How SaaS Solutions Support the Green Technology Market Growth

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The green technology and sustainability market is estimated to reach $26.10 billion from 2021 to 2026 at a CAGR of 23.8%. The study from Technavio cites two key drivers for the growth, namely, the increasing use of RFID sensors across industries and the rising number of green data centers.

RFID technology is used in a wide range of IoT and automated applications found in industries like transportation, healthcare, and manufacturing, among others. Meanwhile, green data centers use IoT devices and software to improve the energy efficiency of their operations. These tools monitor electricity consumption, water use, and cooling systems that all contribute to lowering long-term operating costs and improving carbon footprint.

Among the regions included in the study, North America is projected to contribute the highest growth at 31%. The growing interest of consumers and industries in using clean energy resources and the rising environmental consciousness are important factors that will drive the growth in this region.

However, the market will face challenges when it comes to the different regulations on green technology. Since each country has its own set of regulations and related laws for emerging technology, the report indicated that suppliers in this market will have to successfully maneuver country-specific regulations and laws. The transfer of green technologies from developed countries to developing countries is, therefore, seen as a challenge as well and could hamper the growth of the market.

SaaS Opportunities in Green Technology

With a growing green technology and sustainability market, we can also expect an increased demand for software that will support these technologies. Sustainability software, for instance, will become a valuable part of enterprise apps since it provides an efficient way for companies to track their carbon footprint.

Moreover, the software can help determine and manage areas in a company’s operations that can be optimized to save energy. These could include electricity consumption, building maintenance, and fleet management. Businesses also need to comply with various environmental regulations that are constantly evolving or risk penalties. Using sustainability software tools could help address this need.

As mentioned in the report, IoT devices will be running many of the green technology solutions that will emerge in the market. This is where software such as IoT SaaS platforms will come in. With millions of connected devices both at the consumer level (think smart homes), industries, and government, it would be humanly impossible to keep track of all these IoT installations at different locations. IoT SaaS platforms will enable organizations to monitor things like security and network conditions round the clock.

IoT SaaS platforms also leverage artificial intelligence and machine learning to automate many processes that would otherwise be difficult to monitor manually. For example, tech giants Meta, Microsoft, and Google are using AI and SaaS software to assess and optimize the operations of their data centers.

These are just a few of the ongoing real-world applications of SaaS software products in the green technology market. We can expect more innovations using IoT SaaS solutions to emerge in the next years. Manufacturing, agriculture, recycling, and waste management are a few more industries that are already implementing the technology. Smart devices, for instance, help manufacturers automate operations across their production lines. Meanwhile, agriculture uses smart devices to monitor and optimize processes in the production of crops such as irrigation, fertilization, and pest control.