Global Climate Tech Market Insights Forecasts to 2033

• The Global Climate Tech Market Size was Valued at USD 19.3 Billion in 2023
• The Market Size is Growing at a CAGR of 23.72% from 2023 to 2033
• The Worldwide Climate Tech Market Size is Expected to Reach USD 162.2 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Global Climate Tech Market Size is Anticipated to Exceed USD 162.2 Billion by 2033, Growing at a CAGR of 23.72% from 2023 to 2033.

Market Overview

Technologies specifically designed for reducing the effects of global warming or lowering greenhouse gas emissions are referred to as "climate tech." These innovations aim to lower greenhouse gas emissions, boost energy efficiency, encourage the use of renewable energy sources, improve climate resilience, and encourage sustainable business practices across a range of industries. Throughout the projection period, the climate tech market is anticipated to continue expanding quickly, providing ample opportunity for investment and innovation in helping to fight against climate change.  

Several factors drive the industry, including the increasing frequency and intensity of natural disasters caused by climate change, such as floods and wildfires. Furthermore, key market players such as General Electric; IBM; Wolters Kluwer N.V.; Salesforce, Inc.; Microsoft; Schneider Electric; ENGIE Impact; Intelex Technologies; Sensus; and ISOMETRIX. Worldwide, governments, organizations, and people are actively looking for ways to lessen the effects of climate change. The need for cutting-edge clean tech or climate tech solutions is being driven by this increased consciousness.

For instance, in January 2023, The World Future Energy Summit held during Abu Dhabi Sustainability Week saw the official establishment of the AI Center of Excellence in collaboration with IBM by Mohamed bin Zayed University of Artificial Intelligence (MBZUAI). The Center's principal aim is to optimize the application of AI technology and support sustainable development initiatives. It aims to address climate change and provide ecologically friendly alternatives for the energy sources that are currently in use.

Report Coverage

This research report categorizes the market for the global climate tech market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global climate tech market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global climate tech market.

Driving Factors

There is a growing need for climate tech due to the increased difficulties posed by climate change, such as extreme weather events, increasing sea levels, and reduced biodiversity. Climate tech adoption is mostly being pushed by the worldwide transition towards clean and renewable energy sources, which is fueled by the need to lessen dependency on fossil fuels. Climate tech is being adopted by industries to comply with sustainability standards due to strict environmental legislation and global government targets for carbon reduction. Technology for renewable energy, including wind and solar power, is becoming more and more affordable compared to more conventional energy sources, which is encouraging its uptake. Market demand for climate tech across several industries is being driven by rising customer knowledge of and desire for environmentally friendly and sustainable products and services.

Restraining Factors

The large initial expenditure necessary for the implementation of climate tech solutions might serve as a barrier, especially for small and medium-sized firms (SMEs) that have a restricted budget.

Market Segmentation

The global climate tech market share is classified into components, technology, and application.

• The climate tech solutions segment is expected to hold the largest share of the global climate tech market during the forecast period.     

Based on the components, the global climate tech market is divided into climate tech solutions and services. Among these, the climate tech solutions segment is expected to hold the largest share of the global climate tech market during the forecast period. Growing laws and regulations are among the factors that are anticipated to drive market expansion. To lower greenhouse gas emissions and encourage the use of renewable energy technology, governments everywhere are putting laws and regulations into place. As a result, businesses are being encouraged to research and invest in climate tech solutions.  

• The blockchain segment is expected to hold the largest share of the global climate tech market during the forecast period.   

Based on the technology, the global climate tech market is divided into IoT, analytics, cloud computing, blockchain, and others. Among these, the blockchain segment is expected to hold the largest share of the global climate tech market during the forecast period. Blockchain technology, which was used to build a decentralized market for the purchase and sale of renewable energy credits, is primarily responsible for the growth of the market. As a result, companies and individuals will have a safe, open method to support clean energy, which can encourage the expansion of renewable energy generation.   

• The green building segment is expected to hold the largest share of the global climate tech market during the forecast period. 

Based on the application, the global climate tech market is divided into carbon footprint management, green building, water purification, and others. Among these, the green building segment is expected to hold the largest share of the global climate tech market during the forecast period. The segment's expansion is attributed to the growing environmental laws and policies. Environmental laws and policies are being implemented by governments all over the world to lower carbon emissions and fight climate change. The proliferation of green building technologies has resulted from these rules, which frequently require that buildings be more energy-efficient.    

Regional Segment Analysis of the Global Climate Tech Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global climate tech market over the predicted timeframe.

North America is anticipated to hold the largest share of the global climate tech market over the predicted timeframe. The market for climate technology has grown significantly as a result of government initiatives and legislation. As per CNBC, the United States government has set a target to decrease carbon emissions by approximately 40% by the year 2050. Moreover, the region's developed economies the USA and Canada, for instance, which make significant investments in climate protection are expected to drive the market throughout the projection period.   

Europe is expected to grow at the fastest pace in the global climate tech market during the forecast period. A significant regulatory push toward the decarbonization of industrial activity in the region is credited with driving growth in the market. In addition, the European Union has established aggressive goals for lowering greenhouse gas emissions, which has sparked investment in energy-efficient technologies like smart grids and energy storage systems as well as clean energy sources like solar and wind power.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global climate tech market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• IBM
• Enablon
• Salesforce
• Microsoft
• Schneider Electric
• Engie Impact
• Sensus
• Lo3 Energy
• Isometrix
• Taranis
• Trace Genomics
• Consensys
• Cropx
• Hortau
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In March 2024, The Investment Fund of NATO launched its first business accelerator program, mainly for companies in the climate technology sector, as part of its entry into a new market. The Defense Innovation Accelerator for the North Atlantic, or DIANA, is a new program that marks NATO's foray into venture finance. Its goal is to address security challenges associated with climate change.

• In May 2023, Salesforce launched 'Green Code,' a new initiative to lower software development's carbon footprint. System architects, software developers, UX designers, and IT operations managers can all benefit from the program's sustainability principles. "Green Code" contributes to hastening the world's shift to net-zero carbon emissions.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global climate tech market based on the below-mentioned segments: 

Global Climate Tech Market, By Components

• Climate Tech Solutions
• Services

Global Climate Tech Market, By Technology

• IoT
• Analytics
• Cloud Computing
• Blockchain
• Others

Global Climate Tech Market, By Application

• Carbon Footprint Management
• Green Building
• Water Purification
• Others

Global Climate Tech Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa