Renewable Energy Market Size, Share & Trends Analysis Report By Product (Bioenergy, Hydropower, Wind, Solar), By Application (Residential, Commercial), By Region (Europe, Asia Pacific), And Segment Forecasts, 2023 - 2030

Report Overview

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.

Product Insights

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.

Application Insights

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.

Regional Insights

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 Companies & Market Share Insights

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

Renewable Energy Market Report Scope

Global Renewable Energy Market Report Segmentation

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