A new Green Market Revolution Forecast, 2023 To 2050 (Global) report from Forrester finds that the transition to a green economy represents a huge opportunity for businesses.
From 2023 to 2050, cumulative global green market revolution spending will total US$326 trillion. By 2030, annual green market revolution spending will reach US$8.1 trillion to capture 5.8% of global GDP ─ more than double its share in 2021.
This report divides green market revolution spending from 2023 to 2050 into the following categories:
How we get (us and goods) around (US$88 trillion). This is the category with the largest cumulative spending, and it will have the largest annual spending starting in 2039. Its share of annual green market spending will grow the fastest of any category — rising from 17% in 2022 to 35% in 2050. Electric car sales will account for most of the opportunity.
How we plug in (US$82 trillion). This category will have the largest annual spend through 2030 but growth will decelerate from 2030 to 2050. Driving this spend are cost and energy security.
How we make products (US$67 trillion). Almost 40% of the spending will flow to circular models of product creation and reuse in fashion, consumer electronics, and automobiles. Another 28% will focus on improvements in building design, engineering, and construction aimed at mitigating environmental harm.
How we heat and cool environments (US$24 trillion). Building operations are responsible for 28% of global carbon emissions. One way to reduce these emissions will be to optimise buildings’ heating and cooling — primarily by investing in energy-efficient equipment.
How we adapt (US$41 trillion). Of the cumulative spend, more than half will come from a portfolio of investments in negative emissions technologies. Forest-related negative emission technologies alone could generate US$800 billion in annual revenues by 2050.
What we eat (US$24 trillion). Changes around how we eat will be crucial for increasing the food output necessary to feed a growing global population while also reducing carbon emissions and water usage. Forrester also estimates that agricultural technology will be a US$2 trillion opportunity from 2020 to 2050.
Forrester’s forecast further finds that reducing carbon emissions, increasing access to green products, and government policies that promote a greener economy will all drive the green market opportunity for businesses.