Renewable Power Generation Market (By Product: Hydropower, Wind, Solar, Bioenergy) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global renewable power generation market was valued at USD 7527.4 TWh in 2021 and it is predicted to surpass around USD 14947.68 TWh by 2030 with a CAGR of 7.92% from 2022 to 2030.

Report Highlights

• Hydropower emerged as the largest product segment in 2019 and is expected to reach 7,874.3 TWh by 2030. 
• Asia Pacific held the largest share in 2021 and is projected to be the fastest-growing regional market with a CAGR of 8.75% from 2020 to 2030. 

Switching from conventional fossil fuels to renewable sources is underway to achieve economic, social, and environmental developments. Moreover, such investments in renewable and clean resource sectors are estimated to generate commercial opportunities as well as new jobs.

The world economy will be in the expansion mode after the COVID-19 pandemic, therefore demand for power is expected to increase exponentially in the coming years. This is a result of the higher living standards and economic growth. Fossil fuels currently dominate the present power supply, accounting for almost 60% of the energy increase until 2035. However, the shift towards low carbon fuels, coupled with stringent environment regulations in most of the developed countries, has provided a major boost to renewable energy.

The renewable energy market has witnessed a surge in installation capacity over the past few years on account of growing environmental concerns, coupled with the aim to reduce the harmful effects of greenhouse gasses. This has been a major factor for the expansion of wind energy. Government support to save energy and improve the efficiency will result in propelling growth over the forecast period.

Renewable energy is clean, silent, and freely available. This source of power has also become aesthetically appealing after the implementation of solar panels in residential and commercial buildings. The recent dip in the solar panel prices on account of hardware cost reductions as well as rising focus on tackling soft costs is further projected to augment the installation rates. Despite the extensive research & development costs associated, the major providers of solar panels have successfully reduced design, along with overhead costs.

Scope of The Report

Product Insights

Hydropower emerged as the largest product segment in 2021 and is expected to reach 7,874.3 TWh by 2030. Increase in the construction of individual power plants is expected in remote regions with hilly terrain because no connections can be made from the main power supply network. These hydropower projects meet the power supply requirements without the need to expand the power grid in remote regions. Increasing focus on environmental protection is anticipated to increase the importance of electricity generation from decentralized renewable power generation, such as hydropower, in the forecast period.

The cost of wind energy has witnessed a steady decline over the past few years. This can be attributed to growing demand for clean and sustainable energy from developed countries. Wind power has become a major source of electricity generation in several countries, including Denmark, Finland, Norway, and Poland. Biomass power is one of the niche resources that has marked its presence in Europe and Asia Pacific. Growing consumer awareness regarding the environmental impact of petrochemical-derived fuels has driven the investments in developing alternative energy sources. Investment in bioenergy technologies has witnessed significant growth over the past few years in Asia Pacific. Recent changes in carbon emission targets can be attributed to such dramatic growth in the bioenergy sector in the renewable energy generation market.

Other renewable power generations include marine power and geothermal power generation. With the evolution of renewable energy, ocean energy is emerging as a substitute in the market, which may contribute to the promotion of efficient products and technologies and the development of the existing renewable resources to provide clean energy. At present, ocean energy accounts for a small percentage of the overall renewable energy supply and operates only in selective regions globally, especially in Europe and North America.

Regional Insights

Asia Pacific held the largest share in 2021 and is projected to be the fastest-growing regional market with a CAGR of 8.75% from 2020 to 2030. Growing population, especially in China and India, supports the increase in power consumption. With the growing population, demand for basic energy requirements, such as electricity, transportation, and fuel for cooking, has been increasing. A majority of the chemical manufacturing companies have been shifting their manufacturing facilities to China and India owing to favorable government policies in the form of tax benefits and increased investments through FDI. Such initiatives are anticipated to drive the regional market for renewable power generation.

Some of the major countries around the world such as the U.S., China, Germany, and Canada have already made supporting regulations and provided financial incentives for the deployment of renewable energy. Financial incentives such as feed-in-tariff, subsidies, and tax benefits are some of the major tools utilized by countries around the world to attract investment in the renewable power generation market. For instance, in 2018, India has pledged to install 175 GW of renewable power generation sources in its power sector by 2022.

As per the National Renewable Energy Action Plans (NREAPs), the combined capacity target in the European countries, in which ocean energy technologies are currently being developed, is likely to reach 2253 MW by the end of 2020. Some European countries such as Portugal and the U.K. have adopted economic policy instruments to encourage the deployment of prototype devices involving the distribution of market incentives, such as prizes. According to the IEA Energy R&D statistics, within Europe, the largest ocean energy RD&D expenditure related to total renewable energy R&D spending can be found in U.K. (13.4%); Ireland (12.4%); and Sweden (12.1%).

Key Players

• General Electric
• ABB Ltd.
• The Tata Power Company Limited (Tata Power)
• Xcel Energy Inc.
• Innergex
• Enel Spa
• EDF
• Geronimo Energy
• ACCIONA
• Invenergy

Market Segmentation

• By Product Outlook

• Hydropower
• Wind
• Solar
• Bioenergy
• Others
• By Regional Outlook
• North America

• The U.S.
• Canada
• Mexico
• Europe
• Germany
• Russia
• Norway
• Italy
• The U.K.
• Asia Pacific
• China
• India
• Japan
• Australia
• Central & South America
• Brazil
• Argentina
• Middle East & Africa
• Iran
• Egypt