Renewable Energy Market Share, Size, Trends, Industry Analysis Report, By Application (Commercial, Residential, Industrial); By Product; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 118
- Format: PDF
- Report ID: PM2147
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global Renewable Energy market was valued at USD 1056.27 billion in 2023 and is expected to grow at a CAGR of 8.6% during the forecast period.
The embrace of low-carbon fuels and the implementation of rigorous environmental regulations in many developed nations have significantly propelled the renewable energy sector. Over the recent years, the energy generation market has witnessed a rise in the installed capacity of renewable sources, spurred by growing environmental apprehensions and the imperative to alleviate the detrimental effects of Greenhouse Gases (GHG). This has played a crucial role in the growth of the solar and wind energy sectors.
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Supportive policies, plans, and abundant biomass feedstock availability propel the U.S. renewable energy sector. Stringent government regulations on emissions have led to an increase in renewable energy plants. The power landscape in the U.S. is evolving with a shift towards gas-based and renewable power sources over coal-based generation. Rising electricity distribution costs, grid faults causing power outages, and government incentive programs are anticipated to drive end-users towards adopting hydropower systems, consequently boosting demand in the renewable energy market. Germany, being a developed economy, stands as one of the leading markets in Europe.
In recent years, the country has directed investments toward unconventional power generation technologies to diminish its dependence on conventional sources like crude oil and coal, aiming for energy self-sufficiency. With substantial investments in renewable power generation, the solar power market has experienced rapid growth and is projected to continue this trend in the forecast period.
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The expanding solar industry in Germany is expected to drive the overall solar market growth. This domestic energy source empowers each state to generate its energy independently from international fuel sources, providing benefits such as flood control, clean drinking water, irrigation support, low-cost electricity, and durability compared to other energy sources.
Industry Dynamics
Growth Drivers
- Growing investments in renewable energy and favorable governmental policies
In September 2021, the U.K. government allocated a $1.2 billion package for both public and private investment in India's green initiatives and renewable energy. To mobilize private funding for eco-friendly infrastructure in India, they launched the Climate Finance Leadership Initiative (CFLI) India collaboration. These investments aim to support India in reaching its 2030 target of 450 GW of renewable energy, contributing to the flourishing of the industry in the expected term and driving the market's Compound Annual Growth Rate (CAGR).
Moreover, governments globally have implemented laws to promote the development and utilization of renewable energy sources, including mandates, tax incentives, and subsidies. Solar photovoltaic installations are projected to reach 143 GW by 2020, constituting 43% of global renewable energy capacity. This percentage is anticipated to rise to 49% by 2023 when solar installations reach 175 GW. Wind power installed capacity is expected to reach 103 GW in 2020 and increase to 126 GW by 2023, reflecting a 24% growth from the previous figure.
Report Segmentation
The market is primarily segmented based on product, application, and region.
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By Product |
By Application |
By Region |
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By Product Analysis
- The Solar Power segment held the largest revenue share in 2022
In 2022, the solar power sector claimed the predominant market share and is projected to experience substantial growth throughout the forecast period. Renowned for its cost-effectiveness, capacity to confer an environmentally friendly identity to homes or businesses, and the ability to mitigate electricity disruptions, solar power stands out. Unlike grid electricity with frequent outages and hydroelectric power susceptible to interruptions during transmission, solar systems demonstrate higher efficiency in transmission.
In 2022, the hydropower sector secured a noteworthy share of the total revenue.
Hydropower, also recognized as hydroelectric power, brings multiple advantages to communities and assumes a pivotal role in addressing climate change by providing storage, power, and flexibility services. The wind power and bioenergy segments are anticipated to experience gradual growth throughout the forecast period, gradually replacing traditional energy sources with renewable alternatives. As of 2020, China leads in wind energy with an installed capacity of 221 GW, followed by the U.S. with 96.4 GW, Germany with 59.3 GW, India with 35 GW, and Spain with 23 GW.
