Energy Transition Market Overview

The Energy Transition market revenue is anticipated to grow significantly from 2025 to 2035, driven by environmental concerns, government policies, technological advancements, and the increasing cost-competitiveness of renewable energy sources. By 2025, the Energy Transition market value is projected to reach around USD 2,133.97 Billion. Looking ahead to 2035, it is expected to expand further to about USD 6,224.16 Billion. This represents an annual growth rate of 10.5% over the ten-year period.

The Global Energy Transition Market forecast is experiencing rapid growth as countries shift from fossil fuels to renewable and sustainable energy sources. This transformation is driven by climate policies, technological advancements, corporate sustainability goals, and declining costs of renewable energy solutions. The Global Energy Transition Market analysis refers to the structural shift from traditional fossil fuel-based energy systems to sustainable, low-carbon, and renewable energy sources. This transformation encompasses the adoption of renewable energy, energy storage solutions, electrification of industries and transportation, and grid modernization to reduce carbon emissions and achieve long-term climate goals. The Global Energy Transition Market growth is crucial for achieving carbon neutrality, energy security, and sustainable economic growth, aligning with international climate agreements such as the Paris Agreement.

Energy Transition Market Drivers and Opportunities

Government Policies & Climate Commitments is anticipated to lift the Energy Transition market growth during the forecast period

Government policies and climate commitments are among the biggest catalysts for the global energy transition market trends. Nations worldwide are implementing aggressive policies, net-zero targets, and financial incentives to accelerate the shift from fossil fuels to renewable energy, clean technologies, and decarbonization strategies. These efforts are expected to significantly increase market size and investment in clean energy during the forecast period. Government-backed incentives, subsidies, and carbon pricing are making renewable energy more cost-effective. Climate commitments are forcing industries to decarbonize, creating demand for solar, wind, EVs, hydrogen, and energy storage. Strict regulations on coal, oil, and gas are pushing the world toward cleaner energy solutions. Over 90% of global GDP is now covered by net-zero targets from governments and corporations. Paris Agreement & Net-Zero Goals signed by 195 countries, the Paris Agreement aims to limit global warming to 1.5°C. Countries have committed to cutting CO₂ emissions by 50% by 2030 and reaching net-zero by 2050-2070.  Governments are phasing out coal, banning gasoline cars, and investing in renewable energy infrastructure. For instance, European Union (EU) committed to 55% emission reductions by 2030 and climate neutrality by 2050. Since 2020, governments have earmarked nearly USD 2 trillion in direct investment support for clean energy initiatives. This figure is almost triple the amount committed during the 2007-08 financial crisis response. Notably, approximately 80% of this funding is concentrated in China, the European Union, and the United States. In the first half of 2024 alone, over 40 countries allocated an additional USD 290 billion towards clean energy support. In 2022, global investments in energy transition technologies reached a historic USD 1.3 trillion, marking a 19% increase from 2021 and a 70% surge compared to pre-pandemic levels in 2019. This growth encompasses sectors such as renewable energy, energy efficiency, and electrified transport. Specifically, investments in electrified transport technologies, including electric vehicles and charging infrastructure, soared by 54% over 2021, totaling USD 466 billion.

Declining Costs of Renewable Energy Technologies is a vital driver for influencing the growth of the global Energy Transition market

