India Environmental Technology Market Outlook to 2028

India Environmental Technology Market Overview

The India Environmental Technology Market was valued at USD 23 billion in 2023, driven by increasing environmental regulations, technological advancements, and rising awareness of sustainable practices.

Tata Projects, Thermax Limited, Siemens India, Suez India, and VA Tech Wabag are the major players in the Indian environmental technology market. These companies have an impact on the market due to their extensive experience and innovative solutions in addressing environmental challenges.

The launch of the Clean Ganga initiative, received a substantial boost with the Indian government allocating a total financial outlay of INR 22,500 crore for its Phase II from 2021 to 2026 under the Namami Gange Programme, which is part of the broader Clean Ganga initiative. This initiative aims to rejuvenate the Ganges River and improve the ecosystem, thereby enhancing the demand for advanced water treatment and pollution control technologies.

In 2023, the Western region’s dominance is primarily due to the industrial activities and the presence of major cities like Mumbai and Pune, which are actively adopting advanced environmental technologies.

India Environmental Technology Market Segmentation

India's environmental technology market is segmented into product type, application, and region.

By Product Type: The Indian environmental technology market is segmented by product type into pollution control, waste management, renewable energy, and water treatment. In 2023, pollution control technologies hold the dominant market share due to stringent environmental regulations and the increasing need for industries to comply with emission standards.

By Application: The market is segmented by application into industrial, residential, and commercial sectors. In 2023, the industrial sector has the largest market share due to the high demand for pollution control and waste management solutions. This includes sectors identified as highly polluting, such as iron and steel, pharmaceuticals, and thermal power plant.

By Region: The Indian environmental technology market is segmented by region into North, South, East, and West. In 2023, the Western region, particularly Maharashtra, holds the dominant market share due to its high industrialization and proactive environmental policies.

India Environmental Technology Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Tata Projects

1979

Mumbai

Thermax Limited

1966

Pune

Siemens India

1922

Mumbai

Suez India

1858

New Delhi

VA Tech Wabag

1924

Chennai

Tata: Tata Power, a subsidiary of the Tata Group, has been actively expanding its solar energy capacity as part of its commitment to renewable energy. In 2023, Tata Power announced a significant investment of INR 60,000 crore over three years, with a focus on renewable energy, particularly solar power. They are also expanding their solar energy capacity, including setting up a 41 MW captive solar plant in Tamil Nadu.

Suez India: Suez India has been awarded contracts for two major water projects: a wastewater treatment plant in Okhla, which will have a capacity of 564,000 m³/day and is set to remove substantial organic and solid pollutant loads from the Yamuna River, and a water distribution project in Mangalore, valued at 72 million euros, which aims to ensure a 24/7 water supply for the city's 550,000 inhabitants. These initiatives reflect Suez's commitment to addressing the growing demand for clean water and effective waste management solutions in Indian cities.

India Environmental Technology Market Analysis

India Environmental Technology Market Growth Drivers:

Corporate Sustainability Initiatives: Infosys achieved carbon neutrality in 2020, 30 years ahead of the Paris Agreement timeline, and has maintained it for three consecutive years as of fiscal year 2022. The company has reduced its Scope 1 and 2 greenhouse gas emissions by 48.9% over the business-as-usual scenario, aiming for a 75% reduction by 2030. Infosys has also achieved a 78.5% reduction in absolute Scope 3 emissions compared to the 2020 baseline, with a goal of a 30% reduction by 2030. The company's carbon offset program, which includes community-based projects generating carbon credits, has been instrumental in achieving these sustainability milestones and aligning with its ESG Vision 2030 goals.

Increased Urbanization and Infrastructure Development: The Indian government's planned USD 50 billion investment in urban infrastructure by 2024, including the Smart Cities Mission, presents significant growth opportunities for the environmental technology market. With India's urban population projected to reach 600 million by 2031, there is an increasing demand for efficient solutions to manage 62 million tons of solid waste generated annually by cities. This favorable market environment creates substantial opportunities for environmental technology companies.

Foreign Direct Investment (FDI) Inflows: The environment-tech sector in India has raised $7.3 billion in total funding to date, with substantial growth in funding between 2018 and 2022, surging from $0.23 billion to $2.47 billion. However, funding experienced a decline to $1.68 billion in 2023, a 32% decrease from 2022.

India Environmental Technology Market Challenges:

Increasing Dependence on Imported Environmental Technology: In 2020, India's total imports of environmental technology equipment amounted to $931 million, with $106 million of that coming from the United States. This indicates a growing demand for advanced environmental solutions in India, as the country seeks to address its significant environmental challenges. The influx of imported technology not only enhances local capabilities but also brings global expertise.

Lack of Skilled Workforce: The environmental technology sector requires a skilled workforce to operate and maintain sophisticated systems. In 2024, it was estimated that there is a shortage of around 50,000 qualified professionals in this field, which hampers the effective implementation and management of these technologies.

India Environmental Technology Market Government Initiatives:

National Green Hydrogen Mission: Launched in 2023 with an investment of USD 2 billion, the National Green Hydrogen Mission aims to position India as a global hub for green hydrogen production. This initiative is expected to reduce carbon emissions by 1.5 million tons annually by 2030, driving the adoption of related environmental technologies.

Swachh Bharat Mission Extension: The Union Cabinet has approved ₹30,980.20 crore in funding for the second phase of the Swachh Bharat Mission-Urban (SBM-U 2.0), which is set to be implemented from 2021 to 2026, aiming to enhance sanitation and solid waste management across urban areas in India.

India Environmental Technology Future Market Outlook

India's environmental technology market is expected to grow in the coming years. The market is also likely to shift towards more organized with established players and online platforms expanding their reach.

India Environmental Technology Future Market Trends

Adoption of AI and Machine Learning: By 2028, the adoption of AI and machine learning technologies is expected to revolutionize the environmental technology market. These technologies will enable predictive maintenance of pollution control systems and optimize waste management processes, enhancing operational efficiency and reducing costs.

Development of Circular Economy Practices: By 2028, the Indian government and major corporations are expected to invest heavily in circular economy practices. In 2024, the government allocated USD 1 billion, and corporations like Tata Steel and Hindustan Unilever committed USD 700 million to drive innovative recycling and waste management technologies, enhancing resource efficiency and sustainability across industries.
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