As the industrial sector buzz-commits for decarbonization technologies and a net-zero emission market by 2050, the prowess to indulge more innovations in decarbonization has become critically pivotal for the industrial sector.
According to global intelligence firm ABI Research, the decarbonization technologies, net-zero emission 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 industrial sector is one of the highest contributors to global emissions. Reducing emissions while promoting decarbonization technologies, net-zero emission in the industrial sector presents one of the most significant challenges but is aimed at growing investment in the net-zero emission market.
The Industrial sector is committed to worldwide decarbonization and decarbonization technologies to reach net-zero emissions by 2050.
“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,” explains 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. The commitment towards net-zero emission market includes renewable energy and industrial electric machinery.
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 emissions. Renewable energy consumption globally continues to grow and so will decarbonization technologies.
Adopting renewable energy enables infrastructure costs to decrease. It also helps the current energy crisis and cost-competitiveness of fossil fuels.
Energy efficiency technologies, such as energy storage and management systems, hold the second largest market share at 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 Siemens 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.
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.
“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,” concludes McQueen.
These findings are from ABI Research’s Decarbonization Technologies for Industries application analysis report.
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