Climate Change Consulting Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Climate Change Consulting Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The climate change consulting market was valued at USD 4.04 billion in the previous year. It is expected to reach USD 8.20 billion over the forecast period, registering a CAGR of 12.76%. Climate change has a tremendous impact on people's lives worldwide. To create an environment-friendly, low-carbon economy and to mitigate and adapt to climate change, enormous economic investment and coordinated efforts are required. The demand for climate change consulting services has risen due to greater awareness and regulatory needs.

Key Highlights

• The market is expected to grow as organizations attempt to reduce greenhouse gas emissions, adapt to changing climatic conditions, and meet global sustainability standards. Therefore, consulting firms are important in supporting businesses, governments, and non-profit organizations in formulating strategies, adopting sustainable practices, and navigating the complex climate change environment.
• Moreover, green building is accelerating the energy efficiency aspect of the climate change consulting sector. Technological developments in the automotive industry aim to create fewer emissions, increasing demand for climate change consulting services. Increased awareness of renewable energy sources and associated government initiatives in many countries encourages the expansion of renewable energy projects. It creates a demand for climate change consulting services.
• Furthermore, factors such as corporate sustainability objectives, risk management resilience, investor pressure and ESG concerns, technological advancements, public awareness, consumer demand, and others drive the growth of the industry.
• Lower levels of adoption with substantial discrepancies in the practical scenario are one of the main difficulties facing the market for climate change consulting. In addition, organizations frequently lack the financial, technological, and human resources to prepare for a complicated and divisive topic such as climate change adaptation.
• The demand for climate change consulting services rebounded as the pandemic subsided and economies recovered, as climate change remained a critical issue for governments and businesses worldwide. There is a growing recognition of the need to build more resilient and sustainable economies. As a result, climate change consulting firms are expected to benefit from this trend and grow in the coming years.

Climate Change Consulting Market Trends

Energy and Power Industry to be the Largest End-user

• The energy and power industry is experiencing a substantial change toward cleaner and more sustainable energy sources. This shift involves the use of renewable energy technologies such as solar, wind, and hydropower. It also explores alternatives such as nuclear energy and energy storage. The changing renewable energy landscape, decarbonization, climate change measures, plant digitalization, energy storage, IIoT, smart grids, and the need for flexible energy assets are driving this transformation. This raises the demand for climate change consulting services in the energy and power sectors to minimize greenhouse gas emissions.
• New efforts such as pay-for-performance are being used in the United States to improve business energy efficiency. In addition, increased renewable energy generation and energy efficiency measures are expected to boost the development of the North American market.
• Increasing CO2 emissions globally is a contributing factor to climate change. For instance, the GCP estimates that, in 2021, global carbon dioxide emissions from industry and fossil fuels totaled 37.12 billion metric tons (GtCO2). Global CO2 emissions have gone up by more than 60% since 1990.
• In July 2022, Intertek Group PLC announced the acquisition of Clean Energy Associates LLC, which is a provider of quality assurance, supply chain accountability, and technical services to the rapidly evolving solar energy and energy storage industries. The World of Energy's growth prospects is expanding as the energy revolution accelerates and corporations reinvent how they manage their sustainability agendas. To meet the predicted rise in global energy demand as populations grow while lowering greenhouse gas emissions, the world must generate an enormous rise in energy output from a range of sources in the short, medium, and long term.
• As a result, climate change consultants analyze the environmental impact of new technologies. They also assist businesses in navigating regulatory frameworks and designing sustainability plans.

North America to Hold Significant Market Share

• Several factors, including supply chain risks, regulatory requirements, and growing demand for sustainable products and services, are driving the need to adopt climate change consulting services in the United States. In addition, the rapid growth of businesses and organizations seeking to address challenges and opportunities due to changing climatic conditions is expected to drive the market studied.
• Owing to such rising temperatures in the country, the government is taking major steps to reduce carbon emissions to make the country eco-friendly. For instance, in July 2022, the United States government signed the Australia - United States Net-Zero Technology Acceleration Partnership at the Sydney Energy Forum. The partnership would accelerate the development and deployment of zero-emission technology and cooperate on essential minerals supply chains to lower greenhouse gas emissions while boosting economic growth.
• Companies are rapidly pledging sustainability to reduce their carbon footprints in the country. For instance, in January 2023, Danone announced the launch of a strategic partnership with the Environmental Defense Fund to support its methane reduction ambitions. The organizations will work together on areas including improved science, data, and reporting standards and innovative financing models to help farmer suppliers to reduce methane emissions from their fresh milk supply chain by 30% by 2030.
• According to the Canadian government, the country encounters climate change at twice the rate of the world’s average because of its northern location. Due to this rapid warming, changes in permafrost and sea-ice deterioration are expected to threaten communities and infrastructure in the North.
• The country is surrounded by oceans on three sides, including the Arctic, Pacific, and Atlantic. Climate change affects several ocean properties, including temperature, acidity, sea level, and dissolved oxygen.
• The rising amount of greenhouse gas emissions due to transportation, gas and oil production, electricity generation, and buildings is one of the significant factors driving climate change in Canada. This is expected to further drive the market studied in the country.

Climate Change Consulting Industry Overview

The climate change consulting market is fragmented, with local and multinational firms having decades of business expertise and businesses competing for market share. Some players include Jacobs Solutions Inc., WSP Global Inc., ERM International Group Limited, and Ramboll Group A/S.

• February 2023 - ERM announced the acquisition of Coho, a global advisory firm with expertise in helping organizations reach their climate change, renewable energy, and water resilience goals. The acquisition will provide clients with further support to deliver their climate goals and realize commercial opportunities through decarbonization and water optimization.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support