Green Power Market Size was valued at USD 42.3 Billion in 2022. The Green Power Market industry is projected to grow from USD 48.01 Billion in 2023 to USD 132.22 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.50% during the forecast period (2023 - 2032). The volatile nature of fossil fuels and the rise in stringent regulations for reducing greenhouse gas emissions are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for the green power market is being driven by rising environmental awareness owing to rapid climate change and rising technological advancement. The rising environmental awareness owing to rapid climate change and rising technological advancement is a driving force behind the growth in market revenue.
The global green power industry is poised for substantial growth, driven by increasing awareness of the detrimental effects of greenhouse gases (GHGs). Furthermore, the significant emissions of carbon dioxide, nitrous oxide, and methane, primarily stemming from outdated fossil fuel-based energy extraction methods, are acting as key drivers of market expansion. Additionally, the depletion of fossil fuel reserves due to their widespread utilization is amplifying the demand for green power solutions, further bolstering industry growth.
The rapid electrification of the transportation and industrial sectors, the expansion of the electrical value chain within the oil and gas industry, and the rising demand for renewable energy sources all play a significant role in the upward trajectory of the green power energy sector. Renewables 2022, the latest annual report from the International Energy Agency (IEA), reveals that global renewable power capacity is projected to experience substantial growth, adding 2,400 gigawatts (GW) between 2022 and 2027.
This impressive increase is equivalent to China's entire current power capacity. The report highlights a significant shift in the energy landscape, with renewable energy sources expected to lead the charge in global electricity expansion over the next five years. By early 2025, renewables are poised to surpass coal as the predominant global electricity source, accounting for over 90% of the expansion. This marks a pivotal moment in the transition towards cleaner and more sustainable energy solutions on a global scale.
The significant expansion of renewable power capacity presents abundant investment opportunities in green energy projects, including solar, wind, hydro, and other sustainable sources. Investors, both public and private, are likely to be attracted to these projects, fostering growth in the green power market. These developments have the potential to foster collaborations, paving the way for innovative business models and expediting the transition towards cleaner and more sustainable energy practices, thus providing a significant boost to the green power industry.
As a result, it is anticipated that throughout the projection period, demand for the Green Power Market will increase due to the Rising Environmental Awareness Owing to Rapid Climate Change and Rising Technological Advancement. Thus, driving the Green Power Market revenue.
The Green Power Market segmentation, based on Type includes Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, and Geothermal Energy. The hydroelectric power segment dominated the market, accounting for 58% of market revenue (24.53 Billion). Hydroelectric power offers a stable and consistent energy supply. Unlike some other renewable sources like wind or solar, it is not subject to weather-related fluctuations. This reliability makes it appealing for both energy providers and consumers, including industries that require a constant and uninterrupted power supply.
The Green Power Market segmentation, based on Application, includes Electricity Generation, Heating, and Transportation. The transportation segment dominated the market, accounting for 55% of market revenue (23.26 Billion). The development of the electric car charging infrastructure is a key driver in the rise of the green transportation market. As more charging stations become available, it becomes more convenient for consumers to own and operate electric vehicles, alleviating concerns about range anxiety.
Figure 1: Green Power Market By Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Green Power Market segmentation, based on End Users, includes Utility, Residential, Commercial, and Industrial. The utility segment dominated the market, accounting for 60% of market revenue (25.38 Billion). Utility companies are becoming more aware of the financial and environmental advantages of using renewable energy sources in their energy mix. Green power sources like wind, solar, and hydro are becoming more cost-effective and reliable, making them attractive options for utilities to meet their energy generation needs.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. Many North American countries, including the United States and Canada, have implemented policies and regulations that incentivize the development and adoption of green power sources. These policies may include renewable energy mandates, tax incentives, and emissions reduction targets, which encourage the use of renewable energy technologies. In 2019, the United States had an installed renewable energy capacity of nearly 264,504 megawatts.
