Growing concerns over climate change, falling costs of renewables and increasing political momentum are fueling the transition away from fossil fuels.
Companies already investing in
opportunities in industry energy transition to 2030
Energy transition touches sectors ranging from energy generation and storage, to alternative fuels, energy-efficient materials, energy grids, heating, cooling and sustainable electronics. Around the world, companies from energy generators to car and chemical manufacturers, are investing in R&D and M&A to bolster their portfolios.
Some of the biggest potential opportunities are in smart grids and global green technology and sustainability, which tackles the short-term and long-term impact of environmental impacts.
Between 2021 and 2028, the global smart grid market, and the global green technology and sustainability market size are expected to grow at a compound annual growth rate (CAGR) of 21.9% and 20.3%, respectively. For global smart grids, this represents growth from $35.07 billion in 2021 to $140.53 billion. For the global green technology and sustainability market, it represents a jump from $11.41 billion in 2021 to $41.62 billion in 2028.
In energy generation, chemicals and materials, energy and power and electronics industries have been pioneering in this area. At the same time, construction companies have set sustainability goals and undertaken projects in renewable energy generation, for example. Spanish transportation infrastructure firm Ferrovial has partnered with Spain-based engineering firm Saitec for the construction of a floating wind platform that will become the country’s first grid-connected multi-megawatt floating offshore wind turbine.
Electric car manufacturing companies have invested in solar-powered vehicles. The Scion, which is being developed by German startup Sono Motos, has 248 solar cells integrated into the body of the car that can add up to 245 km per week of driving range to the car's battery, providing self-sufficiency on short distances.
Companies such as Volkswagen are now following in Tesla’s footsteps by developing batteries in-house, driven by acquisition of various battery storage startups. Investment in hydrogen technology remains a priority, primarily driven by energy companies. Multinational chemicals company, Linde, has also developed the largest liquid hydrogen distribution system and capacity in the world by installing more than 200 hydrogen fuelling stations and 80 electrolysis plants throughout the world.
projected annual growth rate in energy efficient material sector to 2025
the value of global smart grids by 2028
opportunities in green technology and sustainability to 2028
Investment in R&D across the energy supply chain has spurred technological innovations in everything from synthetic fuels to optoelectronic and piezoelectric materials, engineering design and structural engineering. Sustainable electronics developments are driven by optoelectronic materials, carbon nanomaterials, inorganic semiconductors and circuit electronics.
The World Economic Forum has ranked countries such as Sweden, Norway and Denmark as among the leaders in energy performance, including the resilience and efficiency of generation and transmission, and progress to cleaner forms of energy. In terms of investment, China tops global investment in energy transition investing over one third of the total investment spent annually ($255 billion). In China, Sinopec has partnered with Cummins to build its first 1 GW PEM green hydrogen electrolyser factory in China, targeting production of 1.12 tonnes of green hydrogen per day. Outside of China, the US, Germany, UK, and France are the other countries ranked in the top five by the WEF.
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