Global Market for Sustainable Manufacturing Estimated to Grow to More Than $150 Billion by 2033
Esoteric sustainability goals in annual reports will no longer suffice; Regulations and mandates remain a key market driver
A new report from Guidehouse Insights analyzes major trends in sustainable manufacturing.
As climate change accelerates and governments around the world grow more serious about reducing greenhouse gas (GHG) emissions, manufacturers are realizing that esoteric sustainability goals in annual reports will no longer suffice. According to a new report from Guidehouse Insights, the global market for investment in industrial internet of things (IIoT), industrial renewables, power purchase agreements (PPAs), and carbon capture, utilization, and sequestration techniques (CCUS) in manufacturing will approach $62.0 billion in 2024 and grow at a compound annual growth rate (CAGR) of 10.4% over the next decade, reaching $150.8 billion in 2033—a 143% overall increase.
“Conceptually, sustainable manufacturing is not complicated. Manufacturers can make their factories greener in numerous ways,” says Richelle Elberg, principal research analyst with Guidehouse Insights. “However, the devil is in the details, and the industrial world remains far from achieving truly sustainable manufacturing. The costs and complexity involved in upgrading 20th century facilities remain significant barriers to broader deployment of sustainability solutions in manufacturing worldwide, but increasingly, government mandates and end-user demand are driving executives in manufacturing verticals to acknowledge the writing on the wall.”
Sustainability in manufacturing is quickly moving from a “nice to have” to a table stake in the highly competitive global industrial marketplace. Forward-thinking manufacturers are not only accelerating efforts to become more sustainable but are also increasingly demanding the same of suppliers and other participants in the value chain, according to the report.
The report, Sustainable Manufacturing, analyzes major trends in sustainable manufacturing and projected investment in four key technology areas that will be core to rendering industrial processes more sustainable: digitalization and IIoT technologies; increased renewables capacity through on-premises facilities; increased renewables capacity via PPAs; and CCUS. The report provides an overview of circular economy and recycling methodologies and describes numerous lean manufacturing principles. Finally, it projects global investments in core sustainable manufacturing technology segments by region and technology from 2024 through 2033. An executive summary of the report is available for free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Sustainable Manufacturing, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.