AI in ESG & Sustainability Market to Reach $846.75 Billion by 2032

The AI in ESG & Sustainability market is set to expand from $182.34 billion in 2024 to $846.75 billion by 2032, with a compound annual growth rate (CAGR) of 21.16%, announced in a press release by DataM Intelligence. This growth is largely driven by the integration of generative AI and increased regulatory requirements.

Generative AI, which accounted for over 41.8% of the technology market share in 2024, is a key player in this transformation. It is widely used for automated ESG content generation, synthetic data creation, and scenario simulation. Meanwhile, data collection and analysis, which captured more than 37.3% of the market, play a crucial role in managing fragmented ESG data and ensuring compliance-ready disclosures.

Various industries, including Energy & Utilities, Manufacturing, and Building & Construction, are actively adopting AI to enhance their ESG outcomes. The Building & Construction sector, in particular, led the market with over 31.7% share in 2024, reflecting its focus on sustainability through AI-powered lifecycle, energy, and materials optimization solutions.

In the United States, the market was valued at $48 billion in 2024, with expectations of a 26.7% CAGR, driven by regulatory pressures and sustainability strategies. This growth trajectory underscores the increasing reliance on AI for ESG initiatives across multiple sectors.