ENVIRONMENTAL TECHNOLOGY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Environmental Technology Market Size and Trends

Global environmental technology market is estimated to be valued at US$ 676.13 Bn in 2024 and is expected to reach US$ 986.81 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031.

Discover market dynamics shaping the industry request sample copy

Rising awareness regarding environmental pollution and depletion of natural resources can boost demand for advanced environmental protection technologies. Furthermore, stringent government regulations regarding carbon emissions and wastewater discharges have encouraged adoption of technologies like carbon capture and storage, green building, and water purification. Growing industrialization and urbanization in emerging economies also contribute to rising pollution levels, thus, boosting investments in innovative solutions and services. However, high initial investments required for deployment of these technologies can hamper the market growth.

Rising environmental concerns

There is growing concern around the world about the significant threats that environmental pollution and climate change pose to public health, ecosystems, and sustainable development. People are increasingly recognizing the urgent need to address issues like air and water pollution, greenhouse gas emissions, waste management, natural resource depletion, and biodiversity loss. Governments, businesses, and individuals are feeling mounting pressure to "go green" and transition to more environmentally friendly practices and technologies. Strict emission standards and recycling mandates are being introduced, while subsidies and tax credits are encouraging investments in renewable energy and cleantech. Consumers are also showing greater preferences for environmentally conscious products and companies. This shift in attitudes, regulations, and policies boosts demand for a wide variety of innovative environmental technologies across sectors. Industries are adopting smart solutions to improve efficiency, reduce waste, monitor impacts, treat pollutants, and develop sustainable alternatives. As environmental stewardship gains widespread acceptance as a business and social imperative, it can offer growth opportunities for firms developing solutions in areas like clean energy, green building, pollution control, water treatment, and recycling/waste management.

Market Concentration and Competitive Landscape

Get actionable strategies to beat competition: Get instant access to report

Sustainable development goals

In 2015, all United Nations member states adopted the 2030 Agenda for Sustainable Development, which includes 17 Sustainable Development Goals (SDGs) aimed at stimulating action over the next 15 years in key areas of global development. Several of the SDGs directly address pressing environmental issues and call for ambitious climate action, clean water and sanitation for all, affordable and clean energy, sustainable consumption and production, sustainable cities and communities, responsible consumption and production, and life below water. Achieving these globally agreed-upon environmental targets will require innovative approaches and technologies. Governments around the world are launching initiatives, incentives and investments to pursue the SDGs. Private businesses are also recognizing the economic and reputational value of aligning their strategies and operations with the sustainability agenda. The adoption of the 2030 SDGs is steering significant capital flows towards cleantech solutions that can enable progress on the goals. New technologies in areas such as renewable energy, electric vehicles, green buildings, resource efficiency, waste recycling, and biodiversity conservation will be crucial to realizing the vision of environmentally sound economic growth outlined in the SDGs.

Key Takeaways from Analyst:

North America dominates the market due to its strong emphasis on environmental protection, sustainable development, and high awareness among companies and consumers regarding environmental issues. The region has invested significantly in research and development of new environmental technologies and demonstrated robust government support for environmental conservation.

Asia Pacific will witness fastest growth due to factors such as population growth, rapid industrialization, and increasing environmental awareness. The region has a large and expanding renewable energy sector, particularly in countries like India and China. Asia Pacific's strong economic growth has resulted in increased consumption, industrial activities, and urban development, leading to a rise in environmental challenges that need to be addressed.

Market Challenges: Lack of public awareness

Lack of public awareness is a key challenge hindering the growth of the global environmental technology market. When consumers and businesses are unaware of the innovative solutions available to address pressing environmental issues like climate change, pollution, and waste management, the demand for such technologies remains limited. Without sufficient market demand, companies have little incentive to invest in the research and development of new and improved environmental technologies.

There exists a significant disconnect between the knowledge of environmental experts and the general public's understanding of these critical issues. Studies have found that people often underestimate the severity of problems like global warming and fail to recognize the link between their daily activities and environmental impacts. This disconnect poses a significant barrier to the widespread adoption of environmental technologies.

To overcome this challenge, businesses and policymakers must prioritize public education and awareness campaigns. Raising awareness about the availability, benefits, and importance of environmental technologies can stimulate consumer demand and drive market growth. Strategies such as targeted marketing, partnerships with influential organizations, and integrating environmental education into school curricula can help bridge the knowledge gap and foster a more environmentally conscious society.

Furthermore, governments can play a crucial role by implementing policies and incentives that encourage the adoption of environmental technologies. Providing tax credits, subsidies, or regulatory frameworks that mandate the use of eco-friendly solutions can create a favorable market environment and accelerate the deployment of these technologies.

