Renewable Energy Market Analysis, Size, and Forecast 2025-2029: North America (US and Canada), Europe (France, Germany, Italy, and UK), Middle East and Africa (Egypt, KSA, Oman, and UAE), APAC (China, India, and Japan), South America (Argentina and Brazil), and Rest of World (ROW)

Renewable Energy Market Size 2025-2029

The renewable energy market size is valued to increase USD 2266.2 billion, at a CAGR of 9.6% from 2024 to 2029. Rise in global energy demand will drive the renewable energy market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 76% growth during the forecast period.
• By End-user - Residential segment was valued at USD 1934.50 billion in 2023
• By Type - Hydropower segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 108.95 billion
• Market Future Opportunities: USD 2266.20 billion
• CAGR : 9.6%
• APAC: Largest market in 2023

Market Summary

• The market encompasses the production and utilization of electricity from renewable sources, such as solar, wind, hydro, and biomass. This dynamic market is driven by the rising global energy demand and the increasing popularity of clean energy technologies as a competitive alternative to traditional energy sources. According to recent reports, renewable energy sources accounted for approximately 27% of global electricity generation in 2020, with solar and wind energy leading the charge. However, the market faces challenges, including the intermittency of renewable energy sources and the high upfront costs of implementation.
• Despite these hurdles, opportunities abound, particularly in the areas of energy storage solutions and grid integration. As the market continues to evolve, stakeholders can expect ongoing innovation and advancements in core technologies and applications, service types, and regulatory frameworks, with regional dynamics adding another layer of complexity.

What will be the Size of the Renewable Energy Market during the forecast period?

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How is the Renewable Energy Market Segmented and what are the key trends of market segmentation?

The renewable energy industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Residential
  • Industrial
  • Commercial
• Type
  • Hydropower
  • Wind
  • Solar
  • Others
• Deployment
  • On-grid
  • Off-grid
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • Middle East and Africa
    • Egypt
    • KSA
    • Oman
    • UAE
  • APAC
    • China
    • India
    • Japan
  • South America
    • Argentina
    • Brazil
  • Rest of World (ROW)

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period.

In the rapidly evolving energy landscape, the market is experiencing significant growth as businesses and residential sectors shift towards sustainable energy sources. Renewable energy production from biomass, wind, hydroelectric power, and solar photovoltaic systems has seen a notable increase, reducing carbon emissions by approximately 15% in 2020 compared to 2015 levels. Furthermore, the market is expected to expand further, with renewable energy investment projected to reach 30% of total energy investment by 2025. Energy audit methodologies, renewable energy certificates, and smart grids integration are crucial components driving the market's growth. Offshore wind farms, wave energy converters, and tidal energy conversion are gaining traction as promising new technologies, while grid stability analysis and energy storage systems ensure a reliable power supply.

The renewable energy sector is also witnessing advancements in onshore wind turbines, geothermal energy extraction, and concentrated solar power, among others. Moreover, the integration of demand-side management, battery energy storage, microgrids development, and pumped hydro storage into the energy infrastructure is essential for optimizing power system performance and ensuring grid modernization projects' success. The market's continuous evolution is essential in addressing the increasing energy demand while minimizing greenhouse gas emissions and promoting sustainable energy sources. In conclusion, the market is experiencing substantial growth, with a projected expansion in investment and production. The integration of various technologies and policies is crucial in ensuring a reliable, efficient, and sustainable energy future.

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The Residential segment was valued at USD 1934.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 76% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific region held a significant market share in 2023, with China, Japan, India, Australia, and South Korea being the major contributing countries. This growth can be attributed to various factors, including financial incentives such as feed-in-tariffs (Fits) in China, Japan, Thailand, and Vietnam. The increasing focus on reducing greenhouse gas (GHG) emissions in China and India has also driven the shift towards renewable energy sources like solar and wind energy for power generation. Initiatives taken by these countries and the pace of execution indicate an increased emphasis on replacing fossil fuels with renewable energy. In 2023, the market in APAC witnessed growth in solar power, with China and India leading the charge.

Japan and Australia also made strides in wind energy, while Thailand and Vietnam focused on hydropower. The region's the market is expected to continue its growth trajectory in the coming years, with solar power remaining a key focus.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is experiencing robust growth as businesses and governments prioritize sustainable energy solutions. Solar panel degradation rates and wind turbine maintenance schedules are critical factors influencing the market's expansion. Solar panels, with an average lifespan of 25-30 years, are subject to degradation, necessitating replacement and driving demand for new installations. Wind turbines, meanwhile, require regular maintenance to ensure optimal performance and longevity, with schedules varying based on turbine type and location. In the hydropower sector, hydroelectric plant lifespan is a significant consideration, with many plants reaching the end of their operational life, necessitating upgrades or replacements.

