The global Renewable Energy Technologies Market is estimated to be valued at US$ 881.7 Bn in 2022 and is expected to exhibit a CAGR of 8.4% over the forecast period, 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Renewable energy technologies produce sustainable and clean sources of energy from renewable and constantly replenishing resources such as solar, wind, water, biomass and geothermal sources. These technologies provide cost-effective, locally available and environment-friendly energy solutions. They enhance energy security by reducing dependence on fossil fuels. Renewable technologies produce zero direct emissions during operation and utilize renewable indigenous resources, thereby lowering import dependence for energy requirements.
Market key trends:
One of the key trends in the renewable energy technologies market is increasing investment in renewable energy sources amid rising concerns over climate change. Governments across the globe are formulating favourable policies and introducing incentives to encourage rapid adoption of renewable technologies. For instance, in 2021, the U.S. approved investments of over $550 billion as part of an infrastructure bill to support clean energy technologies and achieve net zero emissions by 2022. Additionally, rapid decline in the Levelized Cost of Energy (LCOE) from renewable sources as compared to fossil fuels is driving their large-scale adoption. Technological advancements have led to increased efficiencies and lower costs of equipment for renewable power generation.
Porter’s Analysis:
· Threat of new entrants: The renewable energy market requires high investments in technology and infrastructure making the threat of new entrants low. There are also economies of scale that new companies may find difficult to compete with existing players.
· Bargaining power of buyers: The bargaining power of buyers is moderate as the demand for renewable energy sources is increasing but buyers have limited options to switch between energy producers.
· Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components and technologies required for renewable energy production have few substitutes but suppliers still need to compete for contracts.
· Threat of new substitutes: The threat of substitutes is moderate as fossil fuels still dominate the overall energy market but technologies in renewable sources are improving rapidly increasing substitution threat over the long term.
· Competitive rivalry: Intense as major players globally compete on cost reductions and technological innovations to gain scale and market share.
Key Takeaways
The Global Renewable Energy Technologies Market Size is expected to witness high growth, exhibiting CAGR of 8.4% over the forecast period, due to increasing investments in sustainable energy sources and growing installation of renewable power plants globally. Asia Pacific is expected to dominate the market during the forecast period owing to rapid industrialization, growing population and increasing energy demands in China, India and other developing countries in the region.
Europe is expected to grow at a significant rate during 2023-2030 on account of supportive regulatory policies and initiatives towards renewable energy adoption in countries like Germany, UK, France and Italy. Majority of new renewable installations are likely to take place in China, US, India and European nations with focus on solar, wind, hydro and bioenergy technologies.
Key players operating in the renewable energy technologies market include Innergex Renewable Energy Inc, Infigen Energy, Goldwind, First Solar, Inc., Aventine Renewable Anwell Technologies Ltd., SunPower Corporation, Yingli Green Energy Holding Co, LTD., Vestas Wind Systems A/S, SMA Solar Technology, AG, and Ocean Power Technologies, Inc. amongst others. The players are focusing on capacity additions, product innovation and partnerships to strengthen their positions in the competitive market.
