Renewable Energy Transition Market Trends

Renewable Energy Transition Market Overview:

Renewable Energy Transition Market Size was valued at USD XX Billion in 2022. The Renewable Energy Transition market industry is foreseen to rise from USD XX Billion in the year 2023 to USD XX Billion by 2032, giving a compound yearly growth rate (CAGR) of 9.80% during the forecast period (2023 - 2032). Increased global awareness and commitment to addressing climate change and environmental sustainability are the key market drivers enhancing market growth.

Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable Energy Transition Market Trends

Growing global awareness and the commitment to addressing climate change and environment sustainability is driving the market growth

Market CAGR for renewable energy transition is being driven by the rising global awareness and commitment to addressing climate change and environmental sustainability. As the scientific consensus on the adverse impacts of climate change is becoming increasingly evident, there is a growing recognition throughout the governments, businesses, and communities that urgent action is required to minimize greenhouse gas emissions and transition to more sustainable energy sources.

Governments globally are responding to this imperative by implementing policies and regulatory frameworks that help the adoption of renewable energy. Renewable energy targets, tax incentives, feed-in tariffs, and carbon pricing mechanisms are among the tools employed to fuel the development and deployment of clean energy technologies. These policies generate a conducive environment for businesses to invest in and transition towards renewable energy sources. Countries committed to minimizing their carbon footprint are increasingly turning to renewable energy solutions as a fundamental component of their climate action plans. This commitment offers a clear signal to industries and investors, encouraging them to opt for sustainable practices and technologies. Businesses are also recognizing the economic and reputational benefits of embracing renewable energy. Furthermore, international agreements like the Paris Agreement have galvanized global efforts to limit global temperature increases, fostering a collaborative approach to address climate change. Corporate sustainability goals, coupled with consumer demand for environmentally responsible products and services, are compelling businesses to integrate renewable energy into their operations. This not only aligns with their environmental commitments but also enhances their brand image and competitiveness in a market progressively driven by eco-conscious consumers.

Investors are growingly factoring environmental, social, and governance (ESG) criteria into their decision-making processes. As awareness of climate-related risks grows, there is a rising trend of divestment from fossil fuel-related assets and increased investment in renewable energy projects. This financial support accelerates the development and deployment of renewable technologies, driving innovation and economies of scale that make renewable energy more cost-competitive. The decreasing costs of solar and wind power, coupled with advancements in energy storage solutions, have made renewable energy increasingly competitive with traditional fossil fuels. Technological advancements and cost minimization in renewable energy technologies are pivotal outcomes of this growing global commitment. This economic viability further propels the market for renewable energy transition as businesses and governments recognize the financial advantages of clean energy alternatives. Thus driving the Renewable Energy Transition market revenue.

Renewable Energy Transition Market Segment Insights:

Renewable Energy Transition Type Insights

The Renewable Energy Transition Market segmentation, based on type, includes Wind Power, Solar Power, Bioenergy, and Hydropower. The hydropower segment dominated the market, accounting for the largest market revenue due to its established infrastructure, reliability, and scalability. Its ability to offer large-scale and consistent electricity generation makes it a prime participant in the transition to renewable energy. The long operational lifespan of hydropower facilities, with reduced greenhouse gas emissions, makes it a cost-effective and environmentally friendly option. Moreover, hydropower's energy storage capabilities through reservoirs contribute to grid stability, addressing the intermittency challenge faced by some other renewable sources. Further, hydropower's proven track record and versatility make it a leading force in the global shift towards sustainable energy.

Renewable Energy Transition Application Insights

The Renewable Energy Transition Market segmentation, based on application, includes Residential, Commercial, and Utility scales. The residential category dominates the market due to growing awareness of environmental sustainability among homeowners. The growing demand for decentralized energy sources empowers individuals to produce their power, boosting a sense of energy independence. Technological advancements in wind turbines, solar panels, and energy storage make residential systems much more efficient and cost-effective, thus encouraging adoption. Government incentives and policies promoting residential renewable energy installations also lead to market dominance. As renewable technologies become more accessible, homeowners are opting for viable, long-term solutions for minimizing their carbon footprints and lowering energy costs.

Figure 1: Renewable Energy Transition Market, by Application, 2022 & 2032 (USD Billion)

Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable Energy Transition Regional Insights

By region, the study gives the market insights of North America, Europe, Asia-Pacific, and the Rest of the World. The North American Renewable Energy Transition market area dominates this market, with growing recognition of the environmental, economic, and societal benefits of renewable energy, along with supportive policies and incentives.

