Decarbonization Market
Description
The global decarbonization market was valued at $2.2 trillion in 2023, and is projected to reach $4.7 trillion by 2033, growing at a CAGR of 8.1% from 2024 to 2033.
Decarbonization refers to the process of reducing or eliminating carbon dioxide (CO₂) emissions, especially from human activities, to mitigate the impact of climate change. The primary goal of decarbonization is to lower the carbon footprint of energy production, industry, transportation, and other sectors that contribute to greenhouse gas emissions. It involves transitioning away from fossil fuels such as coal, oil, and natural gas toward cleaner, renewable energy sources such as solar, wind, hydro, and bioenergy. This process is essential for achieving net-zero emissions targets set by governments and organizations worldwide, ensuring long-term sustainability and energy security.
The growth in carbon pricing and emissions trading systems (ETS) drives the decarbonization market expansion, as it creates financial incentives for industries to reduce their carbon footprint. Carbon emissions through mechanisms such as carbon taxes and cap-and-trade programs, governments encourage businesses to invest in cleaner technologies, energy efficiency, and low-carbon alternatives. Emissions trading systems further facilitate market-based solutions by allowing companies to buy and sell carbon allowances, promoting cost-effective emission reductions. As more countries and regions adopt stringent carbon pricing policies, industries are compelled to accelerate their decarbonization efforts, driving demand for renewable energy, carbon capture solutions, and sustainable industrial practices to remain competitive and compliant with evolving regulations.
However, infrastructure and grid limitations pose significant challenges to the growth of the decarbonization market by restricting the integration and scalability of renewable energy sources. Many existing power grids were designed for centralized fossil-fuel-based generation and struggle to accommodate the variability of renewable energy, such as solar and wind. Inadequate transmission capacity, aging infrastructure, and insufficient energy storage solutions create bottlenecks, limiting the efficiency and reliability of clean energy distribution. In addition, the slow pace of grid modernization, regulatory hurdles, and high investment costs for upgrading infrastructure further hinder the widespread adoption of decarbonization technologies. Addressing these limitations requires substantial investment in smart grids, energy storage, and grid interconnections to enable a smooth transition to a low-carbon energy system, which hamper the decarbonization market growth.
On the other hand, investment in carbon capture, utilization, & storage (CCUS) creates significant opportunities for the decarbonization market by enabling industries to reduce their carbon emissions while continuing operations in hard-to-abate sectors. CCUS technology captures CO₂ from industrial processes and power generation, preventing it from entering the atmosphere and either storing it underground or utilizing it for applications such as enhanced oil recovery, synthetic fuels, or building materials. As governments and corporations strengthen their climate commitments, increasing financial support and policy incentives for CCUS drive innovation and scalability. Rise in integration of CCUS with hydrogen production, bioenergy, and direct air capture further enhances its role in achieving net-zero targets, making it a crucial component of global decarbonization strategies. For instance, in September 2024, Schneider Electric introduced a tool to help building owners assess energy-saving measures and comply with carbon reduction regulations, supporting EU net-zero goals by 2030.
Segment Review
The decarbonization market is segmented into technology, end-use industry, and region. On the basis of technology, the market is divided into renewable energy technologies, carbon capture and storage (CCS) technologies, energy storage technologies, smart grid technologies, and others. On the basis of end-use industry, the market is classified into automotive & transportation, oil & gas, energy & utility, aerospace & defense, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings:
On the basis of technology, the renewable energy technologies segment accounted for more than three-fifth of the market share in 2023 and is expected to maintain its dominance during the forecast period.
On the basis of end-use industry, the oil and gas segment accounted for more than one-fourth of the market share in 2023 and is expected to maintain its dominance during the forecast period.
Region-wise, North America dominated the global decarbonization market in 2023.
Competition Analysis
Key players in the decarbonization market include Air Liquide, Nippon Yusen Kabushiki Kaisha, ZF Friedrichshafen, Siemens AG, Vestas Wind Systems A/S, Isometrix, Atos SE, Schneider Electric SE, Tesla Inc, and General Electric Company.
Key Benefits for Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the decarbonization market analysis from 2023 to 2033 to identify the prevailing decarbonization market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the decarbonization market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global decarbonization market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Technology
Renewable Energy Technologies
Carbon Capture and Storage (CCS) Technologies
Energy Storage Technologies
Smart Grid Technologies
Others
By End-Use Industry
Automotive and Transportation
Oil and Gas
Energy and Utility
Aerospace and Defense
Others
By Region
North America
U.S.
