Authored By: Sarah
12 Jul 2024

 Renewable Energy Market Size to grow by USD 708.6 billion between 2024-2028

According to a research report “ Renewable Energy Market” by End-user (Residential, Industrial, Commercial) Type (Hydropower, Solar, Wind, Others) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 708.6 billion, at a CAGR of  13.15% during the forecast period. The International Energy Agency (IEA) reports that global electricity demand has more than doubled since 1990, surpassing the growth in demand for other fuel sources. By 2040, electricity demand is projected to double once again, representing over 50% of the total global energy demand growth. Emerging economies, particularly India and China, are driving this trend. In 2018, India's electricity demand expanded by 5% annually, with the goal of providing universal access by 2025. Over the next two decades, China is anticipated to add a power system equivalent to the US in 2018, further fueling global electricity demand growth.

Browse market data tables, figures, and in-depth TOC on “Renewable Energy Market” by End-user (Residential, Industrial, Commercial) Type (Hydropower, Solar, Wind, Others) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By End-user, the Residential segment is projected to dominate the market size in 2024

The hydropower segment held a significant market share of approximately 15% in the global renewable energy sector in 2023, leading the market by type. This dominance is attributed to the surging demand for clean energy sources, increasing power requirements, and substantial investments in hydropower projects. With a current pipeline of 590 GW, hydropower continues to be a major contributor to the global electricity supply. Notably, 2022 witnessed the commissioning of over 34 GW of new hydropower capacity, marking the first time more than 30 GW came online since 2016. This includes 10 GW of pumped storage projects, emphasizing the significance of large-scale hydropower projects in the renewable energy landscape.

By Type, Hydropower  segment is expected to hold the largest market size for the year 2024

The residential sector represents a significant energy consumption segment on a global scale, leading to inefficiencies and negative environmental consequences. This trend poses challenges in terms of air pollution, the greenhouse effect, and the urban heat island effect, all of which can adversely impact human health and socio-economic progress. To mitigate these issues, the adoption of renewable energy in residential buildings is a strategic solution. By transitioning to clean energy sources, we can meet the increasing energy demands of this sector, conserve precious resources for future generations, and uphold environmental sustainability.

APAC is forecasted to hold the largest market size by region in 2024

As a seasoned business analyst, I'm pleased to provide insights into the thriving Renewable Energy Market. This sector experiences significant growth, driven by increasing global awareness and demand for sustainable energy solutions. Key players invest heavily in solar, wind, hydro, and biomass energy technologies to meet expanding consumer needs and regulatory requirements. The market's future looks promising, with continuous advancements in renewable energy storage and efficiency technologies.

The Renewable Energy Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • ABB Ltd.
  • Acciona SA
  • Duke Energy Corp.
  • EnBW Energie Baden Wurttemberg AG
  • Enel Spa
  • ENERCON GmbH
  • General Electric Co.
  • Goldwind Australia
  • Innergex Renewable Energy Inc.
  • Invenergy
  • Nextera Energy Inc.
  • Schneider Electric SE
  • Siemens AG
  • Sinovel Wind Group Co. Ltd.
  • Sunrun Inc.
  • Suzlon Energy Ltd.
  • Tata Power Co. Ltd.
  • Vattenfall AB
  • Vestas Wind Systems AS
  • Xcel Energy Inc.
.

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Research Analysis Overview

The renewable energy market is experiencing significant growth as the world shifts towards reducing greenhouse gas emissions and minimizing carbon dioxide (CO2) emissions. Renewable energy sources, such as onshore and offshore wind energy, ocean power, solar energy, geothermal, and hydroelectric power, are becoming increasingly popular due to their ability to generate electricity without contributing to fossil fuel-related emissions. Wind energy, specifically, is gaining traction with the use of generators like wind turbines. Solar energy is also a major player, with residential and utility-scale systems providing electricity to homes and businesses. Battery storage systems are also crucial in ensuring a stable and reliable energy supply. Environmental conditions and policy makers play a significant role in the renewable energy market. The global energy crisis and rising electricity prices have also contributed to the increased interest in renewable energy. Small distributed systems and utility-scale systems are both seeing investment, with costs decreasing and interest rates becoming more favorable. The renewable energy market is expected to continue growing, with solar PV capacity expected to increase significantly in the coming years. The carbon footprint of renewable energy sources is significantly lower than that of fossil fuels, making them a more sustainable and environmentally-friendly option for energy production. The future of energy security lies in the continued development and implementation of renewable energy sources.

Market Research Overview

The Renewable Energy Market is witnessing significant growth with key players like Enel Green Power, Engie, Invenergy, Innergex, Acciona, and Enel Spa leading the charge. Nuclear power is gradually being replaced by renewable sources due to concerns over greenhouse gas emissions and carbon dioxide (CO2) footprint. Onshore and offshore wind energy, ocean power, solar energy, hydroelectric power, geothermal energy, and bioenergy are the major renewable sources. Regulatory reforms and subsidies are driving the commercial segment, with heating applications and smart cities also adopting renewables. Electrification and off-grid energy are other emerging areas. Renewables, including wind energy (utility-scale and distributed), solar PV (utility and residential), and hydroelectric power, are gaining popularity due to high electricity prices, energy crisis, and policy implementation. ESG concerns and climate change are major factors influencing the market. Battery storage systems are essential for managing intermittency and ensuring energy security. Policy makers are implementing legislation to accelerate renewables adoption, but construction, grid connection, and permitting delays, undersubscription of auctions, and wind energy additions face challenges. Fossil fuels, despite their high carbon footprint, continue to dominate the energy landscape. Renewables, especially solar and wind, are becoming increasingly cost-competitive, with investment costs decreasing and interest rates falling. The global energy crisis is pushing for a rebound in renewables, with commercial and residential systems leading the way. Hydropower, offshore wind, onshore wind, PV-distributed, and PV-utility are the major renewable segments.

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