Energy Transition Market Research - 2031
The global energy transition market size was valued at $2.3 trillion in 2021, and projected to reach $5.6 trillion by 2031, with a CAGR of 9.3% from 2022 to 2031.
Report Key Highlighters
- The Energy Transition market is consolidated in nature with few players such as Exelon Corporation, Duke Energy Corporation, Pacific Gas and Electric Company, Southern Company, American Electric Power, Inc, that hold significant share of the market.
- The study covers in-depth analysis of 20 countries from different regions including North America, Europe, Asia-Pacific, and LAMEA. In addition, country-wise data of every country has been provided for better understanding of Energy Transition market dynamics in every country.
- The Energy Transition market includes company profiles of 10 key players who are actively engaged in producing various Energy Transition.
Energy transition is the transformation process in which fossil fuels, such as oil, natural gas, and coal, are transformed into renewable energy such as wind and solar energy as well as lithium-ion batteries. The energy transition is majorly categorized into five categories including renewable source, electrification, energy efficiency, hydrogen, and other energies. Renewable sources account for highest market share in terms of revenue due to their wide application in residential and utility sector. Major factors driving the growth of global market are rise in penetration of renewable energy in residential sector and advancements in energy storage.
Moreover, continuous supply of energy, development of prosumer business models, transforming human behavior toward renewable sources are expected to create lucrative opportunity for market growth during the forecast period. In addition, increase in popularity of transition technology owing to its employment in electricity generation, to provide electricity for residential buildings at a low cost is anticipated to drive the growth of the energy transition market.
Other factors driving growth of the global energy transition market growth are expansion of grid infrastructure, rising energy efficient buildings, and growing transportation sector along with focus on carbon emission reduction are fueling global energy transition growth during the forecast period. Moreover, rise in concern from governments across the globe on increased global warming issues is expected to augment the demand for energy transition. Governments across different countries are offering new rebate and incentive schemes for manufacturers to contribute into zero carbon era. Such incentive programs are expected to encourage commercial as well as utility end users to use clean energy, thereby contributing toward the growth of the global energy transition market.
The use of energy transition by commercial buildings such as offices, malls, and airports help reduce the load on traditional fossil fuel power plants and further decreases the carbon footprint. Thus, with surge in use of solar energy and growth in solar farm in developing nations are expected to generate electricity in an efficient way and offer optimistic opportunity for global market growth during the forecast period.
Also, the major disruptions to travel, trade and economic activity brought about by the pandemic led to the fall of global carbon emission with huge international health crisis and widespread economic trauma. In order to achieve robust economic recovery without huge carbon emissions is the governments is acting as a lead in pursuing structural reductions in emissions by offering or working with smart, sustained, and ambitious policies to accelerate development led to the deployment of a full range of clean energy solutions.
The energy transition market is segmented on the basis of type, application, and region. On the basis of type, it is segmented into renewable energy, energy efficiency, electrification, hydrogen, and other type of energy. Renewable energy type is further segmented into solar energy, wind energy, bioenergy, and hydropower. According to the International Energy Agency, the overall capacity of renewable energy sources worldwide is expected to rise by 50% between 2019 and 2024. On the basis of application, the market is classified into residential, commercial, and utility-scale. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Energy Transition market, by Type
In 2021, the renewable energy segment was the largest revenue generator, and is anticipated to grow at a CAGR of 9.8% during the forecast period. Several factors are associated with for the increasing demand for renewable in the market as shift towards the clean and green energy and offering the benefit of lower emissions of carbon and other types of pollution. Increasing in development for the energy transition and storage of the power which are generated by renewable will create the opportunities for renewable in the market. For instance, the Renewable Energy and Battery Storage Promotion Project in China aims to encourage the integration and use of renewable energy through battery storage technologies and creative uses of renewable energy.
By Type
Renewable Energy is the most lucrative segment
Energy Efficient segment was the second-largest contributor in terms of revenue in the global Energy Transition market in 2021, and is anticipated to grow at a CAGR of 8.9% during the forecast period. This growth is due to the support of government for energy efficiency in the global transition market, which act as a prime factor.
In 2021, Wind Power accounted for the largest revenue share and is projected to grow at the fastest CAGR of 9.9% in the global energy transition Market. The demand for the wind energy is increasing in the renewable segment. Renewables made up 19.8 % of electricity generation in 2020, with hydro and wind making up the majority contributor. The market for wind is driven by the fact that wind is a plentiful and unending resource that also produces power without consuming any fuel or polluting the environment.
Solar power segment was the second-largest contributor in terms of revenue in the global Energy Transition market in 2021, and is anticipated to grow at a CAGR of 10.2% during the forecast period. Solar panels turn solar radiation into heat, whereas photovoltaic panels convert thermal energy into electricity. As solar PV requires extremely little maintenance, its demand is rising in the market.