Canada
Europe
Germany
UK
Spain
Italy
France
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
LAMEA
Brazil
Saudi Arabia
UAE
Rest of LAMEA
Key Market Players
Nippon Yusen Kabushiki Kaisha
Atos SE
Schneider Electric SE.
Isometrix
Tesla Inc
General Electric Company
Siemens A.G.
ZF Friedrichshafen AG
Air Liquide
Vestas Wind Systems A/SThe research methodology of the global market involves extensive primary and secondary research. Primary research includes about over 12 hours of interviews and discussion with a wide range of stakeholders, including upstream and downstream participants. The primary research typically is the bulk of our research efforts; however, coherently supported by extensive secondary research. Researchers have reviewed over 6,765 product literatures, industry releases, annual reports, and other such documents of key industry participants to obtain better market understanding and gain competitive intelligence. In addition, authentic industry journals, trade associations' releases,and government websites have also been reviewed for generating high-value industry insights.
Decarbonization refers to the process of reducing or eliminating carbon dioxide (CO₂) emissions, especially from human activities, to mitigate the impact of climate change. The primary goal of decarbonization is to lower the carbon footprint of energy production, industry, transportation, and other sectors that contribute to greenhouse gas emissions. It involves transitioning away from fossil fuels such as coal, oil, and natural gas toward cleaner, renewable energy sources such as solar, wind, hydro, and bioenergy. This process is essential for achieving net-zero emissions targets set by governments and organizations worldwide, ensuring long-term sustainability and energy security.
The growth in carbon pricing and emissions trading systems (ETS) drives the decarbonization market expansion, as it creates financial incentives for industries to reduce their carbon footprint. Carbon emissions through mechanisms such as carbon taxes and cap-and-trade programs, governments encourage businesses to invest in cleaner technologies, energy efficiency, and low-carbon alternatives. Emissions trading systems further facilitate market-based solutions by allowing companies to buy and sell carbon allowances, promoting cost-effective emission reductions. As more countries and regions adopt stringent carbon pricing policies, industries are compelled to accelerate their decarbonization efforts, driving demand for renewable energy, carbon capture solutions, and sustainable industrial practices to remain competitive and compliant with evolving regulations.
However, infrastructure and grid limitations pose significant challenges to the growth of the decarbonization market by restricting the integration and scalability of renewable energy sources. Many existing power grids were designed for centralized fossil-fuel-based generation and struggle to accommodate the variability of renewable energy, such as solar and wind. Inadequate transmission capacity, aging infrastructure, and insufficient energy storage solutions create bottlenecks, limiting the efficiency and reliability of clean energy distribution. In addition, the slow pace of grid modernization, regulatory hurdles, and high investment costs for upgrading infrastructure further hinder the widespread adoption of decarbonization technologies. Addressing these limitations requires substantial investment in smart grids, energy storage, and grid interconnections to enable a smooth transition to a low-carbon energy system, which hamper the decarbonization market growth.
On the other hand, investment in carbon capture, utilization, & storage (CCUS) creates significant opportunities for the decarbonization market by enabling industries to reduce their carbon emissions while continuing operations in hard-to-abate sectors. CCUS technology captures CO₂ from industrial processes and power generation, preventing it from entering the atmosphere and either storing it underground or utilizing it for applications such as enhanced oil recovery, synthetic fuels, or building materials. As governments and corporations strengthen their climate commitments, increasing financial support and policy incentives for CCUS drive innovation and scalability. Rise in integration of CCUS with hydrogen production, bioenergy, and direct air capture further enhances its role in achieving net-zero targets, making it a crucial component of global decarbonization strategies. For instance, in September 2024, Schneider Electric introduced a tool to help building owners assess energy-saving measures and comply with carbon reduction regulations, supporting EU net-zero goals by 2030.
Segment Review
The decarbonization market is segmented into technology, end-use industry, and region. On the basis of technology, the market is divided into renewable energy technologies, carbon capture and storage (CCS) technologies, energy storage technologies, smart grid technologies, and others. On the basis of end-use industry, the market is classified into automotive & transportation, oil & gas, energy & utility, aerospace & defense, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings:
On the basis of technology, the renewable energy technologies segment accounted for more than three-fifth of the market share in 2023 and is expected to maintain its dominance during the forecast period.
