Greentech or green technology, is projected to grow at 25-30% annually over the next five years and ultimately reach $45-55 billion market size within the same timeframe, a new report claimed.
Boston Consulting Group (BCG) in its new report -- The Next Digital: Unlocking $50 Billion Green Tech Opportunity – has also claimed that green-tech growth would be underpinned by the increasing adoption of sustainable use-cases across IoT (Internet of Things), cloud computing, data platforms & analytics, digital twin and blockchain.
Greentech sector, which is at a very nascent stage, leverages on a combination of environmental science, chemistry, environmental monitoring and electronic devices to generate new technology and mechanisms for conserving the natural environment.
Meanwhile, the BCG report indicates a clear positive sign that green-tech investments have increased from $5 billion in 2016 to $10 billion in 2021. Furthermore, IoT, analytics and cloud computing are the favourites for green-tech investors, with each technology accounting for more than $3 billion in investments respectively.
Sreyssha George, Managing Director and Partner, BCG India, said, “Tech companies must focus on building a strong portfolio of sustainability products, by identifying priority use cases for its clients, to capture this opportunity and disrupt the market.”
While the bulk of this growth is expected in developed economies in North America and Europe, Asia is also expected to grow rapidly with various countries, including India, committing to net-zero targets, as per BCG.
To understand the growing trend of global leaders investing in ESG, BCG conducted a study comprising over 850 CXOs across industries as part of the ‘BCG Global Digital Transformation Survey 2021’.