Energy Transition Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type, By Application, By Region, By Competition, 2020-2030F

Description

The Global Energy Transition Market was valued at USD 3.1 trillion in 2024 and is expected to reach USD 5.2 trillion by 2030 with a CAGR of 8.7% through 2030. The Global Energy Transition Market is driven by a combination of regulatory mandates, technological advancements, and shifting economic priorities. Governments worldwide are implementing stringent policies, including net-zero commitments, carbon pricing, and subsidies for renewable energy, encouraging a shift away from fossil fuels. The declining costs of solar, wind, and energy storage technologies have made renewable energy more affordable, further accelerating adoption. Technological advancements, such as smart grids, AI-driven energy management, and breakthroughs in green hydrogen, are enhancing energy efficiency and reliability.

Market Overview
Forecast Period	2026-2030
Market Size 2024	USD 3.1 Trillion
Market Size 2030	USD 5.2 Trillion
CAGR 2025-2030	8.7%
Fastest Growing Segment	Renewable Energy
Largest Market	Asia Pacific

Corporations are increasingly focusing on ESG (Environmental, Social, and Governance) commitments, investing in clean energy through Power Purchase Agreements (PPAs) and sustainability initiatives. Additionally, geopolitical concerns, such as the Russia-Ukraine conflict, have intensified the focus on energy security, driving investments in local renewable infrastructure. Consumer demand for electric vehicles (EVs), green buildings, and sustainable products is also pushing the transition forward. Financially, green bonds, climate funds, and private sector investments are playing a crucial role in scaling renewable projects. Together, these drivers are shaping the future of the global energy landscape, positioning clean energy as the dominant force in the transition towards a sustainable and resilient energy ecosystem.

Key Market Drivers

Government Policies, Regulations, and Energy Security Initiatives

Government policies and regulations play a critical role in driving the Global Energy Transition Market, shaping investment decisions and accelerating the adoption of clean energy technologies. Countries worldwide have established ambitious net-zero emissions targets, with the European Union, the United States, China, and India implementing policies to reduce carbon footprints. These commitments have led to the phasing out of coal-fired power plants, the expansion of renewable energy mandates, and the introduction of carbon pricing mechanisms such as the European Union Emissions Trading System (EU ETS) and carbon taxes. Such measures create financial incentives for companies to invest in low-carbon solutions while penalizing high-emission industries.

In addition, renewable energy subsidies and tax credits have made solar, wind, and hydrogen energy more competitive against fossil fuels. The U.S. Inflation Reduction Act (IRA) and the EU's Green Deal Industrial Plan have allocated billions of dollars in incentives to accelerate clean energy deployment. Governments are also setting stricter corporate sustainability regulations, requiring businesses to disclose carbon emissions and adopt greener operations. This regulatory push forces industries such as manufacturing, transportation, and construction to shift toward cleaner alternatives, stimulating demand for energy-efficient technologies, carbon capture solutions, and electric vehicles (EVs).

Key Market Challenges

Infrastructure Limitations and Grid Integration Challenges

One of the most pressing challenges in the Global Energy Transition Market is the inadequacy of existing infrastructure to support the large-scale deployment of renewable energy. Traditional power grids were designed to accommodate centralized fossil fuel-based power generation, whereas renewable energy sources like solar and wind are decentralized and intermittent. The lack of modernized grid infrastructure hampers the efficient transmission, distribution, and storage of renewable energy, leading to supply fluctuations and grid instability.

Many countries struggle with grid congestion and transmission bottlenecks, particularly in regions where renewable energy generation sites are located far from major consumption centers. For instance, in the United States and India, vast solar and wind resources are available in remote areas, but inadequate transmission networks prevent the efficient delivery of power to urban centers. The challenge is exacerbated by regulatory hurdles and slow permitting processes for building new power lines, delaying critical infrastructure upgrades.

Energy storage solutions are essential for mitigating renewable intermittency, but current storage technologies are not yet cost-effective or widely deployed at scale. While advancements in battery storage (such as lithium-ion, solid-state, and flow batteries) and alternative storage methods (such as pumped hydro and compressed air energy storage) are promising, high costs, limited scalability, and resource constraints (such as lithium and rare earth metals shortages) pose significant obstacles. Without efficient long-duration energy storage solutions, integrating renewables into the grid remains a challenge.

