Environmental Technology Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Technology (IoT, Artificial intelligence, Cloud computing, Blockchain), By Application (Air and water pollution monitoring., Water purification, Crop monitoring, Management of carbon footprints, Waste management), By Vertical (Residential/municipal, Industrial transportation and logistics) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Environmental Technology Market Size

The global environmental technology market size was valued at USD 656.0 billion in 2023 and is projected to reach a value of USD 687.5 in 2024 to USD 1.0 trillion by 2032 registering a CAGR of 4.8% during the forecast period (2024-2032). The Environmental Technology Market share has increased significantly as governments, corporations, and consumers seek new ways to minimize carbon footprints and encourage environmentally friendly practices.

Environmental technology, often known as cleantech or green technology, refers to innovative solutions, products, and practices that aim to address environmental issues, promote sustainability, and lessen the environmental effects of human activities. Environmental technology refers to various technologies and practices to decrease pollution, conserve natural resources, lower greenhouse gas emissions, and promote sustainable development across numerous sectors and businesses.

The growing awareness of environmental challenges such as climate change, pollution, resource depletion, and habitat destruction has resulted in a greater desire for solutions to address these difficulties. Government rules and international agreements also encourage using environmental technologies to satisfy emission reduction targets and ecological standards. As public knowledge of environmental issues has grown, so have consumer preferences for eco-friendly products and services. This demand encourages businesses to embrace sustainable practices and technologies. Many firms recognize the importance of integrating environmental sustainability into their operations as part of their corporate social responsibility programs. This includes utilizing technologies to reduce their environmental impact and carbon footprint. 

Furthermore, expanding population, fast urbanization, and industrialization are the primary drivers of the market prediction. Furthermore, rising demand for renewable energy resources such as wind, solar, and geothermal energy and rigorous environmental regulations are driving market growth.

Highlights

• Solutions dominate the market by component.
• IoT is the primary technology in the market.
• Air and Water Pollution Monitoring generates the highest revenue share of the market by application.
• Residential/municipal contributes significantly to the market through verticals.

Environmental Technology Market Growth Factors

Regulatory Compliance

Governments throughout the world impose strict laws to manage air pollution and minimize dangerous pollutants like sulfur dioxide (SO2), nitrogen oxides (NOx), particulate matter (PM), and volatile organic compounds (VOCs). Industries such as power generation, manufacturing, transportation, and oil and gas are subject to emission limitations and must invest in air pollution control systems to meet regulatory requirements.

• For example, the European Union's Industrial Emissions Directive (IED) establishes emission limit values (ELVs) for pollutants from industrial operations and mandates firms to use the best available methods (BAT) to reduce emissions.

Companies must comply with these laws by investing in technologies such as selective catalytic reduction (SCR) systems, electrostatic precipitators (ESPs), and flue gas desulfurization (FGD) systems.

Furthermore, India's complex environmental regulations are based on five significant pieces of legislation: the Environment (Protection) Act, 1986 (amended 1991); the Forest (Conservation) Act, 1980 (amended 1988); the Wildlife (Protection) Act, 1972; the Water (Prevention and Control of Pollution) Act, 1974 (amended 1988); and the Air (Prevention and Control of Pollution) Act, 1981 (amended 1987). The E-Waste Management Rules of 2016 and the Plastic Waste Management Amendment Rules of 2021 also influence environmental technology.

Consequently, governments set water quality standards and regulations to safeguard surface and groundwater from contamination and provide safe drinking water sources. Industries, municipalities, and agricultural operations must use water treatment technology to remove pollutants, including heavy metals, organic compounds, pathogens, and nutrients from wastewater discharges. The United States Environmental Protection Agency (EPA) issued its final rule to implement Clean Water Act (CWA) section 401 water quality certifications on September 27, 2023, and it went into effect on November 27, 2023. The rule restores states' and tribes' regulatory authority over pipelines, dams, and other federally regulated institutions. 

Restraining Factors

Lack of Technical Expertise and Skills

Environmental technology solutions sometimes entail complex systems and processes requiring specific technical competence during design, implementation, and operation.

• For example, establishing renewable energy systems like solar photovoltaic (PV) or wind turbines necessitates engineering, electrical systems, and project management skills to ensure appropriate installation, integration with existing infrastructure, and optimal performance.

Experienced personnel are scarce with backgrounds in environmental science, engineering, and allied sectors who can develop and implement ecological technology solutions.

According to a World Economic Forum report, the environmental science and engineering industries are experiencing talent shortages, with businesses needing to locate applicants with the requisite skills and qualifications to fill technical positions. According to International Labour Organization (ILO) research, an increasing demand for trained individuals in the environmental science, engineering, and technology sectors is driven by rising environmental concerns and regulatory requirements worldwide. 

Market Opportunities

Rapid Urbanization and Industrialization

Rapid urbanization and industrialization bring environmental concerns such as air and water pollution, waste generation, energy use, and habitat degradation. With increased urbanization comes an increase in municipal solid waste generation, putting enormous strain on waste management infrastructure. Smart waste management systems that include sensors, RFID technology, and data analytics enable efficient waste collection, sorting, and recycling, maximizing resource usage and lowering environmental impact.

Furthermore, constructing sustainable infrastructure, such as green buildings, environmentally friendly transit systems, and renewable energy-powered facilities, is critical for fostering environmental sustainability in cities. Sustainable infrastructure options, such as green roofs, permeable pavements, and energy-efficient buildings, help to reduce energy consumption, greenhouse gas emissions, and urban heat island impacts.

In addition, China's increasing industrialization and urbanization have resulted in severe air pollution in major cities such as Beijing, Shanghai, and Guangzhou. China has taken strong measures to improve air quality since 2013, resulting in considerable decreases in PM2.5 levels. China issued an action plan in December 2023 to enhance the quality of air by 2025, which includes initiatives such as encouraging green industrial shifts, developing a cleaner energy mix, and developing a low-carbon transportation system. Companies specializing in air pollution management technologies have taken advantage of this opportunity to create Chinese-specific solutions, thereby contributing to improved urban air quality and public health.

Regional Insights

North America: Dominant region with 4.4% market share

North America is the most significant global environmental technology market shareholder and is estimated to grow at a CAGR of 4.4% over the forecast period. North America dominated the market in 2023, accounting for more than 40% of worldwide revenue due to a high focus on environmental preservation and sustainable development. The region's firms and consumers are highly aware of environmental challenges, which has fueled the adoption of innovative environmental technologies. Furthermore, the regional administration has invested significantly in researching and developing innovative environmental technologies and a strong commitment to environmental conservation.

• For example, in January 2023, Honda Motor Co., Ltd., a Japanese public multinational conglomerate manufacturer of motorcycles, automobiles, and power equipment, announced electrified vehicle sales targets in North America, to have fuel-cell electric and battery-electric vehicles account for 100% of its vehicle sales by 2040. This program is part of the company's ongoing commitment to advancing safety and environmental technologies.

Additionally, in January 2021, the United States formally rejoined the Paris Agreement, an international convention aiming at combating climate change by lowering greenhouse gas emissions. This indicated a renewed commitment to global climate action. By 2035, the Biden administration intends to generate 100% of the country's electricity from renewable sources, including wind and solar, reducing dependency on fossil fuels. Furthermore, the Biden administration's American Jobs Plan included significant infrastructure expenditures, such as energy, water, and transportation network upgrades to improve efficiency and reduce environmental impact. The United States administration issued many executive orders addressing climate change, preventive actions to improve car fuel economy standards, including climate considerations into federal procurement, and setting ambitious emissions reduction targets.

Asia-Pacific: Fastest growing region with the highest CAGR

Asia-Pacific is anticipated to exhibit a CAGR of 4.9% over the forecast period, owing to population increase, rapid industrialization, and rising environmental awareness. The region has a substantial and growing renewable energy sector, particularly in India and China. The region greatly emphasizes renewable energy and energy-efficient buildings, accelerating the adoption of environmental technologies. The region's robust economic expansion has increased consumption, industrial activity, and urban development, raising environmental concerns that must be addressed.

Furthermore, the corporations used various tactics to increase market penetration and strengthen their position in the competitive industry.

• For example, in January 2023, Flipkart established Flipkart Green, a specialized e-commerce site for sustainable products.

Adding 30,000 sustainable products to the platform is a massive step toward encouraging ecologically responsible consumer choices and helping global sustainability efforts. The company intends to provide its consumers easy access to diverse globally certified sustainable products.

In addition, in 2022, the World Bank, Solar Energy Corporation of India Limited (SECI), and the Government of India agreed to a USD 150 million International Bank for Reconstruction and Development (IBRD) loan, a USD 28 million loan from the Clean Technology Fund (CTF), and a USD 22 million grant from the CTF to help India increase the amount of clean, renewable energy it can produce. To address climate change concerns, the agreement emphasizes the Indian government's target of generating 500 GW of renewable energy by 2030. India now has more than 409 GW of installed capacity, with renewable energy (non-hydro) accounting for about 29% (119.5 GW). The project will hasten India's journey toward sustainable universal power access, a critical milestone in achieving equitable economic development goals.

Europe had the largest market share in revenue in 2023, accounting for one-third of the worldwide market revenue, and is expected to dominate the market during the forecast period. The EU has forged new green alliances with Norway and Canada and a green partnership with Korea to strengthen collaboration in climate action, clean energy, and environmental preservation. Furthermore, the EU has developed a set of proposals to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. This will help the EU become the first continent to achieve climate neutrality by 2050. 

Environmental Technology Market Segmentation Analysis

By Components

The solution category dominated the market in 2023, accounting for more than 70% of worldwide revenue, owing to rising demand for technologies that effectively manage environmental concerns. Environmental technology comprises many methods for mitigating human activity's environmental influence and promoting sustainability. As the environment deteriorates, there is a rising realization of the need to develop novel solutions to repair and reduce the damage caused by human activities. This acknowledgment has led to more excellent environmental research and development initiatives. 

The services segment is expected to increase significantly during the projection period. Water, waste management, energy, and industrial services are among the services covered by the market analysis. As businesses and governments become increasingly aware of the need for environmental protection and sustainable development, they look to environmental technology suppliers to help them achieve their goals. As a result, there is a greater need for these services, which assist businesses in determining where they may reduce their environmental effect and enhance their sustainability policies.

By Technology

IoT technology connects physical equipment and sensors to the internet to gather and exchange data, allowing for remote monitoring, control, and optimization of environmental processes and systems. IoT solutions enable real-time air and water quality monitoring, waste management, energy usage, and environmental conditions in the market. Businesses and governments may use IoT technology to increase operational efficiency, spot issues ahead of time, and make data-driven decisions to optimize resource use and reduce environmental impact.

Artificial intelligence uses algorithms and machine learning techniques to analyze massive datasets, detect patterns, and make predictions or suggestions without explicit programming. AI offers enhanced data analytics, predictive modeling, and environmental process optimization in the sector. Artificial intelligence-powered solutions may evaluate environmental data from various sources, including sensors, satellites, and social media, to discover abnormalities, forecast environmental trends, and enhance resource management tactics. AI can help firms improve environmental monitoring, decision-making, and sustainability performance. 

By Application

This application area focuses on technology and solutions for monitoring and analyzing air and water quality parameters to determine pollution levels and sources of contamination. Environmental sensors, remote sensing technologies, and monitoring networks collect real-time data on particulate matter, gases, and chemicals in the air and water. Advanced analytical methodologies and data visualization tools allow stakeholders to monitor pollution trends, assess environmental hazards, and implement tailored mitigation strategies to improve air and water quality.

Water purification methods seek to disinfect contaminated water sources to be safe for drinking, industrial usage, agriculture, and ecosystem health. Pollutants, germs, and impurities are removed from water using a variety of treatment procedures, including filtration, disinfection, sedimentation, and desalination. Advanced water purification systems use membrane filtration, UV disinfection, ozone treatment, and chemical methods to assure regulatory compliance and meet the world's expanding need for clean and safe drinking water.

By Vertical

The residential and municipal vertical includes applications and solutions designed specifically for residential communities, metropolitan areas, and municipal infrastructure. These technologies include trash management, water treatment, air quality monitoring, energy efficiency, and sustainable urban development. Environmental technology solutions in residential settings are designed to improve house garbage collection, recycling, and energy efficiency, promote sustainable consumption patterns, and improve inhabitants' quality of life. Municipal environmental technology applications address issues such as urban pollution, water scarcity, traffic congestion, and infrastructure resilience through efforts including smart city projects, green infrastructure development, and municipal service digitization.

The industrial vertical includes solutions for manufacturing, mining, oil and gas, chemicals, and construction. These industries encounter environmental difficulties such as pollution, resource consumption, emissions, and adherence to environmental standards. Pollution control systems, wastewater treatment plants, energy management solutions, environmental monitoring sensors, and sustainability evaluations are examples of industrial-scale environmental technology applications. Industrial environmental technology solutions seek to reduce environmental impact, increase operational efficiency, and assure regulatory compliance while encouraging sustainable industrial practices and responsible resource management.

Recent Developments

• April 2024- AECOM provided environmental restoration and compliance services for NASA locations throughout the United States. 
• March 2024- Teledyne Technologies Incorporated (NYSE: TDY) signed a deal to purchase Valeport Holdings Limited and its affiliates.