Because of the current climate crisis, industry experts have suggested that green technologies could help build a more sustainable future. Investments in green technologies are increasing every year. These investments may allow more countries to adopt green technologies and ditch nonrenewable resources.
Green Technology Sector: Poised for Significant Growth
A report from Allied Market Research states that in 2020, the global green tech and sustainability market was valued at over $10 billion. By 2030, it’s expected to reach over $74 billion.
Green technology, also known as climate tech or clean tech, are various eco-friendly solutions that promote economic and social sustainability, protect the environment and repair past environmental damages. Green technology is an all-encompassing term — some well-known examples include electric vehicles (EVs), renewable energy solutions and sustainable agriculture.
Green tech has applications in virtually any industry. However, it will be especially important for green technology adoption to occur in industries with the highest carbon footprints. CO2-emitting sectors like transportation, agriculture, construction and energy production could become more sustainable with the adoption and implementation of green technologies.
Any time an industry experiences significant growth, it is typically due to several factors. Below are some factors that will likely contribute to the development of the green technology sector.
Environmental Awareness
Modern consumers have a stronger awareness of environmental issues and value sustainability. Pew Research Center found that around 42% of U.S. adults say that dealing with climate change should be a top priority for President Biden and Congress in 2022.
It’s possible that the unprecedented COVID-19 pandemic played a role in changing attitudes around environmental awareness. BCG, a management consulting firm, surveyed 3,000 people across eight different countries and found that people achieved a heightened awareness of the climate crisis in the wake of the pandemic. Now, it seems as though people are more concerned about environmental challenges and shifting their behaviors to be more sustainable.
Across the globe, investments in green technologies hit a whopping $755 billion in 2021, a significant increase from the previous year. Governments and private organizations are investing more heavily in green tech, leading to more advancement, innovation and overall market growth.
It’s also possible for investors to find opportunities in subsectors of green technology. Investments will play a significant role in allowing green technologies to become more advanced and enable the sector to grow.
Another factor impacting growth in the green tech industry is the rapid growth of the sustainability job market. This market is relatively new, making it challenging to define types of sustainability jobs. However, there is high demand for sustainability workers and competition in the job market is fierce.
Some popular sustainability-related careers, according to LinkedIn, include:
Younger generations are more likely to address the issue of climate change. Because millennials and Gen Z’ers will soon dominate the majority of the workforce, they may be more likely to consider working in sustainability.
Young talent will have to decide whether they want to work for sustainability companies or the federal government, considering both have ties to the green tech industry. For example, it’s commonly understood that federal employment tends to offer better benefits to employees. In contrast, private companies in the green tech industry may provide more satisfying roles.
Regardless, young candidates may be more inclined to accept a green tech role if they feel like they’re making a positive difference.
Digital tech and green tech are inextricably linked, meaning that revolutionary technology like the Internet of Things (IoT) will play a significant role in the growth of the green tech sector. The IoT represents a vast network of interconnected objects that communicate with each other. The growth and advancement of the IoT market will also drive growth in green tech.
IoT tech can help improve sustainability in waste management, agriculture, wildlife preservation, construction and wastewater management, among other tasks. All of these elements are essential to sustainable development. The ultimate goal would be to leverage both IoT tech and green tech to help improve sustainability across all sectors.
Because the climate change issue is so pressing, green technology must play a more impactful role across industries. Whether it’s renewables or EVs, green technology will become increasingly important for countries across the world.
Factors such as improved environmental awareness, more investments and growth in the sustainability job market will help drive growth in green technology. Expect green tech to become more widely used in the coming years and help society pave the way for a more sustainable future.