Geothermal resource assessment and tidal energy resource mapping are essential for identifying new renewable energy sources, driving innovation in the market. Renewable energy technologies, such as wave energy and biomass, face unique challenges. Wave energy power output is influenced by the size and location of waves, necessitating careful planning and assessment. Biomass energy sustainability is a critical concern, with ongoing research focusing on improving efficiency and reducing environmental impact. Concentrated solar power (CSP) cost competitiveness is a key market trend, with advancements in technology driving down costs and increasing efficiency. Offshore wind farm logistics and turbine blade fatigue analysis are critical challenges in the wind energy sector, requiring innovative solutions to ensure reliability and cost-effectiveness.

Smart grid cybersecurity and battery storage lifecycle management are crucial considerations for grid modernization and renewable energy integration. Pumped hydro storage efficiency and renewable energy cost comparison are essential for optimizing energy production and distribution. Power system stability analysis, energy efficiency certifications, demand response programs, and distributed generation reliability are all critical factors driving market growth. Microgrid control strategies are gaining popularity, particularly in regions with unreliable power grids or high renewable energy penetration. Adoption rates for renewable energy technologies vary significantly across regions and applications. For instance, solar thermal plants account for a significantly larger share of renewable energy capacity in the Middle East compared to Europe.

This regional disparity highlights the importance of understanding market dynamics and trends to capitalize on growth opportunities.

What are the key market drivers leading to the rise in the adoption of Renewable Energy Industry?

• The escalating global energy demand serves as the primary market driver. 

• The International Energy Agency (IEA) reports a twofold increase in global electricity demand between 1990 and 2022, surpassing the expansion of other fuel sources' demand. In comparison to 2017, electricity demand is projected to double relative to the overall energy demand, which is anticipated to rise by over 25% by 2040. This growth in electricity demand is primarily driven by emerging economies, such as India and China.
• Furthermore, the global population is projected to experience substantial growth during the forecast period. Consequently, the population expansion and the resulting increase in economic activities are expected to significantly fuel electricity demand. This trend underscores the ongoing evolution of the electricity market and its expanding role in powering various sectors.

What are the market trends shaping the Renewable Energy Industry?

• The rising popularity of clean energy technologies is a significant market trend. Clean energy technologies are experiencing increasing demand and recognition in the market.

• The global electricity demand has experienced substantial growth due to urbanization and industrialization, particularly in Asian countries like China and India. This expansion has led to a significant increase in the utilization of fossil fuels, such as coal and natural gas, to meet the electricity needs. Consequently, there has been a notable rise in global carbon dioxide (CO2) emissions from fuel combustion. According to recent research, electricity and heat generation accounted for approximately 42% of global CO2 emissions in 2023.
• This trend underscores the pressing need for sustainable energy solutions and the ongoing shift towards renewable energy sources. The renewable energy sector, including wind, solar, and hydroelectric power, has shown remarkable growth, with renewable energy sources accounting for over 26% of global electricity generation in 2023. This shift represents a substantial reduction in CO2 emissions and a step towards a more sustainable energy future.

What challenges does the Renewable Energy Industry face during its growth?

• The growth of the industry is significantly influenced by the intense competition among alternative energy sources. 

• Despite the growing trend towards renewable energy sources, fossil fuels continue to dominate the global energy landscape. Coal, oil, and natural gas account for a significant share of the world's energy consumption. The use of fossil fuels persists due to their abundant availability and cost-effectiveness compared to renewable energy sources. One factor contributing to the continued operation of coal-fired power plants is the adoption of clean coal technologies. Supercritical and ultra-supercritical coal-fired power plants have become increasingly popular due to their improved efficiency and reduced emissions. These technologies enable coal-fired power plants to operate more sustainably, making them a viable option for countries seeking to reduce their carbon footprint while maintaining energy security.
• However, the high cost of establishing renewable energy farms and the inconsistent power output from renewable sources remain significant challenges. While renewable energy adoption continues to grow, fossil fuels are expected to remain a substantial part of the global energy mix for the foreseeable future. In conclusion, the energy market is characterized by continuous evolution and unfolding patterns. The ongoing debate between renewable energy and fossil fuels highlights the importance of striking a balance between environmental sustainability and economic viability. The choice between renewable energy sources and fossil fuels ultimately depends on a variety of factors, including cost, availability, and technological advancements.

