change how the companies use a profit margin calculator, the impact on the operating costs appears sustainable. In addition, the definitive proof is the projected growth of the green industry market.
Market size and growth
The size of the global Green Technology and Sustainability Market in 2021 was $11.49 billion. However, it is projected to reach $51.09 billion by 2029. The market will exhibit a CAGR of 20.6% over seven years, which is quite a substantial CAGR for any industry.
Companies across industries will continue to adopt and use green technology and sustainability solutions and services. What could be behind such rapid growth in market size? Let’s go over all the factors at play.
The key factors
There are a couple of factors to consider here, which can be categorized based on their effect on the market growth as facilitating and hindering factors.
Facilitating factors
First, we have to acknowledge the role of the green data centers. Moreover, these new green data centers are more efficient than their predecessors regarding energy consumption.
Deploying various solutions, including Artificial Intelligence and Machine Learning, cloud computing service providers managed to offer green data center services to other companies. Moreover, the benefits include data storage, processing, and management.
Furthermore, we have the Internet of Things (IoT). Thanks to the rapid development of sensors, companies now have access to accurate and reliable sensors which they can use to streamline the tracking of air, water, and soil pollution.
Meanwhile, the greenhouse emissions continue to rise, which further inspires companies to invest in developing sustainable solutions and contribute to creating a green economy.
Finally, we have electric vehicles as a major facilitating factor that drives green industry market size growth. The increased air pollution and rise in fuel prices made all the major players in the car industry switch to the production of new electric and hybrid car models.
Hindering factors
One of the most significant factors that hinder the green industry market growth is the high cost involved. Green technologies include the latest hardware and software. These emerging solutions are expensive, especially when you need to implement them at a scale.
Given that the tech is brand new, we also have to consider the onboarding and training costs. Companies will have to spend substantially more money training their staff to use brand new solutions.
Unfortunately, the high initial deployment costs will probably keep many companies away from these solutions until they become more common and affordable.
Green industry market share by regional segments
Green industry market regional segments include:
- North America;
- South America;
- Europe;
- Asia Pacific;
- The Middle East and Africa.
The North American green industry market has the biggest share of $4.9 billion. More importantly, the projections tell us that this region will continue to have the biggest share in the next decade.
It doesn’t come as a surprise. When you look into this regional segment, you will see that all the green industry pioneers are there, including Tesla Inc., Engie Impact, Taranis, Microsoft Corporation, and many others.
The green industry market size in Europe comes right behind the North American one. It appears that the EU continues to push legislation that favors green technology solutions and services. Moreover, the EU even uses the Innovation Fund to invest in green solutions for industries with high energy consumption rates. As a result, the market in Europe is ahead of those in the Middle East, Asia Pacific, and Africa.
The key players in the Asia Pacific region are China, India, Taiwan, Japan, and South Korea. The government initiatives in these countries resulted in low-carbon policies. Therefore, renewable energy takes priority in this region as countries continue to invest in wind and solar energy.
Meanwhile, the Middle East, Africa, and South America are falling behind. However, they have taken the initiative to develop policies that favor renewable solutions, thus facilitating the market growth in this region.
Green industry market share by industry
Here is the green industry market size by industry to help you better understand the green industry market.
There are many green industry market segments based on industry. Moreover, the ones with the largest market share include:
- Green building;
- Crop monitoring;
- Carbon footprint management.
The market segment with the largest share is green building. What could be the possible reason for this? The key players in the construction industry recognized the demand for smart homes featuring green building technologies.
New technologies enable homes to be more energy-efficient, thus significantly reducing the carbon footprint, especially at scale.
The second green industry market segment by the share size is crop monitoring. The agriculture industry is enormous, and as the weather becomes more unpredictable, the companies and individuals in this sector find monitoring solutions a must-have.
Increasing greenhouse emissions have created the need for green technology and sustainability solutions and services. That’s why the following markets not only gained traction but also substantially increased their share:
- Carbon footprint management;
- Weather monitoring;
- Air and water pollution monitoring.
Green industry developments with a big impact
There are two developments in the green industry that you should know about. First, in 2021, CropX Inc. announced its partnership with NASA. More specifically, a collaboration with NASA’s Food Security and Agriculture Program called NASA Harvest. CropX collects soil data in real-time, while NASA collects satellite data. Moreover, the goal is to combine the data with helping facilitate sustainable agriculture and improve production.
Secondly, in 2022 IBM Corporation introduced a new program called the IBM Sustainability Accelerator. The program is designed to help people exposed to certain risks such as pollution, climate change, and extreme weather. Additionally, IBM plans to leverage AI and hybrid cloud to help people embrace all benefits of sustainable agriculture and clean energy.
Author Bio: This post was written by Emma Wilson, a content specialist with a focus on health and wellness.
