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Energy Transition Market Size To Reach $5.91Tn By 2033

Energy Transition Market Size To Reach $5.91 Trillion By 2033

July 2025 | Report Format: Electronic (PDF)

Energy Transition Market Growth & Trends

The global energy transition market size is projected to reach USD 5.91 trillion by 2033, growing at a CAGR of 9.7% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market is propelled by intensifying efforts to decarbonize global energy systems, reduce greenhouse gas emissions, and transition to more resilient, sustainable, and decentralized power infrastructure. Supportive government policies, international climate agreements, rising corporate sustainability targets, and record-breaking investments in renewable energy, electrification, and energy efficiency are reshaping the global energy landscape.

Energy transition technologies are rapidly deployed across diverse sectors, including electricity generation, transportation, industry, and buildings. Europe, North America, and Asia Pacific are leading the charge with large-scale solar and wind installations, electric mobility rollouts, and smart grid modernization programs. key technologies such as utility-scale solar PV, offshore wind, battery energy storage systems, hydrogen (both green and blue), and advanced nuclear are integrated to develop low-carbon, digitally optimized energy systems with high levels of flexibility and reliability.

Multilateral funding, green bonds, and climate-focused infrastructure packages are critical in accelerating clean energy transitions in advanced and emerging economies. Global innovation hubs-from the EU’s Horizon Europe program to China’s solar supply chain ecosystem and Japan’s hydrogen roadmap-are advancing R&D in next-generation photovoltaics, electrolyzers, grid software, and carbon capture technologies. These advancements enable energy providers, governments, and industrial players to align infrastructure and technology upgrades with net-zero and energy security objectives.

Globally, integrated energy solutions are gaining momentum, combining renewables with digital controls, demand response systems, and long-duration storage to optimize supply and demand in real-time. Challenges such as permitting hurdles, supply chain disruptions, geopolitical tensions, and unequal access to financing persist. However, with continued regulatory support, falling technology costs, and widespread international cooperation, the global energy transition market is expected to witness robust and scalable adoption over the next decade.

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Energy Transition Market Report Highlights

Based on type, renewable energy segment dominated the energy transition market with a share of 49.87% in 2024, owing to its central role in global decarbonization strategies and widespread scalability. The segment includes solar, wind, hydropower, and bioenergy technologies, which are being rapidly deployed across utility, commercial, and residential sectors due to their low emissions, cost competitiveness, and energy security benefits. With continuous improvements in efficiency and falling capital costs, renewable energy systems enable countries to meet climate targets while fostering economic growth and clean job creation. Strong policy incentives, carbon reduction mandates, and rising public and private sector investments further support this segment's growth.
Based on sector, the power & utility segment held the largest share in the energy transition market in 2024, driven by large-scale investments in renewable energy generation, grid modernization, and energy storage infrastructure. Utilities worldwide are accelerating the shift from fossil-based systems to cleaner, more resilient energy networks to meet rising electricity demand and decarbonization goals. Utilizing utility-scale solar farms, wind projects, hydropower systems, and integrated storage solutions are at the forefront of this transformation, enabling stable, low-emission power delivery at scale.