According to a recent report by SNS Insider, the global decarbonisation market, valued at $311.71 billion in 2023, is projected to experience a compound annual growth rate (CAGR) of 31.24%, aiming to reach $3.54 trillion by 2032. This growth is fuelled by increasing regulatory pressures, technological advancements, and consumer awareness demanding sustainable practices across various industries.
The report highlights that the energy and utility sector lead the charge in the decarbonisation efforts, holding about 25% of the market share in 2023. Companies within this sector are making significant strides, investing in renewable energy projects like wind and solar farms, and pioneering technologies such as carbon capture and storage. The strategic push from this sector is not only crucial in reducing carbon footprints but also in setting a precedent for other industries to follow, thereby amplifying the overall market growth.
Moreover, the transition towards electric vehicles and low-carbon hydrogen production is marked as a key area for potential growth, particularly in response to evolving legislation aimed at curbing carbon emissions. For instance, Bosch’s $200 million investment into fuel cell production in the U.S. emphasises the industry’s commitment to sustainable propulsion technologies.
The decarbonisation market’s expansion is further supported by a growing demand for industrial electricity and cloud-based solutions for carbon footprint monitoring, essential for tracking and managing emissions in real time. Furthermore, the governments and various organisations enforcing stringent environmental regulations have significantly propelled the growth of the global decarbonisation market, paving the way for a sustainable future in the digital age. The report also revealed that North America held more than 35% of the market share in 2023. Rising concerns regarding climate change in the United States and Canada act as a driver for North America and is likely to capture a substantial share of the global market during the forecast period due to the large amount invested in research and development by major corporations, especially the presence of several IT companies, and stringent EPA rules that provide potential growth for the market.
