Environmental Technology Global Market Opportunities and Strategies to 2033

This report describes and explains the environmental technology market and covers 2018-2023, termed the historic period and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global environmental technology market reached a value of nearly $552.1 billion in 2023, having grown at a compound annual growth rate (CAGR) of 2.5% since 2018. The market is expected to grow from $552.1 billion in 2023 to $710.8 billion in 2028 at a rate of 5.2%. The market is then expected to grow at a CAGR of 5.9% from 2028 and reach $946.6 billion in 2033.

Growth in the historic period resulted from the increased pollution challenges, shift towards corporate sustainability investing, rapid deployment of renewable energy and government initiatives offering policy support. Factor that negatively affected growth in the historic period was limited technological maturity.

Going forward, rising urbanization, adoption of the circular economy model, resource scarcity challenges and expanding green infrastructure development will drive the growth. Factor that could hinder the growth of the environmental technology market in the future include shortages in green skills workforce.

The environmental technology market is segmented by technology into IoT, artificial intelligence, cloud computing, blockchain and other technology. The IoT market was the largest segment of the environmental technology market segmented by technology, accounting for 39% or $215.2 billion of the total in 2023. Going forward, the artificial intelligence segment is expected to be the fastest growing segment in the environmental technology market segmented by technology, at a CAGR of 6.4% during 2023-2028.

The environmental technology market is segmented by application air and water pollution monitoring, water purification, crop monitoring, management of carbon footprints, waste management and other applications. The management of carbon footprints market was the largest segment of the environmental technology market segmented by application, accounting for 28.5% or $157.3 billion of the total in 2023. Going forward, the waste management segment is expected to be the fastest growing segment in the environmental technology market segmented by application, at a CAGR of 6.6% during 2023-2028.

The environmental technology market is segmented by component into services and solutions. The solutions market was the largest segment of the environmental technology market segmented by component, accounting for 78.8% or $435 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the environmental technology market segmented by component, at a CAGR of 5.6% during 2023-2028.

The environmental technology market is segmented by vertical into residential, municipal and industrial transportation and logistics. The industrial transportation market was the largest segment of the environmental technology market segmented by vertical, accounting for 61.8% or $341.1 billion of the total in 2023. Going forward, the municipal segment is expected to be the fastest growing segment in the environmental technology market segmented by vertical, at a CAGR of 6.6% during 2023-2028.

North America was the largest region in the environmental technology market, accounting for 37% or $204.5 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the environmental technology market will be Asia Pacific and South America where growth will be at CAGRs of 6.7% and 6.6% respectively. These will be followed by Africa and Middle East where the markets are expected to grow at CAGRs of 5.8% and 5.5% respectively.

The global environmental technology market is fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 8.72% of the total market in 2022. Veolia Environnement S.A. was the largest competitor with 4.43% share of the market, followed by Waste Management, Inc with 1.75%, Suez SA with 0.98%, Clean Harbors, Inc. with 0.79%, Biffa Limited with 0.23%, Hitachi Zosen Corporation with 0.21%, AECOM with 0.12%, Teledyne Technologies Incorporated with 0.08%, Waste Connections, Inc. with 0.06% and Ecolab Inc with 0.05%.

The top opportunities in the environmental technology market segmented by technology will arise in the IoT segment, which will gain $68.3 billion of global annual sales by 2028. The top opportunities in the environmental technology market segmented by application will arise in the management of carbon footprints segment, which will gain $51.1 billion of global annual sales by 2028. The top opportunities in the environmental technology market segmented by vertical will arise in the industrial transportation and logistics segment, which will gain $83.2 billion of global annual sales by 2028. The top opportunities in the environmental technology market segmented by component will arise in the solutions segment, which will gain $122.1 billion of global annual sales by 2028. The environmental technology market size will gain the most in the USA at $43.4 billion.

Market-trend-based strategies for the environmental technology market include focus on intensifying emphasis on collaborative initiatives, such as the solar powered desalination project, focus on engaging in the development of advanced technologies, focus on technological developments, such as carbon footprint management software, focus on developing sensors to enhance monitoring capabilities and improve environmental sustainability across various industries, focus on eco- friendly building solutions, such as green concrete, focus on innovating advanced solutions, including maritime pollution monitoring systems and focus on advancing global environmental technology efforts by investing in Direct Air Capture (DAC) facilities and focus on opting for AI-based building decarbonization solutions.

Player-adopted strategies in the environmental technology market include focus on collaborations to provide services in new areas and gain new customers through other organizations, acquisitions to provide services to broaden the market and achieve more advantages by pooling resources and expand business through acquisitions and launches.

To take advantage of the opportunities, the analyst recommends the environmental technology companies to focus on chemical recycling technology, focus on carbon footprint management software, focus on environmental monitoring sensors, focus on maritime pollution monitoring systems, focus on direct air capture (DAC) facilities, focus on AI-based building decarbonization solutions, focus on artificial intelligence and blockchain segments, focus on waste management and air and water pollution monitoring segments, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, participate in trade shows and events, focus on municipal and residential segments and target governments.