Energy Transition Market Size, Share and Trends 2026 to 2035
Energy Transition Market (By Type: Renewable Energy, Energy Efficiency, Electrification (EVs & related), Hydrogen, Others; By Sector/Application: Power & Utility, Transportation Electrification, Industrial Decarbonization, Residential & Commercial Systems; By Technology: Energy Storage Systems, Smart Grid & Digital Energy, Grid Modernization & Carbon Management, Electrification Tech (EV charging, etc.), Other Clean Tech) - Global Industry Analysis, Size, Trends, Leading Companies, Regional Outlook, and Forecast 2026 to 2035
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Table Of Content
What is the Energy Transition Market Size?
The global energy transition market size is calculated at USD 2.41 trillion in 2025 and is predicted to increase from USD 2.71 trillion in 2026 to approximately USD 7.72 trillion by 2035, expanding at a CAGR of 12.35% from 2026 to 2035. The energy transition market is generally boosted by the surging demand for clean energy from the developed nations, as well as numerous government initiatives aimed at raising the adoption of renewable energy in the industrial sector. The rapid investment by automotive companies for constructing EV charging centers, along with technological advancements in the energy generation sector, is playing a crucial role in shaping the industrial landscape.
Market Highlights
- Asia Pacific dominated the energy transition market, holding a share of around 42% in 2025 and is also expected to grow at the highest CAGR of 12.8%.
- North America held a significant share of 29% in 2025.
- By type, the renewable energy segment contributed the biggest market share of 47% in 2025.
- By type, the electrification segment is expected to grow at a remarkable CAGR of 11.5% between 2026 and 2035.
- By sector/application, the power & utility segment held the major market share of 57% in 2025.
- By sector/application, the transportation electrification segment is expected to grow at the highest CAGR of 11.3% between 2026 and 2035.
- By technology, the energy storage systems segment held the largest share of 28% in the industry.
- By technology, the electrification tech segment is expected to grow at the fastest CAGR of 11.5% between 2026 and 2035.
What Is the Landscape of the Energy Transition Market?
The energy transition market is a crucial sector of the energy and power industry. This industry deals in the distribution of energy transition solutions in different parts of the world. There are several types of solutions provided by this sector, comprising renewable energy, energy efficiency, electrification, and hydrogen systems. The technologies used in the energy transition sector consist of energy storage systems, smart grid and digital energy, grid modernization, and EV charging tech. It finds application in various sectors, including power and utility, transportation electrification, industrial decarbonization, residential, and commercial. This market is expected to grow significantly with the rise of the electric vehicle sector around the globe.
What Is the Significance of AI in the Energy Transition Market?
- Nowadays, AI has been rapidly adopted in the energy sector. The integration of Artificial Intelligencein the energy industry helps in enhancing efficiency, optimizing operations, and accelerating clean energy transitions. Also, AI has been deployed in the energy transition sector for optimizing grids, managing demand, forecasting renewables, predictive maintenance, and efficient EV charging. Thus, AI has played a significant role in shaping the energy transition market in a positive direction.
- In November 2025, Infosys launched an advanced AI agent. This AI agent is designed to make decisions, manage data, and ensure operational excellence in the energy sector across the world.
Energy Transition Market Trends
- Collaborations: Numerous market players are collaborating with power companies to expand energy storage units in the world. For instance, in December 2025, SECPower collaborated with Huawei. This collaboration is aimed at expanding battery energy storage systems (BESS) in the industrial sector of Brazil.(Source: https://www.ess-news.com)
- Government Initiatives: The governments of several countries, such as India, the U.S., Japan, China, the UK, Germany, Spain, and Argentina, are launching several initiatives to boost the clean energy sector. For instance, in September 2025, the government of Britain announced an investment of 300 million euros. This investment is aimed at developing the clean energy industry in the UK region. (Source:https://www.gov)
- Rising Sales of EVs: The growing sales of EVs in various nations have increased the demand for EV chargers, which contributes positively to the industry. According to the National Automobile Dealers Association, around 1.26 million BEVs were sold globally in 2025.(Source: https://www.nada.org)
Market Scope
| Report Coverage | Details |
| Market Size in 2025 | USD 2.41 Trillion |
| Market Size in 2026 | USD 2.71 Trillion |
| Market Size by 2035 | USD 7.72 Trillion |
| Market Growth Rate from 2026 to 2035 | CAGR of 12.35% |
| Dominating Region | Asia Pacific |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | Type, Sector/Application, Technology, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Segmental Insights
Type Insights
Why Did the Renewable Energy Segment Dominate the Energy Transition Market?