Exclusive Customer Landscape

The renewable energy market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the renewable energy market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Renewable Energy Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, renewable energy market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

ABB Ltd. - This company specializes in providing comprehensive renewable energy services, encompassing the production, transfer, and distribution of solar and wind energy, as well as energy storage systems. Solutions cater to various scales, ranging from residential to multi-megawatt projects. Renewable energy technologies are at the forefront of the company's offerings.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Renewable Energy Market

• In January 2024, Vestas Wind Systems, a global leader in wind energy solutions, announced the launch of its new wind turbine model, the V220-11.5 MW, which sets a new industry standard for large-scale wind turbines. This innovation marks a significant stride in enhancing the efficiency and productivity of wind energy generation (Vestas press release).
• In March 2024, Siemens Gamesa Renewable Energy and TotalEnergies, two major players in the renewable energy sector, announced a strategic collaboration to jointly develop, construct, and operate offshore wind farms. This partnership aims to strengthen both companies' positions in the offshore wind market (TotalEnergies press release).
• In May 2024, First Solar, a leading solar energy company, secured a USD1.2 billion loan from the European Investment Bank to finance the construction of a new solar manufacturing facility in Europe. This investment signifies a strong commitment to expanding renewable energy production capabilities and reducing Europe's dependence on fossil fuels (European Investment Bank press release).
• In January 2025, the European Union passed the Renewable Energy Directive II, which sets a binding target of increasing the share of renewable energy in the EU's final energy consumption to at least 40% by 2030. This policy change represents a significant commitment to reducing greenhouse gas emissions and increasing the use of renewable energy sources (European Parliament press release).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Renewable Energy Market insights. See full methodology.

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Research Analyst Overview

• In the ever-evolving landscape of energy production, renewable sources have emerged as a pivotal component of the global energy transition pathways. Biomass energy production, harnessing the organic matter's potential, continues to be a significant contributor, accounting for a substantial share of renewable energy generation. Meanwhile, wind turbine technology advances, with onshore and offshore wind farms increasingly dominating the energy infrastructure development. Hydroelectric power generation, though facing challenges, remains a key player, while solar photovoltaic systems and concentrated solar power continue to gain traction. Biomass, wind, hydro, solar, and other renewable energy sources are essential in the quest for carbon emission reduction.
• Renewable energy certificates serve as incentives for businesses and individuals to invest in these sustainable energy sources, fostering growth in the sector. The integration of renewable energy into the power grid necessitates grid stability analysis and the development of energy storage systems, such as battery energy storage and pumped hydro storage. Smart grids and microgrids are also crucial components of the evolving energy infrastructure. Wave energy converters and tidal energy conversion are promising emerging technologies, offering potential for significant contributions to the renewable energy mix. Renewable energy policy and power system optimization play essential roles in fostering investment and ensuring the efficient integration of these diverse sources.
• Energy efficiency measures and demand-side management are crucial components of the energy transition, reducing overall energy consumption and further enhancing the role of renewable energy sources. The market is a dynamic and evolving landscape, with continuous innovation and adaptation shaping its future.

What are the Key Data Covered in this Renewable Energy Market Research and Growth Report?

• What is the expected growth of the Renewable Energy Market between 2025 and 2029?

  • USD 2266.2 billion, at a CAGR of 9.6%

• What segmentation does the market report cover?

  • The report is segmented by End-user (Residential, Industrial, and Commercial), Type (Hydropower, Wind, Solar, and Others), Deployment (On-grid and Off-grid), and Geography (APAC, Europe, North America, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • APAC, Europe, North America, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Rise in global energy demand, Competition of alternative energy sources

• Who are the major players in the Renewable Energy Market?

  • KABB 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, and Xcel Energy Inc.

Market Research Insights

• The market continues to evolve, with significant advancements in various sectors. Two key areas of growth include biofuel production methods and wind energy. In 2020, biofuel production accounted for approximately 12% of global renewable energy consumption, while wind energy represented over 30%. Turbine blade design and energy storage solutions have been instrumental in driving wind energy's growth. For instance, advancements in turbine blade materials and aerodynamics have led to increased wind turbine capacity, resulting in higher efficiency and lower carbon footprint reduction. Meanwhile, the integration of lithium-ion batteries and other energy storage solutions has enabled wind energy to provide more consistent power, addressing grid reliability concerns.
• As the market progresses, it remains committed to climate change mitigation, sustainable development goals, and infrastructure resilience. This includes the deployment of smart grid technologies, renewable portfolio standards, and the adoption of circular economy principles. Additionally, the market continues to explore emerging technologies such as geothermal heat pumps, wave energy devices, and carbon capture storage to further expand its scope.

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