The global renewable energy market size was reached at USD 887.1 billion in 2021 and is expected to hit over USD 3,217.4 billion by 2030, poised to grow at a CAGR of 15.39% from 2022 to 2030.
Renewable energy, even referred as clean energy, is usually derived from natural sources that are constantly replenished. Wind energy, a type of renewable energy, is used to generate electric energy from kinetic energy source. Wind turbine converts the wind energy into mechanical energy, which is further converted into electrical energy through generator. Wind energy can be generated offshore and onshore. Onshore wind energy is associated with onshore turbines that are located on land, whereas offshore wind turbines are found in ocean or sea.
Renewable energy is derived from natural sources such as wind and sunlight. Solar, geothermal, wind, bioenergy, hydropower, and ocean power are some of the major sources of renewable energy. Currently, renewable energy is utilized in heating, electricity, cooling, and transport sectors. Renewable energy collectively provides around 7% of the world’s energy demand. Renewable energy is relatively more expensive than fossil fuel. Several factors are responsible to drive the usage of renewable energies, the most crucial being the attribution of global warming due to carbon dioxide (CO2) emission from the combustion of fossil fuels. The concern about the reduction of greenhouse gas emissions, increase in search for energy security along with the aversion to traditional nuclear power, and lack of progression in the application of the nuclear power are expected to drive the demand for geothermal power market during the forecast period. Governments of various developing and developed countries have focused on promoting renewable energy sources due to increase in output efficiency, less pollution, and low maintenance costs. All these factors collectively surge the demand for renewable energy, thereby augmenting the global renewable energy market growth.
In this study, the years considered to estimate the market size are as follows:
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 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 during the forecast period. The hydropower segment accounted for the maximum revenue share in 2021. 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. It is a domestic source of energy, which allows each state to generate its energy without reliance on any international fuel sources. The solar power segment is expected to witness considerable growth in the forecast period owing to its low cost. Moreover, it reduces electricity interruptions. Industrial was the dominant application segment in 2021.
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 expand further at the fastest CAGR during the forecast period The rapid adoption of PV modules in corporate offices, hotels, and hospitals is expected to drive the product demand across the commercial sector coupled with an increased power demand in communication base stations and data centers. The Asia Pacific was the largest region for renewable energy in 2021 due to the high demand for renewable energy as a result of the rising number of installations 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 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, mergers & acquisitions, and others, to enhance their foothold in the market.
Scope of the Report
|Market Size in 2021||USD Billion|
|Revenue Forecast By 2030||USD Billion|
|Asia Pacific Market Share||40.6% in 2021|
|Forecast Period||2022 to 2030|
|Key Players||ABB, Acconia, Enel Spa, General Electric, Innergex, Invenergy, Schneider Electric, Siemens Gamesa Renewable Energy, S.A., Suzlon Energy Ltd., Tata Power, Xcel Energy, Inc.|
The Asia Pacific has generated revenue share of more than 40.6% 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.
The hydropower segment accounted highest revenue share 29.4% 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.
End Use Insights
The industrial segment accounted revenue share of around 62.5% in 2021. 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.
Impact Of Covid-19 On The Global Renewable Energy Market
Key Market Players
By End Use
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In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
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