USD 899.24 Billion
Renewable Energy Market Size, Share, Growth Analysis, By Product(Hydro Power, Wind, Solar(Crystalline Silicon PV Cells, Monocrystalline Silicon PV Cells, Amorphous/Thin-Film), Biofuel, Geothermal, Others), Application(Industrial, Residential, Commercial), and Region - Industry Forecast 2024-2031
Report ID:
SQMIG10B2061 |
Region:
Global |
Published Date: June, 2024
Pages:
178
|Tables:
65
|Figures:
75
Renewable Energy Market Insights
Global Renewable Energy Market size was valued at USD 899.24 Billion in 2022 and is poised to grow from USD 1050.31 Billion in 2023 to USD 3637.99 Billion by 2031, growing at a CAGR of 16.80% in the forecast period (2024-2031).
The renewable energy market has been growing rapidly over the past few years, driven by various factors such as government support and incentives, technological advancements, and increasing environmental concerns. Governments on a global level are putting into practice policies and rewards encouraging the use of renewable sources and lowering down the carbon footprint. According to Skyquest research conducted for this report, the world is on average expected to add more renewable power capacity than has been installed in total over the 104 years starting from the first commercial renewable power plant. About 3,700GW of fresh capacity of renewable power will be added from 2023 to 2028 due to policies supporting more than 130 countries. Other improvements, such as the ones in technology, have also been motivating factors for innovation in renewable energy systems also making these forms of energy more efficient and cheaper to produce. This has however been constrained by the high capital cost of the renewable energy systems for integration. However, the initial outlay of cost in implementing renewable energy systems is normally higher than that of conventional energy systems and this would pose a challenge to adopting consumers. Energy storage becomes vital if renewable energy systems are to offer constant power delivery as most of them are fluctuating forms of power like those derived from solar and wind. Another issue that hinders its adoption is the weakness of infrastructure especially in the developing countries hence making it difficult to implement the renewable energy source. However, it is possible to note several opportunities connected with the further development of the renewable energy market: the future expansion of technology and investment in storage facilities for energy. But the renewable energy market is anticipated to go on growing in the next few years due to government policies support, incentives, technological improvements and growing awareness on the environmental effects. On the contrary, there are threats and barriers in the market, there are potentials for increasing innovation, employment and economic benefits in the renewable energy market.
US Renewable Energy Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Hydro Power
Fastest Growth
Hydro Power
Growth Rate
16.80% CAGR
Global Renewable Energy Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Renewable Energy Market Segmental Analysis
The renewable energy market is segmented on the basis of product, application, and region. By product, the market is segmented into Hydro Power, Wind Power (Wind Energy Turbines Type [Horizontal Axis Wind Turbines, Vertical Axis Wind Turbines]), Solar Power (Type [ Crystalline Silicon PV Cells, Monocrystalline Silicon PV Cells, Amorphous Or Thin-Film], Application [ Consumer Products, Automotive, Space Science, Grid Connected Power Supply, Residential Power Supply, Solar PV Water Pumping, Others), Bioenergy, Geothermal (Energy Conversion Systems [ Dry Steam, Flash steam, Binary Cycle], Development in ECS [ Hybrid (Combined) Cycle, Dual Flash, Organic Rankine Cycle]), and others. In terms of application, the market is segmented into industrial, residential, commercial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Product
In 2023, the hydropower segment had the largest share of the global renewable energy market, accounting for over 29.25%. It will be noted that the growth of this segment of the renewable energy market is expected to remain stable between 2024 and 2031. Hydropower otherwise called hydropower provide several benefits to societies and is vital for managing climate change through storage, power, flexibility services. On the other hand, the solar power segment is expected to grow at the highest aggregated yearly growth rate during the forecast period owing to its low cost, ability to provide green label to home/ businesses, and low disruption in electricity supply. Moreover, compared with other renewable energy resources, solar systems have more effective transmissions and this is also the reason to push up the demand.
The wind power segment is expected to increase steadily during the forecast period as traditional energy sources get replaced by renewable energy. As per Skyquest in-depth analysis, the current global installed wind power capacity is dominated by China, with 221 GW, followed by United States, Germany, India, Spain and other countries. So, with the increasing awareness of the negative effects of burning fossil fuels for energy and power, the demand for wind energy in the future is expected to rise. In addition, the heat from the earth can support the generation of electricity as well as offer cooling and heating to a number of applications.
