Clean energy tech market to reach USD 2trn by 2035 - IEA

The global market for key clean energy technologies is expected to grow to over USD 2 trillion (EUR 1.86trn) by 2035, under current policy settings, from USD 700 billion in 2023, according to a report, unveiled today by the International Energy Agency (IEA).

The estimate covers six technologies – solar photovoltaics (PV), wind turbines, electric cars, batteries, electrolysers and heat pumps – and means that by 2035 their market will approach the value of the global crude oil market in recent years.

According to the Energy Technology Perspectives 2024 report, trade in clean technologies is projected to more than triple over a decade, reaching USD 575 billion.

The report, which also examines key materials like steel and aluminium, aims to help countries manage the landscape of clean energy manufacturing and trade. While the swift adoption of clean energy technologies offers opportunities, it also presents difficult decisions for governments as energy, industry and trade are becoming more interlinked, the analysis notes.

There has also been a record wave of investment in the manufacturing of clean technologies. The IEA says that despite the strong impact of the Inflation Reduction Act and Bipartisan Infrastructure Law in the US, the EU’s Net-Zero Industry Act and India’s Production Linked Incentive Scheme, China will remain the world’s manufacturing powerhouse for the foreseeable future, with its clean technology exports set to exceed USD 340 billion in 2035.

(USD 1 = EUR 0.928)

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