Energy Transition Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Energy Transition Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Energy Transition Market

The global energy transition market size was valued at USD 1,769.80 billion in 2023. The market is projected to grow from USD 2,056.97 billion in 2024 to USD 6,474.40 billion by 2032, exhibiting a CAGR of 15.41% during the forecast period.

The energy transition is the global shift from fossil fuels to low-carbon and renewable energy sources, reshaping how energy can be produced, distributed, and utilized. This transition aims to improve energy security, reduce greenhouse gases, combat climate change, and foster sustainable development.

Rising environmental concerns and commitments, such the Paris Agreement’s 1.5°C target, emphasize the urgent need to reduce greenhouse gas emissions and mitigate climate risks. Major sectors, such as electricity generation and transportation, heavily rely on fossil fuels, which drive carbon emissions. This dependency highlights the critical need for adopting renewable energy to reduce environmental impact, thereby driving energy transition market growth.

Energy efficiency, particularly in residential and commercial building, is crucial for reducing energy waste, cutting costs, energy waste, and optimizing resource use, making it a core component of the energy transition. Moreover, the transportation sector is accelerating its shifts from internal combustion engine vehicles to battery electric and hybrid electric vehicles, driven by OEM investments and government incentives, which supports overall energy transition efforts.

Comprehensive Analysis of the Energy Transition Market

In terms of type, the market is classified into electrification, energy efficiency, renewable energy, and others. The electrification segment is slated to capture the key energy transition market share during the forecast period. Efforts to electrify transport and buildings are central to lowering CO2 emissions in the Net Zero by 2050 Scenario, with electric vehicles and heat pumps playing critical roles in emission reductions. On the basis of sector, the market is fragmented into transportation, power & utility, and others. The power & utility segment held the apex position in the market in 2023. Growing manufacturing capacity in India, the U.S., and the EU supports the solar PV supply chain, while China continues to lead in solar energy production. Based on geography, the market is studied across Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.

China and India are leading the market in the Asia Pacific region, with India targeting 450 GW of renewable energy capacity by 2030, including 280 GW from solar. The Energy Policy Act (EPA) in the U.S. emphasizes energy efficiency, renewable energy, and climate change technologies, creating a supportive regulatory environment that promotes energy transition.

The major players in the market are GE Vernova (U.S.), Iberdrola, S.A. (Spain), NextEra Energy, Inc. (U.S.), Constellation (U.S.), First Solar (U.S.), Ørsted A/S (Denmark), Dongfang Electric Corporation (China), ABB (Switzerland), Eaton (Ireland), Siemens AG (Germany), Danfoss (Denmark), Enel X S.r.l. (Italy), Ameresco (U.S.), Daikin Industries Ltd. (Japan), and Orion Energy Systems, Inc. (U.S.). The energy transition market emphasizes significant investments and a robust product portfolio from key players such as and Siemens, GE Vernova, and Ørsted A/S. Recently ABB and Korea Electric Power Corporation (KEPCO) signed a Memorandum of Understanding to enhance the stability of Jeju Island's power grid and support the transition to green energy.

The U.S. Department of State introduced the Clean Energy Transition Accelerator (CETA) project in Argentina in August 2024, offering USD 500,000 in technical support through its Department of Energy. This project was designed to lower greenhouse gas emissions and facilitate a faster transition to clean energy in Argentina.

Segmentation Table

Global Energy Transition Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 15.41% from 2024 to 2032

Unit Value (USD Billion)

Segmentation By Type, Sector, and Region

Segmentation By Type

Renewable Energy

Electrification

Energy Efficiency

Others

By Sector

Power & Utility

Transportation

Others

By Region

North America (By Type, Sector, and Country)

U.S. (By Sector)

Canada (By Sector)

Europe (By Type, By Sector, and By Country)

U.K. (By Sector)

Germany (By Sector)

France (By Sector)

Italy (By Sector)

Spain (By Sector)

Rest of Europe (By Sector)

Asia Pacific (By Type, Sector, and Country)

China (By Sector)

India (By Sector)

Australia (By Sector)

Japan (By Sector)

South Korea (By Sector)

Rest of Asia Pacific (By Sector)

Latin America (By Type, Sector, and Country)

Brazil (By Sector)

Mexico (By Sector)

Rest of Asia Pacific (By Sector)

Middle East & Africa (By Type, Sector, and Country)

GCC (By Sector)

South Africa (By Sector)

Rest of the Middle East & Africa (By Sector)