CLIMATE RESILIENT AND SUSTAINABLE HEALTH SYSTEMS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Climate Resilient and Sustainable Health Systems Market Size

The climate resilient and sustainable health systems market size is expected to reach US$ 19.38 billion by 2030, from US$ 8.45 billion in 2023, at a CAGR of 12.6% during the forecast period. Climate resilient and sustainable health systems refer to healthcare infrastructure and operations designed to withstand and adapt to climate change impacts like extreme weather while minimizing environmental harm. These systems aim to build preparedness against climate risks through resilient infrastructure, sustainable operations, and adaptable care delivery models. Key solutions in this space include energy-efficient facilities, renewable energy adoption, water conservation systems, resilient IT infrastructure, disaster preparedness programs, sustainable procurement policies, greenhouse gas emissions tracking tools, and climate-informed care pathways.

The market is driven by rising emphasis on climate adaptation in the healthcare sector, regulatory policies for sustainable healthcare, and increasing extreme weather events like heatwaves, floods, and storms due to climate change. The solutions help health systems reduce carbon footprints, optimize resource utilization, ensure operational continuity during disasters, and deliver quality care despite climate disruptions.

Climate Resilient and Sustainable Health Systems Market Regional Insights

• North America is expected to be the largest market for climate resilient and sustainable health systems market during the forecast period, accounting for over 40% of the market share in 2023. The growth of the market in North America is attributed to supportive government policies, investments in resilient healthcare infrastructure, and increasing deployment of sustainability solutions by healthcare providers.
• The Europe market is expected to be the second-largest market for climate resilient and sustainable health systems market, accounting for over 25.2% of the market share in 2023. The growth of the market in is attributed to stringent emission regulations, incentives for renewable energy adoption, and rising focus on sustainable operations in European healthcare systems.
• The Asia Pacific market is expected to be the fastest-growing market for climate resilient and sustainable health systems market, with a CAGR of over 23.1% during the forecast period. The growth of the market in Asia Pacific is attributed to growing healthcare expenditure, increasing extreme weather events, and government initiatives for sustainable healthcare in the region.

Figure 1. Global Climate Resilient and Sustainable Health Systems Market Share (%), by Region, 2023

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Analysts’ Views on Global Climate Resilient and Sustainable Health Systems Market:

The climate resilient and sustainable health systems market is a growing sector in the global healthcare industry. This market involves the development and implementation of health systems that are resilient to climate change and promote sustainability. The market is primarily driven by the increasing recognition of the impact of climate change on health outcomes. As climate change exacerbates health risks such as heat-related illnesses, vector-borne diseases, and food and water insecurity, there is a growing need for health systems that can withstand these challenges.

Climate Resilient and Sustainable Health Systems Market Drivers

• Increasing frequency and severity of extreme weather events: The increasing frequency and severity of extreme weather events such as heatwaves, floods, storms, and wildfires due to climate change is a major driver for climate-resilient and sustainable health systems. These events can severely disrupt healthcare facility operations, damage infrastructure, interrupt utilities, and impede access to care. For instance, power outages during heatwaves or floods can affect sensitive medical equipment and hospital HVAC systems, hampering service delivery. Health systems are prioritizing climate adaptation and resilience measures to ensure provision of quality care despite disruptions from such extreme events.
• Rising emphasis on disaster preparedness and business continuity: Healthcare regulators and accreditation agencies are raising preparedness requirements for health systems to manage climate risks and disasters. For instance, the Joint Commission requires accredited hospitals to perform hazard vulnerability analyses and implement emergency management plans. Health systems are adopting solutions like microgrids, onsite renewables, redundant IT systems, and backup power, to ensure resilient operations during disruptions and meet regulatory mandates. Further, the COVID-19 pandemic highlighted the need for robust business continuity planning, providing impetus to resilience strategies.
• Policy measures and government support: Governments across the world are enacting legislation, mandates, and incentives to promote climate resilience and sustainability in healthcare infrastructure. For instance, the US Government Accountability Office recommended the Department of Health and Human Services to issue guidance on assessing climate risks and resilience strategies for health centers. The State of California has passed bills requiring healthcare facilities to assess climate impacts and boost onsite clean power generation. Such measures are catalyzing health systems to adopt renewable energy systems, energy efficiency upgrades, and other sustainable solutions.
• Focus on reducing greenhouse gas emissions: Healthcare is estimated to account for 4-5% of global carbon emissions. Health systems are under increasing stakeholder pressure to measure, report, and reduce their greenhouse gas footprints. For instance, the NHS England aims to reach net zero emissions by 2040. Health systems are deploying solutions like LED lighting retrofits, HVAC upgrades, solar PV systems, electric fleets, and behavioral change campaigns to lower emissions and meet organizational carbon neutrality goals. Further, optimizing operations through data analytics helps identify efficiency improvement opportunities to cut emissions.

