PUBLISHER: Grand View Research | PRODUCT CODE: 1728003
PUBLISHER: Grand View Research | PRODUCT CODE: 1728003
The global life cycle assessment market size was estimated at USD 765.2 million in 2024 and is projected to grow at a CAGR of 14.4% from 2025 to 2030. The growing global emphasis on environmental sustainability and carbon footprint reduction is driving the life cycle assessment (LCA) market growth. As governments, corporations, and consumers become increasingly aware of the environmental impact of products and services, there is a rising demand for tools that can measure and manage these effects across the entire life cycle from raw material extraction to production, use, and disposal. LCA provides a comprehensive framework for quantifying environmental impacts, enabling organizations to identify inefficiencies and areas for improvement. The push for sustainability reporting, driven by climate change concerns and international climate agreements, is further encouraging companies across industries to adopt LCA tools to ensure transparency and accountability in their environmental practices.
The stringent environmental regulations and compliance requirements worldwide are driving the adoption of the life cycle assessment market. Governments in regions like Europe, North America, and parts of Asia are mandating environmental impact disclosures and setting strict limits on emissions, resource consumption, and waste generation. Businesses are increasingly adopting LCA tools to meet regulatory demands, avoid penalties, and maintain their licenses to operate. This regulatory pressure is fostering the growth of the LCA market across various sectors, including manufacturing, energy, chemicals, and consumer goods.
Additionally, the shift towards circular economy models is another important driver of the life cycle assessment market. Governments and industries are increasingly embracing circular economic principles, which prioritize resource efficiency, recycling, and sustainable product design. Life cycle assessment plays a crucial role in supporting circular economy initiatives by providing data-driven insights into material flows, product end-of-life scenarios, and the environmental impact of different recycling or reuse strategies. Companies looking to implement circular practices rely on LCA to identify the most sustainable options for product design, supply chain management, and waste reduction, thereby driving demand for these tools. According to an article published by the European Environment Agency, Europe achieved a circular rate of 11.8% in 2023, indicating that it uses a greater share of recycled materials compared to other regions globally. Advancing the shift toward a circular economy has emerged as a key policy priority.
Furthermore, the growing emphasis on green building certifications and sustainable architecture is another driver of the life cycle assessment (LCA) market, particularly in the construction sector. Certifications such as LEED (Leadership in Energy and Environmental Design), BREEAM, and WELL often require or recommend LCA-based assessments to evaluate the environmental performance of building materials and designs. Architects, engineers, and construction firms are increasingly using LCA tools to select materials with the least environmental impact and to design buildings that meet sustainability benchmarks. This trend is especially strong in regions with stringent energy and environmental building codes, such as Europe, North America, and parts of Asia, thereby expanding the LCA market within the construction and real estate industries.
Global Life Cycle Assessment Market Report Segmentation
This report forecasts revenue growth at global, regional, and at country levels and offers a qualitative and quantitative analysis of the market trends for each of the segment and sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global life cycle assessment market based on component, type, deployment, enterprise size, end-use, and region: