Industry research
Scope
US
Companies
52
Table of contents
What does the Climate Tech market landscape look like in the US?
The US climate tech market is still in the developmental stage and remains highly fragmented, yet it is already occupying a strong position on the global stage. Climate technology incumbents that focus on specialized end applications benefit from net-zero emission targets and favorable carbon storage regulations in the US. Conversely, these players face a market slowdown due to reduced government focus on climate change and funding cuts, as well as shifting corporate sentiment across the US. On the other hand, climate software providers are benefiting from favorable market trends, driven by corporations seeking full supply chain visibility of their emissions and the growing demand for mandatory emissions reporting. The competitive landscape is also being reshaped by the entry of energy and transport giants into climate technology, either through acquisitions, strategic partnerships (e.g. Shell) or in-house development (e.g. ExxonMobil).
What is the level of investor activity in the US Climate Tech industry?
Investor-led interest has been high, with ~81% of identified assets being sponsor-backed (April 2025). Investors are primarily attracted by the industry’s long-term potential driven by (i) growing climate awareness among US consumers, (ii) the overall beneficial geology of the US for climate technology infrastructures and (iii) the growing integration of Net Zero commitments into corporate strategies, driven by stakeholder demand. On the other hand, (i) regulatory uncertainty in the US under the current Trump administration, (ii) the high costs of scaling climate technologies and (iii) supply chain uncertainties serve as detractors for investors.
What are the key ESG considerations in the US Climate Tech industry?
The ESG agenda mainly centers around environmental and social topics. On the environmental front, carbon-capturing technologies combined with sustainable energy sources are projected to mitigate up to ~90% of emissions once fully scaled (Net Zero Climate, April 2025). However, the industry also faces scrutiny for its own environmental footprint, as many climate tech businesses rely on emission-heavy supply chains to run their operations. To address this, incumbents seek to localize supplier networks and introduce less resource-intensive technologies. Social topics mainly relate to the affordability of products following the adoption of climate tech in production processes. Once implemented, price increases may reduce purchasing power for certain consumers, particularly low-income groups. To mitigate this, identified players seek to focus strongly on R&D to gain greater technology efficiency and lower costs for carbon capture.
Industry experts forecast the US carbon capturing and storage market to grow at a ~10.0% YoY growth rate in the next ~5 years from 2025-2030 (interview by Gain.pro)
The global climate tech market is expected to grow from ~$200bn in sales in 2023 to ~$600bn by 2030 (+17.0% CAGR 2023-2030; Allianz, September 2023)
The transition towards Net Zero by 2050 is increasingly becoming an integral corporate strategy, with stakeholders (e.g. investors) and regulatory authorities requiring more transparency on these efforts. A cumulative additional investment of ~$30tn is needed to meet these standards, with carbon capture serving as a pivotal technology for industries where direct emission reductions are challenging (World Economic Forum, December 2024; The Wallstreet Journal, September 2024; OPB, April 2023)
Growing climate awareness among US consumers – fueled by extreme weather events – is increasingly shaping purchasing behavior, with many willing to pay a premium for sustainable products. This shift is driving businesses to adopt stronger climate agendas, positioning US climate tech incumbents to benefit from rising demand for credible, impact-driven offerings (Forbes, January 2025; Bain & Company, November 2023)
The US offers highly favorable geology for CCS projects, with vast porous sandstone formations capable of storing large volumes of CO₂, thereby making deployment faster and more cost-effective. Coupled with a surge in renewables in high-emission states (e.g. Texas) and supportive regulations (e.g. opening coastal waters for storage), these conditions create a strong foundation for scaling CCS (interview by Gain.pro; Carbon Herald, February 2025)
Regulatory uncertainty under the Trump administration, marked by changes in US policies that benefit emission-heavy industries and reduce the progress in climate tech adoption. Grants supporting climate and environmental innovations were eliminated as part of cost-cutting measures, leading to a reduced sense of urgency around climate action within US industries (interview by Gain.pro; Earth.org, March 2025)
The high costs of scaling climate technologies, coupled with the need for large-scale deployment to prove commercial viability, pose significant barriers to growth. This effect is further amplified by growth in technical job openings outpacing the existing base of trained climate tech workers, which is likely to persist in the coming years (Bluegreen Alliance, March 2024; McKinsey & Company, December 2023)
Supply chain vulnerabilities in climate tech are intensifying, driven by dependence on early-stage technologies, limited access to critical raw materials and exposure to climate shocks. Green ammonia, a key emerging technology, requires both affordable renewable energy and commercially viable electrolyzers – neither of which is widely available. Disruptions from extreme weather (e.g. California wildfires) and systemic global supply challenges further constrain scale-up efforts (McKinsey & Company, June 2024)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 52 private companies, incl. financials, ownership details and more.
A view on all 165 deals in the industry
ESG assessments with highlighted ESG outperformers
