Renewable Energy Market
Renewable Energy Market - Global Industry Assessment & Forecast
- By Type Wind Power, Hydroelectric Power, Solar Power, Bio Energy, Geothermal
- By End User Residential, Industrial, Commercial, Other End Users
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
|Forecast Years:||2022 - 2028|
|Historical Years:||2016 - 2021|
|Revenue 2021:||USD 910.5 Billion|
|Revenue 2028:||USD 1510.2 Billion|
|Revenue CAGR (2022 - 2028):||8.8%|
|Fastest Growing Region (2022 - 2028)||Asia Pacific|
|Largest Region (2021):||Asia Pacific|
- Cross-segment Market Size and Analysis for Mentioned Segments
- Additional Company Profiles (Upto 5 With No Cost)
- Additional Countries (Apart From Mentioned Countries)
- Country/Region-specific Report
- Go To Market Strategy
- Region Specific Market Dynamics
- Region Level Market Share
- Import Export Analysis
- Production Analysis
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Global Renewable Energy Market is valued at USD 910.5 Billion in 2021 and is projected to reach a value of USD 1510.2 Billion by 2028 at a CAGR of 8.8% over the forecast period.
Governments around the world are investing heavily in Renewable Energy as they look to meet their climate change commitments. China was the biggest investor, putting $126.6 billion into renewables, followed by the United States with $40.5 billion and India with $11.3 billion. This trend is expected to continue as more countries look to transition away from fossil fuels. With such strong growth prospects, it is no surprise that many companies are queuing up to get a piece of the action. Major players such as General Electric and Siemens are already active in the market, while others are looking to enter. The global solar PV market is expected to grow from $156 billion in 2020 to $323 billion by 2025, at a CAGR of 10.5%. The global wind energy market is expected to grow to $193 billion by 2025, at a CAGR of 8.5%. The global biomass power market is expected to grow to $48 billion by 2025, at a CAGR of 8.2%. The global geothermal power market is expected to grow from $3 billion to $10 billion by 2025, at a CAGR of 20%. The global marine power market is expected to grow from $1.6 billion to $5.8 billion by 2025, at a CAGR of 21%. Several factors are driving this growth, including falling costs of technology, increasing investment, and government support. The Renewable Energy industry has seen investments increase by 20% every year for the past decade. One is increasing awareness of the need to transition to cleaner forms of energy to combat climate change. This has led to both individuals and institutions investing more money in Renewable Energy projects.
Renewable Energy Market Size, 2021 To 2028 (USD Billion)
One of the most important drivers of growth in the Renewable Energy Market is government policy support. In many countries around the world, governments have enacted policies to encourage the development and use of Renewable Energy sources. These policies can take a variety of forms, such as subsidies, tax breaks, and mandates. In 2020, the installed capacity of solar PV will reach 143 GW, accounting for 43% of the Global Renewable Energy capacity. By 2023, this figure is forecast to have increased to 175 GW, accounting for 49% of the total. In terms of wind power, meanwhile, installed capacity will reach 103 GW in 2020 and 126 GW by 2023. This latter figure represents an increase of 24%. Declining costs are also playing a role in boosting the Renewable Energy Market. 14-nanometer (nm) wafers can be processed using direct writing or lithography methods instead of the older 29-nm process lines used previously. These advances are also helping reduce processing times and improve yield rates, which in turn reduces the costs associated with manufacturing a PV module. These cost reductions make renewables more competitive with traditional fossil fuels and are helping to drive adoption. Additionally, the cost of renewable technology has been falling steadily, making it more affordable for both businesses and households. These trends are expected to continue in the coming years, meaning that the Renewable Energy Market will continue to grow. This presents a significant opportunity for businesses and investors who are looking to get involved in this rapidly growing sector. The growth of the Renewable Energy Market is being driven by several factors, including an increase in global demand for clean energy, advancements in technology, and government support through policies and incentives. As climate change continues to be a major concern around the world, there is an increasing focus on reducing greenhouse gas emissions. This is leading to a shift away from traditional fossil fuel-based power generation towards cleaner forms of energy such as renewables. In addition, declining costs for Renewable Energy technologies are making them more competitive with traditional sources of power.
