Geoengineering Market

Geoengineering Market Outlook (2023 to 2033)

According to Future Market Insights, the global geoengineering market size has reached US$ 11.0 Billion in 2018. Demand for geoengineering recorded Y-o-Y growth of 15.5% in 2022, and thus, the global market is expected to reach US$ 23.9 Billion in 2023. Over the projection period 2023-2033, geoengineering solutions sales in the region are projected to exhibit 18.7% CAGR and total a market size of US$ 133.2 Billion by 2033-end.

The market growth is being propelled by notable need to address climate change and global warming. Rising greenhouse gas emissions and associated environmental changes have prompted the exploration of innovative solutions, including geoengineering, to mitigate the effects of climate change.

As geoengineering technologies continue to advance and demonstrate their value across industries, the market is expected to grow further, with new applications and use cases emerging in the future.

Other Drivers Propelling the Demand for Geoengineering include:

• Developments in aerosol delivery systems, direct air capture, and carbon storage technologies have increased the potential for large-scale deployment of certain geoengineering approaches.
• Ongoing scientific research and assessment of geoengineering approaches have contributed to understanding their potential benefits and risks.
• The growing recognition of the importance of addressing climate change at the policy and regulatory levels has prompted discussions around the potential role of geoengineering.
• Public awareness and perception of climate change and geoengineering play a role in driving market dynamics.

Challenges for Companies /Manufacturers in the Geoengineering Market:

• Geoengineering models can mitigate the risk of warming of planet but too much of geoengineering can affect the crop health and quality due its application of cooling the earth surface.
• There are uncertainties regarding their effectiveness, potential side effects, and long-term impacts on ecosystems, weather patterns, and regional climates.
• Implementing large-scale geoengineering interventions can carry significant environmental and ecological risks.
• Geoengineering raises a range of ethical and social concerns.

Opportunities in the Geoengineering Industry:

• Geoengineering has the potential to mitigate climate change impacts by proactively eliminating greenhouse gases present in the atmosphere or decreasing the quantity of solar radiation reaching the surface of the planet.
• Some geoengineering approaches, such as afforestation or ecosystem restoration, can contribute to ecological rehabilitation and restoration efforts.
• Geoengineering requires advancements in scientific and technical fields; this will foster innovation, research, and development in areas such as carbon capture and storage, atmospheric science, and engineering.
• Research in this field can lead to advancements in atmospheric science, climate modeling, and the assessment of environmental impacts.

Latest Trends in the Geoengineering Market:

• Solar radiation management, particularly the use of stratospheric aerosol injection to reflect sunlight, has been a significant focus of research.
• There has been increasing interest in carbon removal technologies, including direct air capture (DAC) and enhanced weathering.
• International discussions and policy debates around the governance and regulation of geoengineering have been gaining momentum.
• Some small-scale field trials and experiments have been conducted to assess the feasibility and potential impacts of certain geoengineering techniques.

2018 to 2022 Geoengineering Demand Outlook Compared to 2023 to 2033 Forecast

From 2018 to 2022, the global geoengineering market experienced a CAGR of 18.7%, reaching a market size of US$ 23.9 Billion in 2023.

From 2018 to 2022, the global geoengineering industry witnessed inclined growth due to the rising awareness of mitigating the impact of climate change. The need to reduce the carbon emission and its harm to the environment, technologies and solutions regarding eliminating the harmful greenhouse gases, led to increased adoption of geoengineering. Clean energy sources are essential for powering the technologies used in geoengineering projects.

Future Forecast for Geoengineering Industry

Looking ahead, the global geoengineering industry is expected to rise at a CAGR of 18.7% from 2023 to 2033. During the forecast period, the market size is expected to reach US$ 133.2 Billion.

The geoengineering industry is expected to continue its growth course from 2023 to 2033, driven by increasing demand for solutions and technologies that will help industries such as manufacturing, energy and utility and oil and gas. The growth of the climate tech market and continuous research and development efforts are expected to drive the demand for geoengineering during the forecast period.

The market has potential for a significant growth in the Asia Pacific region due to the massive adoption of geoengineering in countries such as China, Japan and India. However, the environmentalists, activists may hinder market growth associated with geoengineering.

Sudip Saha

Principal Consultant

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Country-Wise Insights

Geoengineering Market to Surge in the United States amid Growing Concerns over Climate Change

The geoengineering industry in the United States is expected to reach a market share of US$ 14.9 Billion by 2033, expanding at a CAGR of 25.6%. The geoengineering industry in the United States is likely to witness growth due to intensive research and development in the geoengineering solutions. Additionally, there are other factors expected to drive the growth for geoengineering in the country are:

• Geoengineering is seen by some as a potential tool to mitigate the impacts of climate change and address its challenges.
• The country has the capacity and expertise to conduct advanced research and experiments in the field of geoengineering

Funding for Various Geoengineering Research Is Propelling the Market for Geoengineering

The geoengineering industry in the United Kingdom is expected to reach a market share of US$ 15.5 Billion, expanding at a CAGR of 29.1% during the forecast period. The United Kingdom market is projected to experience growth due to United Kingdom government has shown significant support for research of greenhouse gas removal (GGR) and carbon dioxide removal (CDR). Recently, an experiment with solar geoengineering test flight was conducted, the experiment was largely conducted to test the equipment’s regarding solar radiation management. By mimicking the natural process of cooling the atmosphere by spraying sulfur dioxide in the stratosphere.

