Climate Tech Market: Current Analysis and Forecast (2022-2028)

Climate Tech Market: Current Analysis and Forecast (2022-2028)

Climate tech refers to the development and use of innovative technologies that can help mitigate climate change and reduce greenhouse gas emissions. It involves creating and implementing solutions that can help individuals, organizations, and governments transition to more sustainable and environmentally-friendly practices.

The climate tech market is expected to grow at a steady rate of around 24% owing to the increasing awareness about climate change. The climate tech market is being driven by a variety of factors, including increasing public awareness of climate change and its impacts, government policies and regulations aimed at reducing greenhouse gas emissions and promoting sustainability, technological advancements in renewable energy, energy storage, and carbon capture and storage, and growing demand from businesses and consumers for environmentally-friendly products and services. Additionally, the increasing frequency and severity of natural disasters related to climate change, such as wildfires and floods, are also driving investment in climate tech solutions. As a result, the climate tech market is expected to continue to grow rapidly in the coming years, offering significant opportunities for innovation and investment in the fight against climate change.

• Based on components, the market is segmented into climate tech solutions and services. The climate tech solutions segment held the largest market share in 2021. Factors such as growing policies and regulations are expected to influence market growth. Governments around the world are implementing policies and regulations to reduce greenhouse gas emissions and promote the adoption of clean energy technologies. This is creating incentives for companies to develop and invest in climate tech solutions.
• On the basis of technology, the market is segmented into IoT, analytics, cloud computing, blockchain, and others. During the forecast period, the blockchain segment is expected to grow with the highest CAGR during the forecast period. The growth of the segment is mainly attributed to the blockchain technology used to create a decentralized platform for buying and selling renewable energy credits. This can help incentivize the growth of renewable energy production and provide a secure and transparent way for businesses and individuals to support clean energy.
• Based on application, the market is segmented into carbon footprint management, green building, water purification, and others. The green building segment is expected to grow with the highest CAGR during the forecast period. The growth of the segment is attributed to the increasing environmental regulations and policies. Governments around the world are increasingly implementing environmental regulations and policies to reduce carbon emissions and combat climate change. These policies often require buildings to be more energy-efficient, which has led to the adoption of green building technologies.
• For a better understanding of the market adoption of the climate tech industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Europe region is expected to grow with a significant CAGR during the forecast period. The market growth in the region is attributed to a strong regulatory push toward the decarbonization of industrial activities in the region. Furthermore, the European Union has set ambitious targets to reduce greenhouse gas emissions, and this has spurred investment in clean energy technologies like wind and solar power, as well as in energy efficiency measures such as smart grids and energy storage solutions. For instance, with the 2030 climate target plan, the commission proposes to raise the EU's ambition on reducing greenhouse gas emissions to at least 55% below 1990 levels by 2030
• Some of the major players operating in the market include General Electric; IBM; Wolters Kluwer N.V.; Salesforce, Inc; Microsoft; Schneider Electric; ENGIE Impact; Intelex Technologies; Sensus; and ISOMETRIX.