Global Renewable Energy Market Outlook, 2030

Renewable energy has emerged as a cornerstone of global efforts to combat climate change, reduce carbon emissions, and create a sustainable energy future. Derived from natural sources that replenish themselves, such as sunlight, wind, water, and biomass, renewable energy represents a cleaner, more sustainable alternative to fossil fuels. As the world grapples with the challenges of environmental degradation and energy security, renewable energy offers a pathway to a greener and more equitable future. Renewable energy sources produce little to no greenhouse gas emissions, significantly reducing their environmental footprint. Transitioning to renewable energy is essential for mitigating climate change and protecting ecosystems. By diversifying energy sources and reducing dependence on imported fuels, renewable energy enhances energy security and economic stability for nations. Investments in renewable energy drive innovation, create jobs, and stimulate economic growth. From manufacturing solar panels to maintaining wind farms, the renewable energy sector has become a major employment driver. Unlike fossil fuels, renewable energy sources are inexhaustible and sustainable, ensuring long-term energy supply without depleting natural resources. Despite its advantages, renewable energy faces challenges, including variability in energy generation (e.g., solar power is unavailable at night) and the need for significant infrastructure investments. However, advancements in energy storage, smart grids, and policy support are addressing these challenges. Batteries, for instance, can store excess energy for use during periods of low generation, while grid modernization ensures efficient energy distribution. Governments, organizations, and individuals worldwide are recognizing the importance of renewable energy. International agreements such as the Paris Accord emphasize the need to transition to renewable energy to limit global warming. Many countries are setting ambitious targets for renewable energy adoption, supported by incentives, subsidies, and public awareness campaigns.

According to the research report “Global Renewable Energy Market Outlook, 2030” published by Bonafide Research, the global renewable energy market is projected to reach market size of USD 1890 Billion by 2030 increasing from USD 1091.21 in 2024, growing with 9.80% CAGR by 2025-30. The renewable energy market is experiencing robust growth due to a confluence of environmental, economic, and technological factors driving global demand for sustainable energy solutions. Climate change and the urgent need to reduce greenhouse gas emissions have become key motivators for governments, businesses, and individuals to prioritize cleaner energy sources over fossil fuels. Policymakers around the world are implementing favourable regulations, subsidies, and incentives, such as tax credits and feed-in tariffs, to accelerate the adoption of renewable energy technologies. Additionally, advancements in technology have led to significant reductions in the cost of renewable energy systems, such as solar panels and wind turbines, making them more accessible and economically viable. The growing focus on energy security and diversification has further spurred investments in renewables, reducing reliance on imported fuels and mitigating risks associated with fluctuating fossil fuel prices. Moreover, increasing public awareness about environmental sustainability and the health benefits of reducing air pollution is fostering consumer demand for green energy solutions. The rise of corporate sustainability initiatives and net-zero commitments by major industries is also fueling growth, as businesses seek to meet environmental targets and enhance their brand reputation. Simultaneously, innovations in energy storage, such as advanced battery technologies, and grid modernization are addressing challenges like intermittency, ensuring a more reliable integration of renewable energy into power systems.

Market Drivers

• Energy Decentralization: Energy decentralization is revolutionizing the renewable energy sector by empowering individuals, communities, and businesses to generate their own electricity. This localized approach relies on distributed energy systems such as rooftop solar panels, small-scale wind turbines, and community microgrids. By reducing reliance on large, centralized power plants, decentralization not only enhances energy security but also mitigates the risks associated with transmission and distribution losses. Furthermore, decentralized systems can be tailored to local energy needs, providing access to power in remote or underserved areas. Governments and organizations are encouraging this shift by offering subsidies, incentives, and policies that support the installation of localized renewable energy systems. The increasing affordability of solar panels and small-scale wind turbines has made decentralization a viable option for households and small businesses. As energy decentralization grows, it fosters energy independence and resilience, making it a key driver in the renewable energy market.
• Corporate Net-Zero Commitments: The renewable energy industry is witnessing a surge in demand driven by corporate commitments to achieve net-zero carbon emissions. Multinational companies are increasingly prioritizing renewable energy investments to align with environmental, social, and governance (ESG) goals. Initiatives like corporate Power Purchase Agreements (PPAs) allow businesses to secure renewable energy directly from producers, ensuring a steady supply of clean power while reducing carbon footprints. Leading corporations are integrating renewables into their operations to meet consumer expectations, regulatory requirements, and global sustainability benchmarks. This trend is driving the development of large-scale renewable energy projects tailored to corporate clients. Furthermore, companies are innovating with on-site renewable installations, such as solar panels and wind turbines, to power their facilities directly. These corporate efforts significantly boost renewable energy demand, making them a pivotal driver for industry growth.