Analysis by Application
The industrial segment dominated the market in 2023, accounting for over 62.40% of the total revenue. Hike in demand for clean power will increase the probability of more utility scale projects and in turn the probabilities of more demand for PV modules in industrial segment. The industrial application segment is expected to see higher demand for solar PV panels, driven by the growing capacity of power plants in industry. New product releases in the portable solar panel market are expected to boost product demand like Solaria’s PowerXT 430R-PL released in September 2021 for residential use. Utilization of commercial solar PV panels, which last for 15 to 20 years, ranges in applications include powering buildings in off-grid or remote regions, pre-heating ventilation air, and water heating out offices, businesses, among others. Expansion of corporate offices, hotels and hospitals will continue to boost demand for PV modules in the commercial segment; and the rising power demand in communication base stations and data centers.
On the other hand, commercial segment is the fastest growing segment in the renewable energy market. The commercial sector is faster in comparison to the other sectors owing to several reasons. Large organisations are shifting their reliance on conventional sources of power and looking forward to renewable energy sources to cut down expenses and contribute to sustainability and CSR. The investment in the renewable energy sources such as the solar and wind power is made easier by the coming down of the costs of manufacturing these sources. Moreover, it is evident that the government is encouraging the use of renewable energy by offering incentives, tax credits, and subsidies to the commercial players. For instance, in the US federal government there is the Renewable Electricity Production Tax Credit (PTC) that entitles patrons to a credit of 2. An additional 3 cents per kilowatt hour that is produced by the wind turbine. Similarly, the Inflation Reduction Act allows for a tax credit for electricity from renewable resources such as wind, solar, and hydropower. Consequently, the commercial segment of the market is also growing rapidly in terms of the share of renewable energy installed.
Global Renewable energy Market Size By Product (%)
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Renewable Energy Market Regional Insights
In 2023, Asia Pacific region dominated the global renewable energy market accounting for over 40.40% of the total revenue. This growth can be attributed to the increased market of solar power projects in the far eastern countries especially in China and India which make the two countries among the biggest markets of solar panels globally. Based on our analysis, it shows that in 2023, Asia has achieved 27% of electricity generated from renewables, which is roughly comparable with the global figure. The current installed capacity of Wind and Solar is rising and among the five largest Wind and solar manufacturers of the world, two are in Asia. Other manufacturing destination of the same are Australia and Japan and hold huge prospect because of their higher investment into solar power generation in the last few years.
North American market is expected to experience substantial growth during the forecast period. A rapid increase in the industrial sector has been indicated by an increase in power generation from solar cells due to an increase in more efficient solar cells and increased competition. This process led to lowering the price of electricity production and boosting the variety of solar panels, making the region switch to renewable sources of energy. Global aims at reducing carbon emissions, rising concern about greenhouse gas, the high cost of generating electricity through conventional energy sources and different regulations that are being set across the globe to encourage the use of renewable energy sources are factors that will help in the growth of renewable energy market over the given forecast period.
Global Renewable energy Market Size By Geography
- Largest
- Fastest
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Renewable Energy Market Dynamics
Renewable energy Market Drivers
Environmental Concerns and Climate Change Mitigation
- There is heightened consciousness towards climate change and pollution hence the need for green energy solutions. People are more conscious of the energy they use, and thus they are looking for cleaner and renewable sources of energy. Thus, the utilization of renewable energy sources may contribute to the minimization of the adverse impact of climate change on individuals, business organizations, and countries. Renewable energy can also minimize other types of environmental degradations like the emission of greenhouse gases caused by the burning of fossil fuels. By embracing renewable energies, nations will be in a position to reduce the consumption of fossil fuels imported from other countries that pollute several ecosystems during the extraction, transportation and refining processes.
Energy Security
- Energy security is another important factor that has made many countries embrace renewable energy resources. Nations are trying to diversify their energy sources and decrease their dependence on oil imports to meet their population’s demand for energy. Renewable energy sources are usually dispersed and thus it is easier to ensure the energy delivery against failures due to acts of God, political turbulence, or warfare.
Restraints
High Capital Costs
- The high capital costs associated with renewable energy projects can be a significant barrier to entry for companies looking to enter the market. The cost of installing renewable energy infrastructure, such as wind turbines or solar panels, can be prohibitively expensive for some companies. Offshore wind farms are some of the most expensive renewable energy projects to develop, with the cost of installing wind turbines and transmission infrastructure in deep water locations often exceeding the cost of onshore wind farms.
Grid Infrastructure Limitations
- The limitations of existing grid infrastructure can also be a restraint on the growth of the renewable energy market. Many renewable energy sources are intermittent, meaning that they are only available at certain times of the day or year. This can create challenges for grid operators who must balance energy supply and demand in real-time. The variability of solar power generation can create imbalances in the grid that require significant investment in grid infrastructure to address.
