Emerging sub-sectors within greentech
Green technologies are emerging across a wide range of growth verticals at the moment, but some of the most common include:
Green energy
33% of the greentech companies we track on Beauhurst operate in this space. Green energy companies develop technologies that provide an alternative to fossil fuels (such as solar, geothermal, and nuclear fusion) or that reduce our energy consumption and waste.
This sector also includes companies whose software or engineering services facilitate green energy generation.
Agritech
The agritech sector includes anything from vertical farming companies to those developing environmentally-friendly pesticides. What green agritech companies have in common is their focus on reducing negative environmental impacts in the agriculture industry, which traditionally has a high carbon footprint and substantial land, water, and energy use.
For example, precision farming is a form of agritech that utilises GPS, IoT devices, and data analytics to monitor and optimise crop growth and livestock health, aiming to enhance yield while minimising resource use.
Green transport
A notable trend in recent years has been the rise of electric vehicles, or EVs. Zap Map estimates that there are now over one million EVs on UK roads, up from just under 100,000 in 2019.
From electric cars and trains to the batteries that power them, we track more than 300 green companies in the transport and logistics space, offering sustainable transport options to consumers and businesses that want to reduce their carbon emissions.
Circular economy
Businesses focused on circular economies aim to create closed loop systems in which waste is repurposed to create new products or applications. Not only does this reduce pollution, but it also reduces the need to draw on finite resources.
Innovative companies in this sector are developing next-generation recycling technologies, as well as alternatives to non-recyclable materials.
Overview of greentech companies in the UK
Of the almost 50,000 active private companies tracked on the Beauhurst platform, more than 1300 businesses (roughly 3%) operate in the greentech, cleantech, and green energy sectors.
These companies include a diverse range of innovations in critical areas such as renewable energy production, energy efficiency, waste reduction, and sustainable agriculture.
Academic spinouts
Universities are generating impressive impact in the green technology space, as evidenced by the notably higher representation of cleantech companies among academic spinouts when compared to the overall average.
8% of cleantech companies in the UK have been spun out of universities, which is almost triple the overall Beauhurst-tracked average of 3%.
Regional distribution of UK cleantech companies
London is home to 29% of the UK’s greentech companies, reflecting the broader national spread of investment, as highlighted in The Deal 2023.
However, Scotland boasts an impressive 11% of the UK’s renewables companies, not to mention a burgeoning offshore wind market. The Offshore Wind Industry Council (OWIC) highlighted this in its findings that the offshore wind supply chain could deliver up to £92b in value to the UK economy by 2040 — with much of this industry based in Scotland.
Stages of growth
72% of these companies are in either the seed or venture stage, reflecting the youth of the greentech sector.
It’s also a sign of the broader social and economic shift towards sustainability, with the number of early stage companies highlighting potential for growth in the greentech sector and the increasing alignment of investment and entrepreneurial activity with global sustainability goals.