Market Challenges

• Material Sourcing for Renewable Technologies: The renewable energy industry faces significant challenges in sourcing materials essential for manufacturing key technologies. Solar panels, wind turbines, and batteries depend on rare earth metals and critical minerals like lithium, cobalt, and nickel. These materials are often extracted from geographically concentrated regions, leading to supply chain vulnerabilities and geopolitical risks. Additionally, the mining and processing of these materials can raise ethical concerns, including poor labor conditions and environmental degradation. With demand for renewable technologies surging, ensuring a steady and sustainable supply of these resources is becoming increasingly challenging. Innovations in material recycling, alternative materials, and improvements in mining practices are essential to addressing this issue, but scaling these solutions remains complex and resource-intensive.
• Land Use Conflicts: The expansion of renewable energy infrastructure requires significant land for solar farms, wind farms, and hydropower reservoirs. This creates potential conflicts with other land uses, such as agriculture, urban development, and biodiversity conservation. For instance, large solar farms can displace agricultural activities, while wind farms may disrupt wildlife habitats, particularly for bird and bat populations. Additionally, communities often oppose projects perceived as intrusions into their local environment, citing concerns about aesthetics, noise, and property values. Balancing renewable energy expansion with sustainable land use planning requires innovative solutions, such as dual-use strategies like agrivoltaics (combining agriculture and solar power) and floating solar installations. However, overcoming these land use conflicts remains a pressing challenge for the industry.

Market Trends

• Hybrid Renewable Energy Systems: Hybrid renewable energy systems (HRES) are emerging as a key trend in the industry, combining multiple renewable energy sources, such as solar and wind, with advanced energy storage solutions. These systems address one of the most significant challenges in renewable energy-intermittency-by leveraging complementary energy generation patterns. For example, wind turbines can produce power at night when solar panels are inactive, ensuring a more consistent energy supply. HRES installations are also integrating with energy storage technologies, such as lithium-ion and flow batteries, to store excess energy for use during low production periods. This trend is particularly beneficial for remote and off-grid areas, where hybrid systems offer a reliable and self-sufficient power supply. By optimizing resource utilization and enhancing energy reliability, HRES is becoming a preferred solution for diverse applications, including residential, commercial, and industrial energy needs.
• Green Hydrogen Integration: Green hydrogen, produced using renewable energy through water electrolysis, is rapidly gaining attention as a versatile and clean energy carrier. It has the potential to decarbonize hard-to-abate sectors like heavy industry, aviation, and long-haul transport, where electrification is less feasible. This trend is driven by falling costs of renewable electricity and advancements in electrolyzer technology, which have made green hydrogen more economically viable. Countries worldwide are investing in green hydrogen infrastructure, with strategies to build large-scale production plants, storage facilities, and distribution networks. Partnerships between governments and private companies are accelerating the development of hydrogen hubs, aiming to establish a global hydrogen economy. By complementing renewable energy sources, green hydrogen is emerging as a transformative trend that could redefine the energy landscape and accelerate the transition to net-zero emissions.

Hydropower leads the renewable energy industry due to its ability to provide consistent, large-scale electricity generation and grid stability while leveraging established infrastructure.

Hydropower has long been the backbone of renewable energy production, offering several advantages that make it a dominant force in the industry. As a mature and proven technology, hydropower plants have the capability to generate significant amounts of electricity, often on a scale that surpasses other renewable sources like solar and wind. One of its key strengths lies in its reliability and flexibility; hydropower can provide a steady base load of electricity while also being capable of ramping up generation quickly to meet peak demand, ensuring grid stability. Additionally, hydropower reservoirs serve as natural energy storage systems, making it possible to store energy during periods of low demand and release it when needed, a critical feature in balancing intermittent energy sources like wind and solar. Hydropower is also highly efficient, with energy conversion rates far exceeding those of fossil fuels and other renewables. Economically, existing hydropower infrastructure offers low operational costs after initial setup, making it a cost-effective option for countries with abundant water resources. Moreover, hydropower projects contribute to water management by supporting irrigation, flood control, and drinking water supply. However, despite its advantages, hydropower development must address challenges such as environmental impacts on ecosystems and communities. Ongoing innovations, such as fish-friendly turbines and small-scale hydropower solutions, are helping to mitigate these concerns. As global energy demands rise and the push for decarbonization intensifies, hydropower remains a cornerstone of the renewable energy mix, offering unparalleled scalability, stability, and sustainability.

