Estimated Industry Size Today:
$1.3 trillion globally
Estimated Industry size in the Future:
Why it’s ripe for disruption:
Decreasing our reliance on fossil fuels is at the forefront of advancements in the field of renewable energy. Making strides in wind and solar power along with tidal energy and other various forms of renewable sources primes the industry to completely change the way we receive power.
The price of gas continues to remain at a comfortable low. This is due to the fact that countries in the developed world are eschewing the use of fossil fuels and are actively implementing renewables sources broadly. With technology and resources continuing to build, full implementation is not a pie in the sky idea anymore and traditional energy companies are feeling its effects. Moody’s Credit Policy Research reported to CNBC that 25% of the 79 debt defaults in 2015 were from the energy industry.
The U.S. government has a hand in the renewable energy trend providing tax incentives to individuals and businesses who observe clean energy practices like solar. Placing solar panels in usable space, such as over bike paths or above water reservoirs, is beginning to take hold in Asia as well as parts of the United States.
Top Trends to Watch:
- Fuel prices will continue to remain low and most likely will not recover due to industry investments in Big Data practices to manage assets more proficiently.
- Solar will continue to grow an ever-increasing rate.
- Nuclear will come back into play as it emits no emissions and produces energy on a 24/7 basis.
- Batteries will remain a staple for storage as the use of electric cars continues to rise.