Clean Energy Technology Market Size, Share, Opportunities, And Trends By Technology (Hydropower, Clean Coal, Wind, Solar, Others), By End-User (Industrial, Residential, Commercial), And By Geography - Forecasts From 2023 To 2028

The clean energy technology market is expected to grow at a CAGR of 7.4% from US$391.293 billion in 2021 to US$645.102 billion in 2028.

Clean energy technology refers to any technology that generates, stores or utilizes energy in a manner that has minimal or no negative impact on the environment and contributes to reducing greenhouse gas emissions and pollution. Falling costs of clean energy coupled with the rising environmental effect due to fossil fuels are major growth drivers of the clean energy technology market. Moreover, the growing population and their increasing power demand along with the technological advancements and government support are further expected to boost the clean energy technology market.

Falling Costs of Clean Energy

As technology improves and economies of scale are achieved, the costs of clean energy technologies have been decreasing which in turn is contemplated to augment the clean energy technology market. According to the World Economic Forum 2021 report, the cost of large-scale solar projects has experienced a remarkable decline of 85% over the past 10 years. Moreover, the year-on-year cost percentage reduction in 2019-202 for onshore and offshore wind was 13% and 9% respectively as per the International Renewable Energy Agency (IRENA) 2020 report. Additionally, according to the IRENA, emerging economies are projected to realize savings of up to $156 billion throughout the lifespan of renewable projects that were added in 2020 alone.

Rising Environmental Concern

The environmental adversities associated with fossil fuels pose a serious concern such as greenhouse emissions, air pollution, and climate change. These negative impacts create the demand for cleaner fuel thereby boosting the clean energy technology market. For instance, three gigatonnes of CO2 per year (20% of the emissions) needed to be reduced by 2030 to avoid a global climate disaster that can be stopped by retiring expensive coal plants. According to the IPCC's Sixth Assessment Report (2021), human emissions of gases that trap heat have already caused the temperature to rise by almost 2 degrees Fahrenheit (1.1 degrees Celsius) since the beginning of the Industrial Revolution.

Consistent Government Initiatives and Policies

Many governments around the world have implemented supportive policies, regulations, and financial incentives to encourage the development and deployment of clean energy technologies. These can include tax credits, feed-in tariffs, grants, and renewable portfolio standards. For example, the US government launched the Global Methane Pledge in 2021 to advance climate action both domestically and internationally and it also aims to cut the net greenhouse gas emissions by 50-52% in 2030. According to the Press Information Bureau of India, the government aims to fulfill almost 50% of energy requirements from clean energy and increase non-fossil energy capacity to 500 Gigawatts by 2030. These efforts are likely to accelerate the clean energy technology market.

Advancements in Technology

Ongoing advancements in clean energy technologies have led to improved efficiency, lower costs, and increased accessibility. As these technologies become more competitive with traditional energy sources, their clean energy technology market is anticipated to stimulate in the coming year. A recent development in sustainable energy technology is building-integrated photovoltaics. BIPV has a desirable quality in that it is economical and reduces the cost of power. It also reduces the additional cost of solar panel mounting methods as well. Moreover, the Indian government launched a Mission on Advanced and High-Impact Research Initiative (MAHIR) in June 2023 to facilitate the development and demonstration of emerging technologies in the power sector.

Increasing Public Awareness

There is a growing public interest in supporting clean energy initiatives due to concerns about climate change, the health impacts of pollution, and a desire to transition to a sustainable energy future. For instance, the UNDP’s People’s Climate Vote Survey in 2021 revealed that 64% of the population believes that climate change is a global emergency and urgent action is required. Of the respondents in eight out of ten survey countries with the highest emission from the power sector, the majority of people backed renewable sources of energy.

Growing Population and Power Demand

The growing global population and increasing power demand present significant opportunities for clean energy solutions. In 2019, there were still over 750 million people without access to electricity, and many more had to deal with intermittent power according to the IRENA. The rising power demand owing to the growing population can be fulfilled with clean energies as they are renewable and can cater to the unlimited demand when combined with proper technology thereby boosting the clean energy technology market. For instance, the present world population exceeds 8 billion and it is projected to reach 9.8 billion by 2050 as per the United Nations projections.

Asia-Pacific is Expected to Grow Significantly

Asia-Pacific region is expected to hold a significant share of the clean energy technology market during the forecast period. The factors attributed to such a share are the growing population in the region with India and China being the top two countries by population. Moreover, the energy access in the region along with the advancements in technology and emerging companies such as CDL and Xinyi Solar Holdings is further propelling the clean energy technology market. For instance, China stated its intention to achieve carbon neutrality by 2060 in September 2020, a significant advancement from its earlier pledge to reach the peak of carbon emissions by 2030.

Major Market Players

• Envision Group is a leading Chinese technology company specializing in clean energy and smart city solutions. Envision Group's core focus is on providing innovative and sustainable solutions for energy generation, storage, and management.
• Acciona SA is a Spanish multinational company focused on sustainable infrastructure solutions and renewable energy. It offers solar photovoltaic energy plants with a capacity greater than 1 MW.

Key Market Developments

• In April 2023, Brown University launched a New Initiative for Sustainable Energy to galvanize research to develop solutions in three areas of sustainable energy that are crucial for reducing climate change effect and its consequences.
• In January 2023, Caltech Space Solar Power Project (SSPP) launched a Space Solar Power Demonstrator (SSPD) into orbit which will test several key components to harvest solar power in space and beam the energy back to Earth.
• In September 2022, Serentica Renewables launched a renewable energy platform in India to supply round-the-clock carbon-free power to large consumers of energy in India.

Segmentation:

• By Technology
  • Hydropower
  • Clean Coal
  • Wind
  • Solar
  • Others
• By End-User
  • Industrial
  • Residential
  • Commercial
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others