Renewable Energy Market Size was valued at USD 1.32 trillion in 2023. The renewable energy market industry is projected to grow from USD 1.45 trillion in 2024 to USD 3.14 Trillion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.10% during the forecast period (2024 - 2032). It is anticipated that main market drivers for market expansion over the projection period would include worries about decreasing greenhouse gas emissions, a rise in the hunt for power security, opposition to conventional nuclear energy, and a lack of advancement in nuclear power application.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Over the course of the forecast period, expanding investments in renewable energy sources and advantageous government policies are anticipated to propel market expansion. The first offshore wind farm in the United States was built by the National Ocean Industries Association in 2017. With 9,000 MW of additional capacity added in 2019, the United States' wind power additions are expanding rapidly. This increased the U.S.'s overall capacity to 105.6 GW. 2019 saw the installation of 2,166 units, or 18 M.W., of highly scalable wind capacity throughout 17 states, for a total cost of $67 million. From Pennsylvania to California, distributed wind systems have been developed to serve consumers in the agricultural, commercial, governmental, industrial, institutional, residential, and municipal sectors. The U.K. government also established a $1.2 billion package in September 2021 for public and private investment in India's green programmes and renewable energy. In order to raise private funding for environmentally friendly infrastructure in India, they have launched a Climate Finance Leadership Initiative (CFLI) India collaboration. These investments would aid India in achieving its 2030 goal of 450 Gw of renewable energy. Therefore, during the anticipated term, the government's investment in renewable energy sources will help the industry flourish. Thus, this factor is driving the market CAGR.
Furthermore, numerous governments have enacted laws to encourage the development and use of renewable energy sources. Policies that fit under this category include mandates, tax breaks, and subsidies. Solar photovoltaic installations will reach 143 GW by 2020, accounting for 43% of all renewable energy capacity worldwide. By the time it reaches 175 GW in 2023, this percentage is predicted to increase to 49%. The installed capacity of wind power will reach 103 GW in 2020 and 126 GW by 2023. The latter figure increased from the prior one by 24%.
However, the market for renewable energy is expanding in part as a result of decreasing costs. Direct writing or lithography can be used to produce 14-nm wafers instead of the older and more laborious 29-nm process lines. As a result of these advancements, processing times are being slashed and yield rates are rising, lowering the price of creating a PV module. These price reductions have made renewable energy more competitive with traditional fossil fuels. The steadily falling cost of renewable technology is another aspect that makes it more affordable for businesses and people. The Renewable Energy Market is projected to grow as a result of these trends, which are expected to last for the foreseeable future.
Furthermore, the cost of renewable energy is decreasing as a result of technological breakthroughs, and the competitiveness of battery storage systems is increasing, which is good for the growth of the renewable energy market. Additionally, due to mounting concerns about environmental, social, and governance (ESG) issues and global climate change, financing for renewable energy sources is surging. Governments in both developed and developing nations are giving subsidies to the corporate sector to encourage a shift toward clean and green energy in an effort to promote sustainability and protect the environment. The market for renewable energy is primarily driven by these factors. Thus, it is anticipated that this aspect will accelerate renewable energy market revenue globally.
The Renewable Energy Market segmentation has been segmented by type into Hydropower, Wind Energy, Solar Energy, Bioenergy, Geothermal Energy and Ocean Energy. The solar energy renewable segment dominated the market growth in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Due to their ability to turn sunlight directly into power, solar panels are a fantastic solution for residences and businesses in sunny regions. Solar panels require a big amount of space to perform effectively, and the original cost and continuous maintenance of solar panels can be significant.
The Renewable Energy Market segmentation, based on end-use is divided into Industrial, Residential and Commercial. The residential segment dominated the renewable energy market data in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The market is anticipated to expand due to the rising popularity of geothermal heat pumps for home heating applications. Along with the rise in electricity demand, there will likely be a major increase in the need for geothermal energy. This element will likely fuel the market's expansion.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific renewable energy market accounted for USD 0.5 billion in 2021 and is expected to exhibit a 43.60% CAGR during the study period. The region's increasing industrialization and urbanization were to blame for the sharp rise in pollution levels. The need for electricity is also being fueled by the region's rapidly growing population and residential development.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America renewable energy market accounts for the fastest growing market share. The cooperation of the nations in the development of new power sources is accelerating regional growth. For instance, the United States and India resolved to structure their strategic power relationship in March 2021 to cooperate in cleaner power fields such as hydrogen generation and biofuels. The two nations would intensify their efforts to take advantage of cutting-edge American technologies and India's quickly growing electricity industry. Moreover, US renewable energy market held the largest market share, and the Canada renewable energy market was the fastest-growing market in this region.
