Growing energy demand, as driven by population growth, “energy for all” initiatives and economic development, has led to an increase in greenhouse gas emissions. As sustainability becomes a worldwide concern, our industry must ask: How can advances in technology, policy change and behavior modification help solve this issue?
At Capgemini we have created a unique point of view to present our perspective on how the energy industry is expected to evolve over the next 20 to 30 years. We choose this time frame with purpose, as projections for 2040 and 2050 allow ample time for the development of strategic plans while also capturing the necessary sense of urgency around climate change.
In preparing this report, we based our thinking on three widely accepted projections: 1. The world population will increase by 1.7 billion by 2040, mostly in urban areas; 2. Energy demand will increase by more than a quarter by 2040; and 3. The world at large is unlikely to meet the objectives set forth in the 2015 Paris Accord or similar energy agreements.
While this report focuses on the energy future for select countries and regions, our analysis is intended to be applied more broadly. This study offers a global perspective on how the energy landscape may be influenced by the advent of new technology, shifting consumer behavior and political change.
This study is Capgemini’s latest piece of research conducted on behalf of our clients and partners. Additional efforts include:
- World Energy Markets Observatory (WEMO), an annual report examining the electricity and gas markets in Europe, United States, Canada, Australia, China, India, and Southeast Asia. The document presents a current picture of the energy market and outlines transformation trends.
- Strategies for energy players, client projects that analyze the energy market and define the business strategy for the next three to five years.
The report’s top energy predictions by 2040-2050 include:
- Population growth and economic development around the world has led to a growing demand for energy, transportation and construction that, in turn, increases Green House Gas emissions
- Forecasting the future energy scenario for any region in the world is complex and involves as many as 20 interrelated key factors, as chronicled in the report.
- Advances in technology will continue to progress but no fundamental technology disruptions are expected in the next 20-30 years to significantly impact the goal of carbon neutrality
- Nonetheless, the progress of digital technologies in key areas could prove useful in addressing a number of challenges and gaps currently seen in the industry
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