The global clean energy sector is experiencing a remarkable expansion, fuelled by the adoption of green technologies like heat pumps, batteries, electrolyzers, wind turbines, solar photovoltaics (PV), and electric vehicles (EVs).
Since 2015, the market for clean energy technology has nearly doubled, reaching $700 billion by the end of 2023.
According to the International Energy Agency’s (IEA) Energy Technology Perspectives 2024 report, this figure could surpass $2 trillion by 2035 under current policy frameworks, matching the recent valuation of the global crude oil market.
Additionally, global trade in clean technology is projected to hit $575 billion by 2035.
Investments Surge in Renewable Energy Manufacturing
Between 2022 and 2023, investments in renewable energy manufacturing climbed significantly, rising from $160 billion to $235 billion.
A majority, 80% of the funding went to solar PV and battery manufacturing, while 15% was allocated to EV facilities.
China emerged as the dominant player, hosting 40-98% of the global production capacity for six critical technologies analyzed by the IEA.
This leadership is expected to continue through 2030, with the United States and the European Union collectively accounting for over 80% of manufacturing capacity alongside China.
Regional Policies Aim to Strengthen Local Production
Despite China’s cost advantage, regions like the US, EU, and India face significantly higher manufacturing expenses.
To counterbalance this disparity, governments are implementing policies to bolster domestic production.
In the US, the Inflation Reduction Act incentivizes clean energy manufacturing, while the EU’s Net Zero Industry Act (NZIA) targets key sectors such as heat pumps and wind turbine components. These initiatives aim to meet domestic demand for clean technologies by 2035.
China and India Emerge as Global Export Leaders
China’s dominance in clean energy technology manufacturing is set to transform its energy landscape.
By 2035, the country’s clean tech exports are projected to exceed $340 billion, reducing its reliance on fossil fuel imports.
Meanwhile, India is poised to transition from being a net importer to a net exporter of clean technologies. After satisfying its domestic needs, India’s clean technology exports are expected to reach $30 billion by 2035.
The Road Ahead for Clean Energy
Cost competition remains a driving factor in the clean energy market. However, regional investments and supportive policies are reshaping global production dynamics.
As reported by sigmaearth.com, the global transition to sustainable energy systems continues to accelerate. As clean technology trade expands and manufacturing capacity grows, it is setting the stage for a cleaner, more resilient future.