On the basis of end-use industry, the oil and gas segment accounted for more than one-fourth of the market share in 2023 and is expected to maintain its dominance during the forecast period.
Region-wise, North America dominated the global decarbonization market in 2023.
Competition Analysis
Key players in the decarbonization market include Air Liquide, Nippon Yusen Kabushiki Kaisha, ZF Friedrichshafen, Siemens AG, Vestas Wind Systems A/S, Isometrix, Atos SE, Schneider Electric SE, Tesla Inc, and General Electric Company.
Key Benefits for Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the decarbonization market analysis from 2023 to 2033 to identify the prevailing decarbonization market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the decarbonization market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global decarbonization market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Technology
Renewable Energy Technologies
Carbon Capture and Storage (CCS) Technologies
Energy Storage Technologies
Smart Grid Technologies
Others
By End-Use Industry
Automotive and Transportation
Oil and Gas
Energy and Utility
Aerospace and Defense
Others
By Region
North America
U.S.
Canada
Europe
Germany
UK
Spain
Italy
France
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
LAMEA
Brazil
Saudi Arabia
UAE
Rest of LAMEA
Key Market Players
Nippon Yusen Kabushiki Kaisha
Atos SE
Schneider Electric SE.
Isometrix
Tesla Inc
General Electric Company
Siemens A.G.
ZF Friedrichshafen AG
Air Liquide
Vestas Wind Systems A/SThe research methodology of the global market involves extensive primary and secondary research. Primary research includes about over 12 hours of interviews and discussion with a wide range of stakeholders, including upstream and downstream participants. The primary research typically is the bulk of our research efforts; however, coherently supported by extensive secondary research. Researchers have reviewed over 6,765 product literatures, industry releases, annual reports, and other such documents of key industry participants to obtain better market understanding and gain competitive intelligence. In addition, authentic industry journals, trade associations' releases,and government websites have also been reviewed for generating high-value industry insights.
Table of Contents
294 Pages
- CHAPTER 1: INTRODUCTION
- 1.1. Report description
- 1.2. Key market segments
- 1.3. Key benefits to the stakeholders
- 1.4. Research methodology
- 1.4.1. Primary research
- 1.4.2. Secondary research
- 1.4.3. Analyst tools and models
- CHAPTER 2: EXECUTIVE SUMMARY
- 2.1. CXO perspective
- CHAPTER 3: MARKET OVERVIEW
- 3.1. Market definition and scope
- 3.2. Key findings
- 3.2.1. Top impacting factors
- 3.2.2. Top investment pockets
- 3.3. Porter’s five forces analysis
- 3.3.1. Moderate bargaining power of suppliers
- 3.3.2. Moderate threat of new entrants
- 3.3.3. Moderate threat of substitutes
- 3.3.4. Moderate intensity of rivalry
- 3.3.5. Moderate bargaining power of buyers
- 3.4. Market dynamics
- 3.4.1. Drivers
- 3.4.1.1. Advancements in Renewable Energy Technologies
- 3.4.1.2. Rising Investments in Hydrogen & Alternative Fuels
- 3.4.2. Restraints
- 3.4.2.1. High Costs of Carbon Capture and Storage (CCS)
- 3.4.3. Opportunities
- 3.4.3.1. Growth of Green Hydrogen Economy
- 3.5. Value Chain Analysis
- 3.6. Regulatory Guidelines
- CHAPTER 4: DECARBONIZATION MARKET, BY TECHNOLOGY
- 4.1. Overview
- 4.1.1. Market size and forecast
- 4.2. Renewable Energy Technologies
- 4.2.1. Key market trends, growth factors and opportunities
- 4.2.2. Market size and forecast, by region
