June, 2026 - Green technology and sustainability industry around the world is experiencing a major change in the way that governments, industries and companies are tackling their efforts to decarbonise. Due to growing pressure on account of global warming and more stringent regulations, businesses and governments are searching for ways to increase efficiencies and decrease emissions, which can be done through sustainability technology. Technologies like digital systems, IoT platform, AI analysis and carbon capture form the heart of this revolution. Such technologies help companies to track, manage and control environmental impacts in ways that were not possible with traditional compliance methods.
This trend is emerging because of the pressure generated through binding emission reduction commitments, corporate climate pledges, and high-performance computing systems on energy efficiency and carbon management. Rather than perceiving sustainability as a burden of compliance cost, governments and firms have opted to go for integration of information technology and sustainable technology to realize decarbonization on a large scale. The expansion of regulatory regimes by the national governments and capacity building by technology suppliers is a clear indication of the importance of sustainable technology for future industrial road maps.
Among the most significant developments, the Science Based Targets initiative (SBTi) announced in January 2026 that it had surpassed 10,000 companies with validated science-based targets globally, highlighting the growing adoption of corporate climate action and net-zero strategies worldwide. The milestone demonstrates how sustainability commitments are becoming increasingly embedded within long-term business planning and investment decisions across industries.
It should be pointed out that apart from targeting, companies' strategy consists of increasing investments into technologies that will support sustainability. The modern world has become complex regarding climate issues, so the technological potential plays a very important role as well.
In June 2026, the Science Based Targets initiative issued their new Corporate Net-Zero Standard, acknowledging that carbon removal must be an integral part of a pathway to net-zero in addition to deep emission reductions. The Carbon Business Council, composed of over 100 organizations involved in carbon management, praised this move, asserting that the standard offers guidance on how corporations should engage in carbon removal and is useful for justifying corporate investments as well as long-term procurements.
On the other hand, there have been some efforts by the other major players to catch up. Some major industry players like Siemens, Schneider Electric, IBM, General Electric, and SAP are setting trends with AI-enabled energy optimization, digital twins, and full-blown ESG analytics solutions. Siemens is one such company that provides platforms for real-time sustainability analytics and intelligent automation for heavy industries. The EcoStruxure platform of Schneider Electric helps in automated carbon tracking and emissions optimization, whereas the Envizi ESG Suite and IT Sustainability Optimisation Assessment solutions of IBM help in sustainability reporting and efficiency of IT systems.
In addition to traditional competitors, innovative firms like Climeworks, a Switzerland-based carbon capture firm ranked second on Time magazine’s Top Greentech Companies list of 2025, has developed third-generation carbon capture technology that captures twice the amount of CO₂ per module and sells carbon credits to 160 companies like Microsoft, JPMorgan Chase, and Shopify. Other innovative players include Watershed, Persefoni, Clarity AI, Normative, and Sweep, who provide services in carbon accounting and ESG compliance.
This rise in demand for sustainability technologies is due to the changing approach of the governments and enterprises for the design of economic and industrial systems. These sustainability technologies involve solutions in different areas such as green building, carbon footprint management, weather prediction, air and water pollution monitoring, forests and crops management, soil analysis, and water purification. However, the role of IoT and AI technologies is crucial since they provide monitoring, analysis, and optimization abilities necessary for environmental management and emission reductions.
In terms of technologies, the IoT market segment accounted for the biggest contribution to the market in 2025. The share of this segment was about 34.8% or USD 10.14 billion. It could be explained by the fact that connected sensors and monitoring tools have become the dominant technology for real-time data gathering and industrial optimization.
AI and analytics accounted for approximately 28.2% of total revenue in 2025 with a market valuation of USD 8.21 billion. Technologies such as machine learning for energy optimization, predictive maintenance, and emissions modeling have been implemented on a large scale since 2020, bringing great efficiency and cost-saving advantages in all industries.
The cloud computing segment comprised approximately 16.3% of market share in 2025, having a valuation of USD 4.75 billion as the movement towards sustainable data and analytics migrated into cloud platforms is becoming more popular among enterprises. Digital twins technology made up for approximately 8.5% of the market with the value of USD 2.48 billion; security and blockchain segments comprised 7.2% and 5.0% of market share respectively.
High performance computing and data centers led the way among applications with around 28% of total revenue because of high energy consumption and the need to manage their carbon footprint. Right after HPC came industrial manufacturing applications that comprised approximately 24% of total revenue, showing the fastest growth in comparison with all other segments due to increased demand for energy efficiency and emissions control.
