The International Energy Agency’s (IEA) latest Energy Technology Perspectives 2024 report highlights a vast economic opportunity in the expanding market for clean energy technologies, which is anticipated to grow from $700 billion in 2023 to over $2 trillion by 2035.
This increase aligns the clean energy sector’s value with that of the global crude oil market, driven by the production of solar PV, wind turbines, electric vehicles, batteries, electrolysers, and heat pumps.
Trade in these clean technologies is also expected to see significant growth, projected to more than triple within the next decade to reach $570 billion—surpassing current global natural gas trade.
IEA Executive Director Fatih Birol emphasized the transformative potential of this market growth, noting, “The market for clean technologies is set to multiply in value in the coming decade, increasingly catching up with the markets for fossil fuels.” He acknowledged the challenges facing governments as energy, industry, and trade policies become closely interconnected, with critical decisions necessary to foster innovation, competition, and cost reduction while meeting climate objectives.
The report notes a record rise in green technology investment across key regions, particularly in China, the EU, and the US, with substantial growth in India as well.
Although the US Inflation Reduction Act, EU Net-Zero Industry Act, and India’s Production Linked Incentive Scheme have bolstered production capacities, China remains positioned to lead in clean technology exports, projected to generate over $340 billion by 2035.
