The decarbonization service market involves a variety of solutions such as carbon footprint management, greenhouse gas reporting, carbon trading & offsets, air pollution management, renewable energy certificates, and others. Decarbonization services help organizations quantify, report, and reduce their carbon footprint through cost-effective and sustainable decarbonization solutions. They entail monitoring, reporting, and verifying an organization’s greenhouse gas emissions while also advising and executing emission reduction strategies. The global decarbonization service market is estimated to be valued at US$ 69.73 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the decarbonization service market are Schneider Electric, ENGIE, Siemens, AECOM, EDF, Johnson Controls, DNV, Honeywell International Inc., Carbon Clean Solutions Limited, The ERM International Group Limited, CarbonCure Technologies Inc., Ørsted A/S, and ABB. These key players are focusing on new service launches and partnerships to expand their global footprint.
The key opportunities in the decarbonization service market include increased outsourcing of carbon emission management by organizations, rising focus on becoming carbon neutral by 2050, and implementation of carbon pricing mechanisms globally. The companies operating in this market are also expanding their service offerings and global presence through acquisitions and collaborations to gain market share.
Globally, companies are expanding their decarbonization services to various regions including Asia Pacific, Europe, Middle East, and Africa. Government initiatives and policies regarding reduction of GHG emissions are also encouraging adoption of decarbonization services across industries worldwide. The companies are also exploring opportunities in emerging markets through partnerships with local players.
Market Drivers
One of the key drivers for decarbonization service market is the stringent government regulations and carbon reduction targets globally. Many countries and regions have committed to achieve net-zero emissions by 2050 which is driving demand for professional carbon management and decarbonization services from industries. The Paris Agreement and upcoming 15th Conference of Parties (COP15) are also expected to accelerate carbon mitigation efforts.
Market Restrains
High initial costs associated with deploying decarbonization solutions and services is one of the major challenges restraining the growth of this market. Mid-sized and small organizations may find it difficult to invest in advanced decarbonization technologies and services due to budget constraints. Availability of in-house expertise for carbon accounting is another factor limiting wider adoption of third-party decarbonization service providers.
Segment Analysis
The decarbonization service market can be segmented based on service type into carbon footprint management, carbon credit trading, carbon offsetting and climate risk and energy market assessment. Carbon footprint management is currently the dominating sub-segment owing to the rising demand for organizations to manage and reduce their carbon footprint. Carbon footprint management helps companies in quantifying, monitoring and reducing greenhouse gas emissions from their operations.
Global Analysis
Regionally, Europe is considered the fastest growing as well as dominating region in the decarbonization service market. The region has the presence of strict regulations related to carbon emission reductions which is driving the demand for decarbonization services in the region. Further, countries like Germany, UK and France are early adopters of renewable energy and emission reduction technologies contributing to the growth of the market. Asia Pacific is also estimated to witness significant growth due to the presence of large economies like China and India which are focused on reducing their carbon footprints through renewable energy integration and energy efficiency programs.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
