In a world pivoting towards sustainable energy solutions, the Energy Technology Perspectives 2024 (ETP-2024) report highlighted the unprecedented growth in the clean energy technology market, which exceeded USD 700 billion in 2023 and could reach over USD 2 trillion by 2035. The report underscored how these changes are reshaping global trade flows, supply chains, and economic opportunities, particularly for emerging markets.
Market Overview and Key Technologies
Six critical technologies—electric vehicles (EVs), batteries, solar photovoltaic (PV) systems, wind turbines, heat pumps, and electrolysers, Together, these technologies account for nearly half of global clean energy investments and are essential for the transition towards a low-carbon economy. The global market for clean energy technologies has quadrupled since 2015, with projections suggesting it could grow further, rivaling the size of the crude oil market by 2035, according to report.
Economic and Trade Projections
Global trade in clean energy technologies is expected to triple over the next decade, potentially reaching USD 575 billion, an increase of 50% from today’s natural gas trade. This expansion reflects the rapid adoption of clean energy solutions worldwide and the growing need for secure and resilient supply chains. Additionally, the report highlights the role of clean energy goods in strengthening energy security. For instance, a single container ship filled with solar PV modules could produce electricity equivalent to 50 LNG tankers or over 100 coal shipments.
Regional Focus and Opportunities
- India
India has witnessed remarkable growth in manufacturing investments, which have quintupled since 2020, raising its global market share in clean energy technology from 1.5% to 3%. Through policies such as the Production Linked Incentive (PLI) Scheme, India is advancing its ambitions to become a net exporter of clean technologies by 2035. Under rapid transition scenarios, India’s exports could reach USD 30 billion, while also potentially reducing its fossil fuel import bill by 20%. - China
China remains the world leader in clean energy manufacturing, achieving cost efficiencies between 25% and 95% lower than facilities in the United States and Europe. With current climate policies, China’s clean technology exports are expected to balance its fossil fuel imports around 2050. Under stronger climate policies, this balance could occur by 2035. By that time, China’s clean tech exports are projected to surpass USD 340 billion, cementing its position as the global powerhouse in clean energy manufacturing. - Latin America and Brazil
Latin America, particularly Brazil, is highlighted as having favorable conditions for wind turbine manufacturing. The report projects that with strategic investments, exports could increase sixfold by 2035, transforming Latin America into a key player in global wind turbine manufacturing. - Southeast Asia, Latin America, and Africa
Currently, these regions contribute less than 5% of global clean technology value. However, the report identifies significant potential in each, with a country-by-country assessment across 60+ indicators. Investment in these areas could spur rapid economic development and create sustainable energy infrastructure, positioning them as future leaders in clean energy manufacturing.
Trade, Security, and Energy Resilience
The role of clean energy goods in bolstering energy resilience and reducing dependency on fossil fuels. With clean energy goods increasingly transported via maritime routes, ETP-2024 shows that nearly 50% of clean energy tech shipments pass through the Strait of Malacca, a figure that dwarfs the fossil fuel trade through the Strait of Hormuz. This shift in trade routes and the volume of goods highlights the growing influence of clean energy in shaping global trade patterns and security dynamics.
The ETP-2024 report underscored the transformative impact of clean energy technologies on global trade, manufacturing, and energy security. As the market for these technologies grows, it is expected to drive significant economic gains, especially for countries investing in local production capabilities. For countries like India, China, and emerging markets in Latin America, Southeast Asia, and Africa, clean energy represents a path toward economic independence, industrial innovation, and global influence in the coming decade.
