Five Energy Technologies Projected To Reach USD 2 Trillion Market By 2035 According To IRENA

The International Renewable Energy Agency (IRENA) forecasts that the global market for electric vehicles, electrolysers, heat pumps, solar photovoltaic (PV), and wind turbines will nearly triple to US$2.1 trillion by 2035. This growth is highlighted in IRENA's World Energy Transitions Outlook 2024, which also notes the dynamic expansion of carbon dioxide removal technologies over the past decade.

Carbon capture and storage facilities are operational in Europe, North America, Japan, and the Middle East. However, most are small-scale plants. Only five facilities capture more than 1,000 tonnes of carbon dioxide annually. Collectively, they capture over 17,000 tonnes each year. Despite this capacity, commercial agreements for carbon sales or storage remain limited.

Public spending on energy research and development has been increasing steadily. In 2023, global investment reached US$50 billion, marking a five percent rise from 2022. This trend is expected to continue into 2024 and beyond as countries focus on advancing energy technologies.

Japan and Norway are leading in public energy R&D spending growth. Japan's Green Transformation initiative boosts competitiveness in battery technologies. Meanwhile, Norway is significantly increasing funding for renewable energy and hydrogen research.

The private sector plays a crucial role in driving energy innovation. Corporate R&D spending in energy has grown at three times the pace of GDP among IRENA member countries. Automotive companies are at the forefront of this trend; 13 out of the top 20 firms by energy technology R&D budget belong to this sector.

A notable example of innovation comes from the UAE with ADNOC and 44.01's project in Fujairah. This venture converts captured carbon dioxide into rock and successfully stored 10 tonnes within just 100 days in 2024. It stands as one of the leading global innovations in energy technology.

Preliminary estimates for 2024 suggest slower growth in public energy R&D spending in the United States and Canada compared to previous years. However, Japan and Norway are experiencing significant increases due to their focused initiatives on renewable energies.

The number of startups developing carbon removal solutions has increased sevenfold over the past decade, with more than 140 companies now involved globally. This highlights the growing importance of carbon dioxide removal as a key sector within the broader context of energy transition efforts worldwide.

The report underscores that while public investment is crucial, private sector contributions significantly advance technological innovations necessary for sustainable energy transitions globally.

With inputs from WAM