The sustainable manufacturing market is anticipated to grow at a significant CAGR of 15.8% during the forecast period (2025-2031). The market growth is driven by the increasing adoption of waste reduction, energy efficiency, and recycling, procedure automation by the manufacturers, product customization, and the increase in production efficiency. Additionally, the rise in the responsible and economical use of resources globally is contributing towards market growth during the forecast period. Furthermore, the increasing environmental concerns are boosting the demand for sustainable manufacturing techniques that reduce carbon emissions, waste output, and resource consumption.
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The global sustainable manufacturing market is segmented by offering (recycled lithium-ion battery, recycled material, recycled plastic, recycled metal, recycled carbon fiber, and water recycle and reuse), by application (automotive, energy, electrical & electronics, packaging, building & construction, marine, aerospace, power, chemicals and other), and geography (North America, Europe, Asia-Pacific, and the Rest of the World).
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Market Dynamics
- The recycled plastics segment is expected to hold the largest market share driven by the increasing demand for plastic recycling globally. Post-consumer recycled plastics and bio-based/bio-attributed plastics provide a sustainable substitute for virgin plastics promoting the circular economy and sustainable manufacturing. It additionally lowers energy usage and carbon emissions.
- The packaging segment is expected to hold a considerable share of the market, owing to the increasing demand for packaging. The rising e-commerce industry is contributing to the rise in packaging. Additionally, the growing supply chain industry is propelling the segment growth during the forecast period.
- Europe is anticipated to grow at a considerable rate during the forecast period. The regional growth is attributed to the growing demand for sustainable manufacturing with the rising adoption of environment-friendly and sustainable practices in the industrial manufacturing sector.
- North America holds a significant market share owing to numerous prominent sustainable manufacturing companies such as Apple Inc., Johnson & Johnson Services, Inc., Nike, Inc., and Tesla, Inc., in the region. Additionally, the increasing adoption of sustainable manufacturing in chemicals and refining, cement and concrete, iron and steel, aluminum and metals, food and beverage, glass and pulp and paper industries drive the market growth. Furthermore, the regional government is investing in sustainable manufacturing to reduce industrial greenhouse gas emissions.
The major companies serving the global sustainable manufacturing market include Dassault Systèmes S.E., General Electric Company, Johnson & Johnson Services, Inc., Koninklijke Philips N.V., and Siemens AG, among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions contributing significantly to market growth.
Recent Developments
- In May 2024, Huhtamaki announced the consolidation of its three Flexible Packaging manufacturing sites in the United Arab Emirates, keeping one factory in Jebel Ali and expanding the one in Ras Al Khaimah.
- In March 2023, the Circular Packaging Association (CPA), a public-private partnership across the packaging value chain was officially launched in the UAE.
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