Green Technology Market in India – A Move Towards Conserving the Environment

Feb 7,2023 | Information Technology

The rising consumer and industrial interest in using clean energy resources to conserve the environment are the key factors projected to drive the adoption of green technology and services across the globe. Several companies are leveraging these technologies to reduce their emissions and make better data-driven models of environmental processes to improve their ability to study current and future trends, including water availability, ecosystems wellbeing and pollution.

Green Energy plays major role in the green technology market in India. Other significant market sectors include water and wastewater treatment and electric vehicles (EV). India has installed 111.39 GW capacity of the green energy in FY 2022, aims to reach 287.34 GW by FY 2027. The EV market made a sale of 429,710 units in FY 2022 in India, expected to expand at a remarkable CAGR of 66.73% between FY 2023e and FY 2027e period. The market for water and wastewater treatment in India is anticipated to generate INR 251.93 billion in revenue by 2027, growing at a CAGR of 8.41% from 2022 to 2027.

Solar energy dominates India's green energy market, followed by wind, biomass and small hydroelectric power. India's solar capacity has increased dramatically as a result of several programs to encourage solar parks, solar cities, and solar pumps as well as the National Solar Mission. India had installed solar and wind energy capacities of 40.09 GW and 39.25 GW, respectively, in FY 2021. In India, most wind energy projects are in Tamil Nadu, Rajasthan, and Maharashtra. By FY 2027, the nation hopes to have 275 GW of green energy capacity.

In FY 2022, electric two-wheeler was the largest segment in the EV market in India, accounting for ~61.56% of the total sales volume. The market for EV four-wheeler has grown as a result of 2021’s progressive embrace of electric cars for public transportation. In addition, the market is anticipated to rise dude to the rising popularity if hybrid electric vehicles.

India is a desirable location for capital inflow due to its great potential for renewable energy and the permission of 100% FDI. The first quarter of FY 2021 saw investments in India totalling US$ 6.6 billion. The adoption of electric vehicles in India has been aided by supportive policies like the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME). During the projected period, it is also anticipated that investments made through public-private partnerships (PPP), tax breaks and exemptions from basic customs duty will increase the sale of electric vehicles.

India's market for green technologies is restricted by a lack of a cohesive and integrated governmental framework and challenges in obtaining financing. There are several policies catering to diverse green technology sub-segments, but there is a lack of coordination at the state and federal levels. Green IT entrepreneurs cannot benefit from government programs because of the strict eligibility requirements. The potential for green energy in India is further hampered by difficulties with grid integration, planning, forecasting, and power purchase agreements (PPAs).

With COVID-19 impacting practically every industry, its effect on the market for electric vehicles was unavoidable. But the EV market is expanding significantly because of mild-hybrid electric vehicle adoption rates that are increasing year over year, favourable electric vehicle rules and enhanced government initiatives in India. Since the pandemic, people have been planning to move from mass transit to moderately priced electric two-wheelers, leading to an ongoing increase in sale of these vehicles.