The country possesses a substantial offshore wind energy potential, estimated at over 2,000 gigawatts, which is nearly double its current electricity consumption. This significant potential presents lucrative opportunities for providing large-scale clean and reliable electricity to meet the nation's future needs. Furthermore, the U.S. government has committed to expanding its renewable energy infrastructure and achieving specific targets by 2025, which is expected to accelerate market growth.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Green Power Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Green Power market accounts for the second-largest market share as the energy crisis experienced in 2022 expedited Europe's determination to undergo an energy transition. Germany has taken decisive and swift actions to advance its renewable energy agenda. These measures include streamlining approval processes for renewable projects, fostering the development of a domestic supply chain, offering subsidies for cost-effective electricity to energy-intensive industries, and undertaking substantial efforts to modernize the power grid infrastructure.
Germany's commitment to renewable energy is exemplified by its ambitious plan, amounting to approximately €250 billion of investment over roughly 10 years. This significant financial commitment provides a substantial boost to the overall funding available for green energy initiatives across Europe. Further, the German Green Power market held the largest market share, and the UK Green Power market was the fastest-growing market in the European region
The Asia-Pacific Green Power market is expected to grow at the fastest CAGR from 2023 to 2032. This prominence can be attributed to factors such as increased industrialization, infrastructure development, and proactive government initiatives within the region. Governments across countries like China and India are spearheading initiatives aimed at ensuring widespread access to electricity, further boosting market prospects. China, in particular, holds a significant share of the Asia Pacific green power market. The Chinese government is actively pursuing a strategy to reduce its reliance on fossil fuels by embracing renewable energy sources for electricity generation. This not only aligns with environmental goals but also presents substantial market opportunities. In 2019, the United States had an installed renewable energy capacity of nearly 264,504 megawatts.
The country possesses a substantial offshore wind energy potential, estimated at over 2,000 gigawatts, which is nearly double its current electricity consumption. This significant potential presents lucrative opportunities for providing large-scale clean and reliable electricity to meet the nation's future needs. Furthermore, the U.S. government has committed to expanding its renewable energy infrastructure and achieving specific targets by 2025, which is expected to accelerate market growth. The expansion of renewable energy capacity, including wind, solar, and hydropower, will lead to a substantial increase in clean energy generation. This will contribute to a larger share of green power in the overall energy mix. Moreover, China’s Green Power market held the largest market share, and the Indian Green Power market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Green Power market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Green Power industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Green Power industry to benefit clients and increase the market sector. In recent years, the Green Power industry has offered some of the most significant advantages to society and the environment. Major players in the Green Power market, including Trina Solar, First Solar, Canadian Solar, ABB, GE, Tata Power Solar Systems Limited, Innergex, Enel Green Power, Xcel Energy, EDF, Geronimo Energy, Invenergy LLC, ACCIONA, Vestas, UpWind Solutions, Inc., Senvion, and Sinovel Wind Group Co., Ltd., are attempting to increase market demand by investing in research and development operations.
Trina Solar, a vertically integrated solar power product manufacturer, operates a comprehensive business model that spans the design, construction, operation, and sale of solar power projects both within China and internationally. The company specializes in providing smart PV solutions tailored for large-scale power stations, energy storage systems, commercial and residential applications, and the production of photovoltaic modules. Trina Solar's extensive range of services encompasses project development, including engineering, procurement, financing, installation, monitoring, construction, as well as operations and maintenance.
The company's distribution network extends across the Asia Pacific, North America, South America, the Middle East, Europe, Africa, and various other regions. Trina Solar maintains a global presence, with offices and operations located in key strategic markets, including China, the UK, Japan, Switzerland, and the US, among others. The company's headquarters are situated in Changzhou, Jiangsu, China, serving as its central hub for overseeing its diverse portfolio and operations.
Acciona is a well-known supplier of environmentally friendly options for infrastructure and renewable energy projects. The business provides a full range of services that cover every stage of a project's lifespan, from design and construction through operation and maintenance. Acciona specializes in the development and management of various infrastructure projects, renewable energy initiatives, water facilities, and other critical assets. Furthermore, Acciona extends its expertise to provide Engineering, Procurement, and Construction (EPC) services to third-party clients. The company is also engaged in the sale of renewable energy and the development of wind turbines, utilizing its proprietary Acciona Wind Power technology. Beyond its core activities, Acciona diversifies its portfolio by offering financial services, fund management, stock broking, and housing development services.
