Press release
Decarbonization Market is et to reach US$ 19.47 billion by 2032, with a strong CAGR of 22.82%. | North America leads with 32% market share. Key Players:- Ernst & Young Global Limited, SAP SE, Armstrong International Inc.
Decarbonization
The decarbonization market is fueled by strong governmental regulations and international agreements aimed at lowering global emissions. The Paris Agreement, endorsed by almost 200 nations, established lofty objectives to restrict global temperature increase to much below 2°C above pre-industrial levels, with an aspirational target of 1.5°C. Consequently, governments globally have established carbon neutrality or net-zero emission objectives.
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Key Industry Developments
✅ December 2025: Siemens launched PAVE360 Automotive, a digital twin platform accelerating software-defined vehicle development with integrated simulation for faster prototyping and reduced time-to-market.
✅ October 2025: Turboden (Mitsubishi Heavy Industries) installed an ORC system at a U.S. cement plant, capturing waste heat from the kiln to generate electricity and reduce carbon footprint in heavy industry.
✅ September 2025: ElectraTherm deployed modular ORC generators at oil wells in North Dakota, utilizing flare gas to power equipment and cut methane emissions for U.S. oil producers.
✅ December 2025: Mitsubishi Heavy Industries launched the compact "Binary Power" ORC generator for small factories, recovering heat from furnaces and boilers to boost energy conservation in Japan's SME manufacturing.
✅ December 2025: Renesas announced R-Car Gen 5 SoC-based end-to-end multi-domain solution, fast-tracking SDV innovation with advanced computing for zonal architectures in Japanese automakers.
✅ August 2025: Tata Elxsi established the SUZUKI-TATA ELXSI Cloud HIL Center to accelerate software-defined vehicle testing through cloud-based hardware-in-the-loop simulations.
Recent M&A Activity:-
✅ Occidental Petroleum acquired Holocene Climate Corporation, a developer of carbon removal technology designed to remove CO2 from the atmosphere, strengthening Occidental's direct air capture (DAC) capabilities and advancing its strategic decarbonization technology portfolio to accelerate carbon removal cost reductions and deployment at scale.
✅ Talen Renewable Energy, a renewable energy generation operator, was acquired by Energy Power Partners, expanding clean energy asset ownership and contributing to broader decarbonization efforts by increasing investment and operational capacity in renewable power solutions that displace carbon-intensive generation.
✅ Alphabet Inc. agreed to acquire Intersect Power LLC for approximately $4.75 billion, securing a utility-scale renewable energy and energy storage platform that supports decarbonization of power supply and enables scaling clean electricity solutions for data centers and utilities, further aligning corporate strategy with net-zero energy goals.
Key Players:-
Ernst & Young Global Limited, SAP SE, Armstrong International Inc, Boston Consulting Group, ABB, Deloitte, Arup, MAN, Siemens, GE Vernova and among others.
Key Player Highlights:-
◾ EY Global Limited:- EY drives decarbonization via advisory on net-zero strategies and carbon accounting tools, aiding enterprises in compliance. Holds 12% market share in consulting services amid regulatory shifts.
◾ SAP SE:- SAP excels in decarbonization software for emissions tracking and supply chain optimization using AI-driven platforms. Captures 10% share in digital solutions segment.
◾ Armstrong International Inc.:- Armstrong pioneers steam and thermal energy efficiency systems for industrial decarbonization, slashing emissions in manufacturing. Commands 8% in efficiency tech market.
◾ Boston Consulting Group:- BCG shapes decarbonization roadmaps and investment strategies for Fortune 500 firms transitioning to renewables. Secures 11% in strategy consulting share.
◾ ABB:- ABB delivers electrification and automation for grid modernization and EV infrastructure, boosting renewable integration. Leads with 9% in automation hardware share.
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Regional Insights:-
North America commands the largest share of the Global Decarbonization Market, estimated at around 32% in recent assessments, driven by advanced infrastructure, substantial investments in renewable energy, supportive government policies, and high corporate commitments to net-zero goals in the US and Canada.
Europe follows as the second-largest region, benefiting from stringent EU regulations like the Green Deal, strong emphasis on carbon neutrality targets, rising adoption in countries like Germany, France, and the UK, and collaborative R&D in clean technologies, though exact shares vary by report amid robust expansion.
Asia Pacific ranks third in market share, yet exhibits the fastest growth potential with high CAGRs in nations such as China, India, and Japan, fueled by rapid industrialization, massive renewable energy deployments, government subsidies for green tech, and expanding manufacturing.
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Market Segmentation-
-By Technology
Renewable Energy Solutions lead with 70.7% market share in 2024, driven by widespread adoption of solar, wind, and hydropower for scalable emission reductions across sectors.
Carbon Capture, Utilization, and Storage (CCUS) follows at 37.34% share in 2025 within chemical applications, valued for capturing industrial CO2 emissions.
Energy Efficiency & Electrification holds 18.23% in electrification tech, growing rapidly due to electric processes and heat pumps; Others capture the balance via emerging storage and grids.
-By Deployment
Cloud deployment commands 55% share in 2025, favored for scalable data analytics in monitoring emissions remotely.
On-premises retains 45%, preferred in heavy industries for secure, localized control systems.
-By Transportation Mode
Road Transport dominates at 42% share in 2025, propelled by electric vehicle fleets and fleet electrification mandates.
Aviation and Sea Transport each hold 20%, focusing on sustainable aviation fuels (SAF) and green shipping; Rail accounts for 18% via electrified networks.
-By End-User
Energy & Power leads with 35% market share in 2026, powered by utility-scale renewables and grid upgrades.
Oil & Gas follows at 28%, emphasizing CCUS retrofits; Industrial Manufacturing & Heavy Industries take 22% with process optimizations.
Transportation & Logistics claims 15%, driven by logistics decarbonization.
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