Renewable Energy Market Size, Share & Trends Analysis Report By Product (Bioenergy, Hydropower, Wind Power, Solar Energy), By Application (Industrial, Residential, Commercial), By Region (Europe, Asia Pacific), And Segment Forecasts, 2024 - 2030

Renewable Energy Market Size & Trends

The global renewable energy market size was estimated at USD 1.21 trillion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2030. The shift toward low-carbon fuels and the presence of stringent environmental regulations in most of the developed countries have provided a major boost to renewable energy sector. The energy generation market has witnessed growth in terms of installed capacity of renewable sources in the past few years on account of growing environmental concerns coupled with pressure to reduce harmful effects of greenhouse gases (GHG). This has been a major factor in the expansion of solar and wind energy sectors.

The U.S. renewable energy industry is driven by supportive policies and plans coupled with abundant availability of biomass feedstock. Renewable energy plants in the country have increased owing to stringent government regulations regarding emissions. The power scenario in the country has been witnessing a change with increased adoption of gas-based and renewable power sources as compared to coal-based power generation. Rising electricity distribution costs, power outages caused by faults in the main grid, and incentive programs introduced by the U.S. government are expected to propel end-users to shift toward setting up hydropower systems. This is expected to boost the demand for renewable energy.

Germany is a developed economy and one of the leading markets in Europe. Over the past few years, the country invested in unconventional power generation technologies to reduce its reliance on conventional sources, such as crude oil, coal, and others, as well as to be energy self-sufficient. With investments made in large proportions in renewable power generation, solar power generation market has been growing rapidly over the past few years and is expected to witness growth during the forecast period. The growing solar industry in Germany is expected to propel the growth of solar market, which, in turn, is expected to drive the market over the forecast period. It is a domestic source of energy, which allows each state to generate its own energy without reliance on any international fuel sources. It offers flood control, clean drinking water, irrigation support, low-cost electricity, and is durable as compared to other sources of energy.

Market Dynamics

Greenhouse gas emissions from various energy-intensive industries including transportation, buildings, energy, agriculture, and others have been increasing over the past decade, leading to a change in climate pattern. These factors also contribute to the rising global temperature as well as disrupt human and environmental activities. Various initiatives to offset these emissions include a shift toward alternative energy sources and increasing energy efficiency. Various steps taken to achieve emission reduction include technology transfer from developed to developing countries and use of alternate fuels.

As solar PV systems are a form of renewable energy, governments of various countries have implemented programs including feed-in tariffs to provide various economic incentives for investments. The high initial investment to produce renewable energy is expected to restrain market growth. The cost of renewable energy production comprises land, materials, equipment, and labor. Financial assistance is required for the development and expansion of biogas plants. The process of procuring and converting raw materials is costly and time-consuming. Hence, these factors are expected to hinder market growth in the coming years.

Product Insights

The solar power segment accounted for the largest market share of 30.95% in 2023, and is expected to grow at a significant rate over the forecast period. It is low cost, offers a home or business ‘green label’, and reduces electricity interruptions. Grid electricity has a lot of power outages and even hydroelectric power is prone to power outages during transmission; however, solar systems are more efficient when it comes to transmissions. Hydropower segment accounted for a significant revenue share of 16.65% in 2023.

Hydropower, also known as hydroelectric power, offers advantages to communities and plays a crucial role in helping climate change by providing storage, power, and flexibility services. Wind power and bioenergy segments are also expected to increase steadily over the forecast period as traditional energy sources get replaced by renewable energy. As of 2020, China leads with wind energy with an installed capacity of 221 GW followed by the U.S. with 96.4 GW, Germany with 59.3, India with 35 GW, and Spain with 23 GW.

These factors combined with environmental concerns regarding the use of fossil fuels are expected to drive the demand for wind energy over the forecast period. Geothermal energy is renewable energy derived from the earth’s heat and can be harnessed as a source of renewable electricity and for cooling & heating applications. The U.S. leads the world's geothermal energy capacity with 3.7 GW. Furthermore, the largest geothermal plant in the world is located in California, and with strong industry adoption, geothermal energy is expected to meet 10% of the U.S. electricity demand in the near future. These factors are expected to drive market demand over the forecast period.

Application Insights

Based on application, the market is further divided into industrial, commercial, and residential segments. The industrial segment led the market in 2023 and accounted for a revenue share of 61.90%. The growing demand for clean electricity is expected to increase the number of utility projects and fuel PV modules market growth across industrial sector. According to the Solar Energy Industries Association, there are over 37 GW of power plants in operation in the U.S. as of 2020, with an additional 112 GW in development. These factors are expected to drive demand for solar PV panels in industrial application segment over the forecast period.

The expansion of solar PV panels facility in residential applications is expected to increase product demand over forecast period. In July 2023, Bakersfield Refinery Solar PV Park announced the installation of a solar PV power project with a capacity of 10MW. It is set to take place in California and will be built in a single step. It is anticipated to begin in 2023, with commercial operations beginning in 2024. Commercial solar PV panels have a lifespan of over 15-20 years and can be used to power industrial buildings in off-grid or remote locations, pre-heating ventilation air, and water heating in offices, businesses, etc. the rapid adoption of PV modules in corporate offices, hotels, and hospitals is expected to drive product demand across the commercial sector coupled with increased power demand in communication base stations and data centers.

Regional Insights

Asia Pacific accounted for a significant revenue share of 40.98% in 2023. The increasing demand for renewable energy in Asia Pacific is attributed to rising installation of solar power projects in China and India. These countries are key markets for solar panels both globally and in the Asia Pacific region. In addition, countries in the region, including Australia and Japan, have high growth potential as they have been investing largely in solar power generation for the last few years.

The market in North America is expected to grow at a significant pace over the forecast period. Power generation fromindustrial sector has increased over the years due to more efficient solar cellsavailable in market. Intensifying competition in industry has helped reduce price of electricity produced as well as increasing variety of solar panels. These factors are expected to bolster demand for renewable energy in the region over the forecast period. Moreover, factors including growing concerns about GHG emissions, generation cost, and regulations to decrease carbon footprint are projected to drive growth of renewable energy over the forecast period.

Key Companies & Market Share Insights

Key participants in industry are focusing on technological advancements and innovation to minimize cost of renewable energy generation. In addition, industry players are practicing several strategic initiatives to expand their foothold in market. For instance, in July 2022, ACCIONA closed a deal with FORTIA, which will provide an energy management platform for major industrial consumers along with physical delivery of over 1TWh of renewable electricity for a 5 to 10-year period.

Renewable Energy Market Report Scope

Global Renewable Energy Market Report Segmentation

This report forecasts volume and revenue growth at global, regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global renewable energy market report based on product, application, and region:

• Product Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)

  • Hydropower

  • Wind Power

  • Solar Power

  • Bioenergy

  • Others

• Application Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)

  • Industrial

  • Residential

  • Commercial

• Regional Outlook (Volume, TWh; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Italy

    • UK

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Iran

    • Egypt