Global Clean Energy Tech Market to Reach $2 trillion by 2035 -IEA

The International Energy Agency (IEA) has projected that the global clean energy technology market will reach a valuation of $2 trillion by 2035. This information was disclosed in the recently published report titled ‘Energy Technology Perspectives 2024’.

The IEA identifies six primary mass-manufactured clean energy technologies that comprise this market: solar photovoltaic (PV), wind energy, electric vehicles (EVs), batteries, electrolyzers, and heat pumps. 

The market has reportedly expanded nearly four times from 2015 to 2023, exceeding $700 billion, largely due to the rapid adoption of clean technologies, especially in the sectors of EVs, solar PV, and wind energy.

“Under today’s policy settings, the market for these clean technologies is set to nearly triple by 2035 to more than USD 2 trillion. This is close to the average value of the global crude oil market in recent years,” the Agency stated.

The Agency further disclosed that global investment in clean technology manufacturing experienced a substantial surge of 50% in 2023, reaching a significant milestone of $235 billion.

This remarkable increase, it noted, constitutes approximately 10% of the overall growth in investment observed across the entire global economy..

“Four-fifths of the clean technology manufacturing investment in 2023 went to solar PV and battery manufacturing, with EV plants accounting for a further 15%.   

“The amount of manufacturing capacity being added has been comfortably outpacing current deployment levels.  

“Despite some recent cancellations and postponements of solar PV and battery manufacturing projects, investment in clean technology manufacturing facilities is set to remain close to its recent record levels, at around USD 200 billion in 2024,” IEA said in the report.

The report highlighted that, even with the ongoing execution of industrial strategies in various nations, China's clean technology exports are anticipated to surpass $340 billion by 2035, given the current policy framework.

This figure is approximately on par with the expected oil export revenues of Saudi Arabia and the United Arab Emirates combined in 2024. However, it emphasized that significant opportunities remain for countries worldwide to capitalize on the advantages of enhanced clean energy manufacturing and trade, contingent upon the speed of clean energy implementation and the policies enacted. The IEA also noted that as the energy sector evolves and trade increasingly focuses on clean technologies, there will be lasting effects for nations.

“While supplies of fossil fuels need to be replenished as soon as they are consumed, importing clean technologies results in a durable stock of energy equipment.  

“For comparison, a single journey by a large container ship filled with solar PV modules can provide the means to produce as much electricity as would be generated from the natural gas onboard more than 50 large liquefied natural gas (LNG) tankers, or from coal onboard 100 large ships,” it said.

The IEA highlighted that the evolving energy economy offers significant opportunities for nations aiming to produce clean technologies, their components, and associated materials. 

However, this shift also poses difficult choices for governments, which must navigate the complexities and trade-offs inherent in their chosen industrial and trade policies. 

The organization emphasized that governments need to balance their dedication to efficient markets and affordable clean energy transitions with the necessity of creating secure and resilient supply chains for clean technology.