​The declining costs of renewable energy technologies are significantly propelling the expansion of the global energy transition market. As renewable energy becomes more cost-competitive, it attracts increased investments, accelerates adoption rates, and fosters technological advancements. This trend is instrumental in shifting the global energy landscape towards sustainability. According to the International Renewable Energy Agency (IRENA), the cost of solar photovoltaic (PV) electricity has fallen by 89% between 2010 and 2022. The global weighted average cost of electricity (LCOE) from utility-scale solar PV decreased to $0.048 per kWh in 2022, making it one of the cheapest power sources. The U.S. Department of Energy’s Solar Futures Study projects that by 2030, solar energy could contribute 40% of U.S. electricity generation, further driving global adoption. The cost of onshore wind power has dropped by 69% since 2010, with an average LCOE of $0.033 per kWh in 2022. Offshore wind costs have also seen a 60% reduction in the past decade, making it increasingly competitive. Countries like China, the U.S., and Germany have ramped up offshore wind investments, with China commissioning 10.8 GW of offshore wind capacity in 2021 alone—a record high. The volatility of fossil fuel prices has further highlighted the economic advantages of renewables. In 2022, approximately 86% (187 GW) of newly commissioned renewable capacity had lower costs than fossil fuel-fired electricity. This shift not only offers cost savings but also enhances energy security by reducing dependence on imported fuels. The adoption of renewable energy has led to significant fuel cost savings globally. New capacity added since 2000 reduced the electricity sector's fuel bill by at least USD 520 billion in 2022 alone. These savings underscore the economic benefits of transitioning to renewable energy sources. The declining costs have spurred substantial investments in renewable energy. In 2023, a record 473 GW of renewable capacity was added globally, with 81% (382 GW) of these projects costing less than their fossil fuel counterparts. This trend indicates a strong business case for renewables, encouraging further investments and expansion in the sector.

Technological Innovations & Digitalization is poised to create significant opportunities in the global Energy Transition market

​​​Technological innovations and digitalization are poised to significantly enhance the global energy transition market, offering substantial opportunities for growth and efficiency improvements. The integration of advanced digital technologies into energy systems is transforming how energy is produced, distributed, and consumed, leading to a more connected, reliable, and sustainable energy landscape.  Smart grids leverage IoT sensors, AI, and big data analytics to optimize power distribution, minimize energy losses, and integrate renewable energy sources efficiently. According to IEA (International Energy Agency), investment in smart grids reached $290 billion in 2023, and it is expected to surpass $500 billion by 2030. AI-powered predictive analytics can forecast energy demand, reducing wastage and improving grid reliability. Digital twins create virtual simulations of physical energy assets (e.g., wind turbines, solar farms) to optimize performance and maintenance schedules. Blockchain facilitates peer-to-peer (P2P) energy trading, allowing consumers to buy and sell surplus renewable energy directly. Countries like Germany and the Netherlands are already implementing blockchain-based energy trading systems to support decentralization. Innovations in solid-state batteries, lithium-sulfur, and hydrogen storage are enhancing energy storage capabilities, ensuring a stable renewable energy supply. AI-powered algorithms are being used to improve the efficiency of solar and wind energy production. Google’s DeepMind AI has helped increase wind energy efficiency by 20% through predictive analytics. AI-driven automation in energy plants is expected to reduce operational costs by 15-20% by 2030.

Energy Transition Market Scope

Energy Transition Market Report Segmentation Analysis

The Global Energy Transition Market analysis is segmented into by Energy Source, by Technology, by End-use and by Region.

Non- Renewable Energy segment is anticipated to hold the highest share of the global Energy Transition market during the projected timeframe.

By Energy Source, the Energy Transition market is segmented into Renewable Energy and Non- Renewable Energy. Non- Renewable Energy segment dominate the global Energy Transition market share of around 57% among others. Coal, oil, and gas still provide 80% of global electricity. Despite the growth in renewable energy, fossil fuel consumption also hit record levels. Oil consumption rebounded strongly, largely due to the relaxation of COVID-19 lockdowns in countries like China. Coal consumption exceeded 164 EJ for the first time, with significant usage in China and India. However, with increasing investments, policy support, and technological advancements, renewables are expected to surpass 50% of the global energy share by 2035.

The Grid Modernization & Smart Grids segment is anticipated to hold the highest share of the market over the forecast period.

On the basis of Technology, the market is bifurcated into Grid Modernization & Smart Grids, Carbon Capture, Utilization, and Storage (CCUS), Electrification Technologies and Others. Grid modernization encompasses upgrading traditional power grids with advanced technologies to enhance efficiency, reliability, and integration of renewable energy sources. Smart grids, a pivotal component, utilize digital communication to detect and react to local changes in usage, improving the management of electricity demand and supply. However, CCUS remains one of the most expensive methods for reducing emissions in the energy sector, with efficiency and economic viability posing significant challenges.

The following segments are part of an in-depth analysis of the global Energy Transition market:

Energy Transition Market Share Analysis by Region

Asia Pacific is projected to hold the largest share of the global Energy Transition market over the forecast period.

Asia Pacific leads the global Energy Transition market, accounting for approximately 40% of the Energy Transition market share in 2024. In 2023, the region invested approximately $840 billion, driven by substantial commitments from countries like China and India. These nations are rapidly expanding their renewable energy capacities to meet growing energy demands and address environmental concerns. China is the world leader in renewable energy, accounting for 50% of global solar and wind capacity additions in 2023. India targets 500 GW of renewable energy by 2030, with aggressive solar and wind expansion. Southeast Asian countries (Vietnam, Indonesia, Philippines) are scaling up solar and battery storage. Heavy government support, such as China’s 14th Five-Year Plan, promotes clean energy growth. North America holds a significant portion of the market, with the United States at the forefront. This dominance is supported by strategic government policies and substantial investments in renewable energy infrastructure. For instance, in January 2023, Vestas announced a $40 million investment to upgrade wind turbine manufacturing facilities in Colorado, enhancing production capacity for the U.S. market. Additionally, Europe has demonstrated strong commitment to clean energy, with the European Union achieving a record 47% of its electricity generation from renewable sources in 2024. Solar power contributed 11%, and wind power surpassed gas for the second consecutive year. However, investment trends have shown signs of stagnation; in 2023, the EU experienced a 6.8% decline in green energy investments, attributed to economic growth concerns and policy uncertainties.

Energy Transition Market Competition Landscape Analysis

The global energy transition market share is highly competitive, with major players driving technological innovation, large-scale renewable energy projects, and strategic partnerships. Key industry participants include energy companies, technology providers, utilities, and governments, all aiming to accelerate the shift toward clean energy sources.

Global Energy Transition Market Recent Developments News:

• BioLite Acquires MPOWERD: In June, 2024, BioLite acquired MPOWERD, a manufacturer of micro-solar energy products. This acquisition aims to expand BioLite's impact by leveraging MPOWERD's extensive network of humanitarian and nonprofit partners.
• Infintium Fuel Cells Merges with Goldenstone Acquisition: In June, 2024, Infintium Fuel Cells, known for its hydrogen power cells, merged with Goldenstone Acquisition through a reverse merger valued at $18 million. This strategic move is intended to secure new manufacturing facilities and expand sales and marketing operations.
• Renewable Construction Services Acquires Alternative Power Partners: In May, 2024, Renewable Construction Services acquired Alternative Power Partners, enhancing its capabilities in delivering comprehensive renewable energy solutions across community, commercial, industrial, and utility-scale solar and battery projects.

The Global Biomass Electricity Market is dominated by a few large companies, such as

·         NextEra Energy

·         Ørsted

·         Iberdrola

·         Enel Green Power

·         RWE Renewables

·         EDF Renewables

·         Brookfield Renewable Partners

·         JinkoSolar

·         LONGi Green Energy

·         Canadian Solar

·         Others                                                                                       

1.      Global Energy Transition Market Introduction and Market Overview

1.1.    Objectives of the Study

1.2.    Global Energy Transition Market Scope and Market Estimation

1.2.1. Global Energy Transition Overall Market Size (US$ Bn), Market CAGR (%), Market forecast (2025 - 2035)

1.2.2. Global Energy Transition Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2021 - 2035

1.3.    Market Segmentation

1.3.1. Energy Source of Global Energy Transition Market

1.3.2. Technology of Global Energy Transition Market

1.3.3. End-use of Global Energy Transition Market

1.3.4. Region of Global Energy Transition Market

2.      Executive Summary

2.1.    Demand Side Trends

2.2.    Key Market Trends

2.3.    Market Demand (US$ Bn) Analysis 2021 – 2024 and Forecast, 2025 – 2035

2.4.    Demand and Opportunity Assessment

2.5.    Demand Supply Scenario

2.6.    Market Dynamics

2.6.1. Drivers

2.6.2. Limitations

2.6.3. Opportunities

2.6.4. Impact Analysis of Drivers and Restraints

2.7.    Pricing Trends Analysis

2.8.    Overview of Technology Developments

2.9.    Porter’s Five Forces Analysis

2.9.1. Bargaining Power of Suppliers

2.9.2. Bargaining Power of Buyers

2.9.3. Threat of Substitutes

2.9.4. Threat of New Entrants

2.9.5. Competitive Rivalry

2.10.  PEST Analysis

2.10.1.   Political Factors

2.10.2.   Economic Factors

2.10.3.   Social Factors

2.10.4.   Technology Factors

2.11.  Value Chain / Ecosystem Analysis

2.12.  Key Regulation

3.      Global Energy Transition Market Estimates & Historical Trend Analysis (2021 - 2024)

4.      Global Energy Transition Market Estimates & Forecast Trend Analysis, by Energy Source

4.1.    Global Energy Transition Market Revenue (US$ Bn) Estimates and Forecasts, by Energy Source, 2021 - 2035

4.1.1. Renewable Energy

4.1.1.1.              Solar Power

4.1.1.2.              Wind Power

4.1.1.3.              Hydropower

4.1.1.4.              Others

4.1.2. Non-Renewable Energy

5.      Global Energy Transition Market Estimates & Forecast Trend Analysis, by Technology

5.1.    Global Energy Transition Market Revenue (US$ Bn) Estimates and Forecasts, by Technology, 2021 - 2035

5.1.1. Grid Modernization & Smart Grids

5.1.2. Carbon Capture, Utilization, and Storage (CCUS)

5.1.3. Electrification Technologies

5.1.4. Others

6.      Global Energy Transition Market Estimates & Forecast Trend Analysis, by End-use

6.1.    Global Energy Transition Market Revenue (US$ Bn) Estimates and Forecasts, by End-use, 2021 - 2035

6.1.1. Power Generation

6.1.2. Transportation

6.1.3. Industrial

6.1.4. Commercial & Residential

6.1.5. Agriculture

7.      Global Energy Transition Market Estimates & Forecast Trend Analysis, by Region

7.1.    Global Energy Transition Market Revenue (US$ Bn) Estimates and Forecasts, by Region, 2021 - 2035

7.1.1. North America

7.1.2. Eastern Europe

7.1.3. Western Europe

7.1.4. Asia Pacific

7.1.5. Middle East & Africa

7.1.6. Latin America

8.      North America Energy Transition Market: Estimates & Forecast Trend Analysis

8.1.    North America Energy Transition Market Assessments & Key Findings

8.1.1. North America Energy Transition Market Introduction

8.1.2. North America Energy Transition Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

8.1.2.1.   By Energy Source

8.1.2.2.   By Technology

8.1.2.3.   By End-use

8.1.2.4.   By Country

8.1.2.4.1.     The U.S.

8.1.2.4.2.     Canada

8.1.2.4.3.     Mexico

9.      Western Europe Energy Transition Market: Estimates & Forecast Trend Analysis

9.1.    Western Europe Energy Transition Market Assessments & Key Findings

9.1.1. Western Europe Energy Transition Market Introduction

9.1.2. Western Europe Energy Transition Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

9.1.2.1.   By Energy Source

9.1.2.2.   By Technology

9.1.2.3.   By End-use

9.1.2.4.        By Country

9.1.2.4.1.      Germany

9.1.2.4.2.      Italy

9.1.2.4.3.      U.K.

9.1.2.4.4.      France

9.1.2.4.5.      Spain

9.1.2.4.6.      Benelux

9.1.2.4.7.      Nordics

9.1.2.4.8.     Rest of W. Europe

10.  Eastern Europe Energy Transition Market: Estimates & Forecast Trend Analysis

10.1.  Eastern Europe Energy Transition Market Assessments & Key Findings

10.1.1.   Eastern Europe Energy Transition Market Introduction

10.1.2.   Eastern Europe Energy Transition Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

10.1.2.1.    By Energy Source

10.1.2.2.    By Technology

10.1.2.3.    By End-use

10.1.2.4.    By Country

10.1.2.4.1.  Russia

10.1.2.4.2.  Hungary

10.1.2.4.3.  Poland

10.1.2.4.4.  Balkan & Baltics

10.1.2.4.5. Rest of E. Europe

11.  Asia Pacific Energy Transition Market: Estimates & Forecast Trend Analysis

11.1.  Asia Pacific Market Assessments & Key Findings

11.1.1.   Asia Pacific Energy Transition Market Introduction

11.1.2.   Asia Pacific Energy Transition Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

11.1.2.1.    By Energy Source

11.1.2.2.    By Technology

11.1.2.3.    By End-use

11.1.2.4.    By Country

11.1.2.4.1. China

11.1.2.4.2. Japan

11.1.2.4.3. India

11.1.2.4.4. Australia & New Zealand

11.1.2.4.5. South Korea

11.1.2.4.6. ASEAN

11.1.2.4.7. Rest of Asia Pacific

12.  Middle East & Africa Energy Transition Market: Estimates & Forecast Trend Analysis

12.1.  Middle East & Africa Market Assessments & Key Findings

12.1.1.   Middle East & Africa Energy Transition Market Introduction

12.1.2.   Middle East & Africa Energy Transition Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

12.1.2.1.    By Energy Source

12.1.2.2.    By Technology

12.1.2.3.    By End-use

12.1.2.4.    By Country

12.1.2.4.1. UAE

12.1.2.4.2. Saudi Arabia

12.1.2.4.3. Turkey

12.1.2.4.4. South Africa

12.1.2.4.5. Rest of MEA

13.  Latin America Energy Transition Market: Estimates & Forecast Trend Analysis

13.1.  Latin America Market Assessments & Key Findings

13.1.1.   Latin America Energy Transition Market Introduction

13.1.2.   Latin America Energy Transition Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

13.1.2.1.    By Energy Source

13.1.2.2.    By Technology

13.1.2.3.    By End-use

13.1.2.4.    By Country

13.1.2.4.1. Brazil

13.1.2.4.2. Argentina

13.1.2.4.3. Colombia

13.1.2.4.4. Rest of LATAM

14.  Country Wise Market: Introduction

15.  Competition Landscape

15.1.  Global Energy Transition Market Product Mapping

15.2.  Global Energy Transition Market Concentration Analysis, by Leading Players / Innovators / Emerging Players / New Entrants

15.3.  Global Energy Transition Market Tier Structure Analysis

15.4.  Global Energy Transition Market Concentration & Company Market Shares (%) Analysis, 2024

16.  Company Profiles

16.1.      NextEra Energy

16.1.1.   Company Overview & Key Stats

16.1.2.   Financial Performance & KPIs

16.1.3.   Product Portfolio

16.1.4.   SWOT Analysis

16.1.5.   Business Strategy & Recent Developments

* Similar details would be provided for all the players mentioned below 

16.2.      Ørsted

16.3.      Iberdrola

16.4.      Enel Green Power

16.5.      RWE Renewables

16.6.      EDF Renewables

16.7.      Brookfield Renewable Partners

16.8.      JinkoSolar

16.9.      LONGi Green Energy

16.10.  Canadian Solar

16.11.  Others

17.  Research Methodology

17.1.  External Transportations / Databases

17.2.  Internal Proprietary Database

17.3.  Primary Research

17.4.  Secondary Research

17.5.  Assumptions

17.6.  Limitations

17.7.  Report FAQs

18.  Research Findings & Conclusion