Our Market Drivers

Driver Description

Urbanisation and consumption trends

• More than half of the global population currently lives in a city. By 2050, the proportion will rise to two-thirds. (Source: United Nations.)

• While cities only account for 2% of the Earth’s surface, they consume 78% of the world’s energy and produce more than 60% of greenhouse gas (GHG) emissions.

(Source: UN Habitat.)

• Due to global warming, 70 countries –including the world’s biggest polluters –have signed up to the UN goal of net zero emissions by 2050. (Source: United Nations.)

Inexorable rise of renewable energy

• The energy sector is the source of around 75% of GHG emissions today and holds the key to averting the worst effects of climate change. (Source: United Nations.)

• The global renewable energy market size was valued at US$768.9bn in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 16.6% from 2022 to 2030. (Source: Grand View Research.)

• Electricity remains the mainstay of the energy transition, with renewables expected to have an 83% share of the electricity system in 2050. By 2050, solar and wind energy will have grown 20-fold and 10-fold respectively. (Source: DNV Energy Transition Outlook 2022.)

78% of the world’s energy is consumed by cities

70 countries have signed up to the UN goal of net zero by 2050

Driver Description

Smart cities and electric vehicles

US$768.9bn the size of the renewable energy market

83% share of the electricity system that renewables is expected to have by 2050

ESG consciousness

• The global smart cities market size was valued at US$1,226.9bn in 2022 and is expected to register a CAGR of 25.8% from 2023 to 2030. Increasing urbanisation, the need for efficient management of resource utilisation, public safety concerns, and increasing demand for an environment with efficient energy utilisation are the major driving factors for smart cities’ market growth. (Source: Grand View Research.)

• The global market value of electricity for EV charging will grow over 20-fold, reaching about US$190bn by 2030. That is equivalent to one-tenth of the current diesel and gasoline market value. (Source: International Energy Agency Announced Pledges Scenario.)

• The global electric vehicle charging infrastructure market size is expected to be worth around US$221.9bn by 2030 from US$19.5bn in 2021, growing at a CAGR of 31%. (Source: Precedence Research.)

• Global research shows a 71% rise in searches for sustainable goods over the past five years, with continuing growth during the Covid-19 pandemic. (Source: Economist Intelligence Unit.)

• Asset managers globally are expected to increase their ESG-related assets under management from US$18.4tn in 2021 to US$33.9tn by 2026. (Source: PwC’s Asset and Wealth Management Revolution 2022 report.)

25.8%

CAGR from 2023 to 2030 for the global smart cities market

US$221.9bn global EV charging infrastructure market size by 2030

71% rise in searches for sustainable goods

US$33.9tn

ESG-related assets under management by 2026