Notable Growth Expected in China's Geoengineering Market is on a Surge to Mitigate Greenhouse Gas Emission

The geoengineering industry in China is anticipated to reach a market share of US$ 13.9 Billion, moving at a CAGR of 27.3% during the forecast period. The geoengineering industry in China is expected to grow remarkably due to the genuine concerns over not just limiting the greenhouse gas emissions but also implying geoengineering solutions in the country. As the country has suffered a backlash from peaking carbon dioxide emission, China has made a successive growth in bringing down the carbon emission.

There is an immense opportunity in China to explore, development, and build system around the idea of geoengineering to fulfill the industry requirements.

Climate Change Mitigation beyond Geoengineering is driving the Market Growth in Germany

The geoengineering industry in Germany is estimated to reach a market share of US$ 12.0 Billion by 2033, thriving at a CAGR of 24.2%. The market in Germany is predicted to grow because of its ocean iron fertilization and the development of negative emissions technologies. With the increasing adoption of ocean iron fertilization Germany is mitigating the impact of the carbon dioxide which is related to climate change.

Demand for Geoengineering Due to Extensive Policies and Research is driving the Market Growth in India

The geoengineering industry in India is expected to reach a market share of US$ 10.4 Billion, expanding at a CAGR of 28.7% during the forecast period. The market in India is likely to witness growth due to the increasing interest over the global climate change crisis. The geoengineering in India is in its nascent stage and has a massive scope towards research and development in the technological perspectives.

Category-Wise Insights

Solar Radiation Management (SRM) Segment to Dominate Geoengineering Industry with 23.1% CAGR through 2033

The solar radiation management (SRM) segment is expected to dominate the geoengineering industry with a CAGR of 19.1% from 2023 to 2033. This segment captures a significant market share in 2023 due to its prominent environmental benefits.

The driving factor for considering solar radiation management (SRM) as a potential geoengineering technique is the need to address the impacts of climate change and global warming. SRM aims to offset some of the warming effects caused by increased greenhouse gas concentrations in the atmosphere by reflecting a portion of the sun's energy back into space.

How the Carbon Dioxide Removal (CDR) is driving the Geoengineering Market?

The carbon dioxide removal (CDR) segment is expected to dominate the geoengineering industry with a CAGR of 18.4% from 2023 to 2033. This segment captures a significant market share in 2023 due to its impact over the climate change crisis.

The primary driver for CDR is the urgent need to reduce greenhouse gas concentrations in the atmosphere, particularly CO2, to mitigate the impacts of climate change. CDR techniques seek to address the root cause of climate change by directly removing CO2, which is the most significant greenhouse gas contributing to global warming.

How Key Players Stay Competitive in the Geoengineering Industry?

The geoengineering industry is highly competitive, with numerous players vying for market share. In such a scenario, key players must adopt effective strategies to stay ahead of the competition.

Key Strategies Adopted by the Players

• Product Innovation

Companies involved in geoengineering may focus on product innovation to develop new technologies, methods, or approaches for climate engineering. This could involve advancements in solar radiation management (SRM) techniques, carbon dioxide removal (CDR) technologies, or other forms of geoengineering. Companies may invest in research and development to improve the efficiency, scalability, and environmental impact of their solutions.

• Strategic Partnerships and Collaborations

Collaboration and partnerships are likely to be essential for companies in the geoengineering sector. Given the interdisciplinary nature of geoengineering, companies may form strategic partnerships with research institutions, universities, government agencies, and other private entities to share knowledge, leverage expertise, and accelerate progress. Collaborations could involve joint research projects, technology sharing, or co-development of solutions.

• Expansion into Emerging Markets

As geoengineering technologies advance, companies may explore opportunities to expand into emerging markets. These markets could be in regions that are particularly vulnerable to climate change impacts or have specific environmental challenges. Companies may seek partnerships with local organizations or governments to adapt and deploy their geoengineering solutions to address region-specific climate issues.

• Mergers and Acquisitions

In a rapidly evolving field like geoengineering, mergers and acquisitions can be a strategic move for companies to consolidate resources, acquire specialized expertise, and accelerate growth. Larger companies may acquire startups or research entities with promising technologies, while smaller companies may seek partnerships with larger firms to gain access to resources and expertise.

Key Players in the Geoengineering Industry

• Global Thermostat
• Climeworks
• Saipem
• LanzaTech
• Carbon Clean

Key Developments in the Geoengineering Market:

• The UK has become the first major economy in the world to pass laws to end its contribution to global warming by 2050. The target will require the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of at least 80% reduction from 1990 levels.
• The USA Department of Energy (DOE) announced up to $125.5 million in new funding to advance solar technology research. Through the Office of Energy Efficiency and Renewable Energy (EERE) Solar Energy Technologies Office, DOE continues to advance research and development of solar technologies that reduce the cost of solar, increase the competitiveness of American manufacturing and businesses, and improve the reliability of the grid.
• USA Department of Energy’s (DOE’s) American-Made program hope to launch one such promising carbon dioxide removal method-direct air capture-into the mainstream by offering over $7 million in prizes and technical support to those who can rise to the challenge.

Segmentation Analysis of the Geoengineering Market

By Type:

• Solar Radiation Management
• Carbon Dioxide Removal

By Planetary Ecosystem:

• Land
• Air
• Water

By Industry:

• IT & Telecommunication
• Manufacturing
• Government
• Energy & Utilities
• Oil & Gas
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Middle East & Africa