Further, the prime countries observed in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: Renewable Energy Transition Market Share By Region 2022 (USD Billion)

Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe's Renewable Energy Transition market accounts for the second-largest market share due to the region's strong commitment to attaining ambitious renewable energy targets, along with robust policy frameworks and incentives. Further, the German Renewable Energy Transition market held the largest market share, and the UK Renewable Energy Transition market was the fastest-growing market in the European region.

The Asia-Pacific Renewable Energy Transition Market is foreseen to grow at the fastest CAGR from the year 2023 to 2032. This is due to the increasing demand for energy, along with concerns about air pollution, energy security, and the effects of climate change. Moreover, China’s Renewable Energy Transition market held the largest market share, and the Indian Renewable Energy Transition market was the fastest-growing market in the Asia-Pacific region.

Renewable Energy Transition Key Market Players & Competitive Insights

Leading market participants are investing hugely in the research and development in order to expand their product lines, which will help the Renewable Energy Transition market grow even more. Market players are also undertaking different strategic activities for expanding their global footprint, with important market developments inclusive of ontractual agreements, mergers and acquisitions, new product launches, chigher investments, and collaboration with the other organizations. To expand and survive in the more competitive and rising market climate, the Renewable Energy Transition industry must offer the cost-effective items.

Manufacturing locally to minimize the operational costs is one of the main business tactics utilized by the manufacturers in the global Renewable Energy Transition industry to benefit the clients and grow the market sector. In recent years, the Renewable Energy Transition industry has offered some of the most significant advantages to different industries. Major players in the Renewable Energy Transition market, including Exelon Corporation, Duke Energy Corporation, Pacific Gas and Electric Company, Southern Company, American Electric Power, Edison International, Repsol, Brookfield Renewable Partners, Plug Power Inc., Enphase, First Solar, and others, are trying to raise market demand by investing in the research and development operations.

Shell is the multinational energy company with a prominent global presence; it is one of the largest oil and gas companies iglobally. Shell has evolved into a major player in the energy sector, engaging in all aspects of the industry, from the exploration and production to refining, distribution, and marketing. The company is known for its comprehensive portfolio, which includes liquefied natural gas (LNG), conventional hydrocarbons, and a surging emphasis on renewable energy sources like biofuels and electric power. In October 2023, oil major Shell partnered with Dutch renewable energy company Eneco to jointly develop and operate large-scale solar projects in the Netherlands. This partnership leverages Shell's financial muscle with Eneco's project development expertise to accelerate solar energy adoption in the region.

Equinor is a multinational energy company that operates in the fields of oil, gas, wind, and solar energy. Equinor has evolved into a leading participant in the global energy sector. The company has a strong focus on sustainability and has positioned itself as a prime force in the transition to a low-carbon future. Equinor is involved in oil and gas exploration, production, and refining, with a commitment to responsible resource management. In October 2023, Equinor (Norway) partnered with Shell, TotalEnergies, and ConocoPhillips to develop floating wind farms in Norway. This collaboration leverages established players' expertise for large-scale renewable energy projects.

Key Companies in the Renewable Energy Transition market include

• Exelon Corporation


• Duke Energy Corporation


• Pacific Gas and Electric Company


• Southern Company


• American Electric Power


• Edison International


• Repsol


• Brookfield Renewable Partners


• Plug Power Inc.


• Enphase


• First Solar

Renewable Energy Transition Industry Developments

September 2023: Siemens Gamesa and German utility RWE formed a joint venture to develop and make offshore wind farms in German North Sea. This partnership compiles Siemens Gamesa's technological leadership with RWE's deep experience in wind energy project development and grid integration.

October 2023: Brookfield Renewable Partners acquired Invenergy Renewables, a major US developer of wind and solar projects, for $5.8 billion. This acquisition restores Brookfield's position in the US renewable energy market and broadens its portfolio with high-quality projects.

June 2023: Engie acquired Iberdrola's US renewable energy assets, including wind and solar farms, for $2.3 billion. This acquisition broadens Engie's presence in the US renewable energy market and offers it a strong platform for further growth.

Renewable Energy Transition Market Segmentation:

Renewable Energy Transition Type Outlook

• Wind Power


• Solar Power


• Bioenergy


• Hydropower

Renewable Energy Transition Application Outlook

• Residential


• Commercial


• Utility Scale

Renewable Energy Transition Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America