Validate the global picture of energy market fundamentals Introduction
As we move into the 21st century, there is no doubt that our reliance on energy will only continue to grow. In order to accommodate this growth, businesses and individuals must look at ways to reduce their dependence on fossil fuels. And one of the most important ways to do this is through energy market fundamental analysis. In this blog post, we will explore what energy market fundamental analysis is and how you can use it to validate your global picture of the energy market. From exploration of sector dynamics to forecasting future trends, read on to learn more about how fundamental analysis can help you make sound decisions when it comes to energy consumption.
Analysis of the global energy
The global energy market is expected to grow at a CAGR of 3.5% during the forecast period 2017-2021. The growth is mainly driven by the increase in oil and gas production as well as the increasing demand for electric vehicles and renewable energy sources. However, several challenges such as climate change and geopolitical tensions are hampering the growth of this market.
In terms of power generation, the largest share of the global energy market is accounted for by coal-fired plants, followed by hydroelectric plants and nuclear power plants. The growth of renewables such as solar and wind has been limited due to expensive initial investments, which limits their contribution to overall energy supplies. In addition, increased investment in electric vehicles will result in a significant shift from conventional fuels to electricity in coming years. This will further challenge the market growth prospects for renewable energies.
The oil & gas sector remains the dominant player in the global energy market with a share of around 43%. The rapid expansion of shale gas reserves has led to an increase in natural gas consumption over recent years, offsetting declining demand for oil products. However, concerns over growing emissions from fossil fuel-based generation and dwindling supplies of natural resources are impeding the sector’s long-term growth prospects.
Renewable energy currently accounts for around 13% of global installed capacity, but this share is projected to rise significantly over time as technology improves and costs decline. Wind and solar are expected to be major contributors to this trend,
Outlook for the global energy market
The global energy market is expected to grow at a CAGR of 3.5% over the next five years, reaching a value of $2.5 trillion by 2022. This growth is attributable to the increasing demand for electricity and oil, as well as renewables such as solar and wind power.
Renewables are expected to lead the global energy market in terms of share, with their share jumping from 16% in 2013 to 27% by 2022. Solar power is expected to be the dominant renewable source of energy, accounting for over 60% of the market share by 2022.
In terms of regions, Asia Pacific is forecast to grow at the highest rate, reaching $1 trillion by 2022. This region is attributed to increased investment in infrastructure and advancements in technology that support renewables such as solar and wind power. North America is also projected to grow at a high rate, reaching $930 billion by 2022. The increase in investments in oil and gas resources will drive this growth rate. Europe isexpectedto witness moderate growth rates due to concerns about emissions regulations and waning fossil fuel subsidies.
The global energy market is growing rapidly, but the sector is characterized by a number of uncertainties. The rapid uptake of renewable power has led to an increase in demand for non-fossil fuels, while coal and oil prices have remained high. In addition, geopolitical factors are also playing a role; for example, the conflict in Venezuela has resulted in a sharp increase in energy imports. However, despite these challenges, the global energy market remains one of the most economically lucrative on earth.