The industrial sector leads in renewable energy adoption due to its substantial energy demand, cost-saving opportunities, and the drive to meet sustainability goals and regulatory requirements.

The industrial sector has emerged as a leader in renewable energy adoption, driven by its massive energy consumption and the need to optimize costs while achieving sustainability objectives. Industries such as manufacturing, mining, and heavy processing are energy-intensive, making the integration of renewable energy sources like solar, wind, and biomass highly advantageous for reducing operational expenses over the long term. Renewable energy offers a dual benefit for industries: it not only lowers energy costs through on-site generation and Power Purchase Agreements (PPAs) but also enhances energy security by reducing reliance on volatile fossil fuel markets. Sustainability commitments have further accelerated this trend, with many industries pledging to achieve net-zero emissions to align with global climate goals and meet the expectations of environmentally conscious stakeholders. Governments and international bodies are also exerting pressure through carbon taxes, emission caps, and renewable energy mandates, pushing industries to innovate and adapt. Moreover, technological advancements in renewable energy systems, such as efficient rooftop solar installations and industrial-scale wind farms, have made these solutions more accessible and economically viable for businesses. The industrial sector’s ability to invest in large-scale renewable projects allows it to harness energy at competitive rates while showcasing leadership in environmental responsibility. Additionally, the integration of renewable energy into industrial operations reduces the carbon footprint of production processes, creating value for customers who prioritize sustainable products. With its significant role in driving the global economy and shaping market trends, the industrial sector's leadership in renewable energy adoption underscores its commitment to sustainable development and its pivotal role in the global energy transition.

Asia-Pacific leads the renewable energy industry due to its rapid economic growth, abundant natural resources, supportive government policies, and large-scale investments in clean energy infrastructure.

The Asia-Pacific region has emerged as a global leader in renewable energy adoption, fueled by a combination of economic, environmental, and policy-driven factors. As one of the fastest-growing economic regions in the world, Asia-Pacific's energy demand is surging, driving the need for sustainable energy solutions to power industrial growth, urbanization, and population expansion. The region is rich in natural resources, including ample solar radiation, wind corridors, and hydroelectric potential, which provide a strong foundation for renewable energy development. Countries like China, India, Japan, and Australia are spearheading this transition, with China alone accounting for a significant share of global renewable energy capacity, particularly in solar, wind, and hydropower. Governments across the region are implementing ambitious renewable energy targets, offering subsidies, tax incentives, and favorable policies to attract investment in clean energy projects. Initiatives such as India’s National Solar Mission and China’s Renewable Energy Law have created a robust policy framework to support large-scale renewable energy deployment. Moreover, Asia-Pacific has become a hub for renewable energy innovation and manufacturing. For instance, China is the world’s largest producer of solar panels and wind turbines, driving down global costs and making renewable energy more accessible. Investments in energy storage technologies and grid modernization are further enabling the integration of renewables into national grids. Additionally, growing environmental concerns and international commitments, such as the Paris Agreement, are compelling countries in the region to prioritize low-carbon energy sources to combat climate change. Asia-Pacific's leadership in renewable energy is not only transforming its energy landscape but also setting a precedent for other regions, demonstrating how large-scale investment, resource optimization, and supportive policies can accelerate the transition to a sustainable energy future.

• In February 2024, Grew Energy launched cutting edge solar PV modules at Intersolar. The company launched its technologically advanced ‘P-type’ and ‘N-type’ solar PV modules during the event, marking a significant milestone in the advancement of sustainable energy solutions.
• In December 2023, Ricoh launched its first renewable energy self-consignment. This initiative is a part of Ricoh's efforts to achieve its 2030 target of 50% renewable energy in the overall electricity used for the business.
• In February 2023, Green World Renewable Energy LLC launched innovative solar panel and combiner box at ISNA, solar storage exhibition. This solar energy product provides a reliable and efficient solution for harnessing the power of the sun. This system is designed to meet the growing demand for renewable energy sources and provides a clean, cost-effective, and sustainable alternative to traditional energy sources.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Renewable Energy Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hydropower
• Wind Power
• Solar Energy
• Bioenergy
• Geothermal
• Others

By End-User
• Industrial
• Residential
• Commercial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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