Climate Resilient and Sustainable Health Systems Market Opportunities

• Data analytics and AI for climate-smart operations: The application of advanced analytics, artificial intelligence (AI), and machine learning can help health systems gain data-driven insights to enhance climate resilience, optimize efficiency, and reduce environmental impact. AI can analyze vast datasets from sensors, equipment, and utilities to identify anomalies, predict failures, and prevent disruptions. Data analytics enables tracking of sustainability KPIs like energy usage, water consumption, and emissions. Health systems can leverage predictive capabilities to inform preventive maintenance, dynamic resource allocation, automated fault detection, and targeted emissions reduction strategies.
• Climate risk assessment and forecasting platforms: Climate risk assessment tools integrated with geospatial data analytics help hospitals evaluate vulnerabilities, model climate hazard impacts, and prioritize adaptation strategies. Forecasting platforms can project long-term climate patterns, enabling health systems to analyze scenario-based disruptions and build preparedness. As climate analytics matures, integrating medical records data with climate forecasting can support development of adaptive care pathways tailored to expected local climate effects.
• Sustainable medical technology: Medical device companies are incorporating sustainability concepts into product design and manufacturing. Opportunities exist to develop energy and water efficient, non-toxic medical equipment with optimized material utilization, enabling low-waste supply chains. Devices with built-in analytics can help hospitals track utility usage and carbon footprints across clinical spaces. Medical technology innovations that enable low-resource care delivery also support climate adaptation and global health equity goals.

Climate Resilient and Sustainable Health Systems Market Trends

• Telemedicine and connected care solutions: Telemedicine and connected care solutions are gaining prominence as they improve access to care while reducing transport emissions. These technologies limit non-essential travel through remote consultations, monitoring, and AI-enabled self-care. Health systems are adopting telehealth platforms and connected medical devices to ensure service continuity during climate disruptions For instance, according to the data published by the National Center for Biotechnology Information (NCBI) on April 25, 2022, a national study including 36 million working-age individuals with private insurance claims data showed that telemedicine encounters increased 766% in the first 3 months of the pandemic, from 0.3% of all interactions in March to June 2019.
• Transition to renewable energy: Hospitals and pharmaceutical companies are increasingly adopting onsite renewable energy like rooftop solar PV and making long-term power purchase agreements to source offsite clean power. This allows them to reduce grid dependency and exposure to fossil fuel price volatility. Many health systems are installing battery storage to enhance renewable utilization. The global healthcare sector is projected to install over 3,400 MW of new solar PV capacity by 2023. The improving economics of renewables, coupled with their climate-friendly credentials, are driving adoption. For instance, on September 20, 2022, GSK plc, a pharmaceutical company based in India, launched a new Sustainable Procurement Programme to support the company’s suppliers at climate Week NYC on the journey towards having a net zero impact on climate and a net positive impact on nature.

Climate Resilient and Sustainable Health Systems Market Restraints

• Budget constraints: The significant upfront costs of renewable energy systems, battery storage, microgrids, and other climate solutions may deter smaller community hospitals with budget limitations. Many facilities lack funds for conducting in-depth climate vulnerability assessments, which hampers resilience planning. Further, competing priorities due to constrained resources may relegate climate initiatives to the backseat. Lack of financial incentives can therefore restrain adoption of sustainability measures. Increasing budget for the research and development will increase development of innovative products.
• Technical complexity: The technical complexity of solutions like solar microgrids integrated with battery storage makes large-scale implementation challenging. Health systems require specialized expertise to appropriately assess feasibility, design systems, and manage integration with the grid and existing infrastructure. Lack of adequately trained in-house staff can impede execution and compromise optimal system performance if not designed correctly.

Recent Developments

New product launches

• On July 7, 2021, Johnson Controls, multinational conglomerate headquartered in Cork, Irelan launched OpenBlue Net Zero Advisor, a digital platform providing data-driven insights to help hospitals develop net zero roadmaps. The tool analyzes energy usage and emissions to identify decarbonization opportunities.
• In April 2022, Schneider Electric SE, is a French multinational company that specializes in digital automation and energy management introduced EcoStruxure for Healthcare, an IoT-enabled system optimizing energy efficiency, power reliability, and thermal comfort in healthcare facilities. It employs cloud analytics, mobile apps, and sensor networks for sustainable operations.

Acquisition and partnerships

• In January 2021, Johnson Controls acquired OpenBlue, an AI-powered connected solutions platform, to expand capabilities in optimizing sustainability, safety, and efficiency across healthcare facilities.
• In November 2020, Philips, is a Dutch multinational conglomerate corporation acquired BioTelemetry, a provider of remote cardiac diagnostics and monitoring, to enhance its connected care capabilities including telehealth and healthcare informatics for delivering climate-resilient care.

Figure 2. Global Climate Resilient and Sustainable Health Systems Market Share (%), by End-User, 2023

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Top companies in Climate Resilient and Sustainable Health Systems Market

• Johnson Controls
• Honeywell
• Schneider Electric
• Siemens Healthineers
• Philips
• GSK
• AbbVie
• Pfizer
• Merck & Co.
• Novartis

*Definition: The climate resilient and sustainable health systems market refers to the technologies, solutions, and services focused on making healthcare infrastructure and operations more capable of withstanding and responding to climate change impacts in an environmentally sustainable manner. This involves measures to boost climate readiness and operational resilience such as energy-efficient facilities, renewable energy adoption, water conservation systems, resilient IT systems, and optimized care delivery models to ensure quality care despite climate disruptions. The market aims to help health systems mitigate risks, reduce carbon footprints, optimize costs, and build long-term sustainability and community wellbeing.

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