Press release
Government Regulations And Policies As Catalysts For Climate Tech Market Growth Driver: Leading Transformation in the Climate Tech Market in 2025
Climate Tech Market
Anticipations are high that the advancement of the climate tech market will be driven by government regulations and policies. These regulations and policies are defined as a series of rules and guidelines, along with initiatives curated by governing authorities to combat climate change and to push for sustainable development. They facilitate an encouraging environment for the innovative, investing, and deploying aspects of climate tech, eventually aiding the transformation towards a more sustainable and low-carbon economy. As an example, the International Energy Agency, an intergovernmental organization based in France, relayed in April 2023 that Australia passed the Climate Change Act in 2022. This intensifies its 2030 emissions reduction target and sets a net-zero emissions target by 2050. Australia also pledged to the Global Methane Pledge and stands in alignment with 130 other governments promising to cut down methane emissions by a minimum of 30% by 2030. This firmly places Australia alongside an increasing number of countries taking meaningful measures to fight climate change. Hence, the future growth of the climate tech market is being fueled by government regulations and policies.
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What Is the projected market size and growth rate for the climate tech market?
In recent times, there has been a significant surge in the size of the climate tech market. Predictions suggest an enlargement from $26.12 billion in 2024 up to $32.49 billion in 2025, following a compound annual growth rate (CAGR) of an impressive 24.4%. These historic period developments come on the back of a heightened focus on climate change and its subsequent effects on the environment. Triggers also include an enhanced consciousness and demand for solutions that are sustainable and eco-friendly, as well as governmental initiatives and policies that advocate for renewable energy and environmental sustainability. Technological advancements, increased investing in clean energy and climate-centric projects, and corporate pledges towards lowering carbon footprint and implementing sustainable practices are also noteworthy contributors to this growth.
The market size of climate technology is predicted to witness a significant upsurge in the upcoming years, reaching $79.45 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 25.0%. The escalation in the predicted period is credited to the transition towards a circular economy, embrace of circular supply chains, advancements in energy storage and grid modernization, requirement for green transportation alternatives including electric vehicles and substitute fuels, growing consumer consciousness and demand for eco-friendly products and services. The surge can also be attributed to increased implementation of smart city projects and sustainable urban advancement, emphasis on eco-friendly farming and food manufacturing procedures, and the necessity for climate-proof infrastructure and readiness for disasters. Recurring trends during this forecast period include the growth of renewable energy, innovations in energy storage, adoption of Electric Vehicles (EV), initiatives related to the circular economy, and analysis of climate data.
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How are the latest trends influencing the growth of the climate tech market?
Leading companies in the climate tech market are pioneering innovative solutions like capital investment platforms to hasten the shift towards sustainable energy and lessen greenhouse gas emissions. Essentially, these platforms act as digital marketplaces to connect investors with sustainable technology-based projects, facilitating the funding of initiatives to fight climate change. Additionally, they offer tools to evaluate the environmental sustainability investment's impact and returns. As an illustration, in December 2023, a Bahrain-based private equity company named Investcorp debuted its Climate Solutions Investment Platform. This platform specifically offers growth capital to companies concentrating on decarbonization solutions and climate-impact technologies, especially those ready for swift expansion. As a member of the Innovate for Climate Tech coalition, which counts Masdar City, Tencent, and Catalyst among its members, it leverages a strong knowledge base and broad networking to propel climate innovation. In addition, TanLIVE, a digital platform powered by Tencent, backs international climate initiatives by offering networking chances, project listings, and a technological and financial solutions ecosystem. Having over 1,000 users from various sectors, TanLIVE fosters collaboration between entrepreneurs, investors, and researchers to engender significant climate actions.
What major market segments define the scope and growth of the climate tech market?
The climate tech market covered in this report is segmented -
1) By Component: Climate Tech Solutions, Services
2) By Technology: Internet of Things (IoT), Artificial Intelligence (AI) And Analytics, Digital Twin, Cloud Computing, Security, Blockchain
3) By Application: Carbon Footprint Management, Green Building, Water Purification, Soil Condition Or Moisture Monitoring, Crop Monitoring, Forest Monitoring, Weather Monitoring And Forecasting, Air And Water Pollution Monitoring, Sustainable Mining And Exploration
Subsegments:
1) By Climate Tech Solutions: Renewable Energy Technologies, Energy Efficiency Solutions, Carbon Management Solutions, Climate Resilience Solutions, Sustainable Agriculture Technologies
2) By Services: Consulting Services, Implementation Services, Maintenance And Support Services, Data Analytics Services, Training And Education Services
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Which region dominates the climate tech market?
North America was the largest region in the climate tech market in 2024. The regions covered in the climate tech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Which key market leaders are driving the climate tech industry growth?
Major companies operating in the climate tech market report are Microsoft Corporation, General Electric Company, IBM Corporation, BYD Auto Co. Ltd., Schneider Electric, Salesforce Inc, Climate Investor One, Wolters Kluwer N.V., Molten Ventures, ENGIE Insight Services Inc., Consensys, Form Energy, Intelex Technologies, Enablon North America Corp., Climeworks AG, AMP Robotics Corporation, Isometrix, Sensus, Taranis, Enviance Inc., Bedrock Energy, Breakthrough Energy Ventures, Trace Genomics, Hortau Inc., LO3 Energy
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What Is Covered In The Climate Tech Global Market Report?
• Market Size Forecast: Examine the climate tech market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the climate tech market for a structured understanding.
• Key Players Overview: Analyze major players in the climate tech market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the climate tech market.
• Segment Contributions: Evaluate how different segments drive overall growth in the climate tech market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the climate tech market.
• Industry Challenges: Identify potential risks and obstacles affecting the climate tech market.
• Competitive Landscape: Review strategic developments in the climate tech market, including expansions, agreements, and new product launches.
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