Energy Transition market, by Application
In 2021, the residential segment was the largest revenue generator, and is anticipated to grow at a CAGR of 9.5% during the forecast period. Several factors are associated with for the increasing demand for residential in the market such as rise in demand for electric water heaters from water heating applications such as cooking, space heating, cleaning, bathing, and others is expected to drive the growth of the energy transition during the forecast period.
By Application
Residential is the most lucrative segment
Utility Scale segment was the second-largest contributor in terms of revenue in the global Energy Transition market in 2021, and is anticipated to grow at a CAGR of 8.7% during the forecast period. The demand for the energy transition is increasing the utility sector as lower the carbon footprints and investing in ESG policies which is helping the energy transition market to grow.
Energy Transition market, by Region
The Asia-Pacific Energy Transition market size is projected to grow at the highest CAGR during the forecast period. Rapid industrialization and urbanization across countries of Asia-Pacific region such as India, China, and Thailand have led to increase in infrastructure development activities, including construction of highways and new residential complexes, which are expected to fuel the demand for standalone systems. In addition, increase in government investment in R&D and technological innovation is expected to propel the demand for energy transition.
By Region
Europe would exhibit highest CAGR of 8.4% during 2022-2031.
Furthermore, in Asia-Pacific, energy transition is widely used in generation of electricity for standalone systems and rural electrification. In addition, growth of telecommunication and aerospace & defense industry has led to increase in usage of renewable and other energy across the Asia-Pacific region. These factors are expected to drive the demand for Energy Transition in the region.
North America was the second-largest contributor in terms of revenue in the global Energy Transition market in 2021, and is anticipated to grow at a CAGR of 9.8% during the forecast period, 2022-2031. The U.S. is the second largest energy consumer, after China. The majority of this energy is derived from fossil fuels. Owing to increase in carbon footprint, the U.S. Government has implemented stringent environmental regulations regarding the usage of fossil fuels and is encouraging the use of clean energy by enforcing policies, such as net metering and taking up community solar projects.
The leading players operating in the global Energy Transition market include, Exelon Corporation, Duke Energy Corporation, Pacific Gas and Electric Company, Southern Company, American Electric Power, Inc, Edison International, Repsol, Brookfield Renewable Partners, Ørsted A/S, and NextEra Energy, Inc.
The global Energy Transition market report provides in-depth competitive analysis as well as profiles of these major players.
Key benefits for stakeholders
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current Energy Transition market trends and future estimations from 2021 to 2031 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Impact Of Covid-19 On The Global Energy Transition Market
The COVID-19 is an infectious disease that originated in Hubei province of the Wuhan city in China in late December 2019. The highly contagious disease, caused by a virus, severe acute respiratory syndrome coronavirus 2, is transmitted from humans to humans. Since the outbreak in December 2019, the disease has spread to almost 213 countries around the globe with the World Health Organization declaring it a public health emergency on March 11, 2020. During 2020-2021, the energy transition market was moderately impacted due to the spread of pandemic, however the presence of its beneficial features, the market has gained momentum through investments post lockdowns. Some factors which slowdown the demand for energy transitions market across the are smaller number of investments in 2020 and threatening to slow the expansion of key clean energy technologies.
Energy Transition Market Report Highlights
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Analyst Review
According to various top-level CXOs of leading companies, the global Energy Transition market is expected to exhibit high growth potential during the forecast period. This growth is due to rapidly growing awareness among the people regarding the advantages of clean energy and high efficiency conversion of buildings.
The ongoing process of switching from fossil fuels to low carbon energy sources is known as energy transition. A major structural change in an energy system affecting supply and consumption is known as an energy transition. The energy transition market is expected to grow at a rapid pace during the forecast period, owing to increase in demand for electricity and rise in initiatives by government to reduce CO2 emissions. In addition, the renewable solar energy technology has gained popularity in the recent years, owing to surge in awareness of renewable sources of energy.
The Asia-Pacific energy transition market offers lucrative opportunities for key manufacturers, owing to rapid installation of clean energy technology to increase renewable energy generation. In addition, China actively enhances its solar power to cope with its pollution demands and to boost its domestic manufacturing industry. The increase in the demand for electricity from commercial & industrial sectors especially during fiscal year 2022 is a major market driver.
The renewable energy segment was the largest revenue generator in 2021, and is anticipated to grow at a CAGR of 9.8% during the forecast period.
The Asia-Pacific is the largest regional market in the global Energy Transition market, contributing nearly half of the global market in 2021.
The global Energy Transition market is projected to reach $ 5.6 Trillion by 2031, growing at a CAGR of 9.3% from 2022 to 2031.
The rising demand for electricity from commercial and utility-scale sectors due to rapid utility-industrialization and increase in population across the globe is expected to create an optimistic opportunity growth for global market over the forecast period.
The leading players operating in the global Energy Transition market include, Exelon Corporation, Duke Energy Corporation, Pacific Gas and Electric Company, Southern Company, American Electric Power, Inc, Edison International, Repsol, Brookfield Renewable Partners, Ørsted A/S, and NextEra Energy, Inc.
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