Sustainable Finance Market

Market Overview: 

The global sustainable finance market size reached US$ 5,346.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 23,631.4 Billion by 2032, exhibiting a growth rate (CAGR) of 17.96% during 2024-2032. The increasing awareness about sustainability among individuals, favorable government initiatives, and rising focus on reducing carbon footprint represent some of the key factors driving the market.

Sustainable finance refers to environmental, social and governance (ESG) considerations for efficient decision-making in financial investment. It comprises various investments, such as equity, fixed income, and mixed allocation. It is inexpensive, improves stakeholder trust and engagement, and enhances risk management. It has less regulation, eliminates climate crisis,  and promotes green resources in the environment. It ensures that investments support a resilient economy and a sustainable recovery from losses. It assists in increasing the longer-term investments while providing higher returns to investors. It also aids in saving costs by utilizing fewer resources, retaining the best people in the organization, and lowering the risk of financial losses on conventional carbon-intensive processes. Besides this, it is beneficial in controlling inflows and outflows of money and offering crucial business insights. As a result, sustainable finance is widely employed in the utility, transport and logistics, chemicals, and food and beverage (F&B) industries across the globe. 

Sustainable Finance Market Trends:

At present, the increasing awareness about sustainability among the masses around the world represents one of the key factors supporting the growth of the market. Besides this, the growing adoption of sustainable finance, as it reduces carbon footprint and encourages a safe and healthy working environment worldwide, is positively influencing the market. Additionally, the rising investments in businesses and projects with sustainable practices are impelling the growth of the market. Apart from this, the increasing adoption of sustainable finance among organizations to maintain the reputation of business across the globe is propelling the growth of the market. In addition, the rising employment of sustainable finance to reduce the unprecedented climate risk around the world is offering lucrative growth opportunities to industry investors. Moreover, the growing demand for sustainable finance, as it reduces costs, mitigates risks, and provides better returns on investments (ROIs), is offering a favorable market outlook. In line with this, governing agencies of various countries are encouraging the adoption of sustainable finance by offering several subsidies, incentives, and tax rebates on green projects. Furthermore, the increasing preference for sustainable finance among employees to work with companies that have a strategic view and are focused on sustainability is bolstering the growth of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global sustainable finance market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on investment type, transaction type, and industry vertical.

Investment Type Insights:

• Equity
• Fixed Income
• Mixed Allocation
   

The report has provided a detailed breakup and analysis of the sustainable finance market based on the investment type. This includes equity, fixed income, and mixed allocation.

Transaction Type Insights:

• Green Bond
• Social Bond
• Mixed-Sustainability Bond
   

A detailed breakup and analysis of the sustainable finance market based on the transaction type has also been provided in the report. This includes green bond, social bond, and mixed-sustainability bond. According to the report, green bond accounted for the largest market share.

Industry Vertical Insights:

• Utilities
• Transport and Logistics
• Chemicals
• Food and Beverage
• Government
• Others
   

A detailed breakup and analysis of the sustainable finance market based on the industry vertical has also been provided in the report. This includes utilities, transport and logistics, chemicals, food and beverage, government, and others. According to the report, utilities accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for sustainable finance. Some of the factors driving the North America sustainable finance market included the growing awareness among individuals, favorable government initiatives, increasing adoption of safe and healthy working environment, etc.  

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global sustainable finance market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include Acuity Knowledge Partners, BNP Paribas, Deutsche Bank AG, Goldman Sachs Group Inc., KPMG International Limited, London Stock Exchange Group plc, Nomura Holdings Inc., PricewaterhouseCoopers LLP, South Pole Group., etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Questions Answered in This Report:

• How has the global sustainable finance market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global sustainable finance market?
• What is the impact of each driver, restraint, and opportunity on the global sustainable finance market?
• What are the key regional markets?
• Which countries represent the most attractive sustainable finance market?
• What is the breakup of the market based on the investment type?
• Which is the most attractive investment type in the sustainable finance market?
• What is the breakup of the market based on the transaction type?
• Which is the most attractive transaction type in the sustainable finance market?
• What is the breakup of the market based on the industry vertical?
• Which is the most attractive industry vertical in the sustainable finance market?
• What is the competitive structure of the global sustainable finance market?
• Who are the key players/companies in the global sustainable finance market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the sustainable finance market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global sustainable finance market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the sustainable finance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.