Market Overview
The climate technology sector is set for significant growth, with its market size expected to rise from $20.34 billion in 2023 to $182.54 billion by 2033, achieving a compound annual growth rate of 24.5%. This growth is driven by a deeper public understanding of climate change, robust environmental regulations, and advancements in technologies such as renewable energy and carbon capture.
As awareness of environmental challenges and the impacts of climate change intensifies globally, the demand for innovative climate tech solutions is rising. These technologies are essential for reducing greenhouse gas emissions, improving energy efficiency, and fostering sustainable industrial practices. With strong investment and regulatory backing, the climate tech sector is expected to grow significantly, catalysing both environmental sustainability and economic development.
Innovations in the sector include lithium-sulphur batteries for electric vehicles, offering enhanced energy storage without critical minerals. A German company is also expanding production of sustainable e-fuels to convert renewable energy into liquid fuels for sectors like aviation and shipping. Additionally, advancements in digital agriculture are transforming sustainable farming practices worldwide.
After crunching the numbers, here are 10 of the fastest-growing ClimateTech startups:
Commonwealth Fusion
Commonwealth Fusion Systems (CFS), a spin-out of MIT, recently achieved a pivotal breakthrough in nuclear fusion technology. With six peer-reviewed papers validating their progress, CFS is on track to bring commercial fusion energy to market. Backed by investors like Bill Gates' Breakthrough Energy, CFS aims to have a commercial power plant operational by the mid-2030s, marking a significant step towards limitless, zero-carbon energy.
Brandon SorbomChief Science Officer
Battolyser Systems
Battolyser Systems, founded in 2018, is gaining recognition for its innovative Battolyser technology. This integrated battery-electrolyzer system stores electricity and produces green hydrogen, offering flexibility and efficiency to industries. With support from the European Investment Bank (EIB), Battolyser is set to scale its production facility in Rotterdam, contributing to Europe's green transition goals.
Qmerit
Qmerit, North America's premier provider of electrification solutions, has experienced remarkable growth in residential services, notably in electric vehicle charging and battery storage system installations. With a rapidly expanding network of certified professionals exceeding 23,700, Qmerit is committed to supporting America's transition to electrification by delivering safe, streamlined solutions.
Newcleo
Newcleo, a London-based nuclear technology company founded in 2021, is pioneering compact reactors capable of running on used nuclear fuel, with the aim of changing the low-carbon energy landscape. The company's innovative approach is attracting attention amid a resurgence of interest in nuclear energy as a sustainable solution to climate concerns. With plans to launch its first working product within seven years, Newcleo is leveraging private investment to advance its mission of developing safe, clean, and economically viable nuclear energy solutions.
Electra
Electra, a trailblazing clean iron company, is poised to transform the steel industry with its groundbreaking technology. With a mission to decarbonize and promote sustainability across the steel value chain, Electra's innovative approach promises to revolutionise steel production and drive towards a greener future.
3Sun
3Sun is gaining momentum in Europe's renewable energy sector with plans to expand its production capacity to 3GW. Backed by significant funding from Italy’s National Recovery and Resilience Plan and the European Investment Bank, 3Sun is playing a crucial role in reshaping the continent's energy landscape.
Last Energy
Last Energy is pioneering small modular nuclear power plants, aiming to meet the growing demand for clean energy, particularly in data centres. Recently, Last Energy showcased a prototype reactor in DC, underscoring its potential to transform energy production. With plans to deploy units in Europe and explore opportunities in the US, Last Energy is poised to demonstrate the viability of nuclear energy, challenging preconceptions and advancing towards a carbon-free future.
Matrix Renewables
Matrix Renewables recently secured €179 million in financing for a 239MW solar PV portfolio, marking a significant milestone in its renewable energy endeavours. With construction already underway and operations slated to commence in Q1 2025, Matrix Renewables is strengthening its position as a prominent player in the global renewable energy sector.
Ostrom
Ostrom, a leader in green energy, secured €7.5 million in additional funding in September 2023, led by SE Ventures. With total funding now over €21.5 million, Ostrom focuses on simplifying home electrification and decarbonization. Leveraging this, it plans to expand its product offerings and advance virtual power plant ambitions for grid balancing, resulting in significant customer savings.
xFarm Technologies
xFarm Technologies, a leader in AgTech, recently bolstered its team by partnering with Greenfield Technologies and SpaceSense. With over 4.15 million hectares digitised, 340,000 farms supported, and an array of cutting-edge tools, xFarm is revolutionising sustainable farming practices globally. From precision agriculture to supply chain traceability, xFarm is driving innovation and efficiency across the agri-food sector.