Europe renewable energy market is expected to grow at a substantial CAGR from 2022 to 2030. Due to the market's availability of increasingly effective solar cells, power output from industrial sector solar cells has improved over time. Additionally, the industry's escalating competitiveness has aided in expanding solar panel options and lowering the cost of electricity production. Over the course of the projection period, these variables are anticipated to increase demand for renewable energy in the area. Further, the UK renewable energy market held the largest market share, and the Germany renewable energy market was the fastest-growing market in the region.
Major market players are spending a lot on R&D to increase their product lines, which will help the renewable energy industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.
One of the primary business strategies manufacturers adopt in the global renewable energy industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, renewable energy industry has provided medicine with some of the most significant benefits. The renewable energy market major player such as ABB Ltd., General Electric (GE), The Tata Power Company Limited (Tata Power), Innergex, Enel Spa (Enel), Xcel Energy Inc. (Xcel Energy), EDF, Geronimo Energy and Invenergy.
With its headquarters in Boulogne-Billancourt, Greater Paris, France, General Electric's American wind turbine manufacturing company, GE Renewable Electricity, focuses on the generation of energy from renewable sources. Its product line comprises power generating solutions for wind, hydropower, and solar energy. In June 2021, a contract for the procurement and installation of wind turbines for the 148.5 megawatts (MW) Bhuj wind park in Gujarat was given to GE Renewable Energy.
Also, an international power generation development and operations corporation with an American base is called Invenergy. In the Americas, Europe, and Asia, the firm develops, constructs, owns, and runs power production and energy storage projects, including wind, solar, and natural gas power generation and energy storage facilities.
The International Renewable Energy Agency (IRENA) estimates that 90 percent of the world’s electricity can and should come from renewable energy by 2050. Renewables offer a way out of import dependency, allowing countries to diversify their economies and protect them from the unpredictable price swings of fossil fuels, while driving inclusive economic growth, new jobs, and poverty alleviation. About 80% of the global population lives in countries that are net-importers of fossil fuels -- that’s about 6 billion people who are dependent on fossil fuels from other countries, which makes them vulnerable to geopolitical shocks and crises.
A large chunk of the greenhouse gases that blanket the Earth and trap the sun’s heat are generated through energy production, by burning fossil fuels to generate electricity and heat. Fossil fuels, such as coal, oil and gas, are by far the largest contributor to global climate change, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions. The science is clear: to avoid the worst impacts of climate change, emissions need to be reduced by almost half by 2030 and reach net-zero by 2050. about $4 trillion a year needs to be invested in renewable energy until 2030 – including investments in technology and infrastructure – to allow us to reach net-zero emissions by 2050. The reduction of pollution and climate impacts alone could save the world up to $4.2 trillion/year by 2030.
Geo Energy - Geothermal energy utilizes the accessible thermal energy from the Earth’s interior. Reservoirs that are naturally sufficiently hot and permeable are called hydrothermal reservoirs, whereas reservoirs that are sufficiently hot but that are improved with hydraulic stimulation are called enhanced geothermal power systems. The technology for electricity generation from hydrothermal reservoirs is mature and reliable and has been operating for more than 100 years.
Solar Energy - The cost of manufacturing solar panels has plummeted dramatically in the last decade, making them not only affordable but often the cheapest form of electricity. Solar energy is the most abundant of all energy resources and can even be harnessed in cloudy weather. Solar technologies convert sunlight into electrical energy either through photovoltaic panels or through mirrors that concentrate solar radiation. Although not all countries are equally endowed with solar energy, a significant contribution to the energy mix from direct solar energy is possible for every country. (More Details on - www.un.org)
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 1.32 Trillion |
| Market Size 2024 | USD 1.45 Trillion |
| Market Size 2032 | USD 3.14 Trillion |
| Compound Annual Growth Rate (CAGR) | 10.10% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Forecast Units | Value (USD Trillion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End-Use and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | ABB Ltd., General Electric (GE), The Tata Power Company Limited (Tata Power), Innergex, Enel Spa (Enel), Xcel Energy Inc. (Xcel Energy) |
| Key Market Opportunities | Technological advancements to boost market growth |
| Key Market Dynamics | Increased investments by government Decline price of renewable energy |
Renewable Energy Market Highlights:
Frequently Asked Questions (FAQ) :
The Renewable Energy market size was expected to be USD 1.32 Trillion in 2023.
The Renewable Energy market is expected to register a CAGR of 10.10% over the next ten years.
Asia Pacific held the largest market share in the Renewable Energy sources market.
ABB Ltd., General Electric (GE), The Tata Power Company Limited (Tata Power), Innergex, Enel Spa (Enel), Xcel Energy Inc. (Xcel Energy) are the key players in the Renewable Energy Market.
The solar energy category led the segment in the market.
The residential category had the largest market share in the renewable energy market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
