The energy transition market will reach 3.7 trillion USD in 2028

The energy transition market will reach 3.7 trillion USD by 2028, supported by growing public and private investment, with an annual growth rate of 9.4% according to Allied Market Research.

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The global energy transition market is expanding rapidly, supported by massive investment from both the public and private sectors.
Growing recognition of the urgency of climate change is prompting governments to inject considerable funds into renewable energy infrastructure.
These funds are aimed at modernizing existing systems and promoting the adoption of cleaner energy sources, notably wind, solar and hydro.
Private companies, meanwhile, are increasing their commitment to green energy, helping to boost the market.
However, the sector faces challenges, not least the limited availability of critical materials, essential for new technologies.
Innovation in energy storage is therefore becoming a priority, with emerging solutions such as solid-state and flow batteries.
These technologies promise to improve energy density and safety, responding to growing market demands.

Renewable energies and fast-track adoption

Renewable energies dominate the energy transition market, with rising adoption supported by favorable government policies.
Solar and wind power, in particular, are playing a central role in reducing greenhouse gas emissions, in line with global climate targets.
Tax incentives and government subsidies are accelerating the integration of these technologies into national energy systems.
Renewable technologies are now seen as viable and competitive solutions, even when compared with fossil fuels.
Governments are putting in place rigorous regulatory frameworks to encourage their widespread adoption, making these technologies increasingly attractive to investors.

The residential sector in full mutation

The residential segment is booming, driven by a growing adoption of clean energy solutions.
Homeowners are increasingly investing in technologies such as solar panels and geothermal heating systems, supported by attractive tax incentives.
This trend reflects a growing desire to reduce dependence on fossil fuels and minimize carbon footprints.
Home modernization and the integration of clean energy technologies have become priorities for many households, reinforced by economic and environmental motivations.
The residential sector is thus set to become a key player in the energy transition, with significant implications for global demand for renewable energy.

Asia-Pacific: driving regional growth

Asia-Pacific is emerging as the main driver of global growth in the energy transition market. The region is investing heavily in renewable technologies to meet growing energy demand. Technological innovations and favorable market dynamics are accelerating the adoption of clean energies, making these solutions increasingly competitive. Leading companies in the sector, such as NextEra Energy, Inc, Iberdrola, S.A., and Tesla Inc, are adopting diversified strategies to gain a foothold in this rapidly expanding market. These companies are investing in new technologies, collaborating on international projects and strengthening their presence in emerging markets. These initiatives are crucial to maintaining their competitive edge against a backdrop of rapid transformation in the energy sector.

According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.
Seven weeks after the major Iberian power outage, Spain identifies technical network failures, while the European Investment Bank approves major funding to strengthen the interconnection with France.
The European Union has announced a detailed schedule aiming to definitively halt Russian gas imports by the end of 2027, anticipating internal legal and commercial challenges to overcome.