The market size for climate tech in India and Southeast Asia will hit US$102 billion in 2023 and is expected to grow significantly, reaching US$350 billion by 2030 at about 20 per cent annually, according to a new study.
In 2022, global climate tech investments exceeded US$70 billion, nearly doubling the previous year’s record, with Southeast Asia and India contributing a seven per cent share.
The study titled The Essence of Climate Tech for India and Southeast Asia was conducted by leading VC firms Golden Gate Ventures and Venture East.
The report defines climate tech as various sectors aiming to reduce global carbon emissions, particularly achieving net-zero emissions. It predicts that the market size for climate tech in India and Southeast Asia will hit US$102 billion in 2023 and is expected to grow significantly, reaching US$350 billion by 2030 at about 20 per cent annually.
Delving into past successes in Clean Tech 1.0, the study sheds light on the importance of asset-light models distinguished by technological innovation, capital efficiency, swift iteration cycles, and a heightened probability of securing subsequent capital.
The report emphasizes the immediacy of the present scenario, attributing the increased adoption of climate tech to the evident effects of climate change, proactive government policies, and a rising number of private institutions committing to achieving net zero.
Furthermore, advancements in key technologies, such as an 89 per cent reduction in solar electricity costs and a 70 per cent decrease in onshore wind costs from 2009 to 2019, contribute to the increasing viability of climate tech solutions.
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In India and SEA, regulators are driving the adoption of electric mobility, disrupting the traditional automotive market, while the escalating demand for battery technology mirrors the growth of the electric vehicle market, offering promising prospects in the region.
The report explores market regulations, consumption trends, and growth prospects in two-wheeler and light commercial vehicle sectors while also spotlighting regional opportunities in battery management software, recycling materials extraction, and second-life applications aligned with government incentives for battery production and recycling.
Inefficiencies in SEA’s agriculture value chain create opportunities in the underserved US$50 billion agritech market, addressing agricultural inputs, environmentally efficient B2B market linkages, and farm advisory services.
With agriculture contributing 10 per cent to SEA’s GDP and employing over 20 per cent of the population, the sector is under increasing pressure for efficiency and sophistication in response to climate change, and policy support and technological advancements position SEA’s agritech for significant growth.
The report’s central theme highlights a growing demand for increased sophistication in sustainability accounting, electric mobility, and agritech — identifying these sectors as the green gold of India and Southeast Asia for the next decade.
Read the full report here.
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