Market Opportunities: Air pollution control

Air pollution control can offer growth opportunity for global environmental technology market. Rapid urbanization and industrialization have led to alarming air pollution levels in many parts of the world. According to the World Health Organization, around 7 million deaths globally are attributed to air pollution every year. More than 90% of people worldwide breathe polluted air, placing them at higher risks of respiratory and cardiovascular diseases. Several metropolitan cities now face air quality issues that mandate immediate remedial action.

Stricter emission norms by governments and growing health concerns have pushed innovations in air pollution control solutions. Manufacturers are developing advanced technologies for ambient as well as source pollution monitoring and control. Various desulfurization and denitrification techniques find widespread usage in treating industrial emissions. Solutions such as diesel particulate filters, selective catalytic reduction systems witness huge adoption in vehicles. Governments across regions offer attractive subsidies for switching to electric mobility further, that curb the vehicular pollution.

Discover high revenue pocket segments and roadmap to it: Get instant access to report

Insights, By Component- Investments in Green Technologies Drive Solution Segment Growth

In terms of component, solution segment is estimated to contribute the highest market share of 64.7% in 2024, owing to increasing investments made by both public and private organizations towards developing innovative green technologies. Solution segment includes various environment-focused technological products and systems that help monitor, reduce and treat various forms of pollution. Major solution offerings include air pollution control technologies, eco-friendly industrial equipment, wastewater treatment systems, sustainable energy products and renewable energy power generation solutions among others.

There has been rising focus on addressing various environmental issues through technological interventions in the recent past few years. Both governments and private businesses are allocating more funds towards research and development of advanced green technologies. Various solution developers are also introducing new and improved versions of existing environmental solutions to gain more customers. For example, air pollution control system manufacturers are launching solutions that can capture more pollutants at lower costs. Renewable energy product brands are focusing on capacity expansion and performance enhancement of their offerings.

Large scale deployment of solution products can drive the segment growth. For example , wastewater treatment plants equipped with advanced systems are being set up across cities and industrial areas to manage the growing volumes of effluents. Renewable energy power plants based on solar, wind, hydro and other clean sources are increasingly being installed to reduce dependence on conventional fuels. Governments in both developed and developing nations are implementing stricter emission control norms that boosts adoption of eco-friendly industrial machinery and pollution monitoring devices by companies.

Insights, By Application- Stringent Regulations Boosts Wastewater Treatment Segment Growth

In terms of  application, wastewater treatment segment is estimated to contribute the highest market share of 34.3% in 2024, owing to stringent wastewater discharge norms enforced by environmental agencies worldwide. Wastewater consists of used water generated from industrial operations, commercial establishments and households after daily use. If not treated properly, wastewater discharged into water bodies can pollute sources and ecosystems severely.

Regulatory authorities have continuously tightened permissible limits on pollutant levels in wastewater that can be let out into the environment post treatment. Non-compliance to stringent rules can attract heavy penalties for offenders. This has compelled a wide range of wastewater generating entities like manufacturing plants, food processing units, power facilities, real estate complexes and municipalities to invest considerably in advanced treatment systems and technologies. Organizations are automating their treatment facilities, adopting membrane bioreactor systems, advanced oxidation processes and other high-end techniques to deeply cleanse wastewater before disposal.

Rising volumes of wastewater due to rapid industrialization and urbanization as well as increased public awareness about sanitation has boosted need for robust treatment solutions across the world. Municipal bodies are extensively spending on developing centralized sewage treatment infrastructure to manage the growing quantities of urban sewage. Rising need to eliminate pollution from industrial and domestic wastewater streams through effective treatments to can drive the segment growth.

Insights, By End User- Transition to Clean Energy Drives Energy & Utilities Segment

In terms of end user, energy & utilities segment is estimated to contribute the highest market share of 38.7% in 2024, due to the ongoing transition occurring in the energy sector towards adopting cleaner and sustainable power sources. The energy and utilities industry has traditionally relied heavily on fossil fuels like coal and natural gas for power generation. However, mounting concerns about climate change along with depleting reserves of conventional fuels have ignited a large scale shift towards renewable alternatives in recent times.

Transitioning to renewable power sources has become a top priority for utilities and energy companies worldwide. Massive investments are being made into setting up utility-scale solar, wind and hydropower projects. Technologies supporting clean fuels like carbon capture and storage, hydrogen fuel cells, battery storage are also attracting major R&D budgets. Energy firms are implementing environment-focused generation, distribution and energy efficiency solutions across their portfolios to reduce emissions and carbon footprint. Governments in many countries have announced incentives and subsidies to encourage the green power transition among utilities and large energy consumers like manufacturing facilities.

