Published : 06 Dec 2025
The energy transition market size was estimated at USD 2.58 trillion in 2025 and is anticipated to reach the market value of USD 6.24 trillion by 2035, indicating a robust CAGR of 8.9%.
The global energy transition market is being driven primarily by the global goal of reducing global carbon emissions through climate change mitigation and elimination of fossil fuel use. Across the world, governments are implementing aggressive decarbonization policies, for example, renewable energy mandates, carbon pricing, subsidies and incentives to support the large-scale deployment of clean energy technologies, such as solar, wind, battery storage and hydrogen, among others. These government policies, combined with the increase in demand for electricity due to the electrification of transport and industry, are creating a significant structural shift toward renewable energies and energy storage technology and modernization of our electrical grids.
In 2024, global investments in renewables, power grids and energy-storage systems surpassed USD 800 billion, representing an increase in investments into the development of clean energy infrastructure as well as an indication of investors’ level of confidence in the energy transition. Additionally, the rapid evolution of technology, the declining cost of clean energy technologies, and the availability of new and improved technologies (solar and wind), battery (energy storage), smart grid and digital energy management technology, has created a unique opportunity for clean energy deployment that is more efficient, more reliable and scalable than ever before. Corporate interest in sustainability, consumer awareness of the environmental impact of climate change and the increasing amount of investment coming from the private and public sectors, are further propelling the growth of energy transition market.
Global climate policies and net-zero commitments accelerate rapid transition to clean energy systems
A major contributor to the growth of the energy transition market is a dramatic increase in net-zero commitments and more stringent climate policies that require energy systems to divest from fossil fuels. Many countries are introducing carbon-pricing mechanisms, emission limits, renewable purchase obligations and coal-phase-out requirements to expedite decarbonization efforts to meet their carbon-reduction goals. In addition, many governmental bodies are providing financial incentives, grants and/or tax credits for solar, wind, battery storage, electric vehicles (EVs) and modernizing existing electrical grid systems.
Green hydrogen revolution unlocks massive decarbonization potential across hard-to-abate industries worldwide
Green hydrogen is one of the fastest expanding sectors in the energy transition industry. It can help decarbonize hard-to-reduce industries such as cement, steel, shipping, aviation, and heavy transportation. Green hydrogen is produced from renewable energy sources. and used in place of fossil fuels as an energy source for industrial heat such as in steel making, long-duration energy storage applications. where batteries cannot provide enough energy for extensive periods, and for very high energy use applications.
The global energy transition market has been segmented into type, sector, and region.
Asia-Pacific is the leading region in terms of its energy transition. The aggressive policies leading to the rapid expansion of renewable energy capacity, the level of investment, and the large-scale manufacturing capabilities for solar panels, wind components, and batteries, show how committed this region is to creating its own clean energy future. China continues to dominate the Asia Pacific region with significant investments in utility-scale solar, wind and energy storage projects and has established itself as a leader in producing batteries and electric vehicles. In the Asia Pacific region, countries such as India, Japan, South Korea and Australia are quickly increasing their renewable energy and energy storage capacity to reduce their reliance on fossil fuels, stabilize their electric grids and meet the quickly growing demand for electricity.
However, North America and Europe are both investing significantly in clean energy targets, smart grid upgrades, and other electrification Initiatives behind Asia-Pacific in terms of their energy transition. The US, especially the states of California, Texas, and New York, are deploying large utility-scale renewable and battery systems to strengthen their electric grids and help manage their Peak Loads. Germany, the United Kingdom, Spain, and the Netherlands are all building Energy-Transition programs that are rapidly enhancing the security of their energy supplies by replacing aging fossil fuel infrastructure with renewable energy. At the same time, emerging markets such as The Middle East, Africa, and Latin America are beginning to ramp up although slowly as develop a more sustainable energy infrastructure largely arising from Solar Integration, Hybrid Micro-Grids, and Rural Electrification Initiatives.
Energy transition companies profiled in the report include GE Vernova, Iberdrola, S.A., NextEra Energy, Inc., Constellation, First Solar, Ørsted A/S, Dongfang Electric Corporation, ABB, Eaton, Siemens AG, Danfoss, and Enel X S.r.l.
| Parameter | Details |
| Size in 2025 | USD 2.58 Trillion |
| Forecast by 2035 | USD 6.24 Trillion |
| CAGR During 2026 - 2035 | 8.9% |
| Largest Battery Type Segment (% Share 2025) | Renewable Energy - 48% |
| Largest Region Size (2025) | Asia-Pacific – 42% |
| Fastest Growing Region (% CAGR) | Asia Pacific – 9.1% |
| Key Players Covered | GE Vernova, Iberdrola, S.A., NextEra Energy, Inc., Constellation, First Solar, Ørsted A/S, Dongfang Electric Corporation, ABB, Eaton, Siemens AG, Danfoss, and Enel X S.r.l. |
Contact:
Mr. Richard Johnson
Acumen Research and Consulting
India: +91 8983225533