Clean Tech & AI: Markets Powering Economic Growth in 2024

Clean tech and artificial intelligence (AI) are shaping up as the two leading sectors for economic expansion in the second half of 2024. These industries are not only growing fast but also catalysing broader economic benefits such as increased hiring, substantial investments from large corporations and allowing technological advancements that will change how we live and work.

The Green Revolution Accelerates

We are seeing a tidal wave in the clean tech sector, which consists of renewable energy, sustainable transportation and environmentally friendly innovations. A rise in global awareness around climate change and government pro-green policies have made green solutions more accessible and cost-effective than ever.

New developments include the rapid growth of electric vehicles (EVs), with the trade value of EVs increasing about 25% between 2023 and 2024, a trend that seems to be holding through all of 2024. This trend goes well beyond personal transportation, as we are seeing a huge ramp-up in the electrification of public transit and commercial fleets.

Furthermore, solar and wind energy projects are growing at an unprecedented pace. The advancement of these technologies enables a massive, low-cost investment in clean energy infrastructure. That trend is creating a host of new jobs, from installers to research scientists dreaming up next-gen sustainable solutions.

Companies leading the way to a greener future are reporting substantial gains. For instance, Tesla continues to dominate the EV market, but traditional automotive producers like Ford and General Motors are also pushing rapidly to expand their EV operations. EVs are here to stay and will likely take over the combustion car industry very soon.

In the energy sector, NextEra Energy and Vestas Wind Systems are among the growing number of companies benefiting from increasing demand in the renewable power solutions space.

The AI Revolution Continues To Grow

From healthcare to real estate, artificial intelligence is taking over the wheel and there seems no sign of its pace slowing down. As per the latest reports, AI-related products are experiencing stronger increases in trade value, indicating growing global demand for these technologies.

Recent statistics show a 25% rise in high-performance server trade value over Q1 of this year. This wave of billions invested towards AI infrastructure reflects the explosion in demand for AI-backed technologies.

The AI boom is driving growth across a number of different sectors.

• Healthcare – AI is changing the game of diagnostics, drug discovery and personalised medicine.

• Finance – AI is improving algorithmic trading, fraud detection and serving better banking services.

• Manufacturing – AI-enhanced robots and predictive maintenance are driving better efficiency and lower downtime.

• Retail – Personalised recommendations and inventory management systems have been advanced.

The expansion has a ripple effect throughout the job market, resulting in a rapid increase in job availability for AI professionals, data scientists and software engineers. The world is also increasingly in demand for people who can translate the capabilities of AI into real-world uses.

Leading companies in the AI space, such as NVIDIA, which produces GPUs and cloud service providers like AWS or Microsoft Azure are experiencing rapid growth and public recognition. Not so surprisingly, AI-focused startups are too enjoying a hefty dose of venture capital injection, with some huge numbers being dropped by confident VC investors.

Why These Two Markets?

Clean technology and AI are at the forefront of innovation for several reasons.

• Global Challenges – Both sectors face high global challenges - climate change and the need for greater production and efficiency. 

• Technological Convergence – Both clean tech and AI sectors often collaborate to solve global issues. For instance, AI is being used to optimise renewable energy systems and improve energy efficiency in buildings and transportation.

• Government Support – The sectors are supported by most countries, offering policies and subsidies for clean technology adoption and AI development. 

• Market Demand – Both sectors are experiencing rapidly increasing demand. Consumers and companies are eager to use smart services and products.

• Profitable Investment – Cleantech and AI sectors are appealing to investors, ensuring decent growth rates for both venture capitalists and large funds. 

Closing Down

Looking ahead to the second half of 2024, the outlook for clean technology and artificial intelligence is incredibly promising. Technological innovations and greater uptake, bolstered by supportive policy environments, will continue to drive growth in both sectors.

However, challenges remain. To be competitive with traditional energy sources, clean tech needs to become much more efficient and a lot less expensive. Addressing ethical concerns around AI and ensuring there's equitable access to the benefits of the technology will be particularly important.