The renewable energy segment dominated the energy transition market with a share of approximately 47% in 2025. The growing demand for renewable energy sources from the industrial sector has boosted the market expansion. Also, numerous government initiatives aimed at raising the adoption of clean energy in the heavy industries, coupled with technological advancements in the energy sector, are playing a prominent role in shaping the industrial landscape. Moreover, the rise in the number of renewable energy startups in developed nations is expected to accelerate the growth of the energy transition market.
The electrification segment is expected to expand at a remarkable CAGR of 11.5% between 2026 and 2035. The rising demand for energy transition solutions from the electricity sector has boosted the market growth. Additionally, the surging investment by grid operators across various regions for deploying advanced machinery in power plants to generate electricity is contributing to the industry in a positive manner. Moreover, partnerships among EV makers and energy companies for constructing EV charging stations in different parts of the world are expected to propel the growth of the energy transition market.
Sector/Application Insights
What Made the Power & Utility Segment Lead the Energy Transition Market?
The power & utility segment leads the energy transition market with a share of 57% in 2025. The growing adoption of clean energy sources by the power generation sector to provide electricity in different regions has boosted the market expansion. Also, the rapid investment by the governments of various countries for strengthening the grid infrastructure, as well as technological advancements in the utilities industry, is playing a vital role in shaping the industrial landscape. Moreover, the increasing emphasis of electricity providers on generating electricity from hydrogen energy is expected to boost the growth of the energy transition market.
The transportation electrification segment is expected to rise at the highest CAGR of 11.3% between 2026 and 2035. The growing sales of electric vehicles across numerous countries, including China, the U.S., Germany, and the UAE, have bolstered the market expansion. Additionally, the rapid investment by railway operators for the electrification of modern trains to reduce dependency on fossil fuels, along with strategic collaborations among train manufacturers and energy companies to develop advanced electrification solutions for powering railways, is playing a prominent role in shaping the industry in a positive direction. Moreover, the growing focus of governments in several nations on deploying EV charging stations is expected to propel the growth of the energy transition market.
Technology Insights
Why Did the Energy Storage Systems Segment Hold the Largest Share of the Energy Transition Market?
The energy storage systems segment held the largest share of 28% in the energy transition market. The growing demand for energy storage systems from data centers has boosted the market expansion. Additionally, the rapid investment by the energy companies for developing pumped hydro energy storage systems, as well as the surging focus of the government for strengthening the grid management sector, is playing a vital role in shaping the industrial landscape. Moreover, the increasing adoption of thermal energy storage systems by the residential sector is expected to foster the growth of the energy transition market.
The electrification tech segment is expected to rise at the fastest CAGR of 11.5% between 2026 and 2035. The growing adoption of EVs in various countries to reduce the dependency on fossil fuels has boosted the market expansion. Also, numerous government initiatives are aimed at deploying fast EV chargers in urban areas, along with the increase in the number of electrification tech startups in the APAC region, which is positively contributing to the industry. Moreover, collaborations among the government organizations and automakers to construct EV charging stations in developed nations are expected to boost the growth of the energy transition market.
Regional Insights
What is the Asia Pacific Energy Transition Market Size?
The Asia Pacific energy transition market size is expected to be worth USD 3.37 trillion by 2035, increasing from USD 1.01 trillion by 2025, growing at a CAGR of 12.5% from 2026 to 2035.
How Did Asia Pacific Dominate the Energy Transition Market in 2025?