- 4.2.3. Market share analysis by country
- 4.3. Carbon Capture and Storage (CCS) Technologies
- 4.3.1. Key market trends, growth factors and opportunities
- 4.3.2. Market size and forecast, by region
- 4.3.3. Market share analysis by country
- 4.4. Energy Storage Technologies
- 4.4.1. Key market trends, growth factors and opportunities
- 4.4.2. Market size and forecast, by region
- 4.4.3. Market share analysis by country
- 4.5. Smart Grid Technologies
- 4.5.1. Key market trends, growth factors and opportunities
- 4.5.2. Market size and forecast, by region
- 4.5.3. Market share analysis by country
- 4.6. Others
- 4.6.1. Key market trends, growth factors and opportunities
- 4.6.2. Market size and forecast, by region
- 4.6.3. Market share analysis by country
- CHAPTER 5: DECARBONIZATION MARKET, BY END-USE INDUSTRY
- 5.1. Overview
- 5.1.1. Market size and forecast
- 5.2. Automotive and Transportation
- 5.2.1. Key market trends, growth factors and opportunities
- 5.2.2. Market size and forecast, by region
- 5.2.3. Market share analysis by country
- 5.3. Oil and Gas
- 5.3.1. Key market trends, growth factors and opportunities
- 5.3.2. Market size and forecast, by region
- 5.3.3. Market share analysis by country
- 5.4. Energy and Utility
- 5.4.1. Key market trends, growth factors and opportunities
- 5.4.2. Market size and forecast, by region
- 5.4.3. Market share analysis by country
- 5.5. Aerospace and Defense
- 5.5.1. Key market trends, growth factors and opportunities
- 5.5.2. Market size and forecast, by region
- 5.5.3. Market share analysis by country
- 5.6. Others
- 5.6.1. Key market trends, growth factors and opportunities
- 5.6.2. Market size and forecast, by region
- 5.6.3. Market share analysis by country
- CHAPTER 6: DECARBONIZATION MARKET, BY REGION
- 6.1. Overview
- 6.1.1. Market size and forecast By Region
- 6.2. North America
- 6.2.1. Key market trends, growth factors and opportunities
- 6.2.2. Market size and forecast, by Technology
- 6.2.3. Market size and forecast, by End-Use Industry
- 6.2.4. Market size and forecast, by country
- 6.2.4.1. U.S.
- 6.2.4.1.1. Market size and forecast, by Technology
- 6.2.4.1.2. Market size and forecast, by End-Use Industry
- 6.2.4.2. Canada
- 6.2.4.2.1. Market size and forecast, by Technology
- 6.2.4.2.2. Market size and forecast, by End-Use Industry
- 6.3. Europe
- 6.3.1. Key market trends, growth factors and opportunities
- 6.3.2. Market size and forecast, by Technology
- 6.3.3. Market size and forecast, by End-Use Industry
- 6.3.4. Market size and forecast, by country
- 6.3.4.1. Germany
- 6.3.4.1.1. Market size and forecast, by Technology
- 6.3.4.1.2. Market size and forecast, by End-Use Industry
- 6.3.4.2. UK
- 6.3.4.2.1. Market size and forecast, by Technology
- 6.3.4.2.2. Market size and forecast, by End-Use Industry
- 6.3.4.3. Spain
- 6.3.4.3.1. Market size and forecast, by Technology
- 6.3.4.3.2. Market size and forecast, by End-Use Industry
- 6.3.4.4. Italy
- 6.3.4.4.1. Market size and forecast, by Technology
- 6.3.4.4.2. Market size and forecast, by End-Use Industry
- 6.3.4.5. France
- 6.3.4.5.1. Market size and forecast, by Technology
- 6.3.4.5.2. Market size and forecast, by End-Use Industry
- 6.3.4.6. Rest of Europe
- 6.3.4.6.1. Market size and forecast, by Technology
- 6.3.4.6.2. Market size and forecast, by End-Use Industry
- 6.4. Asia-Pacific
- 6.4.1. Key market trends, growth factors and opportunities
- 6.4.2. Market size and forecast, by Technology
- 6.4.3. Market size and forecast, by End-Use Industry
- 6.4.4. Market size and forecast, by country
- 6.4.4.1. China
- 6.4.4.1.1. Market size and forecast, by Technology