Advances in technology are also improving the efficiency and performance of renewables, making them more attractive options for investors. Governments around the world are supportive of the growth of Renewable Energy through various policies and incentives such as feed-in tariffs and tax credits. Finally, increasing demand from both developed and emerging economies is providing a boost to the Renewable Energy Market. In developed economies, rising concerns about climate change and air pollution are prompting utilities and businesses to switch to cleaner energy sources. Meanwhile, in many emerging economies, rapid economic growth is leading to increased demand for electricity. As these nations seek to meet this growing demand sustainably, renewables are an increasingly attractive option. The Renewable Energy Market is growing rapidly, but there are still some restraints that need to be addressed. The main restraint is the cost of Renewable Energy. Although the cost of Renewable Energy has been decreasing, it is still more expensive than traditional forms of energy. This means that there are still some barriers to entry for many people and businesses. Another restraint is the lack of infrastructure for Renewable Energy. This includes things like a lack of charging stations for electric vehicles and a lack of solar panels in many homes and businesses. This lack of infrastructure can make it difficult for people to switch to Renewable Energy, even if they want to.
Recent changes in the market
There have been some noteworthy developments in recent times in the market for Renewable Energy sources. One of them is the expanding availability of funds for various kinds of initiatives. Because of this, it is becoming much simpler for developers to launch their projects and move them into production. One more shift is the expanding number of nations and states that have established goals for the proportion of energy they derive from renewable sources. This is contributing to the creation of an atmosphere that is more hospitable to investments in this area.
Top Market Trends
The Renewable Energy Market is growing at a rapid pace. Here are some of the top trends driving this growth:
- Increasing demand for Renewable Energy. There is a growing demand for Renewable Energy around the world, as countries look to reduce their reliance on fossil fuels and move towards a more sustainable future. This is particularly evident in the growth of the solar and wind power industries, which are benefiting from increasing government support and investment.
- Declining costs of Renewable Energy technology. Renewable Energy technology has become much more affordable in recent years, making it a more viable option for both businesses and consumers. In the Renewable Energy Market, there are a few key things to watch out for. First, the price of oil and gas. With the rise of fracking, the price of these fossil fuels has been dropping, making Renewable Energy less competitive. Second, government policy. Incentives and regulations can have a big impact on the viability of Renewable Energy projects. Third, technology. Advances in solar, wind, and other technologies can make renewables more cost-effective and increase their share of the market.
- China and India are leading the way in terms of new investment and capacity additions, followed by other Asian countries, Latin America, and Africa. Many governments around the world have implemented policies and set targets to increase the use of Renewable Energy. These include subsidies, tax incentives, feed-in tariffs, and Renewable Portfolio Standards (RPS). By 2023, however, China's share is forecast to have decreased to 25%, while that of Germany and Japan is expected to remain largely unchanged at 10% and 7%, respectively.
- Improving storage technology. One of the challenges with Renewable Energy has been its intermittent nature – when the sun isn’t shining or the wind isn’t blowing, there’s no power being generated. However, advances in storage technology are helping to solve this problem, with new battery systems allowing excess power to be stored and used when needed. This is giving a boost to the viability of renewables as a reliable source of energy.
The Global Renewable Energy Market is segmented by Type, End-User, and Region. Based on the Type, the market includes Wind Power, Hydroelectric Power, Solar Power, Bioenergy, and Geothermal. Furthermore, based on the End-User, the market is segmented into Residential, Industrial, Commercial, and Other End Users. Region-wise segments include North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Below tree is interactive. You can click the nodes to get more information.
Based on Type
Wind Energy is another popular form of Renewable Energy. Wind turbines convert the kinetic energy of wind into electricity, making them a great choice for locations with strong winds. However, wind turbines can be noisy and expensive to install and maintain. Hydroelectric power is a tried-and-true form of Renewable Energy. Hydroelectric dams harness the power of moving water to generate electricity. This power is very efficient but can have negative environmental impacts if not managed properly. Solar held the largest share in the Renewable Energy Market in 2016 with a share of 54.0%, followed by wind power with a share of 19.7%. Solar panels convert sunlight into electricity, making them a great choice for homes and businesses in sunny locations. However, solar panels can be expensive to install and maintain, and they require a lot of space. Bioenergy comes from organic materials like wood, crops, or manure. Biomass can be used to generate electricity or heat through combustion, or it can be converted into biofuels like ethanol or biodiesel. Bioenergy sources such as ethanol and biodiesel are gaining popularity owing to their environmental benefits and potential for scalability. Geothermal energy has emerged as a key player in the Renewable Energy Market owing to its long history of utilization and potential for expanding into other sectors such as transport and heating. Geothermal energy is one of the most efficient and sustainable forms of Renewable Energy, but it is often overlooked in favor of more publicized technologies like solar and wind. Geothermal power plants use the Earth's internal heat to generate electricity and can be found in locations all over the world.
