According to a new report published by Allied Market Research, titled, “Clean Energy Transition Market,” The clean energy transition market size was valued at $2.4 trillion in 2023, and is projected to reach $3.7 trillion by 2028, growing at a CAGR of 9.4% from 2024 to 2028.
The Clean Energy Transition Market encompasses the global shift from fossil fuel-based energy systems to renewable and low-carbon energy sources. This transition involves the adoption of technologies such as solar, wind, hydropower, and geothermal energy, aiming to reduce greenhouse gas emissions and mitigate climate change. The market includes various components like renewable energy generation, energy storage solutions, smart grids, and energy efficiency services. It is driven by factors such as technological advancements, policy support, and increasing environmental awareness. The transition not only addresses environmental concerns but also presents economic opportunities through job creation and sustainable development.
The significance of the Clean Energy Transition Market lies in its potential to transform the global energy landscape. As countries strive to meet climate goals, there is a growing emphasis on decarbonizing energy systems and enhancing energy security. Investments in clean energy infrastructure, coupled with supportive policies and international agreements like the Paris Agreement, are accelerating this transition. The market’s growth is further fueled by declining costs of renewable technologies and the increasing competitiveness of clean energy solutions. Overall, the Clean Energy Transition Market represents a pivotal movement towards a more sustainable and resilient energy future.
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Public and private sector collaboration is playing a pivotal role in advancing the clean energy transition. Large-scale renewable energy projects, such as solar power plants and wind farms, are increasingly supported by joint investments from governments and private enterprises. Policymakers are actively implementing supportive frameworks, including tax incentives, subsidies, and renewable energy mandates, to stimulate the adoption of green technologies. International agreements, notably the Paris Agreement, further reinforce these efforts by committing countries to reduce carbon emissions and transition toward cleaner energy systems. These collaborative and policy-driven initiatives are expected to significantly boost the growth of the clean energy transition market in the coming years.
Despite this momentum, the clean energy transition faces considerable challenges due to the limited availability of critical raw materials required for clean energy technologies. Key materials like lithium, cobalt, rare earth elements (REEs), and platinum-group metals (PGMs) are essential for the production of solar panels, wind turbines, and electric vehicle batteries. The extraction and processing of these resources often come with significant environmental and social costs, creating supply chain vulnerabilities and potentially slowing market expansion.
Technological advancements in energy storage are proving instrumental in overcoming one of the major barriers of renewable energy: intermittency. Progress in storage solutions—including advanced battery chemistries, improved efficiency, and lower costs—enhances the reliability of solar and wind energy, making them more viable alternatives to fossil fuels. Continued innovation in materials, manufacturing, and system integration is making storage technologies more affordable and scalable. As these solutions become more accessible, they open up new opportunities for clean energy deployment, particularly in regions with growing energy needs, further driving the global clean energy transition market forward.
The clean energy transition market analysis is segmented into type, end use and region. By type, the market is classified into renewable energy, energy efficiency, electrification, hydrogen, and others. By end use, the market is classified into industrial, commercial, residential, and utility. Region-wise the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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The clean energy transition market demonstrates dynamic regional trends, shaped by policy frameworks, resource availability, and investment priorities. Europe leads the global shift, propelled by ambitious climate goals, such as the EU Green Deal and widespread adoption of wind, solar, and hydrogen technologies. North America, particularly the United States, is accelerating its clean energy transition with federal incentives, tax credits under the Inflation Reduction Act, and major investments in renewables and grid modernization.
In the Asia-Pacific region, countries like China, India, and Japan are rapidly expanding clean energy capacity, driven by surging electricity demand, urbanization, and commitments to net-zero emissions. Meanwhile, Latin America, with abundant solar and hydro resources, is gradually scaling up clean energy projects, while Africa and the Middle East are emerging players focused on off-grid solutions and solar investments to increase energy access and diversify economies. Each region’s pace is influenced by its unique economic, regulatory, and environmental landscape, collectively contributing to the global clean energy transformation.
The major players operating in the clean energy transition market outlook include NextEra Energy, Inc., Iberdrola, S.A., Ørsted A/S, Tesla Inc., Enel Spa, Vestas Wind Systems A/S, BYD Company Ltd., Brookfield Asset Management, Schneider Electric, and Plug Power Inc.
The report provides a detailed analysis of these key players in the global clean energy transition industry. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, and agreements to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to highlight the competitive scenario.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the clean energy transition market analysis from 2024 to 2028 to identify the prevailing clean energy transition market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the clean energy transition market overview and segmentation assists to determine the prevailing market opportunities.
