Renewable Energy Market 2023 – 2030 By Application (Residential, Commercial), Product (Bioenergy, Hydropower, Wind, Solar), and Region - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Energy & Power | Pages : 180 Pages | Published On : Aug 2023
The global renewable energy market size was valued at USD 1.1 trillion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 16.9% from 2023 to 2030. This growth can be attributed to the widespread adoption of low-carbon fuels and the implementation of stringent environmental regulations, particularly in developed nations. The renewable energy sector has witnessed significant expansion due to escalating environmental concerns and the urgent need to mitigate the adverse impacts of Greenhouse Gas (GHG) emissions. Consequently, both solar and wind energy industries have notably flourished.
In the United States, the renewable energy domain is underpinned by favorable policies, strategic plans, and the abundant availability of biomass resources. The nation has seen a surge in renewable energy facilities, attributed to strict government mandates on emissions. The energy landscape in the U.S. is undergoing a transformation as gas-based and renewable power sources gain traction over coal-based alternatives. Rising electricity distribution costs, grid-related power interruptions, and government incentive programs are anticipated to steer consumers towards adopting hydropower systems, thereby fostering demand in the renewable energy market.
Germany, a developed economy and a prominent player in the European market, has proactively invested in alternative power generation technologies to decrease reliance on conventional sources like crude oil and coal. These investments, predominantly in renewable power generation, have spurred rapid growth in the solar energy sector. This trajectory is anticipated to continue in the foreseeable future. Germany's burgeoning solar industry is poised to propel solar market expansion, subsequently influencing the overall market trends. Notably, solar energy stands out as a domestic energy source, affording each region the ability to generate its own power independently from international fuel supplies. This approach offers numerous benefits, including flood control, clean water provision, irrigation support, cost-effective electricity, and enhanced durability compared to other energy sources.
In 2022, the solar power sector commanded the largest market share at 30.62%, and it is poised to experience notable growth throughout the projected period. This energy source boasts affordability, confers an environmentally friendly reputation to residences and businesses, and curtails electricity disruptions. While grid electricity frequently suffers from power interruptions, even hydroelectric power is susceptible to transmission-related outages. In contrast, solar systems demonstrate superior efficiency in transmission. The hydropower division also contributed significantly, accounting for 16.87% of the total revenue in 2022.
Hydropower, or hydroelectric power, extends tangible benefits to communities and assumes a pivotal role in mitigating climate change by supplying storage, power, and flexibility services. The wind power and bioenergy sectors are anticipated to experience steady growth during the forecast period, gradually supplanting conventional energy sources with renewable alternatives. As of 2020, China leads the wind energy sector with an installed capacity of 221 GW, trailed by the U.S. at 96.4 GW, Germany at 59.3 GW, India at 35 GW, and Spain at 23 GW.
These dynamics, coupled with mounting environmental apprehensions linked to fossil fuel consumption, are expected to propel the demand for wind energy over the projection span. Geothermal energy, derived from the Earth's heat, serves as a renewable source for electricity generation and cooling/heating applications. The U.S. takes the lead in global geothermal energy capacity, boasting 3.7 GW. Notably, California hosts the world's largest geothermal plant. With robust industry adoption, geothermal energy is anticipated to meet approximately 10% of the U.S. electricity requirements in the near future. These factors collectively drive the market demand for the aforementioned energy sources throughout the forecast period.
Categorized by application, the global market is further segmented into industrial, commercial, and residential sectors. The industrial category took the lead in 2022, contributing to 62.17% of the total revenue share. The escalating need for clean electricity is anticipated to spur an uptick in utility projects, thus propelling growth in the photovoltaic (PV) modules market within the industrial domain. According to the Solar Energy Industries Association, the U.S. alone boasted operational power plants with a collective capacity exceeding 37 GW by 2020, with an additional 112 GW under development. These factors are foreseen to be the driving forces behind the heightened demand for solar PV panels within industrial applications throughout the projected period.
The introduction of solar PV panels into residential applications is projected to catalyze a surge in product demand across the forecast period. As an illustration, Solaria unveiled a black solar panel designed for residential usage in September 2021, offering a power output of 430 W. Branded as the PowerXT 430R-PL, this novel panel boasts an impressive power conversion efficiency of 20.40%. Its dimensions measure 1,076×1,957x35mm, and it weighs 21.3 kg. On a different note, commercial solar PV panels exhibit a lifespan exceeding 15-20 years and find utility in diverse applications. These include energizing industrial structures situated in off-grid or remote locations, aiding in the pre-heating of ventilation air, and supplying water heating solutions to offices, enterprises, and other establishments. The swift adoption of PV modules across corporate offices, hotels, and medical facilities is poised to drive product demand in the commercial sector. This trend is further compounded by heightened energy requirements in communication base stations and data centers.
In 2022, the Asia Pacific region commanded a substantial share of revenue, totaling 40.71%. The escalating demand for renewable energy in this region can be primarily attributed to the surging implementation of solar power initiatives in China and India. These nations serve as pivotal markets for solar panels on both a global scale and within the Asia Pacific region. Moreover, countries such as Australia and Japan, nestled in this geographic expanse, exhibit remarkable growth potential in this market due to their substantial investments in solar power generation over recent years. Simultaneously, the North American market is poised for noteworthy expansion throughout the projected timeframe.
Over the years, electricity generation within the industrial sector has witnessed an upward trajectory, facilitated by the availability of increasingly efficient solar cells within the market. Furthermore, heightened competition within the industry has led to reductions in the cost of electricity production and an expanded array of solar panel options. These combined factors are projected to fortify the demand for renewable energy within this region over the forecast period. Additionally, mounting concerns surrounding greenhouse gas emissions, generation expenses, and regulatory initiatives aimed at curbing carbon footprints are anticipated to serve as driving forces behind the growth of the renewable energy sector throughout the projected timeframe.
Key Companies & Market Share Insights
- Acconia S.A.
- Enel Spa
- General Electric
- Schneider Electric
- Siemens Gamesa Renewable Energy, S.A.
- Suzlon Energy Ltd.
- Tata Power
Global Renewable Energy Market Report Segmentation
- Product Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)
- Wind Power
- Solar Power
- Application Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)
- Regional Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)
- North America
- Asia Pacific
- Central & South America
- Middle East and Africa
- North America
Table and Figures
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