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. 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 the renewable energy sector. The energy generation market has witnessed growth, in terms of the installed capacity of renewable sources, in the past few years on account of the growing environmental concerns coupled with the pressure to reduce the harmful effects of Greenhouse Gases (GHG). This has been a major factor in the expansion of the solar and wind energy sectors.
The U.S. renewable energy segment is driven by supportive policies and plans coupled with the abundant availability of biomass feedstock. Renewable energy plants in the country have increased owing to the stringent government regulations regarding emissions. The power scenario in the country has been witnessing a change with the increased adoption of gas-based and renewable power sources as compared to coal-based power generation. The 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 towards setting up-hydropower systems. This is expected to boost renewable energy market demand. 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, the 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 the 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.
In 2022, the solar power segment accounted for the largest market share of 30.62% 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. The hydropower segment accounted for a significant revenue share of 16.87% in 2022.
Hydropower, also known as hydroelectric power, offers advantages to communities and plays a crucial role to help 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 the 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 the market demand for the aforementioned over the forecast period.
On the basis of application, the global market is further divided into industrial, commercial, and residential. The industrial segment led the market in 2022 and accounted for a share of 62.17% of the revenue. Growing demand for clean electricity is expected to increase the number of utility projects and fuel the PV modules market growth across the 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 the demand for solar PV panels in the industrial application segment over the forecast period.
The launch of solar PV panels in residential applications is expected to increase product demand over the forecast period. For instance, in September 2021, Solaria introduced a black solar panel for residential applications with a power output of 430 W. The new panel is dubbed PowerXT 430R-PL and has a power conversion efficiency of 20.40% along with a size of 1,076×1,957x35mm and a weight of 21.3 kg. 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, and others. 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.
Asia Pacific accounted for a significant revenue share of 40.71% in 2022. The increasing demand for renewable energy in Asia Pacific is attributed to the rising installation of solar power projects in China and India. These countries are the key markets for solar panels both globally and in Asia Pacific. In addition, countries in the region, including Australia and Japan, have high growth potential for the market 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 from the industrial sector has increased over the years due to more efficient solar cells available in the market. In addition, intensifying competition in the industry has helped reduce the price of electricity produced as well as increase the variety of solar panels. These factors are expected to bolster the 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 the growth of renewable energy over the forecast period.
Key participants in the industry are focusing on technological advancements and innovation to minimize the cost of renewable energy generation. In addition, industry players are practicing several strategic initiatives to expand their foothold in the 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. Some of the prominent players operating in the global renewable energymarket are:
ABB
Acconia S.A.
Enel Spa
General Electric
Innergex
Invenergy
Schneider Electric
Siemens Gamesa Renewable Energy, S.A.
Suzlon Energy Ltd.
Tata Power
Report Attribute |
Details |
Market size value in 2023 |
USD 1.21 trillion |
Revenue forecast in 2030 |
USD 3.60 trillion |
Growth rate |
CAGR of 16.9% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Volume in TWh, revenue in USD billion/trillion, and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Region scope |
North America; Europe; Asia Pacific; CSA; MEA |
Country scope |
U.S.; Canada; Mexico; Germany; Norway; Italy; UK; China; India; Japan; Australia; Brazil; Argentina; Iran; Egypt |
Key companies profiled |
Acconia S.A.; General Electric; Enel Spa; Tata Power; Innergex; Suzlon Energy Ltd.; Invenergy; ABB; Siemens Gamesa Renewable Energy, S.A.; Xcel Energy, Inc.; Schneider Electric |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the renewable energy market 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
b. The global renewable energy market was estimated at USD 1.1 trillion in 2022 and is projected to reach USD 1.21 trillion in 2023.
b. The global renewable energy market is expected to witness a compound annual growth rate of 16.9% from 2023 to 2030 to reach USD 3.60 trillion by 2030.
b. Asia Pacific emerged as the largest regional segment and accounted for 40.71% of the market in 2022. Increasing government Incentives for the adoption of renewable energy is expected to drive the market in the forecast period.
b. Some of the key players operating in the renewable energy market include Acconia, General Electric, Enel Spa, Tata Power, Innergex, Suzlon Energy Limited, Invenergy, ABB, Siemens Gamesa Renewable Energy, S.A., Xcel Energy, Inc., and Schneider Electric.
b. Growing worldwide energy crisis has stimulated the need for sustainable energy and power generation. Various conventional energy sources, such as fossil fuel, are increasingly being replaced by renewable sources, such as wind energy and solar energy and is expected to drive growth of the market.
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