The soaring production of renewable and low-carbon electricity, escalating demand for curtailing operational costs, surging volatility in energy prices, rising implementation of favorable government legislations, and increasing use of building automation systems will help the green technology and sustainability market to grow at a CAGR of 20.0% during the forecast period (2020–2030). The market was valued at $8.3 billion in 2019 and it is projected to generate $57.8 billion revenue by 2030.
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One of the key growth drivers for the market is the increasing adoption of building automation systems for reducing power consumption of commercial and residential complexes. High electricity demand is amplifying the environmental and financial burden across the world. To deal with these challenges, the governments of several countries are implementing various environmental regulations for certifying buildings as 'Green'. Green technologies are being used in several stages of building construction such as the selection of construction material and electrical appliances.
In recent years, the increasing installation of smart grids has become a major trend in the green technology and sustainability market, as the adoption of smart meters strengthens and improves the automation, communication, distribution, and metering processes. Smart meters enable users to track their power consumption, advise users on energy optimization, and help in reducing energy wastage. Additionally, smart grids also assist utilities in reducing the power supply gap during periods of maximum demand, by constantly monitoring the power needs of customers.
Categories under the technology segment of the green technology and sustainability market are internet of things (IoT), artificial intelligence (AI) and analytics, digital twin, cloud computing, blockchain, and others. Among these, the IoT category is expected to generate the highest revenue throughout the forecast period, due to the mounting health and environmental concerns, owing to the rising carbon emissions. IoT technology is used in smart grids, smart cities, smart homes and buildings, smart mobility and transport, smart factories and manufacturing, and food and water tracking, for enabling energy data collection and reducing energy wastage.
According to P&S Intelligence, North America held the largest share in the green technology and sustainability market in 2019, due to the hefty investments made in the development of blockchain and analytics technologies for the industrial, residential, and commercial sectors in the region. Moreover, the rapid integration of advanced technologies in the utility sector, primarily on account of the favorable government policies, to ensure sustainability, will also support the market growth in the region in the forthcoming years.
Whereas, the Asia-Pacific (APAC) green technology and sustainability market is expected to exhibit the fastest growth throughout the forecast period, due to the booming urban population in the region. For instance, the World Bank estimates that the urban population of India surged from 471,031,529 in 2019 to 481,980,332 in 2020. The organization further states that the urban population in China stood at 861,289,360 in 2020. Additionally, the escalating awareness about environmental degradation will also encourage the adoption of green technology and sustainability solutions in the region in the upcoming years.
Thus, the surging installation of smart grids and rising deployment of building automation systems will supplement the market growth in the foreseeable future.
