Renewable Energy Market Size, Share & Trends Analysis Report By Product (Hydropower, Wind, Solar, Bioenergy), By Application (Industrial, Residential, Commercial), By Region (North America, APAC)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global Renewable Energy market size was exhibited at USD 1,030.96 billion in 2022 and is projected to hit around USD 2,374.31 billion by 2032, growing at a CAGR of 8.7% during the forecast period 2023 to 2032.

Key Pointers:

• The hydropower segment accounted for the largest share of more than 30.19% in 2022 
• The U.S. with 96.4 GW, Germany with 60.3, India with 35 GW, Spain with 23 GW, and others.
• The industrial segment led the market in 2022 and accounted for the maximum share of more than 63.20% of the overall revenue.
• The Asia Pacific accounted for the largest revenue share of more than 41.30% in 2022.

Renewable Energy Market Report Scope

Report Coverage	Details
Market Size in 2023	USD 1,120.65 Billion
Market Size by 2032	USD 2,374.31 Billion
Growth Rate from 2023 to 2032	CAGR of 8.7%
Base year	2022
Forecast period	2023 to 2032
Segments covered	Product, Application, Region
Regional scope	North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key companies profiled	Acconia; General Electric; Enel Spa; Tata Power; Innergex; Suzlon Energy Ltd.; Invenergy; ABB; Siemens Gamesa Renewable Energy, S.A.; Xcel Energy, Inc.; Schneider Electric

 

Governments across the world have framed various regulations to reduce Greenhouse Gas (GHG) emissions. The shift toward low-carbon fuels and the presence of stringent environmental regulations in most developed countries have provided a major boost to the renewable energy sector. Due to climate change and increasing environmental concerns, most governments have set targets to cut down their emissions. As a result, there have been huge investments in renewable energy and alternate fuels, and this trend is expected to continue in the coming years.

Thus, the increasing inclination toward eco-friendly products to reduce emissions is expected to fuel the demand for renewable energy during the forecast period. The hydropower segment accounted for the maximum revenue share in 2021. Hydropower also known as hydroelectric power offers advantages to the communities and plays a crucial role to help climate change by providing storage, power, and flexibility services. It is a domestic source of energy, which allows each state to generate its energy without reliance on any international fuel sources. The solar power segment is expected to witness considerable growth in the forecast period owing to its low cost. Moreover, it reduces electricity interruptions. Industrial was the dominant application segment in 2021.

The growing demand for clean electricity is expected to increase the number of utility projects and fuel the PV modules market growth across the industrial sector. The commercial segment is expected to expand further at the fastest CAGR during the forecast period The rapid adoption of PV modules in corporate offices, hotels, and hospitals is expected to drive the product demand across the commercial sector coupled with an increased power demand in communication base stations and data centers. The Asia Pacific was the largest region for renewable energy in 2021 due to the high demand for renewable energy as a result of the rising number of installations of solar power projects in China and India.

These countries are the key markets for solar panels both globally and in the Asia Pacific. In addition, countries in the region, including Australia and Japan, have high growth potential as they have been investing largely in solar power generation for the last few years. Major players in the industry are focusing on innovation and technological advancements to reduce the cost of renewable energy and make it competitive with traditional power sources, such as natural gas and coal. In addition, industry participants are emphasizing practicing several strategic initiatives, such as joint ventures, partnerships, mergers & acquisitions, and others, to enhance their foothold in the market.

Product Insights

The hydropower segment accounted for the largest share of more than 30.19% in 2022 and will expand further at a steady CAGR from 2023 to 2032. Hydropower also known as hydroelectric power offers advantages to the communities and plays a crucial role to help climate change by providing storage, power, and flexibility services. The solar power segment is expected to grow at the fastest CAGR during the forecast period. It is low-cost, offers a home or business ‘green label’, reduces electricity interruptions, and others. Grid electricity has a lot of power outages and even hydroelectric power is prone to power outages during transmission; however, solar systems are more efficient when it comes to transmissions. Wind power and bioenergy segments are also expected to increase steadily in the forecast period as traditional energy sources get replaced by renewable energy.

As of 2020, China leads with wind energy with an installed capacity of 221 GW followed by the U.S. with 96.4 GW, Germany with 60.3, India with 35 GW, Spain with 23 GW, and others. These factors combined with the environmental concerns regarding the use of fossil fuels are expected to drive the demand for wind energy over the forecast period. Furthermore, geothermal energy, renewable energy derived from the earth’s heat, can be harnessed as a source of renewable electricity and for cooling and heating applications. The U.S. leads the world’s geothermal energy capacity with 3.7 GW. Furthermore, the largest geothermal plant in the world is located in California, and with strong industry adoption, geothermal energy is expected to meet 10% of the U.S. electricity demand in the near future. These factors are expected to drive the segment over the forecast period.

Application Insights

On the basis of applications, the global industry is further divided into industrial, commercial, and residential. The industrial segment led the market in 2022 and accounted for the maximum share of more than 63.20% of the overall revenue. The growing demand for clean electricity is expected to increase the number of utility projects and fuel the PV modules market growth across the industrial sector. According to the Solar Energy Industries Association, there are over 37 GW of power plants in operation in the U.S. in 2020, with an additional 112 GW in development. These factors are expected to drive the demand for solar PV panels in the industrial application segment over the forecast period.

The launch of solar PV panels in residential applications is expected to increase product demand over the forecast period. For instance, in September 2021, Solaria introduced a black solar panel for residential applications with a power output of 430 W. The new panel is dubbed PowerXT 430R-PL and has a power conversion efficiency of 20.40% along with a size of 1,076×1,957x35mm and a weight of 21.3 kg. Commercial solar PV panels have a lifespan of over 15 to 20 years and can be used to power industrial buildings in off-grid or remote locations, pre-heating ventilation air, and water heating in offices, businesses, and others. The rapid adoption of PV modules in corporate offices, hotels, and hospitals is expected to drive product demand across the commercial sector coupled with increased power demand in communication base stations and data centers.

Regional Insights

The Asia Pacific accounted for the largest revenue share of more than 41.30% in 2022. The increasing demand for renewable energy in the Asia Pacific is attributed to the rising installation of solar power projects in China and India. These countries are the key markets for solar panels both globally and in the Asia Pacific. In addition, countries in the region, including Australia and Japan, have high growth potential for the market as they have been investing largely in solar power generation for the last few years.  The market in North America is expected to grow at a significant pace in the forecast period.

Power generation from industrial sector solar cells has increased over the years as more efficient solar cells are available in the market. In addition, the intensifying competition in the industry has helped reduce the price of electricity produced as well as increase the variety of solar panels. These factors are expected to bolster the demand for renewable energy in the region over the forecast period. Factors including growing concerns about Greenhouse Gas (GHG) emissions, generation cost, and regulations to decrease carbon footprint are projected to drive the growth during the forecast period.

Some of the prominent players in the Renewable Energy Market include:

• ABB
• Acconia
• Enel Spa
• General Electric
• Innergex
• Invenergy
• Schneider Electric
• Siemens Gamesa Renewable Energy, S.A.
• Suzlon Energy Ltd.
• Tata Power
• Xcel Energy, Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Renewable Energy market.

By Product 

• Hydro Power
• Wind Power
• Solar Power
• Bioenergy
• Others

By Application 

• Industrial
• Residential
• Commercial

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)