April 21, 2024

Rising climate change concerns to boost the growth of the Global Decarbonization Service Market

 

Market Overview:
Decarbonization services help organizations reduce their carbon emissions by providing emission measurement, reporting solutions, and carbon offsets. Some key decarbonization services include energy optimization, renewable energy procurement, carbon accounting and reporting, climate strategy development, and carbon credit development. With growing cognizance regarding the detrimental impacts of climate change, decarbonization services are gaining prominence worldwide as they enable companies and governments to transition to net-zero emissions.

The global Decarbonization Service Market is estimated to be valued at US$ 69.73 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the decarbonization service market is the increasing adoption of renewable energy sources. As renewable energy production continues to climb worldwide, decarbonization service providers are helping more enterprises procure electricity from emissions-free sources like solar, wind and hydro. Another key trend is the rising deployment of energy efficiency projects. Several decarbonization companies offer energy audits and implement solutions like LED lighting upgrades, building management systems and waste heat recovery units to reduce energy consumption and switch to cleaner fuels. Governments across regions are also formulating long-term emissions reduction targets and carbon pricing policies, driving greater demand for decarbonization planning and advisory services.

Porter’s Analysis
Threat of new entrants: Entering the decarbonization service market requires high initial capital investment for assets, infrastructure, technology and skilled workforce which makes the threat of new entrants in this market relatively low.
Bargaining power of buyers: The decarbonization service market has a large number of buyers including government organizations, utility companies and large corporations which gives them higher bargaining power against service providers in pricing and contracts.
Bargaining power of suppliers: Majority of suppliers in this market provide specialized consulting, technology and machinery required to provide decarbonization services. This makes their bargaining power against buyers moderate.
Threat of new substitutes: There is a moderate threat of substitutes as renewable energy and other green technologies continue to emerge and compete with decarbonization services by providing alternative solutions to reduce carbon footprint.
Competitive rivalry: The decarbonization service market witnesses high competition among existing global players due to their technology expertise and wider regional presence.

Key Takeaways

The global decarbonization service market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing regulatory push for carbon emission reduction targets globally.

Regional analysis: North America dominates the decarbonization service market currently with the largest share owing to stricter environmental policies and higher carbon reduction commitments in the US and Canada. Asia Pacific is expected to grow at fastest pace during the forecast period due to rapid industrialization and infrastructure development in China and India.

Key players: Schneider Electric, ENGIE, Siemens, AECOM, EDF, Johnson Controls, DNV, Honeywell International Inc. These players operate with extensive experience and are investing heavily in technological advancements to provide innovative decarbonization solutions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it