Clean Technology Market By Solution Sector, By Technology Type, By Application, By Region and By Country: Industry Size, Share, Global Outlook and Forecasts, 2025 – 2035

Report Summary

Clean Technology Market Size Statistics

• As per Vertex Market Research, Global Clean Technology Market Size is forecasted to grow significantly, reaching USD 2,130 Billion by 2035.

• The Global Clean Technology Market was valued at USD 860 Billion in 2024.

• Global Clean Technology Market is projected to grow at 9% CAGR from 2025 to 2035.

The growth in clean technology market is driven by increasing environmental concerns, government regulations promoting sustainability, and advancements in clean energy technologies. Clean technology (Cleantech) encompasses products, services, and processes that reduce or eliminate negative environmental impacts. This includes renewable energy, energy efficiency, sustainable resource management, and pollution reduction. It encompasses a wide range of technologies, including solar photovoltaics (PV), wind energy, electric vehicles, battery storage, and water treatment solutions, among others. The objective is to reduce environmental impact while enhancing energy efficiency, decrease carbon footprints, utilizing resources more efficiently, and contributing to a sustainable future through technological innovation.

Clean Technology Market Trends

Growing Green Hydrogen Infrastructure

Green hydrogen, produced using renewable energy sources such as wind and solar, is emerging as a crucial clean fuel alternative for industries, transportation, and power generation. As governments and private enterprises accelerate investments, global green hydrogen production is projected to surpass 21 Million Tons annually by 2030, up from approximately 150,000 Tons today.

The deployment of electrolysis technology, essential for green hydrogen production, is also expanding rapidly. This growth is fueled by increasing decarbonization efforts across heavy industry, shipping, and energy storage sectors.

• Global Electrolyzer installed capacity exceeded 1 GW in 2023, is estimated to reach 5 GW in 2024, and is expected to surpass 500 GW by 2030 based on the current project pipeline. 

Growth of Floating Solar and Offshore Wind

As land availability becomes a limiting factor for renewable energy expansion, floating solar photovoltaics (PV) and offshore wind farms are gaining traction as scalable solutions. These technologies offer higher energy yields by leveraging untapped water surfaces and stronger offshore wind resources. Countries leading the adoption of these technologies include China, the Netherlands, and the UK, with significant investments in offshore wind and floating solar installations.

• According to the World Bank, floating solar PV has the potential to exceed 400 GW of global capacity.

• Offshore wind capacity worldwide is expected to reach over 480 GW by 2033, driven by large-scale projects in Europe, China, and the United States.

Expansion in Carbon Capture, Utilization, and Storage (CCUS)

Carbon Capture, Utilization, and Storage (CCUS) technologies play a critical role in reducing industrial CO₂ emissions and advancing global net-zero targets. These solutions capture carbon emissions from power plants and heavy industries, either storing them underground or repurposing them for commercial applications.

• The Global CCS Institute estimates that CCUS capacity must increase significantly to meet climate goals, with a target of capturing and storing 100 million tons of CO₂ annually by 2030.

• According to the International Energy Agency (IEA), CCUS technologies could reduce up to 50% of CO₂ emissions from industrial sectors such as cement, steel, and chemical manufacturing.

What are the Clean Technology Market Segmentations and Bifurcations?

Clean Technology Market Segments based on Solution Sector

• Renewable & Sustainable Energy Solutions

• Energy Storage Solutions

• Energy Efficiency Solutions

• Water and Waste Management

• Agriculture and Food Systems

• Air and Environment Management

• Green Transportation

• Others

In 2024, the renewable & sustainable energy technologies segment dominated the clean technology, capturing over 60% of global revenue. This growth is driven by technological advancements, cost reductions, and strong policy support. The declining costs of photovoltaic panels, innovations in perovskite solar cells, and government incentives are accelerating the adoption of solar energy. Additionally, offshore wind capacity is expanding, and advancements in floating solar PV and enhanced grid connectivity are further strengthening the renewable energy landscape.

The energy storage solutions segment is expected to witness the highest CAGR during the forecast period. Key drivers include integration with renewable energy sources, advancements in battery technologies, and supportive government policies. Energy storage systems (ESS) play a critical role in balancing intermittent renewable energy supply and enhancing grid stability. The rising adoption of second-life EV batteries for stationary storage is reducing costs and minimizing environmental impact. Governments worldwide are introducing subsidies, tax incentives, and grants to accelerate energy storage deployment, fostering innovation in lithium-ion, solid-state, and flow battery technologies.

