INTELLIGENT BRANDS // Green Technology

While investment in clean technology is growing rapidly , forecasts show that annual investments fall drastically short of what is required to achieve net zero by 2050 .

As the global economy grows and demand for industrial products ( such as steel and cement ) increases , industrials are looking to introduce decarbonization technologies to support emissions reduction efforts .

According to global intelligence firm ABI Research , the decarbonization technologies market is expected to grow from US $ 1.45 trillion in 2022 to US $ 4.09 trillion in 2032 , growing at a CAGR of 10.93 %.

“ The decarbonization technology market is being driven by exponentially increasing annual investments , decreasing costs of renewable energy infrastructure and growing global commitments from industrial companies to reduce emissions and develop sustainable products ,” said Alex McQueen , Research Analyst at ABI Research .

“ Regulation has also been a key market driver for decarbonization technologies . Europe , for example , has established its Green Deal Industrial Plan , which lays out steps to implement technologies required to cut the sector ’ s carbon emissions .”

The industrial decarbonization technology market is led by the growth of electrification technologies , including renewable energy and industrial electric machinery .

The report says these account for a significant 71.5 % of the market in 2022 and are expected to contribute most of the emissions reduction needed to reach net zero .

23.6 %, followed by low-carbon fuels at 4.6 % and carbon capture , utilization and storage at 0.3 %.

Companies such as Honeywell , Shell and Siemans are globally leading suppliers of decarbonization technologies for the industrial sector .

In addition , the market is seeing an increasing number of companies focusing on developing innovative clean technologies and products . These include Air Liquide , Baker Hughes , CarbonCure Technologies , Li-Cycle and SSAB .

But the report reveals that while investment in clean technology is growing rapidly , forecasts show that annual investments fall drastically short of what is required to achieve net zero by 2050 . This lack of investment in project funding and R & D means critical technologies , such as energy storage and carbon capture , lack the necessary development to contribute meaningful emission reductions .

Renewable energy consumption globally continues to grow as infrastructure costs decrease and the current energy crisis deteriorates the cost-competitiveness of fossil fuels .

Energy efficiency technologies , such as energy storage and management systems , hold the second largest market share at

“ Decarbonizing the industrial sector will require a major increase in global green tech investment as well as stronger policy incentives to scale up commercial availability and affordability of these technologies . Necessary emissions reduction will only be achieved through close collaboration with governments , industrials , and technology suppliers ,” said McQueen . p

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