Cleantech Market: Current Analysis and Forecast (2024-2032)

Report Description

Cleantech Market Size & Forecast

The Cleantech market was valued at USD 1,821.4 Billion in 2023 and is expected to grow at a strong CAGR of around 17.1% during the forecast period (2024-2032) owing to rising usage of sustainable products.

Cleantech Market Analysis

The cleantech market is a rapidly expanding sector focused on technologies and solutions that reduce environmental impact and improve resource efficiency. This market spans a broad range of industries, including renewable energy (solar, wind, and hydropower), energy efficiency, electric vehicles, smart grids, and sustainable agriculture. With growing global awareness of climate change and environmental sustainability, the demand for clean technologies is increasing significantly. Governments worldwide are implementing policies and incentives to promote the adoption of cleantech solutions, further driving the market’s growth. Investment from both private and public sectors continues to flow into the development and deployment of innovative technologies, positioning the cleantech market as a key player in the transition to a sustainable future.

The primary driver of the cleantech market is the urgent need to mitigate climate change and reduce greenhouse gas emissions. Governments and international organizations are setting ambitious targets for carbon reduction and renewable energy adoption, creating a supportive regulatory environment for cleantech development. Advances in technology have also made clean technologies more efficient and cost-effective, making them viable alternatives to traditional fossil fuels. Consumer awareness and demand for sustainable products are also rising, pushing companies to adopt and invest in cleantech solutions. Financial incentives, such as tax credits and subsidies, further encourage businesses and individuals to switch to cleaner energy and more efficient technologies.

An example of the cleantech market’s growth can be seen in the rapid expansion of the solar energy sector. Companies like Enphase Energy are at the forefront of this industry, offering advanced microinverter-based solar and battery systems that enhance energy efficiency and reliability. Enphase Energy’s recent acquisition of SolarLeadFactory, a company providing high-quality leads to solar installers, aims to increase lead volumes and conversion rates, thereby driving down customer acquisition costs for installers. This move exemplifies how strategic acquisitions and technological advancements are propelling the cleantech market forward, enabling broader adoption of renewable energy solutions and contributing to the overall sustainability goals.

Cleantech Market Trends

This section discusses the key market trends that are influencing the various segments of the Cleantech market as identified by our team of research experts.

Government Policies Supporting the Cleantech Industry:

Government policies and incentives are critical drivers of the cleantech market, creating a regulatory framework that supports the development and adoption of clean technologies. Policies such as renewable energy mandates, tax credits, feed-in tariffs, and emissions trading schemes provide financial incentives for businesses and individuals to invest in cleantech solutions. These policies not only reduce the cost of cleantech products and services but also create a market demand for them. For example, renewable energy mandates require utilities to generate a certain percentage of their electricity from renewable sources, driving investment in solar, wind, and other renewable energy projects. Tax credits and incentives for energy-efficient products encourage consumers to choose energy-efficient appliances and vehicles, further driving the adoption of cleantech solutions. Additionally, regulations such as emissions standards and energy efficiency requirements create a market for cleantech solutions by incentivizing companies to adopt cleaner technologies to comply with regulations.

For instance, A prime example of government policies driving the cleantech market is Germany’s Renewable Energy Sources Act (EEG), which guarantees feed-in tariffs for renewable energy producers. This policy has incentivized the rapid growth of renewable energy in Germany, making it a global leader in renewable energy adoption. 

APAC is Expected to Grow with Significant CAGR During Forecast Period

The Asia-Pacific (APAC) region is experiencing significant growth in the cleantech market, driven by rapid urbanization, industrialization, and economic development. Governments in the region are implementing supportive policies and regulatory frameworks to promote the adoption of clean technologies. Countries such as China, India, and Japan are investing heavily in renewable energy projects, particularly solar and wind power, to meet their increasing energy demands while reducing carbon emissions. Additionally, rising environmental awareness among consumers and businesses, coupled with technological advancements and declining costs of renewable energy technologies, are propelling the growth of the cleantech market in the APAC region. The increasing demand for electric vehicles, energy-efficient solutions, and sustainable infrastructure further contributes to the market’s expansion, positioning the APAC region as a key player in the global transition towards a sustainable future. 

Cleantech Industry Overview

The Cleantech market is competitive and fragmented, with the presence of several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market include Yingli Green Energy Holdings, Suzlon Energy, Dupont, Toyota Motors, Syntec Biofuels, GE Energy, Siemens Water Technologies, Novozymes, Solazyme, and Panasonic.

Cleantech Market News

In January 2024, Global investment in the low-carbon energy transition surged 17% in 2023, reaching $1.77 trillion, according to BloombergNEF (BNEF)​. The report finds that electrified transport is now the largest sector for spending in the energy transition, growing 36% in 2023 to $634 billion.

In October 2023, major automakers like Tesla, Ford, and General Motors announced plans to ramp up production of electric vehicles and introduce new models. Additionally, countries such as the UK and Norway have announced bans on the sale of new petrol and diesel cars by 2030 and 2025, respectively, further driving the adoption of electric vehicles.

Cleantech Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Cleantech market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.

Research Methodology

Research Methodology for the Cleantech Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of global Cleantech were the three major steps undertaken to create and explore the adoption of Cleantech in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the global Cleantech market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of Cleantech through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of Cleantech, we conducted a detailed secondary analysis to gather historical market insights and share for different segments and sub-segments for major regions. Major segments are included in the report, such as product type and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Cleantech. Further, we conducted factor analysis using dependent and independent variables such as Product Type and Application of Cleantech market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Cleantech sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Cleantech market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Cleantech across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Cleantech market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Cleantech market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Product Type and Application in the global Cleantech market.

The main objective of the Global Cleantech Market Study

The current & future market trends of the global Cleantech market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Cleantech industry in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of Product Type and Application
• Define and analyze the regulatory framework for the Cleantech industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Cleantech market for the major region
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the Cleantech market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry