The energy transition market refers to the move from fossil fuels to renewable and cleaner energy sources like solar, wind and hydroelectric power. The rapidly depleting fossil fuel reserves and the harmful impact of their usage on the environment has fueled the demand for sustainable energy sources. Renewable energy is environment-friendly and utilizes natural resources like sunlight, wind, tides and geothermal heat to generate electricity. It provides reliable power without polluting the air or water and is economically viable with falling technology costs.
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. Governments across countries are offering subsidies and tax incentives to boost investments in renewable energy generation, providing opportunities to key players. Geographical expansion of companies into emerging markets will drive global expansion of the energy transition market over the forecast period.
Market Drivers
The rising concern about environmental sustainability is a Energy Transition Market Demand Fossil fuels significantly contribute to climate change with CO2 emissions. Transitioning to cleaner alternatives can help reduce carbon footprint. Stringent government policies and regulations to curb greenhouse gas emissions are also driving widespread adoption of renewable energy resources. Falling technology costs and advancements in battery storage solutions have enhanced the commercial viability of solar and wind power, propelling the energy transition market growth.
PEST Analysis
Political: Growing focus on renewable sources of energy due to regulations supporting clean energy and reduction in carbon emissions. Governments providing subsidies for solar, wind and other green technologies.
Economic: Investments increasing in Biogas Market clean energy and energy storage to reduce dependency on fossil fuels. Falling technology costs making renewable energy more competitive than coal and gas in many markets.
Social: Rising environmental awareness and demand for sustainable solutions. People preferring renewable sources of energy to address issues like global warming and climate change.
Technological: Advancements in energy storage solutions, electric vehicles, smart grids, and distributed energy resources. Increased digitization improving efficiency of power generation and distribution.
Most of the value of the energy transition market is concentrated in Europe and North America regions currently. The European Union has ambitious renewable energy targets and policies supporting the green transition. Countries like the United States, Germany, United Kingdom are major markets.
However, the Asia Pacific region is poised to be the fastest growing market for the energy transition over the forecast period. Rapid industrialization and economic growth in countries like China and India is driving huge investments in renewable energy capacity additions. Supportive policies and falling costs are also enabling wider adoption of clean technologies across Southeast Asia.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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