The global renewable energy market was valued at USD 1.21 trillion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2030. This growth is largely driven by a global shift toward low-carbon energy sources and the implementation of stringent environmental regulations across many developed nations. In recent years, the renewable energy sector has seen significant growth in installed capacity, fueled by increasing environmental concerns and the need to reduce greenhouse gas (GHG) emissions. These factors have played a key role in the expansion of solar and wind energy.
In the United States, the renewable energy industry benefits from supportive government policies and the widespread availability of biomass feedstock. The number of renewable energy plants has risen in response to strict emission regulations. The country’s energy landscape is shifting, with growing adoption of gas-based and renewable power sources, replacing traditional coal-based generation. Factors such as rising electricity distribution costs, frequent power outages from main grid faults, and federal incentive programs are encouraging end-users to consider hydropower systems, thereby boosting demand for renewable energy solutions.
Germany, a leading economy in Europe, has emerged as a major market for renewable energy. The country has made significant investments in alternative energy technologies to reduce its dependence on traditional fossil fuels like coal and crude oil and to move toward energy independence. As a result, the solar power sector has experienced substantial growth and is expected to continue expanding in the coming years. Germany's thriving solar industry is anticipated to drive further market development. Additionally, renewable energy offers several benefits such as local energy generation, reduced reliance on foreign fuel sources, flood control, clean water access, irrigation, cost-effective electricity, and long-term durability.
Get a preview of the latest developments in the Global Renewable Energy Market! Download your FREE sample PDF today and explore key data and trends
Regional Insights
In 2023, the Asia Pacific region accounted for a significant revenue share of 40.98%. This is primarily due to a surge in solar power installations in countries like China and India, which are key players in the global and regional solar panel markets. Other nations in the region, including Australia and Japan, also show strong potential due to substantial investments in solar energy over recent years.
The North American market is expected to witness strong growth over the forecast period. Increased power generation by the industrial sector, driven by the availability of more efficient solar cells, has contributed to this trend. Growing competition has led to lower electricity production costs and greater variety in solar panel options. These developments, along with heightened awareness of GHG emissions, rising generation costs, and strict carbon footprint regulations, are anticipated to propel the adoption of renewable energy across the region.
Key Companies & Market Share Insights
Leading companies in the renewable energy industry are emphasizing technological innovation to lower generation costs. Many are also adopting strategic initiatives to expand their market presence. For example, in July 2022, ACCIONA finalized an agreement with FORTIA to provide a renewable energy management platform for major industrial clients, including the physical delivery of over 1 TWh of renewable electricity over a 5- to 10-year period.
Key Renewable Energy Companies:
Gather more insights about the market drivers, restrains and growth of the Renewable Energy Market
