Decarbonisation market to reach $4.7t by 2033

Thanks to the wider adoption of decarbonisation technologies in key industries, amongst others.

The global decabonisation market is projected to grow to $4.7t by 2033 from $2.2t in 2023, reflecting a compound annual growth rate of 8.1% from 2024 to 2033.

According to a new analysis by Allied Market Research, the expected growth is fuelled by increasing climate commitments, carbon pricing, and the adoption of advanced decarbonisation technologies across key industries.

“Governments around the world are implementing carbon taxes and cap-and-trade programs that financially reward companies for reducing emissions,” the report said.

Asia-Pacific leads the market expansion, whilst North America holds the largest current market share.

Despite the projected growth, the report warned that the decarbonisation market continues to face hurdles, specifically ageing infrastructure and limited grid capacity. Many existing power grids were built for centralised, fossil-fuel-based systems and are ill-equipped to handle the variability of renewables like solar and wind.

“To overcome these obstacles, massive investments in smart grids, storage technologies, and interconnected energy networks are urgently needed,” the company said.