Information Technology
AI in ESG & Sustainability Market Set to Surge to US$ 846.75 Billion by 2032, Driven by Generative AI and Regulatory Push | According to DataM Intelligence Research Report
On the demand side, end-user industries such as , ,
, , , ,
, , and other verticals are actively embedding AI to elevate ESG outcomes. These sectors vary in their adoption speed and footprint, with Energy & Utilities often setting the pace due to high regulatory and sustainability stakes.
In 2024, commanded the largest share among technology categories-over
-owing to its prowess in automated ESG content generation, synthetic data creation, and scenario simulation. Meanwhile, the
use-case held more than of the market, reflecting its critical role in tackling fragmented ESG data and enabling compliance-ready disclosures.
led the verticals in share-with over of the market in 2024, highlighting infrastructure's centrality in sustainability transformation.
Thus, the market size breakdown shows a clear hierarchy: Generative AI and Data Collection & Analysis dominate technology and functionality, respectively, while sectors like Energy-related construction leverage the largest portion of AI-in-ESG spend.
Over half of the AI in ESG & sustainability investments in 2024 flowed into , as businesses sought tools to craft reports and anticipate regulatory outcomes via synthetic data. Meanwhile, even though data gathering and analysis is a more bread-and-butter capability, it captured over one-third of all spending-serving as the backbone for trustworthy ESG intelligence. On the vertical side,
, an industry with heavy material and carbon intensity, garnered nearly a third of the total market, as infrastructure projects and green building standards propelled demand for AI-powered lifecycle, energy, and materials optimisation solutions. Sectors like Energy & Utilities and Manufacturing, closely allied to building infrastructure, also absorbed significant portions, while Financial Services, Retail, Healthcare, IT, Consumer Goods, Government & Public Sector, and an array of others trailed by adopting AI-enabled ESG platforms, each at varying adoption velocities in 2024.
In the , the AI in ESG & Sustainability market was valued at
in 2024. That figure is part of
North America's broader footprint, which accounted for roughly
of global share in 2024. The U.S. alone is expected to grow at a potent
, outpacing global average growth, driven by rising SEC disclosure mandates, institutional investor pressure, and enterprise sustainability strategies that increasingly rely on AI-across carbon accounting, biodiversity tracking, labor auditing, and ESG scoring tools.
Broader M&A and ESG tech trends illustrate that Japanese institutions are intensifying clean-energy and sustainability investments. A recent strategic development exemplifies this:
, one of Japan's leading banks, is acquiring the
London -based clean-energy advisory boutique to augment its renewable advisory capabilities across
Europe . This move, part of an ESG-focused expansion, is expected to conclude by
October 2025 . While not a direct AI-in-ESG acquisition, it signals Japanese appetite for expertise in ESG transitions-a likely signal of convergence into AI-driven sustainability domains.
fueling deal value-now hitting a , up 28% from last year. U.S. megadeals are a key driver, reflecting confidence in AI and ESG as growth vectors.
In Japan , the Mizuho-Augusta & Co acquisition spotlights a strategic push into the clean energy advisory space, blending ESG, sustainability, and advisory capabilities.
Separately, on the front, a recent op-ed in the argues that
Looking ahead, the domain is primed for explosive growth. Generative AI and data analytics remain core pillars, while verticals like building, energy, and manufacturing continue to lead adoption. The U.S. market, fueled by regulatory impetus and tech innovation, is set to expand rapidly.
Japan's strategic moves in ESG advisory also signal forthcoming synergy with AI and sustainable finance. Across both regions, M&A trends and thought leadership are steering ESG into a data-led, accountable, AI-powered future.
https://www.datamintelligence.com/reports-subscription
:
Mr. Sai Kiran
DataM Intelligence 4market Research LLP Ground floor
DSL Abacus IT Park, Industrial Development Area
Uppal, Hyderabad , Telangana 500039
+1 877-441-4866
: Sai.k@datamintelligence.com
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