Renewable Energy Market Size, Share, and Trends 2024 to 2034

Renewable Energy Market Size and Growth 2023 to 2032

The global renewable energy market size was estimated at US$ 970 billion in 2022 and is expected to hit over US$ 2182.99 billion by 2032 with a registered CAGR of 8.50% from 2023 to 2032. 

Key Takeaway

• The hydroelectric power segment is growing at a CAGR of 6.6% from 2023 to 2032.
• By end use, the residential segment is expected to reach at a CAGR of 8.5% between 2023 to 2032.
• The solar energy segment is registering growth at a CAGR of 13.5% between 2023 to 2032.
• Asia-Pacific is grow at a notable CAGR of 9.7% from 2023 to 2032 and generated 35% market share in 2022.
• Europe region exhibited 32.5% market share in 2022 and growing at a CAGR of 8.5%

Renewable Energy Market Size in Asia Pacific 2023 To 2032

The Asia Pacific renewable energy market size was valued at US$ 368.60 billion in 2022 and is projected to reach over US$ 829.54 billion by 2032 with a registered CAGR of 8.50% from 2023 to 2032

Asia Pacific was the dominating renewable energy market with a market share of over 35% in 2022. It is estimated that over half of the renewable energy across the globe is consumed in Asia Pacific region. The rapid industrialization and urbanization in the region had resulted in the rapid increase in the pollution levels. Furthermore, a rapid increase in the population and rise in the residential projects in the region is fueling the demand for the electricity.

The renewable energy market is witnessing a rapid growth in the emerging economies like India and China owing to the strong growth in the economy owing to rising industrialization. The government initiatives are playing a crucial role in the adoption of the renewable energy across various end user applications. Furthermore, the increasing demand for the electricity owing to the increased investments in the industrialization is attracting a huge expenditure in the deployment of solar energy infrastructure. In 2017, China became the largest manufacturer of the bioelectricity and is now of the key producers of the wind energy, hydropower, and solar photovoltaic.

North America is anticipated to be the fastest-growing market during the forecast period. The rising awareness regarding the deteriorating environment conditions, rising government initiatives to curb carbon footprint and growing investments in the renewable energy sources are the major factors that are driving the growth of the North America renewable energy market.

Growth Factors

There are various renewable sources of energy such as wind, hydropower, solar, geothermal, and bioenergy. It is estimated that around 7% of the global energy demand is fulfilled by the renewable energy sources, currently. This share is expected to increase significantly in the forthcoming future. The rising awareness regarding the harmful effects of the fossil fuels on the environment, rising government initiatives to promote the adoption of clean and green energy, rising public and private efforts to curb carbon emission, and growing adoption of the green energy among the consumers are the major factors that are expected to foster the growth of the global renewable energy market. The rising industrialization and urbanization in the developing countries across the globe is expected to drive the demand for the various renewable energy sources like geothermal energy and solar energy during the forecast period.

The increasing developments in the technology are resulting in the decline costs of the renewable energy and the increasing competitiveness of the battery storage systems is positively impacting the growth of the renewable energy market. The rising concerns related to the climate change and ESG concerns all over the globe is attracting huge investments towards the adoption of the renewable energy sources. The government in various developed and developing economies is offering subsidies to the corporate sector to shift towards the clean and green energy in order to promote sustainability and preserve the environment. These factors are prominent in the growth of the renewable energy market across the globe.

Report Scope of the Renewable Energy Market

Type Insights

On the basis of type, the hydroelectric power was the leading segment in the global renewable energy market in 2022. An increased investment in the generation of off-grid energy and electrification of rural areas in the developing economies like China, India, Brazil, Colombia, and Vietnam has resulted in the increased demand for the small scale hydropower plants in the past few years. Furthermore, the increasing government initiatives to promote the generation and adoption of the hydropower are fueling the growth of the hydroelectric power segment in the global renewable energy market. For instance, Rajiv Gandhi Grameen Vidyutikaran Yojana by the Government of India was adopted for the electrification of rural areas in India. Therefore, the demand for the hydroelectric power is higher, which has led to the dominance of the hydroelectric power segment.

The solar is estimated to be the fastest-growing segment during the forecast period. The solar energy is gaining a rapid traction across the globe. The globe is witnessing increasing investments in the deployment of solar panels for generating electricity from the solar heat energy for the applications in various industries, commercial spaces, and residential units across the globe. The proposed plans of the government to build smart cities in countries like China, India, and Saudi Arabia is expected to foster the demand for the solar energy in the upcoming years. A surge in the adoption of the solar power in the government sector is expected to foster the growth of the solar segment in the global renewable energy market.

End User Insights

Depending on the end user, the global renewable energy market was dominated by the residential segment in 2022. There has been a huge demand for the geothermal energy for the heating applications in the residential sector across the globe. With the rising urbanization, the demand for the geothermal power is expected to increase significantly in the residential segment in the foreseeable future, owing to the rising demand for electricity. The increased consumer awareness among the consumers in the developed and developing economies is expected to fuel the adoption of the renewable energy sources during the forecast period, which will result in the dominance of the residential segment throughout the forecast period.

The commercial segment is anticipated to register the highest CAGR during the forecast. The rising government initiatives in the form of subsidies and regulatory reforms to promote adoption of the renewable energy sources in the commercial spaces are expected to augment the market growth. The technological advancements in the field of the renewable energy is reducing the costs associated with the deployment of the renewable energy, which is spurring the demand for the renewable energy across the commercial sector.

Key Companies & Market Share Insights

• In April 2021, Walmart revealed that it has achieved the deployment of 6.5 MW of solar power systems in itsseven stores inCalifornia, which was developed by the Sol Customer Solutions. Moreover, the portfolio consisted of a mixture of solar power systems deployedin parking lot rooftops and carports that costsaboutUS$10 million, and Bank of America (BOA) was the tax-equity partner.
• In April 2020, Engie entered into a partnership with Eocycle-XANT to include wind turbines into its product portfolio in Belgium. Engie is supposed to acquire customer requests and requirements and forward it to Eocycle-XANT that will look after the installation and maintenance of the wind turbines offered to the customer.

The renewable energy market is moderately fragmented owing to the presence of several top market players. These market players are constantly involved in the various developmental strategies such as partnerships, mergers, acquisitions, collaborations, new product launches, and various others to strengthen their position and increase their market share.

Some of the prominent players in the global renewable energy market include:

• ABB
• Xcel Energy Inc.
• EDF
• National Grid Renewables
• Acciona
• Enel Spa
• Innergex
• The Tata Power Company Limited
• General Electric
• Invenergy

Segments Covered in the Report

By Type

• Wind Power
• Hydroelectric Power
• Solar Power
• Bio Energy
• Geothermal

By End User

• Residential
• Industrial
• Power
• Chemicals & Petrochemicals
• Oil & Gas
• Food & Beverage
• Commercial
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa