Greentech - Market and Customer Analysis 2023
June 30, 2023 | Supreeya S
Greentech refers to technologies that address our impact on the environment. Greentech is often used synonymously with cleantech and climate tech, and although the three term has its differences, they carry a similar mission of dealing with present and future environmental impact. Greentech is used as an umbrella term for cleantech and climate tech.
Market Outlook
The global greentech market is growing, although certain situations in the recent years have slowed down the growth.
The factors that contribute and will help to accelerate the market are the increase in environmental awareness, increase in individuals’ concerns about global warming, depletion in natural resources, and increase in political initiatives in the sector as well as government pledges to net-zero. Government initiatives such as elimination of single-use plastic will lead the way for increased demand for substitutes and alternatives.
The surge in pollution and fuel prices globally also drive growth in the greentech industry, the result of it being an increase in consumer demand to harness natural energy.
The factors that will hamper growth in the sector include affordability for the solutions, as well as regulations that stall the implementation of green technologies. In some countries, policies regarding greentech have not been finalized and so this further delays the growth and adoption of greentech solutions in that market.
CO-VID19 has stalled greentech’s growth in the last few years. At the individual level, individuals were unable to install solar panels or other greentech solutions due to the social distancing restrictions imposed. At the global-level, various greentech projects were halted.
Market Size
The global greentech market is growing at a compound annual growth rate of 21.9% from 2021 to 2030. The market size was valued at $10.32 billion in 2020 and is expected to reach $74.64 billion by 2030.
Customer Analysis
The customers are divided into individuals, businesses and government institutions. Across the board, customers’ motivations with regards to greentech are potential cost-savings and addressing environmental challenges.
- For individuals, they are looking for greentech solutions for residential purposes (smart home, energy-efficient appliances, solar panels, etc) with the motivation of long-term cost reductions as well as contribution to a cleaner environment. The customer demographic for the greentech market varies, since interest in the environment is not limited to any particular demographic.
- Companies and businesses turn to greentech solutions to reduce their environmental impact, reduce corporate carbon emissions, make use of tax incentives, and align with customers who value companies with strong environmental-conscious values.
- From UNCTAD’s Technology and Innovation Report 2023, high-income countries are more prepared to adopt frontier technologies compared to developing countries, which is necessary condition for a country to adopt greentech solutions. Government institutions can invest in greentech solutions for public infrastructure, waste management, etc.
Customer Perception
Although customer perceptions vary depending on their awareness and priorities, customers recognize that greentech solutions have a positive environmental impact and will help the future generations. Individual-level customers view greentech solutions as a way for them to personally contribute to the cause. However, they face certain challenges with adopting greentech solutions including the affordability and convenience – customers feel that the initial upfront cost for a greentech solution is high and the installation can be inconvenient.
For companies, they view greentech as an opportunity for them to reach a new market with environmentally-conscious consumers as well as a way to set them apart from the competitors, in terms of branding. They also view greentech as a way of complying with new environmental regulations and modifying their production process to reduce energy usage and waste.
Governments are under pressure to take charge of their country’s harmful environmental activities by use of green taxes, subsidies, policies, and systems. However, from a 2020 survey from GlobeScan Sustainability Leaders showed that governments lack leaders for sustainable development.
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