Renewable energy market surpasses $10 trillion to become world's third largest sector

Renewable energy is no longer a niche market or a side project, having recently surpassed $10 trillion in total market value. According to a new report from the London Stock Exchange Group, if renewables were classified as a single sector, it would now be the world's third-largest industry behind technology and industrial goods and services.

The report examined more than 21,000 publicly listed companies worldwide, measuring the share of their revenue tied to green activities. It found that green revenues grew 5.3% in 2025 — the fastest pace since 2022 — while green equities outperformed the broader market by 12.4% over the past 12 months, and have outpaced global equities by 133% since 2008.

The report also found that companies generating more than half their revenue from green activities posted profit margins two to four percentage points higher than their non-green sector peers, challenging the long-held assumption that sustainability comes at the cost of profitability. This shift comes as the rationale for green investment expands beyond mere climate concerns: due to recent oil and gas shocks, rising electricity demand and volatile fuel prices, energy security has become an equally powerful driver, making renewables more attractive as a form of insurance.

Crossing the $10 trillion mark doesn't signal the end of the fossil fuel era, but it does mean renewables have grown too large for investors, governments and companies to dismiss as a niche market. In sum, electricity demand is rising, clean technologies are scaling up, and investors are increasingly finding solid returns in areas once considered risky or experimental.