Global Carbon Neutrality Market Size, Share, and COVID-19 Impact Analysis, By Type of Component (Services, and Solutions), By Industries Served (Manufacturing, Shipping & Logistics, and Energy & Utilities), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global Carbon Neutrality Market Insights Forecasts to 2035

• The Global Carbon Neutrality Market Size Was Estimated at USD 11.15 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 8.80% from 2025 to 2035
• The Worldwide Carbon Neutrality Market Size is Expected to Reach USD 28.20 Billion by 2035
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global Carbon Neutrality Market Size was Worth around USD 11.15 Billion in 2024 and is predicted to Grow to around USD 28.20 Billion by 2035 with a Compound Annual Growth Rate (CAGR) of 8.80% from 2025 to 2035. The increasing availability of government subsidies and incentives for sustainable practices is one of the main opportunities in the carbon neutrality market.   

Market Overview

The Global Sector Devoted to lowering, mitigating, and controlling carbon emissions in order to attain net-zero environmental effect is known as the "carbon neutrality market." It includes investments in renewable energy, carbon credit trading, emission reduction technologies, and sustainability programs. Carbon offset programs and cap-and-trade schemes are used by governments and businesses to meet corporate sustainability objectives and regulatory frameworks.  

Climate policies, technology developments, and increasing awareness of the environment are driving the carbon neutrality market. For instance, in May 2024, all three companies, Toyota Motor Corporation, Subaru Corporation, and Mazda Motor Corporation, have declared to create new engines specifically suited to electrification and the goal of carbon neutrality. The three firms' goal with these engines is to maximize integration with other electric drive units, motors, and batteries.  

Technological developments, business sustainability programs, governmental challenges, and growing public awareness of climate change mitigation strategies are among the primary factors of the driving the carbon neutrality the market. Growing governmental rules and programs targeted at lowering greenhouse gas emissions are the first significant growth element of the carbon neutrality market. 

Report Coverage

This research report categorizes the carbon neutrality market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the carbon neutrality market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the carbon neutrality market. 

Driving Factors

The growing focus on lowering carbon footprints to fight climate change is the main development factor driving the carbon neutrality market.  The financial and reputational advantages of lowering carbon footprints are becoming more widely acknowledged by enterprises, which is driving market expansion. Businesses are also being encouraged to invest in energy efficiency, renewable energy, and carbon offsetting by legislative measures like carbon taxes and cap-and-trade schemes. The market is expanding as a result of the strong demand for carbon neutrality solutions being created by this legislative effort. The efficiency and scalability of CCS technologies are being improved, which is driving carbon neutrality market.   

Restraining Factors

The high initial cost of many carbon-neutral technology and solutions is one of the main obstacles. Despite the significant long-term advantages of these technologies, many individuals and businesses may find the initial investment to be a deterrent.   

Market Segmentation

The carbon neutrality market share is classified into type of component and industries served. 

• The services segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the type of component, the carbon neutrality market is divided into services and solutions. Among these, the services segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The services sector can be attributed to the increased complexity of carbon management and the increasing need for professional advice among businesses aiming to meet sustainability targets.

• The energy & utilities segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the industries served, the carbon neutrality market is divided into manufacturing, shipping & logistics, and energy & utilities. Among these, the energy & utilities segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. As one of the biggest producers of carbon emissions, the energy and utilities sector is responsible for playing a crucial role in developing methods to lower greenhouse gas emissions.  

Regional Segment Analysis of the Carbon Neutrality Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the carbon neutrality market over the predicted timeframe.

North America is anticipated to hold the largest share of the carbon neutrality market over the predicted timeframe. North America's rapid adoption of carbon pricing, rising demand for renewable energy and sustainability, and stricter waste management laws are to blame. Strong government programs and policies targeted at cutting emissions, as well as high consumer demand for renewable energy and carbon neutrality, are the reasons behind North America's success. Furthermore, the viability of sustainable business operations is increased by technology developments in carbon capture and renewable energy.  

Asia Pacific is expected to grow at a rapid CAGR in the carbon neutrality market during the forecast period. Growing government initiatives to address air pollution and climate change, along with the Asia Pacific region's fast industrialization and urbanization, are fueling the need for carbon-neutral solutions in the area. China, India, and Japan are among the major nations driving this expansion through large expenditures in energy efficiency, carbon capture and storage technology, and renewable energy.

Europe is predicted to hold a significant share of the carbon neutrality market throughout the estimated period. In order to achieve its goal of being the first continent to be carbon neutral by 2050, the Europe Green Deal calls for large investments in energy efficiency, renewable energy, and other carbon neutral technologies. The region's efforts are being spearheaded by nations like Germany, France, and the United Kingdom, whose numerous national laws and projects facilitate the shift to a low-carbon economy.   

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the carbon neutrality market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Schneider Electric
• Carbon Footprint
• ENGIE
• Climate Impact
• EcoAct
• ClimeCo
• ESG Enterprise
• SAP
• Terrapass
• Green Mountain Energy
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In November 2024, At COP29, Bhutan formed the G-Zero Coalition to advance carbon neutrality. Countries dedicated to reducing reliance on coal and promoting sustainable practices were to be brought together by the coalition.

• In June 2024, Toyota announced that Subaru Corporation, Toyota Motor Corporation, and Mazda Motor Corporation are collaborating and investing a substantial amount of resources in creating new carbon-neutral fuel engines that smoothly integrate electric drive units and internal combustion engines (ICEs).  

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the carbon neutrality market based on the below-mentioned segments: 

Global Carbon Neutrality Market, By Type of Component

• Services
• Solutions

Global Carbon Neutrality Market, By Industries Served

• Manufacturing
• Shipping & Logistics
• Energy & Utilities

Global Carbon Neutrality Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa