Renewable Energy Market By Type (Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, Geothermal Energy) , By End Use (Residential, Commercial, Industrial, Utilities) : Global Opportunity Analysis and Industry Forecast, 2024-2033
The renewable energy market was valued at $1.1 trillion in 2023, and is projected to reach $2.5 trillion by 2033, growing at a CAGR of 8.5% from 2024 to 2033.
Renewable energy refers to energy derived from natural resources that are replenished on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat. Unlike fossil fuels, which are finite and emit greenhouse gases, renewable energy sources produce little to no pollution and contribute to sustainable power generation. As global demand for clean, sustainable energy increases, renewable energy has emerged as a key solution to address climate change, reduce environmental impacts, and ensure long-term energy security.
Rise in awareness of climate change and its environmental impact is pushing nations, businesses, and consumers toward low-carbon energy solutions, which acts as the key driving force of the global renewable energy market. In addition, the costs of solar and wind power have dropped significantly in recent years, making them more competitive with traditional energy sources. The International Renewable Energy Agency (IRENA) reported in 2021 that the cost of electricity from solar PV fell by 85% between 2010 and 2020, while onshore wind costs declined by 56% over the same period. These declining costs have made renewables more competitive with traditional fossil fuel sources. Moreover, increase in public support for environmentally friendly energy solutions and rising demand for green products and services are pushing the adoption of renewable energy. However, while operational costs for renewable energy are often lower than fossil fuels, the upfront costs for installation, particularly for large-scale wind and solar farms, remain significant. This can be a barrier for both governments and private investors. In addition, lack of advanced, cost-effective energy storage systems limits the ability to store excess renewable energy for times when generation is low, thus hampering the market growth. On the contrary, innovations in renewable technologies such as solar panels, wind turbines, energy storage, and grid integration have improved efficiency, lowered costs, and enhanced the competitiveness of renewable energy. Such developments are expected to open new avenues for the expansion of the global market during the forecast period.
The global renewable energy market is segmented into type, end use, and region. By type, the market is classified into hydroelectric power, wind power, bioenergy, solar energy, and geothermal energy. On the basis of end use, it is divided into residential, commercial, industrial, and utilities. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsBy type, the hydroelectric power segment held the highest market share in 2023.On the basis of end use, the residential segment was the major shareholder in 2023, and is expected to dominate from 2024 to 2033.
Region wise, Asia-Pacific emerged as the most lucrative market for renewable energy in 2023, and is anticipated to continue the same trend during the forecast period.
Competition AnalysisCompetitive analysis and profiles of the major players in the global renewable energy market include Xcel Energy Inc., General Electric, ACCIONA, Tata Power, National Grid Renewables, Invenergy, ABB Ltd, Enel Green Power S.p.A., EDF Renewables, and Innergex. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to sustain the intense competition and gain a strong foothold in the global market.
Key Market SegmentsBy TypeHydroelectric Power
Wind Power
Bioenergy
Solar Energy
Geothermal Energy
By End UseResidential
Commercial
Industrial
Utilities
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Rest of LAMEA
Key Market PlayersXcel Energy Inc.
General Electric
ACCIONA
Tata Power
National Grid Renewables
Invenergy
ABB Ltd
Enel Green Power S.p.A.
EDF Renewables
Innergex