The sustainable finance market size is projected to cross a valuation of US$ 60,35,620.4 million in 2024. The industry is projected to surpass a valuation of US$ 3,76,83,566 million by 2034. The growing demand from investors for environmentally and socially responsible investment opportunities encourages financial institutions to incorporate sustainability into their portfolios. Companies are responding to this demand to attract a broader investor base.
The adoption of sustainable finance is anticipated to rise at a CAGR of 20.10% from 2024 to 2034. Financial institutions are innovating by introducing sustainable financial products, such as green bonds and sustainability-linked loans. This diversification caters to the evolving preferences of investors seeking sustainable investment avenues.
Adoption Analysis of the Sustainable Finance
Attributes | Details |
---|---|
Sustainable Finance Market Value for 2024 | US$ 60,35,620.4 million |
Sustainable Finance Market Value for 2034 | US$ 3,76,83,566 million |
Sustainable Finance Market Forecast CAGR for 2024 to 2034 | 20.10% |
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CAGR from 2019 to 2023 | 18.70% |
---|---|
CAGR from 2024 to 2034 | 20.10% |
The sustainable finance market exhibited robust historical performance with a CAGR of 18.70% from 2019 to 2023. This impressive growth was driven by a confluence of factors, including increased regulatory emphasis on sustainable practices, rising investor demand for ESG-aligned investments, and heightened awareness of environmental and social issues among businesses.
Looking ahead, the projected CAGR from 2024 to 2034 is expected to accelerate, reaching 20.10%.
While the historical performance reflects a strong foundation, the projected increase in CAGR suggests a positive outlook for the sustainable finance industry.
Environmental, Social, and Governance (ESG) integration is now a bedrock in financial decision-making, establishing itself as a standard practice embraced by both investors and financial institutions. This shift underscores a growing recognition of the material impact ESG factors can have on financial performance and the broader sustainability landscape.
Green bonds and sustainable debt instruments are experiencing a surge in popularity, responding to the increasing preference of businesses and governments for financing options aligned with environmentally friendly and socially responsible projects. This trend reflects a concerted effort to direct capital towards initiatives that contribute positively to the planet and society.
Regulatory bodies worldwide are placing a significant emphasis on sustainability reporting, compelling businesses to disclose their ESG performance. This regulatory push not only fosters transparency but also instills a sense of accountability, aligning corporate practices with broader sustainability goals.
The proliferation of sustainable indices mirrors the growing significance of ESG factors in investment decisions. Investors increasingly rely on these indices as guiding frameworks, emphasizing a mainstreaming of ESG considerations into the heart of investment strategies.
Continuous innovation is shaping the landscape of sustainable finance, introducing a diverse array of products such as sustainability-linked loans and green insurance. Financial institutions are actively responding to the evolving demands of investors, offering unique and impactful avenues for sustainable investment.
The section focuses on category-wise insights for the sustainable finance industry. The spotlight first discusses the dominant transaction type, which is green bonds, revealing its substantial market share of 33.30% in 2024. The focus shifts to the dominating investment type, where equity dominates the industry, with a share of 44.40% in 2024.
Attributes | Detail |
---|---|
By Transaction Type | Green Bond |
Market Share in 2024 | 33.30% |
The green bonds segment takes the lead with a substantial 33.30% share in 2024.
Attributes | Detail |
---|---|
Dominating Investment Type | Equity |
Market Share in 2024 | 44.40% |
The equity segment dominates the industry with a share of 44.40% in 2024.
This section offers the country-wise analysis of sustainable finance industry growth projections for key countries, expressed as CAGR through 2034. Examining each nation individually, the focus is on understanding market dynamics, regulatory frameworks, and noteworthy trends influencing sustainable finance demand.
Countries | CAGR through 2034 |
---|---|
United States | 19.80% |
Germany | 20.50% |
China | 20.30% |
India | 20.80% |
United Kingdom | 21.10% |
The United States sustainable finance industry is anticipated to record a 19.80% CAGR from 2024 to 2034.
Germany sustainable finance industry is anticipated to record a 20.50% CAGR through 2034.
China sustainable finance market is poised to witness a remarkable 20.30% CAGR through 2034.
India sustainable finance industry is likely to rise at a stellar 20.80% CAGR through 2034.
With a steady 21.10% CAGR, the United Kingdom sustainable finance market is poised to flourish through 2034.
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The sustainable finance industry is amid a transformative phase. The maturing market sees a surge in competition, with traditional financial institutions vying against sustainability-focused firms, fintech startups, and asset management companies. This intensifying competition underscores the industry's diversification and the entry of innovative players.
