Global Renewable Energy Market - 2023-2030

Global Renewable Energy Market - 2023-2030

The Global Renewable Energy Market reached US$ 1.1 trillion in 2022 and is expected to reach US$ 2.0 trillion by 2030, growing with a CAGR of 8.4% during the forecast period 2023-2030. One of the major factors in driving Global Renewable Energy Market growth is the policy adopted by governments of emerging countries to fulfill rising energy demand with renewable energy.

The declining costs of renewable energy technologies, particularly solar photovoltaic (PV) and wind power, have driven market growth. Technological advancements, economies of scale, improved manufacturing processes and increased competition have led to significant cost reductions, making renewable energy more economically viable and competitive with conventional energy sources.

Favorable government policies, regulations and incentives play a crucial role in stimulating the growth of the renewable energy market. Feed-in tariffs, tax credits, renewable portfolio standards and net metering are policies that encourage renewable energy adoption by providing financial incentives and regulatory support.

Market Dynamics

Increasing Focus on Energy Security

Energy security involves reducing dependence on fossil fuels, which are finite resources and subject to price volatility and geopolitical risks. Many countries in the developed regions, such as North America and Europe, have become increasingly focused on achieving energy independence as a key part of their national security strategies.

Renewable energy sources, such as solar, wind, hydro, geothermal and bioenergy, diversify the energy mix, reducing reliance on fossil fuels for electricity generation. By transitioning to renewable energy, countries can enhance their energy security by decreasing vulnerability to fuel price fluctuations, supply disruptions and geopolitical tensions related to fossil fuel imports.

European countries have increased efforts to secure energy independence in the aftermath of the Russia-Ukraine war which caused a massive increase in European energy prices and European nations sought to remove dependence on Russia at a time of geopolitical tensions. In May 2022, the EU launched the REPowerEU package to diversify energy supplies and increase clean energy generation. The box has helped to increase solar energy capacity by 41 GW and wind energy capacity by 16 GW.

Increasing Corporate Sustainability Initiatives

Many businesses and corporations are adopting sustainability goals and committing to renewable energy procurement to reduce their environmental impact and enhance their public image. Corporations have undertaken various measures, including corporate power purchase agreements (PPAs) for renewable energy and green certifications for multiple processes.

Some corporations have set up solar and wind energy power plants to ensure that their factories and offices are completely powered by renewable energy. The surge in corporate demand is spurring investments in renewable energy projects, driving innovation in the sector. Energy generation companies are entering into partnerships with corporates to increase adoption of renewable energy.

Local Opposition to Renewable Energy Projects

Local opposition often arises due to the NIMBYism (Not In My Backyard) phenomenon, where individuals and communities generally support the concept of renewable energy but object to specific projects located near their homes or communities. Concerns related to noise, visual impact, land use and potential effects on property values have led to resistance against renewable energy developments in developing and developed countries.

Communities may feel excluded from decision-making processes or believe that the economic benefits and job opportunities associated with the projects are not adequately distributed among local residents. Governments, therefore, face various hurdles in land acquisition, which leads to rising project costs and directly impacts the scaling up of future projects in a particular region.

COVID-19 Impact Analysis

The COVID-19 pandemic has brought both challenges and opportunities for the renewable energy sector. On the one hand, lockdown measures, supply chain disruptions and economic uncertainties led to project delays, reduced investments and temporary setbacks in the renewable energy market. The decline in electricity demand and disruptions to energy systems affected renewable energy deployment.

However, governments worldwide recognized the importance of clean energy in economic recovery and stimulus packages, leading to increased support for renewable energy projects. Additionally, the pandemic highlighted the resilience and reliability of renewable energy sources, further strengthening their long-term prospects.

AI Impact

Artificial intelligence is revolutionizing the renewable energy sector by optimizing operations, enhancing efficiency and improving decision-making. AI algorithms are used to forecast renewable energy generation, optimize energy storage systems and automate energy management in smart grids. Integrating AI can help mitigate the impact of the intermittent nature of renewable energy.

AI also enables predictive maintenance, reducing downtime and improving asset performance. By leveraging AI technology, renewable energy operators can increase the reliability and cost-effectiveness of their operations, driving the growth and integration of renewable energy into the global energy mix. It is beneficial for energy storage-dependent systems, such as solar energy.

Ukraine-Russia Impact

The Ukraine-Russia war and geopolitical tensions directly affect the global renewable energy market. The conflict has disrupted energy supply chains and raised concerns about energy security. As a result, countries may prioritize domestic renewable energy resources and reduce dependence on fossil fuel imports.

It could lead to increased investments in renewable energy projects, such as wind and solar, as well as advancements in energy storage technologies. Additionally, geopolitical uncertainties may drive international collaborations and investments in renewable energy to reduce reliance on volatile energy markets. The war is expected to accelerate the transition to renewable energy, especially in European countries.

Segment Analysis

The Global Renewable Energy Market is segmented based on type, end-user and region.

Favorable Policies Propel the Growth of Renewable Energy for Residential End-User

The adoption of renewable energy for residential purposes has increased significantly in recent years, mainly because of growing awareness about the impact of climate change. Residential solar photovoltaic (PV) systems are one of the most popular and widely adopted renewable energy technologies among homeowners.

Solar PV systems convert sunlight into electricity using photovoltaic panels installed on rooftops or open spaces. Homeowners can generate clean and sustainable electricity on-site, reducing their reliance on grid power and lowering their carbon footprint. . Home energy management systems enable homeowners to monitor and optimize their energy consumption, ensuring efficient use of renewable energy.

Favorable government policies also play a major role in adoption of residential renewable energy solutions. For instance, the U.S. government provided a 26% federal tax credit for systems installed till 2022. In late 2022, the rule was amended to increase the effective federal tax credit to 30% for systems installed between 2023 and 2032.

Geographical Analysis

North America Occupies A Significant Share in the Global Market

Solar power has witnessed remarkable growth in North America. The region benefits from ample sunlight, technological advancements , and declining solar photovoltaic (PV) systems costs. U.S. and Canada have made substantial investments in utility-scale solar projects and rooftop solar installations. Solar farms and community solar initiatives have gained popularity, allowing residents and businesses to benefit from solar energy without installing panels on their own properties.

North America has significant offshore renewable energy potential, particularly in coastal regions. Offshore wind farms have started gaining momentum, with projects underway in U.S. For instance, in May 2023, construction commenced on a new offshore wind farm with a capacity of 2.4 GW off the coast of New Bedford, Massachusetts, U.S.

Hydropower has long been a dominant renewable energy source in North America. Canada and U.S. have many hydroelectric power plants, both large and small-scale. The region benefits from abundant water resources and an extensive existing hydropower infrastructure. For instance, in April 2023, the New England Connect Project linking hydropower from Quebec in Canada to the northeastern U.S. received the go-ahead from regulatory authorities.

Competitive Landscape

The major global players include Acciona Energia, EDF Renewables, Vestas, Ørsted A/S, First Solar, Adani Green Energy, Tata Power, Duke Energy Corporation, Iberdrola, S.A. and NextEra Energy, Inc.

Why Purchase the Report?
• To visualize the Global Renewable Energy Market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous renewable energy market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Renewable Energy Market Report Would Provide Approximately 53 Tables, 50 Figures And 192 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies