Alternative Energy

Moving industry forward with next-gen advancements in energy storage and transmission

Overview

The science is settled. Human activities that emit greenhouse gasses (GHGs) are warming the planet and causing devastating climate change. Current GHG emissions must be halved by 2030 and net-zero GHG emissions must be reached by 2050 to contain global warming at a sub-catastrophic level. As fossil-fuel-based energy production is a leading cause of GHG emissions, clean energy technologies play a vital role in a sustainable future for the planet.

The cost of solar and wind energy has fallen considerably over the past decade and no longer yields a significant cost disadvantage compared with fossil fuels. Next-gen renewable technologies such as waste-to-energy, sustainable fuels, fusion energy, geothermal, wave, and tidal, etc. are still at a nascent stage but can be expected to follow similar declining cost principles as they scale. Next-gen advancements in energy storage are also vital in matching the intermittent supply of renewable energy with inflexible demand.

Industry Updates

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Market Sizing

The US market for the Alternative Energy industry could reach USD 23.1 billion–28.4 billion by 2028

Conservative case

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Base case

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Expansion case

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Market Mapping


The Alternative Energy industry is dominated by stationary energy storage startups. They have also received the most amount of funding. The majority of the pre-seed and seed-stage startups are from the third-gen renewables segment. Most of the early and growth stage startups are from the bioenergy and sustainable fuels and stationary energy storage segments.

Incumbents
Growth
Early
Seed
Pre-Seed
Renewables: Next-gen solar, wind, hydro
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Renewables: Next-gen bioenergy and sustainable fuels
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Renewables: Third-generation
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Stationary energy storage
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Technologies
Technologies
Technologies
Technologies

The Disruptors


The capital-intensive nature of this industry has led many Alternative Energy startups to raise significant funding at very early stages of their operations. This appetite for cash has also prompted many startups to seek public funds fairly quickly—sometimes even while the business is at a conceptual stage—mostly through unconventional methods such as special purpose acquisition company (SPAC) deals and over-the-counter (OTC) listings.

Funding History

Competitive Analysis


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Product Overview
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Company profile
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Incumbents


Oil and gas and other fossil fuel energy companies are increasingly adopting alternative energy to meet their sustainability commitments. While these initiatives are still mostly conventional renewable energy generation projects such as solar and wind, some companies, especially oil and gas supermajors, are also gradually exploring next-gen alternative energy solutions like bioenergy and sustainable fuels. 

In House Development
M&A
Partnership
Investment
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Notable Investors


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Market Sizing

The US addressable market for Alternative Energy is estimated at USD 68.2 billion.

The total addressable market (TAM) refers to the total revenue opportunity available for a product or service, while the actual market is the market size based on revenue projections.
The TAM for Alternative Energy in the US is estimated to be USD 68.2 billion. This includes USD 15.6 billion for next-gen renewables and USD 9.4 billion for stationary energy storage.
See the Appendix for the breakdown and assumptions for TAM estimates. 
The actual market for Alternative Energy in the US in 2023 was estimated to be USD 16.7 billion. The market is expected to grow at a five-year CAGR of 8.4% to reach USD 25.0 billion by 2028. Our expansion case expects the market to grow at a five-year CAGR of 11.2% to reach USD 28.4 billion by 2028, assuming faster progress toward next-gen renewable energy technologies and government-imposed net-zero emission targets being implemented earlier than expected. Our conservative case expects the market to grow at a five-year CAGR of 6.7% to reach USD 23.1 billion by 2028, assuming that a significant portion of the renewable energy shift will be absorbed by conventional renewable energy technologies.
Within the industry, we expect the highest growth in the stationary energy storage segment (a 21.9% CAGR), underpinned by a favorable outlook for solar and wind energy in the medium term and a push for more efficient long-duration energy storage solutions.
Summary

Appendix: TAM calculation by segments

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