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Renewable Energy Market Competitive Landscape
The global renewable energy market is highly competitive, with a large number of players operating in various segments of the market. There are bigger players and giants along with up-coming players and new entrants in the market. Moreover, there is also a rising tendency in the formation of joint ventures and strategic alliances by the players in the renewable energy sector. This sector is characterized by increased cooperation and joint work and cooperation between companies operating in the field of renewable energy. For instance, some firms are working together to build multi-megawatt offshore wind farms since this draw upon synergies. This is also being done on a small scale where some small start-ups engage small local utilities to offer small community solar initiatives. The global RES market is competitive and ever-shifting, due to factors such as technological advancements, evolving market conditions, and evolving customer demands.
Renewable energy Market Top Player’s Company Profiles
- Enel (Italy)
- NextEra Energy (US)
- Iberdrola (Spain)
- China Three Gorges Corporation (China)
- Brookfield Renewable Partners (Canada)
- EDP Renováveis (Spain)
- Orsted (Denmark)
- SSE (Scotland)
- Invenergy (US)
- Canadian Solar (Canada)
- Acciona (Spain)
- E.ON (Germany)
- Engie (France)
- Pattern Energy (US)
- Xcel Energy (US)
- EDF Renewables (France)
- Dominion Energy (US)
- Innergex Renewable Energy (Canada)
- Greenko Energy Holdings (India)
- Vestas Wind Systems (Denmark)
Renewable energy Market Recent Developments
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In June 2024, Azerbaijan and the United Arab Emirates have jointly announced plans to construct three major solar and wind projects in Azerbaijan, totaling a capacity of 1 GW. The ground-breaking ceremony for these projects took place alongside the Baku Energy Forum.
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In February 2024, the Solar Energy Corporation of India Limited (SECI), under the Ministry of New and Renewable Energy, has successfully commissioned India's largest Battery Energy Storage System (BESS), which utilizes solar energy for storage. This 40 MW / 120 MWh BESS, paired with a solar photovoltaic (PV) plant, has an installed capacity of 152.325 MWh and a dispatchable capacity of 100 MW AC (155.02 MW peak DC). The system is located in Rajnandgaon, Chhattisgarh.
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In April 2023, ArcelorMittal's Brazilian subsidiary, ArcelorMittal Brazil, entered into a joint venture with the Brazilian renewable energy company Casa dos Ventos to advance the Babilonia wind power project, boasting a capacity of 554 megawatts (MW). This project, situated in the central area of Bahia in northeastern Brazil, is set to incur an investment of USD 800 million. The joint venture will see ArcelorMittal owning a 55% stake, with the remaining 45% held by Casa dos Ventos.
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In January 2023, Cepsa announced its plans to construct three additional solar power ventures in Castilla-La Mancha, Spain. These three solar energy facilities are set to have a collective capacity of 400 megawatts (MW) and will be realized through a financial commitment of €280 million. The sites chosen for these projects are located in the municipalities of Campo de Criptana and Arenales de San Gregorio.
Renewable Energy Key Market Trends
- Expansion of Solar Energy in Both Residential and Commercial Spaces: The solar energy is one sector that is rapidly developing with a great potentiality in both residential and commercial installations. Demand for solar panels in both residential and commercial buildings is growing, therefore bringing in enormous opportunities for manufacturers and also service providers for installation and selling services. Additionally, more utility-level solar farms have been installed, so the numbers have helped increase availability but also the opportunities for larger investments and partnerships. These solar farms can thus produce a big quantity of clean energy, thereby ensuring the stability of electricity grids and helping support sustainability. This is, given the segments, important for the widespread adoption of solar energy, carbon footprints, and the evolution of renewable energy.
Renewable Energy Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global renewable energy market analyses, the market is being driven by several factors, including government policies and incentives, declining costs of renewable energy technologies, and increasing public awareness of the need to transition to cleaner sources of energy. Advancements in energy storage technology have made renewable energy sources more reliable and cost-effective, further driving market growth. In terms of market segmentation, the renewable energy market can be divided into several categories. The global renewable energy market is expected to continue growing at a steady pace in the coming years, driven by factors such as government policies, declining costs of renewable energy technologies, and increasing public awareness of the need to transition to cleaner sources of energy.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 899.24 Billion |
| Market size value in 2031 | USD 3637.99 Billion |
| Growth Rate | 16.80% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Renewable Energy Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Renewable Energy Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Renewable Energy Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Renewable Energy Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Renewable Energy Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Renewable Energy Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Renewable Energy Market Report Snapshots
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