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Comprehensive 2025 Green Technology Market Overview: Trends, Forecasts, and Growth Drivers
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the Green Technology Market Through 2025?
The market size of green technology has witnessed a significant increase in recent times. The market, valued at $23.63 billion in 2024, is expected to rise to an impressive $30.03 billion in 2025, emphasizing a compound annual growth rate (CAGR) of 27.1%. Factors that contributed to growth during the historical period include heightened awareness of green technology advantages, an increased requirement for biomass solutions, an intensified need to combat climate change, a shift towards ready-to-deploy short-term climate tech solutions, and a preference towards sustainable investment.
What's the Projected Size of the Global Green Technology Market by 2029?
In the upcoming years, the green technology market is projected to experience tremendous growth, escalating to $77.46 billion by 2029 with a compound annual growth rate (CAGR) of 26.7%. The anticipated growth during this period can be credited to a multitude of factors. These include the surge in corporate dedication towards achieving net-zero emissions, investments in green infrastructure by burgeoning economies, increased apprehensions about climate change and environmental degradation, and heightened industrial and consumer awareness. Government initiatives pushing the use of green technologies also play a pivotal role. The forecast period is likely to witness major trends, including data measurement technologies and software solutions, efficiency enhancement, creation of fresh revenue streams, performance supervision, stimulation of innovation in climate tech, and provision of scalable and profitable solutions.
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Top Growth Drivers in the Green Technology Industry: What's Accelerating the Market?
The green technology market's expansion is believed to be driven by a growing shift towards sustainable investing. Seen as an investment methodology that aims to generate financial gains whilst taking into account environmental, social and governance (ESG) aspects, sustainable or ESG investing has been gaining traction. An increased recognition of societal and environmental issues has led to the broadening of investments that aid in creating a sustainable future. These investments include the incorporation of green technology, by directing funds to companies that are creating and utilizing eco-friendly solutions to tackle urgent global challenges, thus facilitating both financial gains and a move towards a more sustainable future. For example, in February 2024, it was reported by Morgan Stanley that by the end of 2023, US-based financial services had seen their assets under management (AUM) in sustainable funds rise to $3.4 trillion, a notable 7.2% of all global AUM. This showed a growth of 15% from the $2.24 trillion recorded in 2022. This indicates that the ongoing shift towards sustainable investing is a significant factor in the surge of the green technology market.
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What Trends Will Shape the Green Technology Market Through 2029 and Beyond?
Large companies in the green technology industry are concentrating on state-of-the-art solutions, including environmentally friendly options, to bolster innovation, reduce ecological damage, and aid the shift towards a sustainable economy. These entail a collection of insurance goods and services particularly curated to fulfill the net-zero goals of clients by prioritizing sustainable technologies and strategies for risk reduction. For example, Munich Re Specialty Group, a green tech division of the Germany-based enterprise Munich Re, introduced the 'green solutions' portfolio in May 2023 to aid the net-zero goals of its client base. This endeavor seeks to place the group as a leading supplier of commercial specialty and main green insurance risks by 2030. Green Solutions is a mix of both current green tech services and creative risk solutions. It aims to establish itself as the top choice for handling sustainable risks within London and Lloyd's markets, utilizing Munich Re's expansive global distribution web to ease the transition towards a net-zero future. Concentrating on innovations such as photovoltaic energy, wind power, carbon capture, and energy storage, Green Solutions also offers entry to intangible asset goods like cyber coverage.
What Are the Main Segments in the Green Technology Market?
The green technology market covered in this report is segmented -
1) By Component: Solutions, Services
2) By Technology: Internet Of Things (IoT), Cloud Computing, Artificial Intelligence And Analytics, Digital Twin, Cybersecurity, Blockchain
3) By Applications: Non-Residential, Residential, Other Applications
Subsegments:
1) By Solutions: Renewable Energy Solutions, Energy Efficiency Solutions, Sustainable Water Management Solutions, Green Building Solutions, Waste Management Solutions
2) By Services: Consulting And Advisory Services, Installation And Implementation Services, Maintenance And Support Services, Environmental Auditing And Certification Services
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Which Top Companies are Driving Growth in the Green Technology Market?
Major companies operating in the green technology market are Alphabet Inc., Microsoft Corporation, Engie SA, Tencent Holdings Limited, General Electric Company, International Business Machines Corporation, Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Ltd., Salesforce Inc., NEC Corporation, Adobe Inc., VMware Inc., Intuit Inc., Atos SE, Blackstone Inc., Wolters Kluwer N.V., Adani Green Energy Limited, OneTrust LLC, EKI Energy Services Limited, thinkstep Ltd., Verisae LLC, ClimatePartner Gmbh, 3 Degrees Inc., ProcessMAP Corporation, Sustainable Travel International Inc., Cool Effect Inc., Sensus B.V
Which Regions Will Dominate the Green Technology Market Through 2029?
North America was the largest region in the green technology market in 2024. Asia-Pacific is expected to be the fastest growing region in the market. The regions covered in the green technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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