Renewable Energy Market Size, Share & Trends Analysis Report By Product (Hydropower, Wind, Solar, Bioenergy), By Application (Industrial, Residential, Commercial), By Region (North America, APAC), And Segment Forecasts, 2022 - 2030

Report Overview

The global renewable energy market size was valued at USD 768.9 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 16.6% from 2022 to 2030. The shift toward low-carbon fuels and the presence of stringent environmental regulations in most 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 Gasses (GHG). This has been a major factor in the expansion of solar and wind energy sectors.

The market in the U.S. 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, which is expected to boost renewable energy 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 over the forecast period. The growing solar industry in Germany is expected to propel the market growth, which, in turn, is expected to drive the industry over the forecast period. It is a domestic source of energy, which allows each state to generate its 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.

Product Insights

The hydropower segment accounted for the largest share of more than 29.25% in 2021 and will expand further at a steady CAGR from 2022 to 2030. Hydropower also known as hydroelectric power offers advantages to the communities and plays a crucial role to help climate change by providing storage, power, and flexibility services. The solar power segment is expected to grow at the fastest CAGR during the forecast period. It is low-cost, offers a home or business ‘green label’, reduces electricity interruptions, and others. 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. Wind power and bioenergy segments are also expected to increase steadily in 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, Spain with 23 GW, and others. 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. Furthermore, geothermal energy, renewable energy derived from the earth’s heat, can be harnessed as a source of renewable electricity and for cooling and 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 segment over the forecast period.

Application Insights

On the basis of applications, the global industry is further divided into industrial, commercial, and residential. The industrial segment led the market in 2021 and accounted for the maximum share of more than 62.40% of the overall revenue. The 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. in 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 to 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.

Regional Insights

The Asia Pacific accounted for the largest revenue share of more than 40.40% in 2021. The increasing demand for renewable energy in the 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 the 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 in the forecast period.

Power generation from industrial sector solar cells has increased over the years as more efficient solar cells are available in the market. In addition, the 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. Factors including growing concerns about Greenhouse Gas (GHG) emissions, generation cost, and regulations to decrease carbon footprint are projected to drive the growth during the forecast period.

Key Companies & Market Share Insights

Key participants in the industry are focusing on technological advancements and innovations to minimize the cost of renewable energy generation. In addition, industry players are practicing several strategic initiatives to expand their foothold in the industry over the coming years.  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 energy market are:

• ABB

• Acconia

• Enel Spa

• General Electric

• Innergex

• Invenergy

• Schneider Electric

• Siemens Gamesa Renewable Energy, S.A.

• Suzlon Energy Ltd.

• Tata Power

• Xcel Energy, Inc.

Renewable Energy Market Report Scope

Global Renewable Energy Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, Grand View Research has segmented the global renewable energy market report based on product, application, and region:

• Product Outlook (Volume, TWh; Revenue, USD Billion, 2019 - 2030)

  • Hydro Power

  • Wind Power

  • Solar Power

  • Bioenergy

  • Others

• Application Outlook (Volume, TWh; Revenue, USD Billion, 2019 - 2030)

  • Industrial

  • Residential

  • Commercial

• Regional Outlook (Volume, TWh; Revenue, USD Billion, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Italy

    • U.K.

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Iran

    • Egypt