Additionally, the company is involved in wine production. Acciona operates on a global scale, with a presence spanning across Europe, North America, Asia, Oceania, Central and South America, as well as the Middle East and Africa. Its corporate headquarters are situated in Alcobendas, Madrid, Spain. Notably, in May 2020, the Cerro Dominador solar thermal project, which is owned by EIG Global Energy Partners, was being built with help from Acciona and Abengoa. This project involved the intricate process of melting 46,000 tons of salts sourced from the Chilean Atacama Desert and boasts an impressive capacity of 110 MW, underlining Acciona's commitment to pioneering renewable energy solutions.
April 2021: In April 2021, Walmart made a significant move by disclosing its installation plans for 6.5 MW of solar power systems at its California facilities in collaboration with Sol Client Solutions. This installation expanded Walmart's portfolio of solar systems, representing an investment of approximately $10 million. In this initiative, Bank of America played a crucial role, serving as a tax equity partner, underscoring Walmart's commitment to sustainable energy practices.
April 2021: In April 2021, a strategic partnership between Engie and Eocyle-Xant yielded noteworthy developments in Engie's decentralized energy solutions. The collaboration facilitated the deployment of small turbines for Engie's clients based in Belgium. This partnership aims to install approximately 110 Small Wind Turbines (SWTs) to cater to the energy needs of small and medium-sized businesses, exemplifying a forward-looking approach to decentralized energy solutions in the region.
In July 2024, the Croatian company Končar and Siemens Energy reached a deal to establish Končar - Transformer Tanks (KTK). The primary objective of the joint venture is to specialize in the production of transformer tanks. The primary objective of the strategic collaboration is to greatly increase manufacturing capabilities, optimize the sale of a share of future capacity to Siemens Energy, facilitate the sharing of knowledge and skills between the parties, reduce risks, and dramatically improve the worldwide supply of transformer tanks.
The announcement stated that it would possess a majority share of 60% in KTK, while Siemens Energy would retain the remaining portion. Končar emphasized that the energy transition has led to an extraordinary increase in demand for transformers, which is considered one of the most important consequences. This trend is rapidly gathering momentum throughout the European Union. Transformer tanks are essential components in the process.
The agreement will lead to the establishment of a cutting-edge manufacturing plant at its location in Sesvetski Kraljevec. This partnership improves their ability to withstand crises, increases their operational efficiency, and enhances their efficacy in connected industries. By adopting this approach, they are creating favorable conditions for significant corporate expansion and ensuring the long-term safety and enhancement of working conditions for our employees.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 42.3 Billion |
| Market Size 2023 | USD 48.01 Billion |
| Market Size 2032 | USD 132.22 Billion |
| Compound Annual Growth Rate (CAGR) | 13.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Trina Solar, First Solar, Canadian Solar, ABB, GE, Tata Power Solar Systems Limited, Innergex, Enel Green Power, Xcel Energy, EDF, Geronimo Energy, Invenergy LLC, ACCIONA, Vestas, UpWind Solutions, Inc., Senvion, and Sinovel Wind Group Co., Ltd. |
| Key Market Opportunities | Rising initiatives by government to install renewable energy sources |
| Key Market Dynamics | Growing awareness about the use of environment-friendly sources |
Frequently Asked Questions (FAQ) :
The Green Power Market size was valued at USD 42.3 Billion in 2022.
The Green Power Market is projected to grow at a CAGR of 13.50% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Trina Solar, First Solar, Canadian Solar, ABB, GE, Tata Power Solar Systems Limited, Innergex, Enel Green Power, Xcel Energy, EDF, Geronimo Energy, Invenergy LLC, ACCIONA, Vestas, UpWind Solutions, Inc., Senvion, and Sinovel Wind Group Co., Ltd.
The Hydroelectric Power type dominated the market in 2022.
The Transportation base had the largest share of the global market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Analyst Explore the profile of garvit vyas, one of our esteemed authors at market research future, and access their expert research contributions in the field of market research and industry analysis
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