Stringent carbon emission norms especially in European nations have further boosted clean energy investments. Integration of green solutions specific to sectors like smart grid, e-mobility, green hydrogen is also rising. Rising demand to decarbonize energy systems along with supportive policies can drive the segment growth.

Regional Insights

To learn more about this report, request sample copy

North America dominates the global environmental technology market with an estimated market share of 35.2% in 2024. The U.S. market particularly has benefitted from strong governmental support through regulatory policies mandating emission control and pollution treatment standards. Major environmental technology players have their headquarters located in cities like Chicago, San Francisco and New York, driving local innovation and product development. The presence of top research universities and funding for green initiatives have allowed North American firms to gain significant expertise in sectors like renewable energy, green building, pollution management and resource recycling. Strong intellectual property laws have also encouraged local businesses to continually invest in cutting edge environmental solutions.

Asia Pacific  has emerged as the fastest growing market for environmental technologies.. Rapid urbanization and industrialization have escalated pollution and emissions levels across developing nations like China, India and Vietnam. This has boosted demand for waste management services, wastewater treatment solutions and alternative energy models. Meanwhile, supportive green policies by regional governments aiming to transition towards more sustainable economies have boosted infrastructure investments. For instance, China’s 2060 carbon neutrality pledge and investments in solar power production under its 13th five-year plan. International environmental firms have accordingly increased their presence Asia to cater to the growing need for technically advanced environmental products and services. The large consumer base and availability of skilled workforce at competitive costs have made the region an attractive hub for global suppliers targeting future growth opportunities.

While North America still leads in terms of mature environmental industry and establishments, the Asia Pacific region has shown strongest potential for business expansion. Rapid developments and investments into green technologies can drive the next phase of growth momentum globally, with international companies keen on establishing early mover advantages through strategic investments and partnerships across promising Asian markets.

Market Report Scope

Environmental Technology Industry News

• In July 2023, the United Nations Environment Programme (UNEP) partnered with the Massive Earth Foundation (MEF) to launch the Earth (LCE) 2023 accelerator program. This climate tech accelerator aims to support passionate startup founders working on solutions to address climate change and pollution challenges. Through the LCE 2023 program, participating startups can access valuable resources, mentorship, and funding opportunities to help them develop and scale their innovative projects.
• In January 2023, Flipkart, India's leading e-commerce platform, launched 'Flipkart Green' - a dedicated virtual store on its app that offers over 30,000 sustainable products from more than 40 brands. This significant move aims to provide customers easy access to a wide selection of globally certified eco-friendly items across categories like fashion, beauty, healthcare, home, and lifestyle. By establishing this dedicated sustainability-focused store, Flipkart took a major step towards promoting environmentally conscious consumer choices and supporting global sustainability efforts.

*Definition: Global Environmental Technology Market consists of companies that develop and sell technologies focused on monitoring, preventing, and reducing pollution and environmental damage. This includes technologies that help improve recycling, waste management, water treatment, air and water pollution monitoring and control, greenhouse gas measurement and reduction, and renewable energy production. The market aims to help industries, governments, and organizations integrate environmental stewardship solutions into their operations on a global scale.

Market Segmentation

•  Component Insights (Revenue, US$ Bn, 2019 - 2031)
  • Solution
  • Services
    • Water Services
    • Waste Management Services
    • Energy Services
    • Industrial Services
•  Application Insights (Revenue, US$ Bn, 2019 - 2031)
  • Power Generation & Fuel
  • Solid Waste Treatment
  • Pollution Monitoring
  • Wastewater Treatment
  • Water Purification Management
  • Sewage Treatment
  • Precision Cooling
  • Gas Dissolution
  • Others
•  End User Insights (Revenue, US$ Bn, 2019 - 2031)
  • Residential/Municipal
  • Industrial
  • Energy & Utilities
  • Transportation & Logistics
  • Oil & gas
  • Food & Beverages
  • Construction & Building Materials
  • Retail & Consumer goods
  • Government
  • Others
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France 
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries                               
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • AECOM
  • Abetment Technologies
  • Biffa ltd
  • CarbonCure Technologies Inc.
  • Covanta Holding Corporation
  • Ecolab Inc.
  • ENGIE Impact
  • HDR, Inc.
  • IDEX Corporation
  • Lennox International
  • Teledyne Technologies Incorporated
  • Thermo Fisher Scientific Inc.
  • Veolia
  • Waste Connections
  • Xylem