PUBLISHER: The Business Research Company | PRODUCT CODE: 1682068
PUBLISHER: The Business Research Company | PRODUCT CODE: 1682068
Climate tech encompasses technologies, innovations, and solutions specifically developed to address the challenges posed by climate change. These technologies aim to reduce greenhouse gas emissions, enhance energy efficiency, promote the adoption of renewable energy sources, bolster climate resilience, and support sustainable practices across various industries.
The key components of climate tech include climate tech solutions and services. Climate tech solutions encompass technologies, products, and services tailored to either mitigate or adapt to the impacts of climate change. These technologies leverage a range of advancements such as the internet of things (IoT), artificial intelligence (AI) and analytics, digital twin, cloud computing, security, and blockchain. Climate tech applications span areas such as 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, and sustainable mining and exploration.
The climate tech market research report is one of a series of new reports from The Business Research Company that provides climate tech market statistics, including climate tech industry global market size, regional shares, competitors with a climate tech market share, detailed climate tech market segments, market trends and opportunities, and any further data you may need to thrive in the climate tech industry. This climate tech market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The climate tech market size has grown exponentially in recent years. It will grow from $26.12 billion in 2024 to $32.49 billion in 2025 at a compound annual growth rate (CAGR) of 24.4%. The growth in the historic period can be attributed to increasing concerns about climate change and its impacts on the environment, growing awareness and demand for sustainable and eco-friendly solutions, government initiatives and policies promoting renewable energy and environmental sustainability, advancements in technology, rising investment in clean energy and climate-related projects, corporate commitments to reduce carbon footprint and adopt sustainable practices.
The climate tech market size is expected to see exponential growth in the next few years. It will grow to $79.45 billion in 2029 at a compound annual growth rate (CAGR) of 25.0%. The growth in the forecast period can be attributed to shift towards a circular economy and the adoption of circular supply chains, technological innovations in energy storage and grid modernization, demand for clean transportation solutions, including electric vehicles and alternative fuels, rising consumer awareness and demand for environmentally friendly products and services, increasing adoption of smart city initiatives and sustainable urban development, focus on sustainable agriculture and food production practices, and need for climate-resilient infrastructure and disaster preparedness. Major trends in the forecast period include renewable energy expansion, energy storage innovations, electric vehicle (EV) adoption, circular economy initiatives, and climate data analytics.
Government regulations and policies are expected to drive the growth of the climate tech market in the coming years. These regulations and policies encompass rules, guidelines, and initiatives introduced by governments to address climate change and encourage sustainable development. By establishing a supportive framework for climate tech innovation, investment, and deployment, government actions play a crucial role in facilitating the transition to a low-carbon and sustainable economy. For example, according to the International Energy Agency, in April 2023, Australia enacted the Climate Change Act, raising its 2030 emissions reduction target and committing to net-zero emissions by 2050. Furthermore, Australia joined the Global Methane Pledge alongside 130 other nations, aiming to cut methane emissions by at least 30% by 2030. Such government-led initiatives are fueling growth in the climate tech market by encouraging advancements and investment in sustainable technologies.
Leading companies in the climate tech market are creating innovative solutions, such as capital investment platforms, to drive the transition to sustainable energy and lower greenhouse gas emissions. These platforms act as digital marketplaces, connecting investors with projects focused on sustainable technologies, allowing them to support initiatives that address climate change. They also offer tools to assess the environmental impact and financial returns of investments in sustainability. For example, in December 2023, Bahrain-based Investcorp launched the Climate Solutions Investment Platform, aimed at providing growth capital to companies specializing in decarbonization and climate-impact technologies, especially those primed for rapid scale-up. Investcorp is part of the Innovate for Climate Tech coalition alongside Masdar City, Tencent, and Catalyst, leveraging collective knowledge and networking to boost climate innovation. Additionally, Tencent's TanLIVE platform supports global climate efforts by offering project listings, networking, and access to a wide array of technology and financial resources. With over 1,000 participants from diverse sectors, TanLIVE fosters collaboration between entrepreneurs, investors, and researchers, promoting impactful climate actions.
In September 2022, Accenture plc, an Ireland-based professional services company, acquired Carbon Intelligence, a UK-based consultancy specializing in carbon and climate change strategy. This strategic acquisition strengthens Accenture's sustainability and climate-focused consulting capabilities, enhancing its ability to deliver in-depth solutions for clients aiming to reduce carbon emissions and meet their sustainability objectives. By integrating Carbon Intelligence's expertise, Accenture can offer more comprehensive and impactful guidance to organizations looking to align with climate goals and achieve sustainable business transformation.
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
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.
The countries covered in the climate tech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The climate tech market includes revenues earned by entities by providing services such as consulting and advisory services, renewable energy services, carbon management services, and climate risk assessment and management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The climate tech market also includes sales of solar panels, wind turbines, hydroelectric generators, lighting systems, and smart home devices. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Climate Tech Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on climate tech market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for climate tech ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The climate tech market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.