Based on End User
The Residential sector is the leading consumer of Renewable Energy globally. This is attributed to the growing awareness among people regarding the need to adopt clean energy sources to protect the environment. The industrial sector is the second-largest consumer of Renewable Energy. This is due to the increasing adoption of Renewable Energy technologies by industries to reduce their carbon footprint. The commercial sector is the third-largest consumer of Renewable Energy. This is attributable to the growing awareness among businesses regarding the need to adopt clean energy sources to reduce their environmental impact. The other category includes small-scale consumers such as agriculture and transportation.
Based on Region
North America and Europe are the two key regions for the market growth owing to the presence of stringent environmental regulations and policies in these regions. Furthermore, Asia Pacific is projected to be the fastest-growing region for the Renewable Energy Market on account of the growing economic development and industrialization in countries such as China and India. Latin America and Middle East & Africa are also expected to show significant growth in the Renewable Energy Market over the forecast period due to the increasing focus on developing nations to reduce their dependence on fossil fuels. The United States is the largest market for Renewable Energy in North America. The country has been a pioneer in the development and adoption of Renewable Energy technologies. The rapidly growing solar and wind power industries are the major drivers of the Renewable Energy Market in the region. Germany is the leading market for Renewable Energy in Europe. The country has been a front-runner in the development and deployment of Renewable Energy technologies. The growing demand for clean and sustainable energy sources is driving the growth of the Renewable Energy Market in Europe. China is the largest market for Renewable Energy in the Asia Pacific. The country has been investing heavily in the development of Renewable Energy technologies. The Chinese government’s efforts to promote clean and sustainable energy sources are helping to drive the growth of the renewables market in the Asia Pacific. Rest of the World: Brazil is one of the leading markets for Renewable Energy outside of North America, Europe, and the Asia Pacific. The country has a large potential for further growth due to its vast resources of sun, wind, and water resources.
The key players in the Global Renewable Energy Market include- ABB (Switzerland), Xcel Energy Inc. (US), EDF Energy (France), National Grid Renewables (US), Acciona (Spain), Enel Spa (Italy), Innergex Renewable Energy (Canada), The Tata Power Company Limited (India), General Electric (US), Invenergy (US) and others. Recent Advancements
The Renewable Energy Market is growing at a rapid pace with new advancements being made every day. Here are some of the latest advancements in the Renewable Energy Market:
- India has committed to installing 175 gigawatts (GW) of renewables by the end of 2022, and France has set a goal of reducing its carbon dioxide emissions by 40% by 2030.
- The Paris Agreement enters into force in 2022. This landmark agreement commits all countries to take voluntary actions aimed at reducing greenhouse gas emissions. It marks an important step forward in efforts to address climate change and supports the development of Renewable Energy sources.
- The International Renewable Energy Agency (IRENA) releases its Roadmap for Renewables 2040.
Segmentation of the Global Renewable Energy Market:
|Regions & Countries Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|
Frequently Asked Question
What is the global demand for Renewable Energy in terms of revenue?
The global Renewable Energy valued at USD 910.5 Billion in 2020 and is expected to reach USD 1510.2 Billion in 2028 growing at a CAGR of 8.8%.
Which are the prominent players in the market?
The prominent players in the market are ABB (Switzerland), Xcel Energy Inc. (US), EDF Energy (France), National Grid Renewables (US), Acciona (Spain), Enel Spa (Italy), Innergex Renewable Energy (Canada), The Tata Power Company Limited (India), General Electric (US), Invenergy (US).
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 8.8% between 2021 and 2028.
What are the driving factors fueling the growth of the market.
The driving factors of the Renewable Energy include
- Rise in demand for renewable energy
Which region accounted for the largest share in the market?
Asia Pacific was the leading regional segment of the Renewable Energy in 2020.