Carbon Neutrality Market Size, Share, Growth, Trends, and Global Industry Analysis: By Service Type (Advisory & Consulting, Implementation Services, Monitoring & Reporting, Verification & Certification, Others), By Organization Type (Large Enterprises, Small & Medium Enterprises (SMEs), By End User (Energy & Power, Manufacturing, Transportation & Logistics, Agriculture & Forestry, Construction, IT & Telecom, Healthcare, Others) and Region Forecast 2020-2031

Carbon Neutrality Market size was valued at US$ 12,580.2 million in 2024 and is projected to reach US$ 20,735.6 million by 2031 at a CAGR of 7.4% from 2025-2031. Moreover, the U.S. Carbon Neutrality Market is projected to grow at a CAGR of 7.3% over the forecast period.

The market refers to the ecosystem of technologies, services, and strategies aimed at achieving net-zero carbon emissions by balancing emitted carbon with an equivalent amount of carbon removal or offset. This involves efforts such as renewable energy adoption, energy efficiency improvements, carbon capture and storage (CCS), carbon offset trading, and sustainable business practices. Governments, corporations, and institutions participate in this market by setting carbon neutrality targets, investing in green technologies, and purchasing verified carbon credits to compensate for unavoidable emissions. The market supports global climate goals and aligns with the Paris Agreement’s objective to limit global temperature rise.

The market is experiencing rapid growth, driven by heightened environmental awareness, regulatory pressure, and corporate commitments to sustainability. Governments worldwide are implementing stricter carbon regulations, while major industries from energy to manufacturing are investing in decarbonization pathways. Companies are increasingly adopting carbon-neutral strategies to meet ESG goals, gain competitive advantage, and attract environmentally conscious consumers and investors. Technological advancements in renewable energy, carbon capture, and digital monitoring tools are accelerating the market's expansion. Moreover, voluntary carbon markets and international carbon credit trading are creating new revenue streams and cross-border collaboration opportunities. As net-zero targets become central to national and corporate agendas, the carbon neutrality market is positioned as a critical pillar of the global transition to a low-carbon economy.

Facts & Figures

• In fact, Over 90 countries, including the U.S., China, and EU nations, have committed to reaching net-zero emissions by mid-century.
• More than 5,000 companies worldwide have set science-based carbon reduction targets under the Science Based Targets initiative (SBTi).
• Global carbon dioxide emissions in 2023 exceeded 36.8 billion metric tons, highlighting the urgency of reduction strategies.
• Renewable energy sources accounted for approximately 30% of global electricity generation in 2024, contributing to carbon neutrality goals.
• As of 2025, over 80% of Fortune 500 companies have published sustainability or carbon neutrality reports.
• Voluntary carbon markets traded over 500 million carbon credits globally in 2024, supporting offsetting initiatives.

Key Developments

• In November 2024, Oman unveiled the Net Zero 3 initiative under its National Net Zero Programme, reaffirming its commitment to achieve carbon neutrality by 2050. The initiative, launched under the patronage of Dr. Khamis bin Saif Al Jabri, aims to accelerate progress toward the country's 2030 targets. It includes a series of projects aligned with Oman’s National Strategy for an Organised Transition to Net Zero.
• In November 2024, Bhutan launched the G-ZERO Coalition at COP29 in Baku, aiming to champion global carbon neutrality efforts. The initiative positions Bhutan as a leader in uniting countries committed to net-zero emissions and climate action.

Carbon Neutrality Market Segmentation

Based on the service type

• Advisory & Consulting
• Implementation Services
• Monitoring & Reporting
• Verification & Certification
• Others

Among the service types in the market, Advisory & Consulting services are anticipated to lead the segment due to growing demand from organizations aiming to initiate or accelerate their sustainability journeys. As global regulatory frameworks become more stringent and climate reporting gains prominence, companies are increasingly seeking expert guidance to assess carbon footprints, develop net-zero strategies, and navigate compliance challenges. Advisory firms assist clients in aligning their operations with science-based targets, managing ESG risks, and adopting cost-effective carbon reduction plans. This demand is especially prominent in hard-to-abate sectors like manufacturing, construction, and transportation, where strategic consulting is critical for achieving long-term decarbonization goals.

Based on the organization size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Among the organizational size segments, Large Enterprises are expected to lead the carbon neutrality market, primarily driven by their substantial financial resources, regulatory exposure, and pressure from stakeholders. These companies are often subject to stricter emissions regulations and are under constant scrutiny from investors, consumers, and governments to meet sustainability and ESG goals. To protect brand reputation and ensure long-term profitability, large enterprises are aggressively investing in carbon reduction technologies, renewable energy adoption, and verified carbon offset programs. Moreover, many have publicly committed to achieving net-zero emissions by specific deadlines, further fueling the demand for advisory, implementation, and certification services across global operations.

Based on the end user

• Energy & Power
• Manufacturing
• Transportation & Logistics
• Agriculture & Forestry
• Construction
• IT & Telecom
• Healthcare
• Others

Within the end-user segments of the market, the Energy & Power sector is anticipated to hold the leading share due to its significant contribution to global greenhouse gas emissions and its central role in decarbonization strategies. With increasing regulatory mandates, global climate agreements, and investor pressure, energy companies are prioritizing carbon-neutral operations by transitioning to renewable sources, investing in carbon capture and storage (CCS), and upgrading grid infrastructure. Major power producers are also committing to science-based targets and net-zero pledges. As the energy sector undergoes digital transformation and decentralization, demand for carbon-neutral technologies and consulting services is expected to intensify, making it the most dominant end-user in the market.