Asia Pacific Sustainable Manufacturing Equipment Market Size & Share 2026-2035

Asia Pacific Sustainable Manufacturing Equipment Market Size

The Asia Pacific sustainable manufacturing equipment market was estimated at USD 96.1 billion in 2025. The market is expected to grow from 97.8 billion in 2026 to USD 122.7 billion in 2035, at a CAGR of 2.6% according to latest report published by Global Market Insights Inc.

The Asia Pacific sustainable manufacturing equipment industry is currently in a transformational phase due to the changing nature of how companies use their resources and operate. Companies are moving away from the old paradigm of viewing sustainability as an added-on to their operational processes and instead are integrating it into their overall growth strategies. The result has been an increasing number of manufacturers using equipment that uses less energy, produces less waste, and provides safer working environments. In addition, as government agencies have begun to push for more environmentally friendly business practices, this has led manufacturers to believe that the transition to using more environmentally friendly technologies is achievable, and lower costs than they originally thought would be incurred. For example, many manufacturing sectors - including but not limited to electronic, auto, chemical, food processing, and packaging - are now beginning to replace their older, outdated machines with more modern, easily maintained, automated, and monitored machinery.

At the same time, the growing interest by Asia Pacific consumers and businesses in utilizing renewable energy and utilizing circular production methods is having an impact on the type of equipment that manufacturers are choosing to use. Many of the new equipment innovations that will be developed will focus on the areas of recycling, reducing greenhouse gas emissions, and cutting down on water consumption; as well as having been included in the long-term capital investment plans rather than being treated as short-term trends. This will be a strong driver for both local and global equipment manufacturers to provide products/solutions that are not only environmentally friendly, but that also have the flexibility to accommodate the rapidly expanding nature of Asian manufacturing companies.

Asia Pacific Sustainable Manufacturing Equipment Market Trends

The Asia Pacific sustainable manufacturing equipment industry is experiencing dynamic growth, driven by regional governments' ambitious environmental mandates, growing corporate sustainability goals, and increasing consumer demand for eco-friendly products.
 

• Investment by manufacturers in energy-efficient equipment has increased as manufacturers are using more high-performance electrical equipment, such as electric motors and advanced climate control systems, which helps to lower energy use and carbon footprints while also increasing the profitability of their operations and complying with environmental regulations.
   
• Increasingly popular are the practices associated with circular economic principles. Manufacturers are looking for equipment that will enable the recovery of materials, recycling, and minimizing the generation of waste during manufacturing processes. As a result, manufacturers are investing in more advanced shredders and sorting systems for processing material and reusing raw materials in an eco-friendlier manner.
   
• Digitalization and artificial intelligence (AI) are becoming more common in sustainable manufacturing equipment (e.g., IoT sensors, data analytics). This enables manufacturers to monitor their processes in real time and adjust on-the-go, ultimately resulting in reduced waste of materials and more efficient production processes.
   
• Businesses continue to look for ways to produce goods using more environmentally sustainable production technologies by using less hazardous chemicals or producing cleaner products (e.g., utilizing solvent-free cleaning systems and low-VOC coatings). There are both regulatory pressures as well as corporate responsibility involved in promoting this type of production.
   

Asia Pacific Sustainable Manufacturing Equipment Market Analysis

Based on equipment type, the market is energy-efficient machinery, waste management equipment, water & wastewater treatment equipment, carbon emission control systems, renewable energy integration equipment, smart manufacturing & monitoring equipment, sustainable packaging equipment, additive manufacturing equipment, others. In 2025, energy-efficient machinery held the major market share, generating a revenue of USD 22.3 billion.
 

• The growth of the energy-efficient machine market is creating immediate benefits for manufacturers on the manufacturing floor. As manufacturers continue to strive for lower operational costs, they are acquiring machines that use less energy, create less heat, and require fewer maintenance checks, all of which help achieve these cost-saving objectives. Since these machines can be integrated into existing factory layouts, there is no need for companies to overhaul their operations when purchasing these machines.
   
• Moreover, energy-efficient machines provide companies with an opportunity to comply with the new environmental regulations without disrupting production.  The advantages provided by energy-efficient machines include better production flow, reduced electricity costs, and reduced unplanned downtime; therefore, the investment in energy-efficient machinery will provide a good return on investment and will be a viable investment option for all companies looking for a long-term investment in modernizing their manufacturing operations instead of instantaneously changing the company’s manufacturing process.
   
• At the same time, manufacturers are also experiencing rapid growth in equipment that integrates renewable energies into their operations as they transition from a focus on becoming more energy-efficient to completely changing the way they source energy. Due to the large number of commercial buildings incorporating solar, wind, and energy storage systems into their operations, an increasing number of manufacturers will require equipment capable of connecting these renewable energy systems to their manufacturing lines without experiencing a loss of electrical power.

Based on end use, the Asia Pacific sustainable manufacturing equipment market is segmented into automotive, electronics and semiconductor, food and beverage, chemical manufacturing, pharmaceuticals, metals and mining, consumer goods, and others. The automotive segment held the largest share, accounting for 21% of the market in 2025.

• Automotive manufacturers need high-quality production lines with accurate machines that minimize errors to meet the growing number of manufacturers who are transitioning to lower-polluting methods and utilizing more intelligent vehicles, as such there are numerous improvements that have been made in factory equipment within the automotive manufacturing industry, about implementing advanced manufacturing processes and technologies.
   
• Manufacturers are continuously upgrading production process equipment to reduce waste and improve accuracy, and international buyers and regulators are increasingly requiring automotive manufacturers to implement sustainable practices to comply with environmental regulations and to produce quality products in an efficient manner. As the automotive industry converts toward being the leader among all sectors of developing and utilizing sustainable manufacturing equipment because of the magnitude of the automotive manufacturing operations, any improvements made to manufacturing equipment will produce sizeable positive benefits on automotive manufacturers.
   
• The pharmaceutical manufacturing market is expanding faster than any other market due to the growing focus on ensuring the products produced are manufactured with as high a level of safety, hygiene, and traceability as possible. When pharmaceutical companies are bringing new prescription drugs and vaccines to market, it is extremely important that there is high-quality manufacturing equipment available to produce these types of products and ensure that they are produced without any contamination. As pharmaceutical companies such as some others are building new R&D (research and development) and manufacturing facilities to accommodate the anticipated growth in new drug launches in the future, there is also a growing need for modern sustainable manufacturing equipment to produce these types of products.
   
• The ability to properly handle the chemicals, provide controlled production environments, and continually improve manufacturing processes are priorities. Pharmaceutical manufacturers have begun using equipment that produces both better environmental performance and reliable manufacturing performance due to the increasing pressures from international regulatory agencies, healthcare providers, and global supply chains. Due to this continued convergence of more stringent manufacturing guides, larger production volume and a sustained commitment to socially responsible manufacturing practices, the pharmaceutical manufacturing industry is also growing at a fast rate.
   

Based on distribution channel, the Asia Pacific sustainable manufacturing equipment market is segmented into direct and indirect sales. In 2025, direct sales dominate the market with highest market share.
 

• Direct sales are dominating because of the increasing popularity among manufacturers to have a clear and reliable line of communication with their equipment suppliers, especially for complex or high-value sustainable manufacturing systems; directly purchasing also instils confidence in buyers when working with the manufacturer that designed and built their new equipment by ensuring quality installation, performance guarantees, and long-term service support.
   
• By enabling suppliers to have a clearer understanding of the buyer's production layout, energy goals, and technical limitations, directly purchasing leads to producing a solution that is better suited for the buyer than if purchased through an intermediary. Due to the requirement of many sustainability-focused products needing customization (in areas such as automation, monitoring, and integration), manufacturers often prefer to work directly with their suppliers to avoid potential misunderstandings and delays that can occur due to having an intermediary involved; thus making directly purchasing from the supplier the safer and more efficient option for both companies.
   
• The direct sales channel is experiencing rapid growth as many companies in Asia Pacific modernize their factories and are seeking end-to-end support for their production processes. With the increasing need for energy efficient machines, emission control pieces of equipment, and monitoring tools, these companies look for suppliers that can provide training, site assessments, and long-term maintenance agreements as part of the process of purchasing their production equipment.
   
• Finally, because of the increased frequency of suppliers providing services/solutions through their direct sales teams, suppliers have also been able to create stronger levels of trust and confidence with their customers, leading to increased sales volume.
   

In 2025, the China dominated the Asia Pacific sustainable manufacturing equipment market, accounting for around 41% and generating around USD 39.2 billion revenue in the same year.
 

• The sustainable manufacturing equipment market is characterized by three main countries - China, Japan, and India. Each of these countries play significant roles in the global marketplace due to their diverse populations, lifestyles and consumer behaviors. China is a fast-paced urban country with a very large urban population. Because of the large number of people living in apartments surrounded by busy lifestyles, the use of household Sustainable Manufacturing Equipment is growing rapidly. There are many local and international brands competing to provide consumers with products that meet their needs and preferences.
   
• Japan’s culture is built around cleanliness. The Japanese view cleaning as both a civic duty and a personal responsibility. As a result, there is a constant demand for reliable, efficient, safe and easy-to-use cleaning products. To meet this demand, many Japanese manufacturers are producing compactly designed products with mild ingredients and modern packaging that will fit in any home.
   
• India is rapidly moving towards becoming one of the largest markets for sustainable manufacturing equipment, largely due to urbanization and increased awareness of cleanliness and hygiene. This is resulting in a shift from traditional methods of using equipment for cleaning to modern technologies. An increase in household income, coupled with an increase in population, as well as a broader variety of product options to choose from, are all contributing to the success of sustainable manufacturing equipment.
   

Asia Pacific Sustainable Manufacturing Equipment Market Share

Unilever is leading with 8% market share. Unilever, Procter & Gamble (P&G), Reckitt Benckiser Group, SC Johnson, Kao Corporation collectively hold around 33%, indicating moderately fragmented market concentration. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broad customer base, and strengthen their market position.
 

• Siemens is a global technology powerhouse specializing in industrial automation, digitalization, and electrification. They hold a significant position by offering comprehensive solutions like digital twin technology, energy management software, and smart factory automation, enabling resource efficiency and sustainable production. Their Xcelerator portfolio drives digital transformation, helping APAC manufacturers optimize operations, reduce waste, and achieve sustainability goals across diverse industries.
   
• Schneider Electric is a global specialist in energy management and automation. They maintain a strong position through eco-efficient solutions that optimize energy consumption, enhance industrial automation, and facilitate digital transformation. Their EcoStruxure platform integrates operational technology with IT, empowering APAC manufacturers to monitor and control energy usage, improving process efficiency, and build resilient, sustainable factory operations across the region.
   
• ABB is a leading global technology company focused on electrification, industrial automation, motion, and robotics. They are prominent in APAC by providing advanced robotics and automation solutions that significantly boost production efficiency and resource optimization. Their offerings, including process automation and electrification products, support industries from automotive to heavy manufacturing in achieving sustainable practices and higher productivity across the Asia Pacific region.
   

Asia Pacific Sustainable Manufacturing Equipment Market Companies

Major players operating in the Asia Pacific sustainable manufacturing equipment industry are:

• ABB Ltd.
• Atlas Copco AB
• KUKA
• Delta Electronics Inc.
• Emerson Electric Co.
• FANUC Corporation
• Honeywell International Inc.
• Mitsubishi Electric Corporation
• Omron Corporation
• Rockwell Automation, Inc.
• Schneider Electric SE
• Siemens AG
• SMC Corporation
• Yaskawa Electric Corporation
• Yokogawa Electric Corporation
   

Mitsubishi Electric is a Japanese multinational known for its diverse electrical and electronic equipment, including comprehensive factory automation systems. They hold a strong APAC position by delivering integrated automation solutions, energy-saving equipment, and their e-Factory concept for smart manufacturing. This enables high-efficiency production lines, reduced energy consumption, and improved product quality, catering to the growing demand for sustainable operations in key Asian manufacturing hubs.
 

Delta Electronics is a global provider of power and thermal management solutions, now extensively diversified into industrial and building automation. They are significant APAC players due to their expertise in energy-efficient power supplies, industrial automation products (drives, PLCs, robotics), and smart factory solutions. Delta's strong emphasis on green manufacturing and energy saving directly supports APAC
 

Asia Pacific Sustainable Manufacturing Equipment Industry News

• In March 2024, Panasonic India launched its Green Impact initiative targeting 1 million tons of CO2 reduction by 2030 through energy-efficient manufacturing equipment, renewable energy adoption, and circular economy practices across its production facilities. This initiative positions Panasonic to meet India's net-zero commitments, reduces operational costs through energy efficiency, and enhances brand reputation in the rapidly growing Indian sustainable manufacturing market.
   
• In March 2024, Hitachi Energy expanded its Bengaluru R&D center focusing on sustainable grid technology, energy-efficient power equipment, and digital solutions for renewable energy integration supporting India's clean energy transition. This expansion strengthens Hitachi's innovation capabilities in APAC's fastest-growing renewable energy market, accelerates development of grid-scale sustainable manufacturing equipment, and positions the company to capture India's $500 billion green energy investment opportunity.
   
• In 2024, Siemens expanded its Xcelerator digital business platform across APAC, offering cloud-based industrial IoT, AI-driven energy optimization, and digital twin capabilities enabling manufacturers to reduce carbon emissions by up to 50%. This platform expansion enables APAC manufacturers to accelerate sustainability transformation, provides Siemens with recurring software revenue streams, and establishes the company as the leading provider of integrated digital-physical sustainable manufacturing solutions across the region.
   
• In November 2023, Schneider Electric opened its Sustainability House in Singapore, a smart factory demonstrating EcoStruxure platform capabilities with energy management systems, IoT sensors, and AI-powered analytics achieving 30% energy reduction. This facility serves as a customer experience center showcasing sustainable manufacturing solutions, accelerates adoption of green industrial automation across APAC, and strengthens Schneider's position in the region's energy transition market.
   
• In September 2023, Siemens inaugurated a S$200 million sustainable campus in Singapore featuring digital twin technology, 1.2 MW rooftop solar panels, rainwater harvesting, and smart building management systems for net-zero operations. This facility establishes Siemens as a showcase for sustainable manufacturing in APAC, demonstrates Industry 4.0 integration with green technology, and positions the company to lead regional digital transformation and decarbonization initiatives.
   

The Asia Pacific sustainable manufacturing equipment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2022 to 2035, for the following segments:

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Market, By Equipment Type

• Energy-efficient Machinery
• Waste Management Equipment
• Water & Wastewater Treatment Equipment
• Carbon Emission Control Systems
• Renewable Energy Integration Equipment
• Smart Manufacturing & Monitoring Equipment
• Sustainable Packaging Equipment
• Additive Manufacturing Equipment
• Others  

 Market, By End-user Industry

• Automotive
• Electronics and Semiconductor
• Food and Beverage
• Chemical Manufacturing
• Pharmaceuticals
• Metals and Mining
• Consumer Goods
• Others (Textile Manufacturing, etc.)

Market, By Entity

• Large Enterprises
• Small & Medium Enterprises (SMEs)
• Government & Research Institutes
• Sustainable Manufacturing Startups

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following countries:

• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Indonesia