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

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 40.5% 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

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, 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 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.
• Innovative energy storage and microgrid solutions: Cost-effective battery storage technologies like lithium-ion coupled with smart microgrid controls can enhance renewable energy utilization and strengthen grid resilience for hospitals. Solutions combining solar PV systems, battery storage, and microgrid enable reliable onsite power even during grid outages, ensuring critical facility operations. Advanced control systems integrating AI can optimize energy costs by dynamically switching between grid and solar microgrid based on energy pricing and demand. Thus energy storage and microgrids present an opportunity to advance climate-resilient, economically viable, low-carbon healthcare energy systems.
• 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.

• 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. Such solutions build resilience while aligning with sustainability goals, a trend which is likely to continue.
• Transition to renewable energy: Hospitals 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 is driving adoption.
• Circular procurement and supply chains: Healthcare supply chains account for over 70% of hospital climate emissions. Health systems are transitioning toward circular models focused on recyclable and reusable medical supplies, equipment buyback programs, and low-emission logistics. For instance, some hospitals are piloting reprocessing and recycling single-use devices. Centralized sterilization programs also support circular workflows. Such initiatives help minimize waste and emissions across product lifecycles.
• Sustainability reporting and disclosure: Stakeholder pressure is driving greater sustainability reporting and disclosure by health systems. Many providers publish annual sustainability reports conforming to frameworks like the Global Reporting Initiative. These outline organizational targets and performance related to emissions, energy, water, waste management, sustainable purchasing, transportation, and other domains. Mandates such as the proposed NHS England sustainability reporting requirements will further boost disclosure. This trend enables transparency and benchmarking while catalyzing improvements.

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.
• 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.
• Calculation of ROI: Monetizing return-on-investment from climate resilience strategies remains difficult. While energy efficiency upgrades promise direct savings, quantifying the value of business continuity, climate readiness, and environmental benefits is less straightforward. This ambiguity restrains leadership approval and adoption for some health systems unless legislative or accreditation mandates are in place. It also complicates assessment of superiority between competing solutions.

Recent Developments

New product launches

• In January 2022, Johnson Controls 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 June 2021, Siemens Healthineers launched the Teamplay digital health platform, featuring sustainability dashboards to help hospitals track energy consumption, water usage, and carbon emissions. The solution provides data to inform environmental improvement strategies.
• In April 2022, Schneider Electric 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 March 2022, Health Care Without Harm partnered with Practice Greenhealth to launch the Sustainable Health Systems Learning Collaborative to enable health systems to share best practices to achieve sustainability goals.
• 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 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

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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