Building automation accounted for 18% of the total revenue share in 2025, driven by such trends as smart city initiatives and green buildings, while transportation and logistics was estimated at 12%. As per end users, enterprises, which included manufacturing companies, technology providers, and commercial real estate developers like General Electric, IBM, Microsoft, and Johnson Controls International, were the leading end user verticals in 2025, holding about 41.2% of the market share, due to higher demand as compared to supply of integrated sustainability platforms. Government and public sectors followed at about 23.6%, and IT and telecommunication providers were at around 16.4%, and are expected to grow at a particularly strong rate with increased expenditure on hyperscale data centres sustainability.
Another vertical segment included aerospace and defense organizations that amounted to about 5.1% of the market in 2025. Sustainability solutions are implemented in aerospace and defense organizations in fuel-efficient aircraft systems, sustainable aviation fuel, and emissions monitoring for military facilities. Despite low adoption volumes, driven by prolonged qualification period of the solutions, rising investments in the modernization of the defense sector in North America, Europe, and Asia Pacific are expected to drive gradual growth of this segment through 2032.
North America dominated in terms of market shares in 2025 at about 39.26%, backed by the presence of existing technological infrastructures and increasing demands for the service from corporates and governmental bodies, along with stringent regulations of the US and Canada. The Asia-Pacific region ranked next in terms of growth rates due to increasing market shares and fast industrialization and environmental regulations in countries such as China, India, and Japan.
According to Quintile Reports analysts, sustainability technologies are rapidly evolving from compliance tools into strategic business platforms that improve operational efficiency, reduce emissions, and support long-term corporate resilience.
Looking forward, the need for sustainability technologies will continue since the world is witnessing a transition towards decarbonization and efficiency in the economy. As the climate crisis worsens and regulations become more stringent, sustainability technologies will increasingly play the role of the main driver of efficiency and competitive advantage, rather than being an additional element.
More spending on renewables, the development of more green buildings and sustainable infrastructures, as well as attention to the concept of circular economy and traceability in the supply chains will add pressure to technology capabilities. However, initiatives, such as the US Inflation Reduction Act, the European Green Deal, and India's National Green Hydrogen Mission as well as the Carbon Credit Trading Scheme by governments will ensure that sustainability technologies will be easier to access in addition to the leading regions in terms of environmental innovation, namely North America and Europe.
Chaitali Diwase is an MBA candidate and Market Research Intern at Quintile Reports. Her work focuses on researching market developments, industry trends, competitive landscapes and content creation across various sectors. Her work includes preparing research-driven articles and press releases, which are reviewed by the Quintile Reports Research Team prior to publication.
Reviewed By: Quintile Reports Research Team
June, 2026 - Green technology and sustainability industry around the world is experiencing a major change in the way that governments, industries and companies are tackling their efforts to decarbonise. Due to growing pressure on account of global warming and more stringent regulations, businesses and governments are searching for ways to increase efficiencies and decrease emissions, which can be done through sustainability technology. Technologies like digital systems, IoT platform, AI analysis and carbon capture form the heart of this revolution. Such technologies help companies to track, manage and control environmental impacts in ways that were not possible with traditional compliance methods.
This trend is emerging because of the pressure generated through binding emission reduction commitments, corporate climate pledges, and high-performance computing systems on energy efficiency and carbon management. Rather than perceiving sustainability as a burden of compliance cost, governments and firms have opted to go for integration of information technology and sustainable technology to realize decarbonization on a large scale. The expansion of regulatory regimes by the national governments and capacity building by technology suppliers is a clear indication of the importance of sustainable technology for future industrial road maps.
Among the most significant developments, the Science Based Targets initiative (SBTi) announced in January 2026 that it had surpassed 10,000 companies with validated science-based targets globally, highlighting the growing adoption of corporate climate action and net-zero strategies worldwide. The milestone demonstrates how sustainability commitments are becoming increasingly embedded within long-term business planning and investment decisions across industries.
It should be pointed out that apart from targeting, companies' strategy consists of increasing investments into technologies that will support sustainability. The modern world has become complex regarding climate issues, so the technological potential plays a very important role as well.
In June 2026, the Science Based Targets initiative issued their new Corporate Net-Zero Standard, acknowledging that carbon removal must be an integral part of a pathway to net-zero in addition to deep emission reductions. The Carbon Business Council, composed of over 100 organizations involved in carbon management, praised this move, asserting that the standard offers guidance on how corporations should engage in carbon removal and is useful for justifying corporate investments as well as long-term procurements.
On the other hand, there have been some efforts by the other major players to catch up. Some major industry players like Siemens, Schneider Electric, IBM, General Electric, and SAP are setting trends with AI-enabled energy optimization, digital twins, and full-blown ESG analytics solutions. Siemens is one such company that provides platforms for real-time sustainability analytics and intelligent automation for heavy industries. The EcoStruxure platform of Schneider Electric helps in automated carbon tracking and emissions optimization, whereas the Envizi ESG Suite and IT Sustainability Optimisation Assessment solutions of IBM help in sustainability reporting and efficiency of IT systems.
