How Has the Climate Tech Market Evolved Historically and What is its Current Size?
The climate tech market has seen considerable growth due to a variety of factors.
• There has been a dramatic expansion in the climate tech market size in the last few years. Predictions include an increase from $26.12 billion in 2024 up to $32.49 billion in 2025, with a compound annual growth rate (CAGR) of 24.4%.
The growth experienced during the historic period can be traced back to factors such as growing apprehension about climate change and its environmental impact, a rising demand and awareness for green and sustainable solutions, governmental policies and initiatives promoting renewable energy usage and environmental sustainability, developments in technology, increased investment in clean energy and climate-related projects, and corporate pledges to decrease carbon footprints while embracing sustainable practices.
What Is The Projected Growth Of The Climate Tech Template Market?
The climate tech market is expected to maintain its strong growth trajectory in upcoming years.
• Predictions indicate a significant rise in the climate tech market, projected to reach $79.45 billion in 2029, growing at a compound annual growth rate (CAGR) of 25.0%.
This anticipated growth in the projection period can be credited to the transition towards a circular economy, the uptake of circular supply chains, technological advancements in energy storage and grid modernization, the demand for clean transportation means such as electric vehicles and alternative fuels, increased consumer awareness and desire for eco-friendly products and services. Other factors include the growing acceptance of smart city projects and sustainable urban development, emphasis on sustainable farming and food production methods, and the requirement for climate-resilient infrastructure and disaster readiness. Key trends during the forecast period encompass the growth of renewable energy, advancements in energy storage, adoption of electric vehicles (EV), circular economy endeavors, and climate data analytics.
What Are The Key Drivers Fueling Growth In The Climate Tech Market?
The progression of the climate tech market is set to be fueled by government regulations and policies. These guidelines, initiatives, and rules put into place by governments are aimed at mitigating climate change and fostering sustainable development. They set the stage for a favourable climate tech innovation, investment, and deployment landscape, which in turn aids the transition towards a sustainable, low-carbon economy. For example, the International Energy Agency, based in France, stated in April 2023 that Australia passed the Climate Change Act in 2022. This act escalates its emissions reduction target for 2030 significantly and initiates a goal of reaching net-zero emissions by 2050. Furthermore, Australia has become a part of the Global Methane Pledge, joining forces with 130 other governments, all committed to cutting methane emissions by a minimum of 30% by 2030. This puts Australia in line with a rising number of countries taking aggressive measures to contend with climate change. Consequently, the climate tech market's growth is being propelled by these government regulations and policies.
What Are The Principal Market Segments In The Global Climate Tech Industry?
The climate tech market covered in this report is segmented –
1) By Component: Climate Tech Solutions, Services
2) By Technology: Internet of Things (IoT), Artificial Intelligence (AI) And Analytics, Digital Twin, Cloud Computing, Security, Blockchain
3) By Application: Carbon Footprint Management, Green Building, Water Purification, Soil Condition Or Moisture Monitoring, Crop Monitoring, Forest Monitoring, Weather Monitoring And Forecasting, Air And Water Pollution Monitoring, Sustainable Mining And Exploration
Subsegments:
1) By Climate Tech Solutions: Renewable Energy Technologies, Energy Efficiency Solutions, Carbon Management Solutions, Climate Resilience Solutions, Sustainable Agriculture Technologies
2) By Services: Consulting Services, Implementation Services, Maintenance And Support Services, Data Analytics Services, Training And Education Services
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How Are Emerging Trends Reshaping The Dynamics Of The Climate Tech Market?
Pioneering corporations in the climate tech sector are championing innovative strategies such as capital investment platforms to hasten the shift to renewable energy and mitigate greenhouse gas emissions. A capital investment platform acts as an online trading place where investors can link with projects dedicated to eco-friendly technologies, enabling them to back measures that counteract climate change. These platforms also supply tools to evaluate the effect and returns on investments in Green sustainability. For example, in December 2023, the Bahrain-based private equity firm Investcorp, introduced their Climate Solutions Investment Platform. This platform dedicates growth capital to firms specialized in decarbonization solutions and climate impact technologies, primarily for those prepared for swift growth. Being part of the Innovate for Climate Tech coalition, which comprises Masdar City, Tencent, and Catalyst, it garners the benefits of an extensive knowledge base and far-reaching networking to push forward climate innovation. On top of this, TanLIVE, a platform powered by Tencent, bolsters worldwide climate endeavours by delivering networking scopes, showcasing projects, and hosting a meticulously chosen ecosystem of technological and financial solutions. By fostering cooperation between entrepreneurs, investors, and researchers from over 1,000 varied sectors, TanLIVE encourages significant climate initiatives.
Who Are the Key Players In The Climate Tech Market?
Major companies operating in the climate tech market report are:
• Microsoft Corporation
• General Electric Company
• IBM Corporation
• BYD Auto Co. Ltd.
• Schneider Electric
• Salesforce Inc
• Climate Investor One
• Wolters Kluwer N.V.
• Molten Ventures
• ENGIE Insight Services Inc.
• Consensys
• Form Energy
• Intelex Technologies
• Enablon North America Corp.
• Climeworks AG
• AMP Robotics Corporation
• Isometrix
• Sensus
• Taranis
• Enviance Inc.
• Bedrock Energy
• Breakthrough Energy Ventures
• Trace Genomics
• Hortau Inc.
• LO3 Energy
What Are The Regional Insights Into The Climate Tech Market?
North America was the largest region in the climate tech market in 2024. The regions covered in the climate tech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
