SUSTAINABLE ELECTRONICS MANUFACTURING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Sustainable Electronics Manufacturing Market Size and Trends

Global sustainable electronics manufacturing market is estimated to be valued at USD 12.38 billion in 2024 and is expected to reach USD 54.67 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 23.6% from 2024 to 2031.

To learn more about this report, request sample copy

The market growth is driven by increasing awareness about environmental protection due to the vast amounts of electronic waste. Electronics manufacturers are focusing on reducing the carbon footprint and adopting renewable energy sources to manufacture devices in a sustainable way. Numerous countries now have rules to reduce e-waste, pushing electronics companies to build sustainability into their products from the start of the design and manufacturing process. New technologies around recycling and reusing electronic scrap are also fueling the trend of circular economy in the electronics industry. Initiatives involving stakeholders across the value chain from governments to producers are facilitating the transition towards an environment-friendly electronics sector.

Global Sustainable Electronics Manufacturing Market- Drivers

Rising Environmental Awareness

As climate change and environmental problems have become more serious concerns globally, both consumers and businesses are now more conscious of how their actions affect the environment. There is a growing awareness that traditional electronics manufacturing processes, which involve large amounts of hazardous chemicals, heavy metals, carbon emissions and electronic waste, simply cannot continue without serious consequences for the environment. More people now understand the connection between the devices one use every day and issues like pollution, depletion of natural resources, and greenhouse gas emissions over the full product life cycle from raw material extraction to disposal.

Governments and regulatory bodies have slowly begun imposing stricter regulations on electronics manufacturers to curb their environmental footprint and encourage more sustainable practices. Additionally, major tech companies are facing mounting pressure from their customers and shareholders to demonstrate strong commitments to sustainability in their supply chains and operations. As a result, electronics manufacturers can no longer afford to ignore the environmental costs of their businesses. These must clean up their act and transition to greener manufacturing processes if these want to remain competitive and compliant in this new business landscape defined by escalating environmental standards.

Alongside the heightened awareness about environmental issues, consumer demand for sustainable and eco-friendly products has also increased significantly in recent years. More and more customers, especially millennials and Gen Z, actively seek out brands that prioritize minimizing their environmental impact and carefully consider a company's sustainability credentials when making purchase decisions. These people are willing to pay premium prices for products certified as green by external organizations. This consumer shift towards sustainability has compelled major electronics brands to invest heavily in developing greener product lines, using recycled materials, removing toxic chemicals from their devices and improving energy efficiency and repair/reuse to satisfy the ethical purchasing preferences of their client base.

At the same time, large B2B corporations have implemented stringent supplier codes of conduct when it comes to reducing emissions, banning environments-unfriendly substances and maintaining transparency throughout global supply chains. As environmental sustainability emerges as a key competitive differentiator, electronics manufacturers must assure both individual consumers and large corporate customers that their products are manufactured responsibly through disclosure of sustainability efforts and third-party validation. Those who fail to meet evolving industry standards and consumer demands for eco-friendly electronics will struggle to find customers in an increasingly values-driven market.