Green Tech Market Projected To Reach $177 Billion By 2031

According to SkyQuest, the green technology and sustainability market is expected to achieve a value of $177.08 billion by 2031, reflecting a robust compound annual growth rate (CAGR) of 29.3 percent from 2024 to 2031.   

Green technologies, which focus on environmentally friendly solutions, are becoming integral to economic and social development. These technologies often referred to as clean manufacturing, use alternative natural fuels that are less harmful than fossil fuels. Governments globally are heavily investing in green technologies to safeguard the environment and mitigate adverse impacts. Additionally, the Artificial Intelligence (AI) Analytics segment is anticipated to experience substantial growth during this period, driven by the ongoing recovery and operational resumption across various industries following the COVID-19 crisis.  

The green building segment is poised to dominate the market due to increasing regulatory support and incentives. Green building, or sustainable construction, encompasses the entire lifecycle of a building—from site selection and design to construction, operation, repair, and maintenance. This approach enhances traditional construction with added benefits such as energy and water efficiency, material conservation, improved indoor environments, and reduced environmental impact.  

The Internet of Things (IoT) segment is also expected to significantly influence market growth, particularly by reducing energy consumption. By 2022, the IoT segment led the market, contributing over 41.0 percent of global revenue. Technologies within the green technology and sustainability market include IoT, AI and analytics, cloud computing, digital twins, blockchain, and green computing. Green computing aims to cut energy usage and carbon footprints by optimising the design and manufacturing of computers to reduce emissions.  

North America currently leads the market, capturing over 39.0 percent of the revenue share in 2022, with continued growth anticipated due to increasing investment and infrastructure development in green technologies. Meanwhile, the Asia-Pacific region is set to experience the highest growth rate during the forecast period. Countries like India and China are driving this expansion, with India focussing on integrating new technologies to enhance business efficiency, exemplified by events such as Huawei’s Asia-Pacific Digital Power Green Energy Summit 2022.