Players are strategically differentiating themselves through innovative products like green bonds, climate-focused investment funds, and impactful investment solutions. Notably, the integration of Environmental, Social, and Governance (ESG) factors into traditional financial products is becoming a common strategy, reflecting a broader commitment to sustainability.
Recent Developments in the Sustainable Finance Industry
The sustainable finance market is projected to expand at a CAGR of 20.10% between 2024 and 2034.
The green bond segment dominates the sustainable finance industry.
BlackRock, Refinitiv, and Acuity Knowledge Partners are some of the top sustainable finance companies.
The sustainable finance market is anticipated to surpass US$ 3,76,83,566 million by 2034.
The escalating awareness of climate change and the pursuit of socially responsible investments drive the demand for ethical and sustainable finance solutions.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023 4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Investment Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Investment Type, 2019 to 2023 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Investment Type, 2024 to 2034 5.3.1. Equity 5.3.2. Fixed Income 5.3.3. Mixed Allocation 5.3.4. Others 5.4. Y-o-Y Growth Trend Analysis By Investment Type, 2019 to 2023 5.5. Absolute $ Opportunity Analysis By Investment Type, 2024 to 2034 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Transaction Type 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Transaction Type, 2019 to 2023 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Transaction Type, 2024 to 2034 6.3.1. Green Bond 6.3.2. Social Bond 6.3.3. Mixed-Sustainability Bond 6.4. Y-o-Y Growth Trend Analysis By Transaction Type, 2019 to 2023 6.5. Absolute $ Opportunity Analysis By Transaction Type, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry Verticals 7.1. Introduction / Key Findings 7.2. Historical Market Size Value (US$ Million) Analysis By Industry Verticals , 2019 to 2023 7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Industry Verticals , 2024 to 2034 7.3.1. Utilities 7.3.2. Transport and Logistics 7.3.3. Chemicals 7.3.4. Food and Beverage 7.3.5. Government 7.3.6. Others 7.4. Y-o-Y Growth Trend Analysis By Industry Verticals , 2019 to 2023 7.5. Absolute $ Opportunity Analysis By Industry Verticals , 2024 to 2034 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. Introduction 8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023 8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034 8.3.1. North America 8.3.2. Latin America 8.3.3. Western Europe 8.3.4. Eastern Europe 8.3.5. South Asia and Pacific 8.3.6. East Asia 8.3.7. Middle East and Africa 8.4. Market Attractiveness Analysis By Region 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 9.2.1. By Country 9.2.1.1. USA 9.2.1.2. Canada 9.2.2. By Investment Type 9.2.3. By Transaction Type 9.2.4. By Industry Verticals 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Investment Type 9.3.3. By Transaction Type 9.3.4. By Industry Verticals 9.4. Key Takeaways 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 10.2.1. By Country 10.2.1.1. Brazil 10.2.1.2. Mexico 10.2.1.3. Rest of Latin America 10.2.2. By Investment Type 10.2.3. By Transaction Type 10.2.4. By Industry Verticals 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Investment Type 10.3.3. By Transaction Type 10.3.4. By Industry Verticals 10.4. Key Takeaways 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 11.2.1. By Country 11.2.1.1. Germany 11.2.1.2. UK 11.2.1.3. France 11.2.1.4. Spain 11.2.1.5. Italy 11.2.1.6. Rest of Western Europe 11.2.2. By Investment Type 11.2.3. By Transaction Type 11.2.4. By Industry Verticals 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Investment Type 11.3.3. By Transaction Type 11.3.4. By Industry Verticals 11.4. Key Takeaways 