Clean Technology Market Segments based on Technology Type

• Solar PV
• Wind 
• Batteries
• Electric Vehicles
• Electrolyzers
• Heat Pumps
• Others

In 2024, Solar PV, Batteries, and Electric Vehicles segments dominated the global clean technology market. Solar PV has emerged as one of the most rapidly expanding sectors, benefiting from decreasing production costs and widespread adoption across residential, commercial, and utility-scale applications. The declining Levelized Cost of Energy (LCOE), coupled with government incentives and corporate sustainability commitments, has accelerated the deployment of solar power systems. Innovations such as bifacial panels and perovskite solar cells have further enhanced efficiency, making solar energy a crucial component in the global clean energy transition.

The battery energy storage industry is also witnessing remarkable expansion, largely due to the growing need for grid stability and the increasing integration of renewable energy sources. Technological advancements in lithium-ion and solid-state battery technologies are driving market growth, with costs continuing to decline, making large-scale energy storage more commercially viable. Improved battery lifespans in battery energy storage systems (BESS) have further increased adoption in renewable energy storage solutions. The rising penetration of variable renewable energy sources, coupled with the necessity for grid flexibility, has positioned battery storage as a critical enabler of the clean energy ecosystem.

Electric vehicles are transforming the automotive industry, with their market share increasing significantly as production scales up and charging infrastructure improves. Government regulations, emission reduction targets, and financial incentives are playing a crucial role in accelerating EV adoption. Meanwhile, advancements in battery technology are reducing costs and enhancing vehicle range, making EVs more accessible to consumers. The growing demand for zero-emission transportation, combined with expanding charging networks and declining battery costs, is expected to sustain the rapid growth of the EV sector during the forecast period.

Clean Technology Market Segments based on Application

• Commercial
• Industrial
• Residential

In 2024, the industrial application segment dominated the global clean technology market, driven by strict regulations, cost efficiencies, and sustainability goals. Companies are adopting clean technologies to cut emissions, optimize resources, and meet environmental targets. 

The residential segment is set to grow at the fastest CAGR, fueled by rising energy costs, government incentives, and increasing environmental awareness. Homeowners are embracing solar panels, battery storage, and energy-efficient systems to lower emissions and reduce electricity expenses. Global climate commitments, such as the Paris Agreement, continue to accelerate adoption, making the residential segment a key driver of clean technology market expansion.

What are the Growth Drivers, Restraints, and Opportunities in Clean Technology Market?

Government Regulations Driving Growth in the Clean Technology Market

Governments worldwide are implementing stringent policies and ambitious climate targets to accelerate the transition to a low-carbon economy. These regulations are fueling the adoption of clean technologies as industries work to meet evolving environmental standards and carbon reduction mandates.

The European Union (EU) has pledged to cut greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, as outlined in the European Green Deal, with a long-term goal of achieving net-zero emissions by 2050. Similarly, China has committed to peaking carbon emissions before 2030 and reaching carbon neutrality by 2060, driving massive investments in renewable energy, electric vehicles (EVs), and sustainable infrastructure.

Under the Paris Agreement, nations worldwide are submitting updated Nationally Determined Contributions (NDCs) with increasingly ambitious climate commitments. However, challenges remain in implementation, requiring stronger policy frameworks, financial incentives, and private sector collaboration to ensure effective progress toward sustainability goals.

Surging Investment in Renewable Energy Infrastructure Drives Clean Technology Growth

Global investment in renewable energy infrastructure is accelerating as countries transition toward sustainable energy solutions. The push for decarbonization, declining technology costs, and strong policy support are fueling large-scale investments in clean energy projects. Additionally, the growing focus on Environmental, Social, and Governance (ESG) investing is driving capital toward sustainable finance instruments such as green bonds and sustainability-linked loans, further strengthening the clean energy market.

• According to the International Energy Agency (IEA), the total global energy investment reached US$ 2.8 trillion in 2023, with over US$ 1.7 trillion directed toward clean energy initiatives, including renewable power, nuclear energy, grid modernization, energy storage, and efficiency enhancements.

Advancements in Energy Storage and Grid Modernization Accelerate Clean Technology Growth

The rapid expansion of renewable energy sources such as solar and wind necessitates advanced energy storage solutions and modernized power grids to enhance efficiency, reliability, and grid stability. Technological breakthroughs in battery storage, smart grids, and alternative energy storage systems are driving the clean technology market. The cost of lithium-ion batteries has dropped significantly, making them more economically viable for grid-scale storage and electric vehicles (EVs). 

• In 2024, Global average lithium-ion battery pack prices fell by 20% to US$ 115 per kWh, going below US$ 100 for electric vehicles (EVs).

• In 2024, Europe battery storage capacity was recorded at 10.8 GW. Projections indicate a surge to over 50 GW by 2030.

Meanwhile, research into flow batteries, pumped hydro storage, and thermal energy storage continues to expand, providing longer-duration energy storage and improving grid flexibility. Smart grid technologies, including advanced metering infrastructure, demand response programs, and AI-driven grid management systems, are enhancing grid efficiency, resilience, and energy distribution.

High Initial Capital Investment for Clean Technology Infrastructure

The deployment of clean technology infrastructure often necessitates substantial upfront capital, which can be a significant barrier, especially in emerging and developing economies. The largest obstacles to investment in clean energy projects within these regions, with financing costs at least twice as high as in advanced economies and China. Additionally, private investment in infrastructure tends to favor high-income countries, leaving a gap in funding for clean technology projects in less affluent nations. However, costs for clean power technologies, including wind, solar, and battery storage, are projected to decline by up to 11% in 2025, driven by technological advancements, economies of scale, and improved supply chain efficiencies. This anticipated cost reduction is expected to enhance the financial viability of clean energy projects, making them more accessible across global markets. 

Innovations in Hydrogen Fuel Technologies and Alternative Fuels Present Opportunities in Clean Technology Market

Hydrogen is seen as a promising clean fuel for various applications, especially in sectors that are difficult to electrify, such as heavy-duty transportation and industry. Innovations in Proton Exchange Membrane (PEM) and Solid Oxide Electrolyzers are anticipated to reduce production costs and enhance output, making green hydrogen more competitive with traditional energy sources. Furthermore, hydrogen fuel cell technology has seen considerable advancements in efficiency, durability, and application scope. These improvements are paving the way for hydrogen's use in various sectors, including aviation, maritime activities, and transportation. Support from both private enterprises and governments is bolstering the development and adoption of hydrogen fuel cells, contributing to a more sustainable future. Other alternative fuels, like advanced biofuels, also offer opportunities. Research continues on advanced biofuels, synthetic fuels, and other alternative fuels derived from sustainable sources.

Clean Technology Market Report Scope & Snapshot

What are the Regional and Country Trends in Clean Technology Market?

Clean Technology Market - Regional Landscape and Trends

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

In 2024, Asia Pacific held leading share of around 50% of the global clean technology market. Countries such as China, India, Japan, and South Korea are aggressively advancing renewable energy adoption, supported by ambitious carbon reduction targets. China’s commitment to peak emissions by 2030 and achieve carbon neutrality by 2060 has driven substantial investments in solar power, wind energy, and green hydrogen, positioning the region as a global clean energy hub.

Europe remains a significant region, driven by stringent environmental policies and sustainability goals. The European Green Deal, which aims for carbon neutrality by 2050, along with the EU Emissions Trading System (ETS), has strengthened the market for renewable energy, electric vehicles, and energy-efficient solutions. Strong policy frameworks and corporate sustainability initiatives are propelling market expansion across the region.

North America is poised for substantial growth, supported by increasing clean energy investments and government incentives. The U.S. and Canada are leading the transition to renewable energy, backed by federal and state-level policies, tax credits, and funding for clean technology advancements. Rising consumer demand for electric vehicles, grid modernization efforts, and corporate sustainability commitments are further accelerating market expansion.

How is the Competition Scenario in Clean Technology Market?

Clean Technology Market - Competitive Landscape

The Clean Technology Market is highly competitive, driven by rapid innovation, government policies, and rising investments in renewable energy. Established players, emerging startups, and disruptors compete through R&D, mergers, acquisitions, and market expansion. Companies focus on technological advancements, strategic partnerships, and supply chain growth to strengthen their market position. Cross-industry collaborations, such as automakers partnering with energy firms, are fostering integrated clean energy ecosystems.

Some of the key companies operating in Clean Technology market include:

• Adani Group
• Ballard Power
• Brookfield Renewable
• Canadian Solar
• Enel Spa
• Enphase
• General Electric
• Iberdrola
• Jinko Solar
• NextEra Energy
• Ørsted
• Plug Power
• SunPower
• Veolia Environnement
• Vestas
• Others

Clean Technology Industry Developments

• In December 2024, GE Vernova partnered with the National Renewable Energy Laboratory (NREL) to supply a 3.4 MW-140m wind turbine for advanced energy research and experimentation. This collaboration strengthens the strategic relationship between GE Vernova and NREL, fostering cutting-edge innovation in wind energy technology while demonstrating the potential of public-private partnerships in driving clean energy advancements.

• In September 2024, IBM and the United Nations Development Programme (UNDP) launched new interactive energy models on UNDP's GeoHub platform. These models integrate IBM Watsonx AI and data-driven insights, enabling policymakers, researchers, and the public to analyze complex energy challenges more effectively. The initiative supports a just energy transition by facilitating data-backed decision-making for sustainable energy policies.

• In August 2024, Ørsted partnered with Mission Clean Energy to develop four standalone battery energy storage systems (BESS) across the Midwest. This collaboration enhances Ørsted’s renewable energy storage capabilities, providing utilities and businesses with scalable storage solutions to support grid stability and energy transition efforts.