Allied Market Research recently published an insightful report titled “Energy Transition Market,” covering various aspects of this dynamic industry. The report delves into different market segments, providing an in-depth analysis of evolving trends, competitive dynamics, and investment opportunities. Here are some key highlights from the report:
The global energy transition market is on a trajectory for significant growth. In 2021, the market accumulated $2.3 trillion in revenue, and it is projected to experience a robust Compound Annual Growth Rate (CAGR) of 9.3% from 2022 to 2031, ultimately reaching an impressive $5.6 trillion by 2031.
Driving Forces and Challenges
One of the primary driving forces behind this growth is the increasing adoption of energy transition technologies, especially in the residential sector, aiming to provide cost-effective electricity solutions. However, the industry faces challenges such as technological limitations and geopolitical tensions, which could impede its progress. Nevertheless, the growing consumer preference for renewable energy sources opens up promising growth opportunities.
Dominance of Renewable Energy
The report identifies renewable energy as a dominant sector in the energy transition market. This segment is expected to maintain its supremacy, with a robust CAGR of 9.8% during the 2022-2031 period. The rising demand for clean and sustainable energy solutions, coupled with ongoing innovations in energy transition technologies, is set to fuel the growth of the renewable energy segment.
Wind Power’s Swift Growth
Within the renewable energy category, wind power emerges as a rapidly growing segment. It held the largest market share and is projected to maintain its momentum with a notable CAGR of 9.9% during the forecast period. The environmental benefits of wind energy, such as fuel-free and low-pollution power generation, are contributing to its accelerated growth.
Residential Sector’s Revenue Surge
The residential sector is poised for substantial revenue growth, holding the largest market share in terms of application. It is expected to exhibit a CAGR of 9.5% during the analysis timeframe. The surge in demand for electric water heaters and various household appliances for daily activities like cooking, cleaning, and bathing is a key driver behind this sector’s growth.
Asia-Pacific as a Profitable Hub
Regionally, the Asia-Pacific energy transition market is forecasted to be the most lucrative by 2031. The region generated the highest revenue in 2021 and is expected to maintain the highest CAGR during the analysis period. Factors such as rapid industrialization and urbanization, notably in countries like India and China, are driving the demand for energy transition technologies, positioning Asia-Pacific as a promising hub for this industry