Asia Pacific dominated the energy transition market with a share of 42% in 2025, and it is also expected to be the fastest growing, with a 12.8% CAGR. The growing sales of electric vehicles in several nations, including China, India, Japan, South Korea, and Australia, have driven the market expansion. Additionally, numerous government initiatives aimed at deploying clean energy in the manufacturing sector, coupled with the rapid investment by automotive brands for expanding the EV charging network, are playing a prominent role in shaping the industrial landscape. Moreover, the presence of various market players such as BYD, LG Chem, Samsung SDI Co., Ltd., and Panasonic is expected to propel the growth of the energy transition market in this region.
- In September 2025, BYD launched ‘Haohan's battery energy storage system (BESS) in China. This energy storage system comes with 14.5 MWh of storage capacity. (Source:https://www.energy-storage.news)
China Energy Transition Market Analysis
The growing emphasis of the power generation companies to deploy advanced transition solutions for generating electricity from renewable energy sources has boosted the market expansion. Also, the numerous government initiatives for strengthening the EV charging network, as well as the rapid deployment of electric bullet trains by the railway operators, are playing a prominent role in shaping the industrial landscape. Moreover, the presence of various battery manufacturing companies, along with the availability of essential raw materials required for grid modernization at lower prices, is driving the growth of the energy transition market in this country.
- In October 2025, the government of China launched a three-year action plan. This action plan is aimed at deploying 28 million EV charging facilities in this country. (Source:https://english.news.cn)
Why Does North America Hold a Significant Share of the Energy Transition Market?
North America held a significant share of 25–32% in the energy transition market. The rising adoption of PHEVs in several nations, such as the U.S., Canada, and Mexico, to lower the dependency on gasoline has boosted the market expansion. Also, technological advancements in the energy generation sector, coupled with the rapid investment by governments for integrating AI in smart grid systems, are playing a prominent role in shaping the industrial landscape. Moreover, the presence of numerous energy transition companies, such as ABB Ltd, Tesla, Dominion Energy, and NextEra Energy, Inc., is expected to proliferate the growth of the energy transition market in this region.
- In September 2025, Tesla launched Tesla Megablock in the U.S. Tesla Megablock is a 20MWh battery energy storage system (BESS) solution designed for the end-users in this nation. (Source:https://www.energy-storage.news)
U.S. Energy Transition Market Trends
The growing sales of EVs, as well as the rapid integration of AI in the power generation sector for increasing operational efficiency, have bolstered the market expansion. Additionally, numerous government initiatives aimed at increasing awareness about clean energy, along with the presence of various power generation companies, are playing a significant role in shaping the industrial landscape. Moreover, the surging investment by consumers to adopt advanced energy storage systems for their residential requirements is expected to foster the growth of the energy transition market in this nation.According to the International Energy Agency, around 1.2 million BEVs were sold in the U.S. during 2024. (Source:https://www.iea.org)
Who are the Major Players in the Global Energy Transition Market?
The major players in the energy transition market include NextEra Energy, Inc., Iberdrola, S.A., Ørsted A/S, ABB Ltd., GE Vernova, Siemens AG, First Solar, Inc., Brookfield Renewable Partners, Vestas Wind Systems A/S, Tesla, Inc., Schneider Electric SE, Dominion Energy, Enel S.p.A., EDF Group, RWE AG.
Recent Developments
- In January 2026, AlphaESS launched StaX-M29.9/M50. StaX-M29.9/M50 is a modular energy storage system designed for the industrial sector.(Source: https://www.ess-news.com)
- In August 2025, Gravity launched an energy management platform. This platform is designed to reduce energy consumption and gather carbon accounting data.(Source: https://www.esgdive.com)
- In August 2025, Sense launched EV Analytics. EV Analytics is a load management solution designed for enhancing EV charging capabilities.(Source: https://www.enlit.world)
Segments Covered in the Report
By Type
- Renewable Energy
- Energy Efficiency
- Electrification (EVs & related)
- Hydrogen
- Others
By Sector/Application
- Power & Utility
- Transportation Electrification
- Industrial Decarbonization
- Residential & Commercial Systems
By Technology
- Energy Storage Systems
- Smart Grid & Digital Energy
- Grid Modernization & Carbon Management
- Electrification Tech (EV charging, etc.)
- Other Clean Tech
By Region
- North America
- Latin America
- Europe
- Asia-pacific
- Middle and East Africa