Key Market Trends

Rapid Expansion of Renewable Energy and Decentralized Power Generation

A major trend shaping the Global Energy Transition Market is the rapid expansion of renewable energy sources, particularly solar, wind, and green hydrogen, driven by falling costs, policy incentives, and advancements in technology. Solar and wind energy have become the dominant sources of new power capacity additions worldwide, with record installations in China, the United States, Europe, and India. The declining levelized cost of electricity (LCOE) for renewables has made them more competitive than fossil fuels, even without subsidies. In August 2024, the U.S. Department of State launched the Clean Energy Transition Accelerator (CETA) project in Argentina. The U.S. government will provide USD 500,000 in technical assistance to Argentina through the U.S. Department of Energy's Pacific Northwest National Laboratory and the National Renewable Energy Laboratory. The project is designed to reduce greenhouse gas emissions and accelerate Argentina's transition to clean energy.

Governments and corporations are heavily investing in utility-scale solar farms, offshore wind projects, and hybrid renewable systems, integrating multiple sources of clean energy to ensure grid stability. Offshore wind power, in particular, is gaining traction, with countries like the UK, Germany, China, and the US expanding their offshore wind capacity. Floating solar farms on reservoirs and coastal areas are also emerging as a viable solution to overcome land constraints.

A parallel trend is the rise of decentralized power generation, which enables individuals, businesses, and communities to generate their own electricity through rooftop solar panels, microgrids, and distributed energy resources (DERs). Decentralization reduces dependence on centralized fossil-fuel-based grids, improving energy security and resilience. With advancements in energy storage technologies, consumers can store excess renewable energy for later use, reducing reliance on the grid during peak demand periods.

Key Market Players

Siemens AG
General Electric Company
Vestas Wind Systems A/S
First Solar, Inc.
SunPower Corporation
Tesla, Inc.
Enphase Energy, Inc.
Orsted A/S
ABB Ltd.
Schneider Electric SE

Report Scope:

In this report, the Global Energy Transition Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Energy Transition Market, By Type:

Renewable Energy
Energy Efficiency
Electrification
Hydrogen
Others

Energy Transition Market, By Application:

Residential
Commercial
Utility Scale

Energy Transition Market, By Region:

North America
- United States
- Canada
- Mexico
Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Belgium
Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Indonesia
- Vietnam
South America
- Brazil
- Colombia
- Argentina
- Chile
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Turkey
- Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Energy Transition Market.

Available Customizations:

Global Energy Transition Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Solution Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Formulation of the Scope
2.4. Assumptions and Limitations
2.5. Sources of Research
- 2.5.1. Secondary Research
- 2.5.2. Primary Research
2.6. Approach for the Market Study
- 2.6.1. The Bottom-Up Approach
- 2.6.2. The Top-Down Approach
2.7. Methodology Followed for Calculation of Market Size & Market Shares
2.8. Forecasting Methodology
- 2.8.1. Data Triangulation & Validation

3. Executive Summary

4. Voice of Customer

5. Global Energy Transition Market Overview

6. Global Energy Transition Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Type (Renewable Energy, Energy Efficiency, Electrification, Hydrogen, Others)
- 6.2.2. By Application (Residential, Commercial, Utility Scale)
- 6.2.3. By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)
6.3. By Company (2024)
6.4. Market Map

7. North America Energy Transition Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Application
- 7.2.3. By Country
7.3. North America: Country Analysis
- 7.3.1. United States Energy Transition Market Outlook
  - 7.3.1.1.Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2.Market Share & Forecast
    - 7.3.1.2.1. By Type
    - 7.3.1.2.2. By Application
- 7.3.2. Canada Energy Transition Market Outlook
  - 7.3.2.1.Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2.Market Share & Forecast
    - 7.3.2.2.1. By Type
    - 7.3.2.2.2. By Application
- 7.3.3. Mexico Energy Transition Market Outlook
  - 7.3.3.1.Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2.Market Share & Forecast
    - 7.3.3.2.1. By Type
    - 7.3.3.2.2. By Application

8. Europe Energy Transition Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Application
- 8.2.3. By Country
8.3. Europe: Country Analysis
- 8.3.1. Germany Energy Transition Market Outlook
  - 8.3.1.1.Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2.Market Share & Forecast
    - 8.3.1.2.1. By Type
    - 8.3.1.2.2. By Application
- 8.3.2. France Energy Transition Market Outlook
  - 8.3.2.1.Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2.Market Share & Forecast
    - 8.3.2.2.1. By Type
    - 8.3.2.2.2. By Application
- 8.3.3. United Kingdom Energy Transition Market Outlook
  - 8.3.3.1.Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2.Market Share & Forecast
    - 8.3.3.2.1. By Type
    - 8.3.3.2.2. By Application
- 8.3.4. Italy Energy Transition Market Outlook
  - 8.3.4.1.Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2.Market Share & Forecast
    - 8.3.4.2.1. By Type
    - 8.3.4.2.2. By Application
- 8.3.5. Spain Energy Transition Market Outlook
  - 8.3.5.1.Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2.Market Share & Forecast
    - 8.3.5.2.1. By Type
    - 8.3.5.2.2. By Application
- 8.3.6. Belgium Energy Transition Market Outlook
  - 8.3.6.1.Market Size & Forecast
    - 8.3.6.1.1. By Value
  - 8.3.6.2.Market Share & Forecast
    - 8.3.6.2.1. By Type
    - 8.3.6.2.2. By Application

9. Asia Pacific Energy Transition Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Type
- 9.2.2. By Application
- 9.2.3. By Country
9.3. Asia Pacific: Country Analysis
- 9.3.1. China Energy Transition Market Outlook
  - 9.3.1.1.Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2.Market Share & Forecast
    - 9.3.1.2.1. By Type
    - 9.3.1.2.2. By Application
- 9.3.2. India Energy Transition Market Outlook
  - 9.3.2.1.Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2.Market Share & Forecast
    - 9.3.2.2.1. By Type
    - 9.3.2.2.2. By Application
- 9.3.3. Japan Energy Transition Market Outlook
  - 9.3.3.1.Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2.Market Share & Forecast
    - 9.3.3.2.1. By Type
    - 9.3.3.2.2. By Application
- 9.3.4. South Korea Energy Transition Market Outlook
  - 9.3.4.1.Market Size & Forecast
    - 9.3.4.1.1. By Value
  - 9.3.4.2.Market Share & Forecast
    - 9.3.4.2.1. By Type
    - 9.3.4.2.2. By Application
- 9.3.5. Australia Energy Transition Market Outlook
  - 9.3.5.1.Market Size & Forecast
    - 9.3.5.1.1. By Value
  - 9.3.5.2.Market Share & Forecast
    - 9.3.5.2.1. By Type
    - 9.3.5.2.2. By Application
- 9.3.6. Indonesia Energy Transition Market Outlook
  - 9.3.6.1.Market Size & Forecast
    - 9.3.6.1.1. By Value
  - 9.3.6.2.Market Share & Forecast
    - 9.3.6.2.1. By Type
    - 9.3.6.2.2. By Application
- 9.3.7. Vietnam Energy Transition Market Outlook
  - 9.3.7.1.Market Size & Forecast
    - 9.3.7.1.1. By Value
  - 9.3.7.2.Market Share & Forecast
    - 9.3.7.2.1. By Type
    - 9.3.7.2.2. By Application

10. South America Energy Transition Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Type
- 10.2.2. By Application
- 10.2.3. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Energy Transition Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Type
    - 10.3.1.2.2. By Application
- 10.3.2. Colombia Energy Transition Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Type
    - 10.3.2.2.2. By Application
- 10.3.3. Argentina Energy Transition Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Type
    - 10.3.3.2.2. By Application
- 10.3.4. Chile Energy Transition Market Outlook
  - 10.3.4.1. Market Size & Forecast
    - 10.3.4.1.1. By Value
  - 10.3.4.2. Market Share & Forecast
    - 10.3.4.2.1. By Type
    - 10.3.4.2.2. By Application

11. Middle East & Africa Energy Transition Market Outlook

11.1. Market Size & Forecast
- 11.1.1. By Value
11.2. Market Share & Forecast
- 11.2.1. By Type
- 11.2.2. By Application
- 11.2.3. By Country
11.3. Middle East & Africa: Country Analysis
- 11.3.1. Saudi Arabia Energy Transition Market Outlook
  - 11.3.1.1. Market Size & Forecast
    - 11.3.1.1.1. By Value
  - 11.3.1.2. Market Share & Forecast
    - 11.3.1.2.1. By Type
    - 11.3.1.2.2. By Application
- 11.3.2. UAE Energy Transition Market Outlook
  - 11.3.2.1. Market Size & Forecast
    - 11.3.2.1.1. By Value
  - 11.3.2.2. Market Share & Forecast
    - 11.3.2.2.1. By Type
    - 11.3.2.2.2. By Application
- 11.3.3. South Africa Energy Transition Market Outlook
  - 11.3.3.1. Market Size & Forecast
    - 11.3.3.1.1. By Value
  - 11.3.3.2. Market Share & Forecast
    - 11.3.3.2.1. By Type
    - 11.3.3.2.2. By Application
- 11.3.4. Turkey Energy Transition Market Outlook
  - 11.3.4.1. Market Size & Forecast
    - 11.3.4.1.1. By Value
  - 11.3.4.2. Market Share & Forecast
    - 11.3.4.2.1. By Type
    - 11.3.4.2.2. By Application
- 11.3.5. Israel Energy Transition Market Outlook
  - 11.3.5.1. Market Size & Forecast
    - 11.3.5.1.1. By Value
  - 11.3.5.2. Market Share & Forecast
    - 11.3.5.2.1. By Type
    - 11.3.5.2.2. By Application

12. Market Dynamics

12.1. Drivers
12.2. Challenges

13. Market Trends and Developments

14. Company Profiles

14.1. Siemens AG
- 14.1.1. Business Overview
- 14.1.2. Key Revenue and Financials
- 14.1.3. Recent Developments
- 14.1.4. Key Personnel/Key Contact Person
- 14.1.5. Key Product/Services Offered
14.2. General Electric Company
- 14.2.1. Business Overview
- 14.2.2. Key Revenue and Financials
- 14.2.3. Recent Developments
- 14.2.4. Key Personnel/Key Contact Person
- 14.2.5. Key Product/Services Offered
14.3. Vestas Wind Systems A/S
- 14.3.1. Business Overview
- 14.3.2. Key Revenue and Financials
- 14.3.3. Recent Developments
- 14.3.4. Key Personnel/Key Contact Person
- 14.3.5. Key Product/Services Offered
14.4. First Solar, Inc.
- 14.4.1. Business Overview
- 14.4.2. Key Revenue and Financials
- 14.4.3. Recent Developments
- 14.4.4. Key Personnel/Key Contact Person
- 14.4.5. Key Product/Services Offered
14.5. SunPower Corporation
- 14.5.1. Business Overview
- 14.5.2. Key Revenue and Financials
- 14.5.3. Recent Developments
- 14.5.4. Key Personnel/Key Contact Person
- 14.5.5. Key Product/Services Offered
14.6. Tesla, Inc.
- 14.6.1. Business Overview
- 14.6.2. Key Revenue and Financials
- 14.6.3. Recent Developments
- 14.6.4. Key Personnel/Key Contact Person
- 14.6.5. Key Product/Services Offered
14.7. Enphase Energy, Inc.
- 14.7.1. Business Overview
- 14.7.2. Key Revenue and Financials
- 14.7.3. Recent Developments
- 14.7.4. Key Personnel/Key Contact Person
- 14.7.5. Key Product/Services Offered
14.8. Orsted A/S
- 14.8.1. Business Overview
- 14.8.2. Key Revenue and Financials
- 14.8.3. Recent Developments
- 14.8.4. Key Personnel/Key Contact Person
- 14.8.5. Key Product/Services Offered
14.9. ABB Ltd.
- 14.9.1. Business Overview
- 14.9.2. Key Revenue and Financials
- 14.9.3. Recent Developments
- 14.9.4. Key Personnel/Key Contact Person
- 14.9.5. Key Product/Services Offered
14.10. Schneider Electric SE
- 14.10.1. Business Overview
- 14.10.2. Key Revenue and Financials
- 14.10.3. Recent Developments
- 14.10.4. Key Personnel/Key Contact Person
- 14.10.5. Key Product/Services Offered