Energy transition signifies major challenges and opportunities for companies across the energy supply chain. And with such a seismic shift underway, the rewards of backing the right opportunities offer huge potential upsides. The race is on: the World Economic Forum estimates that achieving net-zero on a global scale is expected to cost around $125 trillion in climate investment.
What are the opportunities in energy transition?
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.