Energy startups drive global innovation
Date
7/18/2024 8:37:17 AM
(MENAFN) As of the first half of 2024, the global landscape of startups has witnessed a notable presence of energy-focused ventures, comprising approximately 2.1 percent of the total 3.5 million startups worldwide. According to the latest data from the International energy Agency (IEA), the number of energy startups has reached nearly 74,000, showcasing a diverse array of innovations within the sector.
In terms of financial backing, early-stage financing for these startups in the first half of 2024 exceeded USD7 billion. Of this amount, USD5.9 billion was allocated to clean energy initiatives, underscoring a strong investor appetite for sustainable energy solutions. Additionally, emerging energy companies operating in digital sectors secured USD1.4 billion in funding during the same period, reflecting growing interest in technologies that enhance efficiency and connectivity across energy systems.
The year 2022 marked a record-breaking period for early financing in the energy startup ecosystem, with investments totaling USD24.8 billion, according to IEA historical data spanning from 2000 to 2024. This financial influx highlights the sector's attractiveness and potential for disruptive innovation amid global energy transitions.
Energy startups are categorized into 12 distinct activities, as detailed by the IEA. Notably, renewable energy projects commanded a significant share of about 32.2 percent in 2023, with solar energy leading at 8.2 percent and wind energy contributing 0.6 percent. Innovations in energy efficiency accounted for 16.8 percent of the sector, followed by advancements in energy storage and batteries at 10.3 percent. Nuclear energy startups constituted 1.1 percent of the total, reflecting a diverse portfolio of technological advancements addressing varied energy needs.
In parallel, the digital field has seen substantial growth among startups specializing in information and communications technology systems, Internet of Things (IoT), and other digitalization and computing fields. The number of digital-focused startups globally surpassed one million by mid-2024, highlighting the convergence of energy innovation with digital technologies to drive efficiency, connectivity, and sustainability in global energy markets.
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