- 6.4.4.1.2. Market size and forecast, by End-Use Industry
- 6.4.4.2. Japan
- 6.4.4.2.1. Market size and forecast, by Technology
- 6.4.4.2.2. Market size and forecast, by End-Use Industry
- 6.4.4.3. India
- 6.4.4.3.1. Market size and forecast, by Technology
- 6.4.4.3.2. Market size and forecast, by End-Use Industry
- 6.4.4.4. Australia
- 6.4.4.4.1. Market size and forecast, by Technology
- 6.4.4.4.2. Market size and forecast, by End-Use Industry
- 6.4.4.5. Rest of Asia-Pacific
- 6.4.4.5.1. Market size and forecast, by Technology
- 6.4.4.5.2. Market size and forecast, by End-Use Industry
- 6.5. LAMEA
- 6.5.1. Key market trends, growth factors and opportunities
- 6.5.2. Market size and forecast, by Technology
- 6.5.3. Market size and forecast, by End-Use Industry
- 6.5.4. Market size and forecast, by country
- 6.5.4.1. Brazil
- 6.5.4.1.1. Market size and forecast, by Technology
- 6.5.4.1.2. Market size and forecast, by End-Use Industry
- 6.5.4.2. Saudi Arabia
- 6.5.4.2.1. Market size and forecast, by Technology
- 6.5.4.2.2. Market size and forecast, by End-Use Industry
- 6.5.4.3. UAE
- 6.5.4.3.1. Market size and forecast, by Technology
- 6.5.4.3.2. Market size and forecast, by End-Use Industry
- 6.5.4.4. Rest of LAMEA
- 6.5.4.4.1. Market size and forecast, by Technology
- 6.5.4.4.2. Market size and forecast, by End-Use Industry
- CHAPTER 7: COMPETITIVE LANDSCAPE
- 7.1. Introduction
- 7.2. Top winning strategies
- 7.3. Product mapping of top 10 player
- 7.4. Competitive dashboard
- 7.5. Competitive heatmap
- 7.6. Top player positioning, 2023
- CHAPTER 8: COMPANY PROFILES
- 8.1. Air Liquide
- 8.1.1. Company overview
- 8.1.2. Key executives
- 8.1.3. Company snapshot
- 8.1.4. Operating business segments
- 8.1.5. Product portfolio
- 8.1.6. Business performance
- 8.2. Nippon Yusen Kabushiki Kaisha
- 8.2.1. Company overview
- 8.2.2. Key executives
- 8.2.3. Company snapshot
- 8.2.4. Operating business segments
- 8.2.5. Product portfolio
- 8.2.6. Business performance
- 8.3. ZF Friedrichshafen AG
- 8.3.1. Company overview
- 8.3.2. Key executives
- 8.3.3. Company snapshot
- 8.3.4. Operating business segments
- 8.3.5. Product portfolio
- 8.3.6. Business performance
- 8.4. Siemens A.G.
- 8.4.1. Company overview
- 8.4.2. Key executives
- 8.4.3. Company snapshot
- 8.4.4. Operating business segments
- 8.4.5. Product portfolio
- 8.4.6. Business performance
- 8.5. Isometrix
- 8.5.1. Company overview
- 8.5.2. Key executives
- 8.5.3. Company snapshot
- 8.5.4. Operating business segments
- 8.5.5. Product portfolio
- 8.6. Atos SE
- 8.6.1. Company overview
- 8.6.2. Key executives
- 8.6.3. Company snapshot
- 8.6.4. Operating business segments
- 8.6.5. Product portfolio
- 8.6.6. Business performance
- 8.6.7. Key strategic moves and developments
- 8.7. Schneider Electric SE.
- 8.7.1. Company overview
- 8.7.2. Key executives
- 8.7.3. Company snapshot
- 8.7.4. Operating business segments
- 8.7.5. Product portfolio
- 8.7.6. Business performance
- 8.7.7. Key strategic moves and developments
- 8.8. Tesla Inc
- 8.8.1. Company overview
- 8.8.2. Key executives
- 8.8.3. Company snapshot
- 8.8.4. Operating business segments
- 8.8.5. Product portfolio
- 8.8.6. Business performance
- 8.9. General Electric Company
- 8.9.1. Company overview
- 8.9.2. Key executives
- 8.9.3. Company snapshot
- 8.9.4. Operating business segments
- 8.9.5. Product portfolio
- 8.9.6. Business performance
- 8.10. Vestas Wind Systems A/S
- 8.10.1. Company overview
- 8.10.2. Key executives
- 8.10.3. Company snapshot
- 8.10.4. Operating business segments
- 8.10.5. Product portfolio
- 8.10.6. Business performance
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