Renewable Energy Market Size To Reach $4.86 Trillion By 2033

Renewable Energy Market Growth & Trends

The global renewable energy market size is expected to reach USD 4.86 trillion by 2033, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 14.9% from 2025 to 2033. Numerous governments across the world have framed various regulations to reduce Greenhouse Gas (GHG) emissions. 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. Due to climate change and increasing environmental concerns, most governments have set targets to cut down their emissions. As a result, there have been huge investments in renewable energy and alternate fuels, and this trend is expected to continue in the coming years.

Thus, the increasing inclination toward eco-friendly products to reduce emissions is expected to fuel the demand for renewable energy over the forecast period. The hydropower segment accounted for a share of 16.65% of the overall revenue in 2023. 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. It is a domestic source of energy, which allows each state to generate its own energy without reliance on any international fuel sources. The solar Power segment is expected to witness the largest growth over the forecast period owing to it being low in cost and reducing electricity interruptions. The industrial segment was the largest in 2023 and accounted for a revenue share of about 61.90%.

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. The commercial segment is expected to grow at the fastest CAGR over the forecast period. 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. The market in Asia Pacific was the largest in 2023 with a revenue share of 40.98%. 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, other 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. Major players in the industry are focusing on innovation and technological advancements to reduce the cost of renewable energy and make it competitive with traditional power sources, such as natural gas and coal. In addition, industry participants are emphasizing practicing several strategic initiatives, such as joint ventures, partnerships, and mergers & acquisitions, to strengthen their foothold in the global market over the coming years.

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Renewable Energy Market Report Highlights

• The solar sub-segment dominated the product segment in the renewable energy market, accounting for a revenue share of 23.36% in 2024.

• The industrial sub-segment held the largest revenue share of 61.63% in 2024 within the renewable energy market.

• The Asia Pacific renewable energy market continues to lead the global renewable energy landscape, driven by rapid capacity additions, strong policy support, and large-scale investments in solar, wind, hydropower, and biomass projects.

Renewable Energy Market Segmentation

Grand View Research has segmented the global renewable energy market on the basis of product, application and region:

Renewable Energy Product Outlook (Revenue, USD Billion; Volume, TWh, 2021 - 2033)

• Hydropower

• Wind

• Solar

• Bioenergy

• Others

Renewable Energy Application Outlook (Revenue, USD Billion; Volume, TWh, 2021 - 2033)

• Industrial

• Commercial

• Residential

Renewable Energy Regional Outlook (Revenue, USD Billion; Volume, TWh, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

• Middle East & Africa

  • Saudi Arabia

  • UAE

List of Key Players of Renewable Energy Market

• Acciona S.A.

• General Electric

• Enel S.p.A.

• Tata Power

• Innergex Renewable Energy Inc.

• Suzlon Energy Ltd.

• Invenergy LLC

• ABB Ltd.

• Siemens Gamesa Renewable Energy, S.A.

• Xcel Energy Inc.

• Schneider Electric