by The energy transition market comprises products and services used for transitioning from fossil fuel-based energy sources to renewable and clean energy sources. This includes renewable energy generation technologies such as wind turbines, solar panels, energy storage systems, electric vehicles, EV charging infrastructure, smart grids, demand response solutions, and energy management systems. The growing emphasis on climate actions and sustainable development goals worldwide has accelerated the adoption of these technologies leading to significant growth opportunities.
The Global Energy Transition Market is estimated to be valued at US$ 2.83 Tn in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the energy transition market are Siemens AG, General Electric Company, Vestas Wind Systems A/S, First Solar, Inc., SunPower Corporation, Tesla, Inc., Enphase Energy, Inc., Ørsted A/S, ABB Ltd., Schneider Electric SE, NextEra Energy, Inc., Canadian Solar Inc., Brookfield Renewable Partners L.P., Duke Energy Corporation, and BP plc. These companies are investing heavily in research and development of next-generation energy technologies to capitalize on the fast-growing opportunities.
The Energy Transition Market Demand on climate actions and sustainable development goals worldwide is driving significant demand for renewable energy sources and associated technologies. Government policies and incentives regarding carbon emission reductions and clean energy targets are further accelerating widespread adoption. Various industries and sectors are actively transitioning towards electric and hybrid technologies to reduce their carbon footprint.
The energy transition market is witnessing rapid global expansion as countries worldwide are implementing national climate action plans and net-zero emission targets. Investments are flowing into renewable energy generation capacities and grids, expansion of EV charging infrastructure, energy storage projects, and modernization of conventional power generation assets. Both developed and developing economies are vigorously participating to achieve a sustainable energy future.
Market key Trends
Transitioning to Biogas Market by climate actions is one of the major ongoing trends in the energy market. To curb greenhouse gas emissions, countries are actively backing technologies like solar, wind, hydropower and setting renewable energy generation targets. For instance, the European Union has set a target of supplying 32% of its total energy from renewable sources by 2030. This is spurring significant investments and accelerating the adoption of renewables.
Porter’s Analysis
Threat of new entrants: The energy transition market requires very high initial investments in technology and infrastructure which acts as a barrier for new companies.
Bargaining power of buyers: Individual buyers have low bargaining power compared to utilities and governments who can negotiate better pricing due to bulk purchases.
Bargaining power of suppliers: A few large companies dominate the supply of key components like solar panels, wind turbines and batteries which gives them substantial bargaining power.
Threat of new substitutes: Technologies in transportation and power generation are evolving rapidly prompting new alternatives to emerge regularly increasing substitution risks.
Competitive rivalry: Being a strategic sector, competition is intense among industry players to gain market share and benefit from the growing demand for clean energy solutions.
Geographically, the energy transition market in terms of value is highly concentrated in Asia Pacific and Europe. Asia Pacific accounts for over 35% of the total market value led by China’s massive investments in renewable energy capacity additions every year.
The fastest growing region for the energy transition market between 2024-2031 is expected to be Africa. Many African countries are adopting incentive policies and schemes to boost the deployment of solar, wind and other green solutions to meet rising power demands in a sustainable manner. This is projected to more than double Africa’s share in the global energy transition investments during the forecast period.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