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 12.2.1. By Country 12.2.1.1. Poland 12.2.1.2. Russia 12.2.1.3. Czech Republic 12.2.1.4. Romania 12.2.1.5. Rest of Eastern Europe 12.2.2. By Investment Type 12.2.3. By Transaction Type 12.2.4. By Industry Verticals 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Investment Type 12.3.3. By Transaction Type 12.3.4. By Industry Verticals 12.4. Key Takeaways 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 13.2.1. By Country 13.2.1.1. India 13.2.1.2. Bangladesh 13.2.1.3. Australia 13.2.1.4. New Zealand 13.2.1.5. Rest of South Asia and Pacific 13.2.2. By Investment Type 13.2.3. By Transaction Type 13.2.4. By Industry Verticals 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Investment Type 13.3.3. By Transaction Type 13.3.4. By Industry Verticals 13.4. Key Takeaways 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 14.2.1. By Country 14.2.1.1. China 14.2.1.2. Japan 14.2.1.3. South Korea 14.2.2. By Investment Type 14.2.3. By Transaction Type 14.2.4. By Industry Verticals 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Investment Type 14.3.3. By Transaction Type 14.3.4. By Industry Verticals 14.4. Key Takeaways 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 15.2.1. By Country 15.2.1.1. GCC Countries 15.2.1.2. South Africa 15.2.1.3. Israel 15.2.1.4. Rest of MEA 15.2.2. By Investment Type 15.2.3. By Transaction Type 15.2.4. By Industry Verticals 15.3. Market Attractiveness Analysis 15.3.1. By Country 15.3.2. By Investment Type 15.3.3. By Transaction Type 15.3.4. By Industry Verticals 15.4. Key Takeaways 16. Key Countries Market Analysis 16.1. USA 16.1.1. Pricing Analysis 16.1.2. Market Share Analysis, 2023 16.1.2.1. By Investment Type 16.1.2.2. By Transaction Type 16.1.2.3. By Industry Verticals 16.2. Canada 16.2.1. Pricing Analysis 16.2.2. Market Share Analysis, 2023 16.2.2.1. By Investment Type 16.2.2.2. By Transaction Type 16.2.2.3. By Industry Verticals 16.3. Brazil 16.3.1. Pricing Analysis 16.3.2. Market Share Analysis, 2023 16.3.2.1. By Investment Type 16.3.2.2. By Transaction Type 16.3.2.3. By Industry Verticals 16.4. Mexico 16.4.1. Pricing Analysis 16.4.2. Market Share Analysis, 2023 16.4.2.1. By Investment Type 16.4.2.2. By Transaction Type 16.4.2.3. By Industry Verticals 16.5. Germany 16.5.1. Pricing Analysis 16.5.2. Market Share Analysis, 2023 16.5.2.1. By Investment Type 16.5.2.2. By Transaction Type 16.5.2.3. By Industry Verticals 16.6. UK 16.6.1. Pricing Analysis 16.6.2. Market Share Analysis, 2023 16.6.2.1. By Investment Type 16.6.2.2. By Transaction Type 16.6.2.3. By Industry Verticals 16.7. France 16.7.1. Pricing Analysis 16.7.2. Market Share Analysis, 2023 16.7.2.1. By Investment Type 16.7.2.2. By Transaction Type 16.7.2.3. By Industry Verticals 16.8. Spain 16.8.1. Pricing Analysis 16.8.2. Market Share Analysis, 2023 16.8.2.1. By Investment Type 16.8.2.2. By Transaction Type 16.8.2.3. By Industry Verticals 16.9. Italy 16.9.1. Pricing Analysis 16.9.2. Market Share Analysis, 2023 16.9.2.1. By Investment Type 16.9.2.2. By Transaction Type 16.9.2.3. By Industry Verticals 16.10. Poland 16.10.1. Pricing Analysis 16.10.2. Market Share Analysis, 2023 16.10.2.1. By Investment Type 16.10.2.2. By Transaction Type 16.10.2.3. By Industry Verticals 16.11. Russia 16.11.1. Pricing Analysis 16.11.2. Market Share Analysis, 2023 16.11.2.1. By Investment Type 16.11.2.2. By Transaction Type 16.11.2.3. By Industry Verticals 16.12. Czech Republic 16.12.1. Pricing Analysis 16.12.2. Market Share Analysis, 2023 16.12.2.1. By Investment Type 16.12.2.2. By Transaction Type 16.12.2.3. By Industry Verticals 16.13. Romania 16.13.1. Pricing Analysis 16.13.2. Market Share Analysis, 2023 16.13.2.1. By Investment Type 16.13.2.2. By Transaction Type 16.13.2.3. By Industry Verticals 16.14. India 16.14.1. Pricing Analysis 16.14.2. Market Share Analysis, 2023 16.14.2.1. By Investment Type 16.14.2.2. By Transaction Type 16.14.2.3. By Industry Verticals 16.15. Bangladesh 16.15.1. Pricing Analysis 16.15.2. Market Share Analysis, 2023 16.15.2.1. By Investment Type 16.15.2.2. By Transaction Type 16.15.2.3. By Industry Verticals 16.16. Australia 16.16.1. Pricing Analysis 16.16.2. Market Share Analysis, 2023 16.16.2.1. By Investment Type 16.16.2.2. By Transaction Type 16.16.2.3. By Industry Verticals 16.17. New Zealand 16.17.1. Pricing Analysis 16.17.2. Market Share Analysis, 2023 16.17.2.1. By Investment Type 16.17.2.2. By Transaction Type 16.17.2.3. By Industry Verticals 16.18. China 16.18.1. Pricing Analysis 16.18.2. Market Share Analysis, 2023 16.18.2.1. By Investment Type 16.18.2.2. By Transaction Type 16.18.2.3. By Industry Verticals 16.19. Japan 16.19.1. Pricing Analysis 16.19.2. Market Share Analysis, 2023 16.19.2.1. By Investment Type 16.19.2.2. By Transaction Type 16.19.2.3. By Industry Verticals 16.20. South Korea 16.20.1. Pricing Analysis 16.20.2. Market Share Analysis, 2023 16.20.2.1. By Investment Type 16.20.2.2. By Transaction Type 16.20.2.3. By Industry Verticals 16.21. GCC Countries 16.21.1. Pricing Analysis 16.21.2. Market Share Analysis, 2023 16.21.2.1. By Investment Type 16.21.2.2. By Transaction Type 16.21.2.3. By Industry Verticals 16.22. South Africa 16.22.1. Pricing Analysis 16.22.2. Market Share Analysis, 2023 16.22.2.1. By Investment Type 16.22.2.2. By Transaction Type 16.22.2.3. By Industry Verticals 16.23. Israel 16.23.1. Pricing Analysis 16.23.2. Market Share Analysis, 2023 16.23.2.1. By Investment Type 16.23.2.2. By Transaction Type 16.23.2.3. By Industry Verticals 17. Market Structure Analysis 17.1. Competition Dashboard 17.2. Competition Benchmarking 17.3. Market Share Analysis of Top Players 17.3.1. By Regional 17.3.2. By Investment Type 17.3.3. By Transaction Type 17.3.4. By Industry Verticals 18. Competition Analysis 18.1. Competition Deep Dive 18.1.1. ACUITY KNOWLEDGE PARTNERS 18.1.1.1. Overview 18.1.1.2. Product Portfolio 18.1.1.3. Profitability by Market Segments 18.1.1.4. Sales Footprint 18.1.1.5. Strategy Overview 18.1.1.5.1. Marketing Strategy 18.1.2. PWC 18.1.2.1. Overview 18.1.2.2. Product Portfolio 18.1.2.3. Profitability by Market Segments 18.1.2.4. Sales Footprint 18.1.2.5. Strategy Overview 18.1.2.5.1. Marketing Strategy 18.1.3. STRIPE 18.1.3.1. Overview 18.1.3.2. Product Portfolio 18.1.3.3. Profitability by Market Segments 18.1.3.4. Sales Footprint 18.1.3.5. Strategy Overview 18.1.3.5.1. Marketing Strategy 18.1.4. REFINITIV 18.1.4.1. Overview 18.1.4.2. Product Portfolio 18.1.4.3. Profitability by Market Segments 18.1.4.4. Sales Footprint 18.1.4.5. Strategy Overview 18.1.4.5.1. Marketing Strategy 18.1.5. GOLDMAN SACHS 18.1.5.1. Overview 18.1.5.2. Product Portfolio 18.1.5.3. Profitability by Market Segments 18.1.5.4. Sales Footprint 18.1.5.5. Strategy Overview 18.1.5.5.1. Marketing Strategy 18.1.6. TREECARD 18.1.6.1. Overview 18.1.6.2. Product Portfolio 18.1.6.3. Profitability by Market Segments 18.1.6.4. Sales Footprint 18.1.6.5. Strategy Overview 18.1.6.5.1. Marketing Strategy 18.1.7. KPMG INTERNATIONAL 18.1.7.1. Overview 18.1.7.2. Product Portfolio 18.1.7.3. Profitability by Market Segments 18.1.7.4. Sales Footprint 18.1.7.5. Strategy Overview 18.1.7.5.1. Marketing Strategy 18.1.8. HSBC GROUP 18.1.8.1. Overview 18.1.8.2. Product Portfolio 18.1.8.3. Profitability by Market Segments 18.1.8.4. Sales Footprint 18.1.8.5. Strategy Overview 18.1.8.5.1. Marketing Strategy 18.1.9. STARLING BANK 18.1.9.1. Overview 18.1.9.2. Product Portfolio 18.1.9.3. Profitability by Market Segments 18.1.9.4. Sales Footprint 18.1.9.5. Strategy Overview 18.1.9.5.1. Marketing Strategy 18.1.10. BNP PARIBAS 18.1.10.1. Overview 18.1.10.2. Product Portfolio 18.1.10.3. Profitability by Market Segments 18.1.10.4. Sales Footprint 18.1.10.5. Strategy Overview 18.1.10.5.1. Marketing Strategy 19. Assumptions & Acronyms Used 20. 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