Renewable Energy Market To Reach $4,860.85 Billion By 2033

January 2026 | Report Format: Electronic (PDF)

Renewable Energy Market Growth & Trends

The global renewable energy market size is expected to reach USD 4,860.85 billion by 2033, registering a CAGR of 14.7% from 2026 to 2033, according to a new report by Grand View Research, Inc. 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.

key Request a free sample copy or view report summary: Renewable Energy Market Report

Renewable Energy Market Report Highlights

In the United States, renewable energy growth is underpinned by favorable government policies and an abundant supply of renewable feedstock, particularly biomass
The global renewable energy industry is primarily driven by the urgent need to reduce greenhouse gas emissions, diversify energy sources, and ensure long-term energy security.
The solar segment led the market with the largest revenue share of 31.61% in 2025. It is also expected to maintain a strong growth trajectory throughout the forecast period
The industrial segment led the market with the largest revenue share of 61.36% in 2025. This dominance is driven by the rising integration of renewable energy solutions across manufacturing plants, processing units, and large-scale industrial facilities
The renewable energy market in North America is anticipated to grow at a substantial CAGR during the forecast period
Asia Pacific dominated the global renewable energy market with the largest revenue share of 41.51% in 2025 and is expected to grow at the fastest CAGR during the forecast period