The anticipation of increased demand for wind energy during the forecast period is fueled by a combination of these factors, along with growing environmental concerns surrounding the use of fossil fuels. Geothermal energy, harnessed from the earth's heat and applicable for both renewable electricity generation and cooling/heating purposes, holds a prominent position. The U.S. leads globally in geothermal energy capacity, boasting 3.7 GW. With the world's largest geothermal plant situated in California and robust industry adoption, it is projected that geothermal energy will contribute to meeting 10% of the U.S. electricity demand in the near future, thereby driving market demand for these energy sources in the forecast period.
By Application Analysis
- The Industrial segment accounted for the highest market share during the forecast period
The rising demand for clean electricity is projected to spur the growth of the PV modules market within the industrial sector, driven by an increasing number of utility projects. As per the Solar Energy Industries Association, the U.S. boasts over 37 GW of operational power plants as of 2020, with an additional 112 GW in development. These factors are anticipated to stimulate the demand for solar PV panels within the industrial application segment throughout the forecast period.
The introduction of solar PV panels for residential applications is anticipated to drive product demand throughout the forecast period. For instance, in September 2021, Solaria unveiled a black solar panel designed specifically for residential use, featuring a power output of 430 W. This newly introduced panel, named PowerXT 430R-PL, boasts a power conversion efficiency of 20.40%, dimensions measuring 1,076×1,957x35mm, and a weight of 21.3 kg.
Commercial solar PV panels, with a lifespan exceeding 15-20 years, offer versatility in applications, including powering industrial buildings in off-grid or remote locations, pre-heating ventilation air, and supplying water heating in offices, businesses, and other settings. The swift adoption of PV modules in corporate offices, hotels, and healthcare facilities is expected to propel product demand across the commercial sector, driven by increased power needs in communication base stations and data centers.
Regional Insights
- Asia Pacific dominated the largest market in 2022
The growing demand for renewable energy in this region is linked to the escalating installation of solar power projects in China and India, which are pivotal markets for solar panels both globally and within the Asia Pacific. Additionally, countries in the region, like Australia and Japan, exhibit substantial growth potential for the market, given their significant investments in solar power generation in recent years.
The North American market is anticipated to experience significant growth throughout the forecast period. Over the years, power generation from the industrial sector has risen due to the availability of more efficient solar cells in the market. Additionally, increased competition in the industry has contributed to a reduction in the price of electricity production and an expansion in the variety of available solar panels. These factors are anticipated to enhance the demand for renewable energy in the region throughout the forecast period. Furthermore, factors such as growing concerns about greenhouse gas (GHG) emissions, generation cost, and regulations aimed at reducing carbon footprint are expected to drive the growth of renewable energy over the forecast period.
Key Market Players & Competitive Insights
The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.
Some of the major players operating in the global market include:
- ABB
- Acconia S.A.
- Enel Spa
- General Electric
- Innergex
- Invenergy
- Schneider Electric
- Siemens Gamesa Renewable Energy, S.A.
- Suzlon Energy Ltd.
- Tata Power
Recent Developments
- In August 2023, Adani Energy Solutions announced the successful financial closure for its USD 1 billion Green HVDC link project. This initiative aims to enhance the supply of renewable power to the city and address its increasing electricity demand. The credit facility is integrated into the USD 700 million revolving project finance initiative established in October 2021 for AESL's ongoing transmission assets portfolio. This distinctive platform in infrastructure financing ensures a steady access to capital for upcoming projects in AESL's transmission portfolio, utilizing funds repaid by.
- In April 2021, Walmart announced the installation of 6.5 MW of solar power systems at seven of its California stores, developed by Sol Customer Solutions. Bank of America (BOA) served as the tax-equity partner for the portfolio, which featured a mix of solar power systems on parking lot rooftops and carports, with an estimated cost of around US$10 million.
Renewable Energy Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 1,142.36 billion |
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Revenue forecast in 2032 |
USD 2,202.90 billion |
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CAGR |
8.60% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Product, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
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FAQ's
The renewable energy market report covering key segments are product, application, and region.
Renewable Energy Market Size Worth $2,202.90 Billion By 2032
The global Renewable Energy market is expected to grow at a CAGR of 8.5% during the forecast period.
Asia Pacific is leading the global market
key driving factors in renewable energy market are Growing investments in renewable energy and favourable governmental policies
