Climate Resilient and Sustainable Health Systems Market Size and Trends

Climate Resilient and Sustainable Health Systems Market Size

The climate resilient and sustainable health systems market size is expected to reach US$ 19.38 billion by 2030, from US$ 8.45 billion in 2023, at a CAGR of 12.6% during the forecast period. Climate resilient and sustainable health systems refer to healthcare infrastructure and operations designed to withstand and adapt to climate change impacts like extreme weather while minimizing environmental harm. These systems aim to build preparedness against climate risks through resilient infrastructure, sustainable operations, and adaptable care delivery models. Key solutions in this space include energy-efficient facilities, renewable energy adoption, water conservation systems, resilient IT infrastructure, disaster preparedness programs, sustainable procurement policies, greenhouse gas emissions tracking tools, and climate-informed care pathways.

Telemedicine and connected care solutions: Telemedicine and connected care solutions are gaining prominence as they improve access to care while reducing transport emissions. These technologies limit non-essential travel through remote consultations, monitoring, and AI-enabled self-care. Health systems are adopting telehealth platforms and connected medical devices to ensure service continuity during climate disruptions For instance, according to the data published by the National Center for Biotechnology Information (NCBI) on April 25, 2022, a national study including 36 million working-age individuals with private insurance claims data showed that telemedicine encounters increased 766% in the first 3 months of the pandemic, from 0.3% of all interactions in March to June 2019.
Transition to renewable energy: Hospitals and pharmaceutical companies are increasingly adopting onsite renewable energy like rooftop solar PV and making long-term power purchase agreements to source offsite clean power. This allows them to reduce grid dependency and exposure to fossil fuel price volatility. Many health systems are installing battery storage to enhance renewable utilization. The global healthcare sector is projected to install over 3,400 MW of new solar PV capacity by 2023. The improving economics of renewables, coupled with their climate-friendly credentials, are driving adoption. For instance, on September 20, 2022, GSK plc, a pharmaceutical company based in India, launched a new Sustainable Procurement Programme to support the company’s suppliers at climate Week NYC on the journey towards having a net zero impact on climate and a net positive impact on nature.

Climate Resilient and Sustainable Health Systems Market Trends

Telemedicine and connected care solutions: Telemedicine and connected care solutions are gaining prominence as they improve access to care while reducing transport emissions. These technologies limit non-essential travel through remote consultations, monitoring, and AI-enabled self-care. Health systems are adopting telehealth platforms and connected medical devices to ensure service continuity during climate disruptions For instance, according to the data published by the National Center for Biotechnology Information (NCBI) on April 25, 2022, a national study including 36 million working-age individuals with private insurance claims data showed that telemedicine encounters increased 766% in the first 3 months of the pandemic, from 0.3% of all interactions in March to June 2019.
Transition to renewable energy: Hospitals and pharmaceutical companies are increasingly adopting onsite renewable energy like rooftop solar PV and making long-term power purchase agreements to source offsite clean power. This allows them to reduce grid dependency and exposure to fossil fuel price volatility. Many health systems are installing battery storage to enhance renewable utilization. The global healthcare sector is projected to install over 3,400 MW of new solar PV capacity by 2023. The improving economics of renewables, coupled with their climate-friendly credentials, are driving adoption. For instance, on September 20, 2022, GSK plc, a pharmaceutical company based in India, launched a new Sustainable Procurement Programme to support the company’s suppliers at climate Week NYC on the journey towards having a net zero impact on climate and a net positive impact on nature.

Climate Resilient and Sustainable Health Systems Market Restraints

Budget constraints: The significant upfront costs of renewable energy systems, battery storage, microgrids, and other climate solutions may deter smaller community hospitals with budget limitations. Many facilities lack funds for conducting in-depth climate vulnerability assessments, which hampers resilience planning. Further, competing priorities due to constrained resources may relegate climate initiatives to the backseat. Lack of financial incentives can therefore restrain adoption of sustainability measures. Increasing budget for the research and development will increase development of innovative products.
Technical complexity: The technical complexity of solutions like solar microgrids integrated with battery storage makes large-scale implementation challenging. Health systems require specialized expertise to appropriately assess feasibility, design systems, and manage integration with the grid and existing infrastructure. Lack of adequately trained in-house staff can impede execution and compromise optimal system performance if not designed correctly.