Market Trends of Sustainability Consulting Services Industry
Energy and Power to be the Largest End User Segment
- The energy and power industries are experiencing a substantial change toward cleaner and more sustainable energy sources. This shift comprises using renewable energy technologies such as solar, wind, and hydropower and exploring alternatives such as nuclear energy and energy storage.
- The changing renewable energy landscape, decarbonization, climate change measures, plant digitalization, energy storage, IIoT, smart grids, and the need for flexible energy assets are driving this transformation. This raises the demand for climate change consulting services in the energy and power sectors, which will help to minimize greenhouse gas emissions.
- About USD 2.8 trillion is set to be invested globally in energy in 2023, of which more than USD 1.7 trillion is expected to go to clean technologies - including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements, and heat pumps - according to the IEA’s latest World Energy Investment report.
- Many countries worldwide are implementing many initiatives to encourage the use of environmental consulting services in the energy sector. Companies in these sectors work diligently to offer appropriate environmental consulting services.
- The growing energy investment in clean energy is expected to drive sustainable consulting services in the energy and power segment. According to IEA, the global energy investment in clean energy grew from USD 1.22 trillion in 2019 to USD 1.62 trillion in 2022 and is expected to reach USD 1.74 trillion by the end of 2023.
- As a result, climate change consultants provide expertise in analyzing the environmental impact of new technologies, assisting businesses in navigating regulatory frameworks and designing plans to meet sustainability goals.
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North America Expected to Hold Significant Market Share
- The growth of the sustainability consulting services market in North America is influenced by increasing awareness of environmental issues, corporate emphasis on sustainability, and regulatory developments promoting green practices. Companies are seeking to integrate sustainable practices into their operations to contribute to the market’s expansion. The growing recognition of the long-term benefits of sustainability is driving organizations to seek consulting services for effective implementation and reporting.
- The United States announced the launch of the Net-Zero Government Initiative during the 2022 United Nations Climate Change Conference of the Parties (COP27), inviting governments to lead and achieve net-zero emissions from national government operations by 2050.
- The rising amount of greenhouse gas emissions due to transportation, gas and oil production, electricity generation, and buildings is one of the significant factors driving climate change in Canada, which is expected to drive the country's sustainable climate change consulting market further.
- Vendors in the country are rapidly turning to climate change consultants to help develop and implement strategies to reduce their greenhouse emissions and adapt to the impacts of climate, seizing new business opportunities in the low-carbon economy. For instance, in May 2023, SWCA Environmental Consultants, a leading environmental consulting firm in the United States, acquired ALO Advisors LLC, an international management consulting firm focused on sustainability advisory services for clients throughout a wide range of industries. ALO Advisors helps clients design and deploy sustainability strategies, initiatives, and investments that simultaneously create business value and positive environmental and social impacts.
- Global professional services firm Accenture announced the acquisition of decarbonization strategy-focused consultancy Green Domus, the latest in a string of sustainability-related transactions by the company. The acquisition will bring solutions for clients to help embed carbon data and insights into decision-making.
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