In addition to traditional competitors, innovative firms like Climeworks, a Switzerland-based carbon capture firm ranked second on Time magazine’s Top Greentech Companies list of 2025, has developed third-generation carbon capture technology that captures twice the amount of CO₂ per module and sells carbon credits to 160 companies like Microsoft, JPMorgan Chase, and Shopify. Other innovative players include Watershed, Persefoni, Clarity AI, Normative, and Sweep, who provide services in carbon accounting and ESG compliance.
This rise in demand for sustainability technologies is due to the changing approach of the governments and enterprises for the design of economic and industrial systems. These sustainability technologies involve solutions in different areas such as green building, carbon footprint management, weather prediction, air and water pollution monitoring, forests and crops management, soil analysis, and water purification. However, the role of IoT and AI technologies is crucial since they provide monitoring, analysis, and optimization abilities necessary for environmental management and emission reductions.
In terms of technologies, the IoT market segment accounted for the biggest contribution to the market in 2025. The share of this segment was about 34.8% or USD 10.14 billion. It could be explained by the fact that connected sensors and monitoring tools have become the dominant technology for real-time data gathering and industrial optimization.
AI and analytics accounted for approximately 28.2% of total revenue in 2025 with a market valuation of USD 8.21 billion. Technologies such as machine learning for energy optimization, predictive maintenance, and emissions modeling have been implemented on a large scale since 2020, bringing great efficiency and cost-saving advantages in all industries.
The cloud computing segment comprised approximately 16.3% of market share in 2025, having a valuation of USD 4.75 billion as the movement towards sustainable data and analytics migrated into cloud platforms is becoming more popular among enterprises. Digital twins technology made up for approximately 8.5% of the market with the value of USD 2.48 billion; security and blockchain segments comprised 7.2% and 5.0% of market share respectively.
High performance computing and data centers led the way among applications with around 28% of total revenue because of high energy consumption and the need to manage their carbon footprint. Right after HPC came industrial manufacturing applications that comprised approximately 24% of total revenue, showing the fastest growth in comparison with all other segments due to increased demand for energy efficiency and emissions control.
Building automation accounted for 18% of the total revenue share in 2025, driven by such trends as smart city initiatives and green buildings, while transportation and logistics was estimated at 12%. As per end users, enterprises, which included manufacturing companies, technology providers, and commercial real estate developers like General Electric, IBM, Microsoft, and Johnson Controls International, were the leading end user verticals in 2025, holding about 41.2% of the market share, due to higher demand as compared to supply of integrated sustainability platforms. Government and public sectors followed at about 23.6%, and IT and telecommunication providers were at around 16.4%, and are expected to grow at a particularly strong rate with increased expenditure on hyperscale data centres sustainability.
Another vertical segment included aerospace and defense organizations that amounted to about 5.1% of the market in 2025. Sustainability solutions are implemented in aerospace and defense organizations in fuel-efficient aircraft systems, sustainable aviation fuel, and emissions monitoring for military facilities. Despite low adoption volumes, driven by prolonged qualification period of the solutions, rising investments in the modernization of the defense sector in North America, Europe, and Asia Pacific are expected to drive gradual growth of this segment through 2032.
North America dominated in terms of market shares in 2025 at about 39.26%, backed by the presence of existing technological infrastructures and increasing demands for the service from corporates and governmental bodies, along with stringent regulations of the US and Canada. The Asia-Pacific region ranked next in terms of growth rates due to increasing market shares and fast industrialization and environmental regulations in countries such as China, India, and Japan.
According to Quintile Reports analysts, sustainability technologies are rapidly evolving from compliance tools into strategic business platforms that improve operational efficiency, reduce emissions, and support long-term corporate resilience.
Looking forward, the need for sustainability technologies will continue since the world is witnessing a transition towards decarbonization and efficiency in the economy. As the climate crisis worsens and regulations become more stringent, sustainability technologies will increasingly play the role of the main driver of efficiency and competitive advantage, rather than being an additional element.
More spending on renewables, the development of more green buildings and sustainable infrastructures, as well as attention to the concept of circular economy and traceability in the supply chains will add pressure to technology capabilities. However, initiatives, such as the US Inflation Reduction Act, the European Green Deal, and India's National Green Hydrogen Mission as well as the Carbon Credit Trading Scheme by governments will ensure that sustainability technologies will be easier to access in addition to the leading regions in terms of environmental innovation, namely North America and Europe.
Chaitali Diwase is an MBA candidate and Market Research Intern at Quintile Reports. Her work focuses on researching market developments, industry trends, competitive landscapes and content creation across various sectors. Her work includes preparing research-driven articles and press releases, which are reviewed by the Quintile Reports Research Team prior to publication.
Reviewed By: Quintile Reports Research Team
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