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The Middle East and Africa renewable energy market size is forecast to increase by USD 17.28 billion, at a CAGR of 8.88% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. Firstly, the rise in global energy demand continues to fuel market expansion, as countries seek to meet their energy needs sustainably. Secondly, the increasing popularity of clean energy technologies, such as solar, wind, and hydroelectric power, is driving investment and innovation in the sector. Lastly, competition from alternative energy sources, including natural gas and nuclear power, is pushing renewable energy providers to improve efficiency and reduce costs to remain competitive. These trends are expected to continue shaping the renewable energy market in the coming years.
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The residential segment is estimated to witness significant growth during the forecast period. Increased consumption has negative effects on the environment through air pollution, the greenhouse effect, the urban heat island effect, etc. The most effective way to save power in residential is to use clean energy instead of limited resources. This allows the US to meet the increasing demands of the residential sector and conserve and protect limited resources for future generations without compromising environmental values.
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The residential segment was valued at USD 16.57 billion in 2018. In the residential segment, solar energy is the most important source because it is an endless source of light and heat. The flow of solar thermal power is harnessed by conduction, convection, and radiation. These natural processes are realized through building design, which heats and cools buildings. Wind energy is also one of the most important sources for the residential sector. It is environmentally friendly clean energy. Therefore, such factors are expected to drive the growth of the market during the forecast period.
Renewable energy is a rapidly growing sector in the global energy generation market, driven by the need to reduce greenhouse gas (GHG) emissions and mitigate climate change. Renewable energy sources, such as solar, wind, hydropower systems, biomass feedstock, geothermal heat, and low-carbon fuels, are becoming increasingly competitive with traditional gas-based power generation. Solar energy harnesses sunlight to generate electricity, while wind energy uses wind to turn turbines. Hydropower systems utilize the energy of moving water, and biomass feedstock is converted into fuel to generate power. Geothermal heat uses the earth's natural heat to generate electricity. Renewable energy sources have a minimal environmental impact compared to fossil fuels, which contribute significantly to GHG emissions and pollution. The installation capacity of renewable energy is expected to increase significantly in the coming years, with solar and wind power leading the way. The shift towards renewable energy is driven by concerns over energy security and the need to reduce carbon emissions. Renewable energy sources are clean and sustainable, making them an attractive alternative to traditional energy sources. The use of renewable energy is essential to combat climate change and create a more sustainable energy future.
The rise in energy demand is the key factor driving the growth of the market. The rise in energy demand emerges as the primary catalyst propelling market expansion within the MEA region. A notable uptick in demand, attributed to rapid population growth, urbanization, and industrialization, underscores the region's increasing reliance on sustainable energy sources.
Furthermore, this heightened interest in clean energy aims to fulfill sustainability objectives while ensuring energy security, driving momentum in market growth. Additionally, countries like Egypt are spearheading ambitious wind and solar power initiatives, exemplified by projects such as the Benban Solar Park. This transition towards renewable energy not only addresses environmental concerns but also enhances resilience against volatile oil prices, thus fueling market growth in the forecast period.
The rising popularity of clean energy technologies is the primary trend shaping the growth of the market. The MEA region has seen a significant increase in the use of sustainable technologies. This move is driven by the urgent need to diversify its sources, reduce greenhouse gas emissions, and harness the region's vast renewable resources. This harness will drive the growth of the market in the future.
Additionally, countries like Saudi Arabia are actively investing in green hydrogen production. The MEA region recognizes that sustainable energy is not only good for the environment but also good for business. These achievements represent a step towards sustainable sources and provide insight into the region's prospects. Therefore, due to the increasing penetration of clean sources, the market is expected to grow during the forecast period.
Competition from alternative energy sources is a challenge that affects the growth of the market. MEA countries have vast solar and wind resources, which compete with traditional fossil fuels such as oil and natural gas, which have historically dominated the scene. In some of the MEA countries, nuclear power and hydropower are also considered viable solutions, thereby challenging the market.
Additionally, MEA governments have invested heavily in oil and gas infrastructure, which has delayed the transition. Source diversification and regulatory reform are needed to address these challenges and promote sustainable development of it in the region. This is expected to hinder the growth of the market during the forecast period.
The market analysis and 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 market trends and analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acciona SA: The company offers solutions such as renewable energy water projects in South Africa and Egypt.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 market 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.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Renewable energy is a rapidly growing market, driven by the need to reduce greenhouse gas (GHG) emissions and transition to low-carbon fuels. The global installed capacity of renewable energy sources, including solar energy, wind energy, hydropower systems, biomass feedstock, geothermal energy, and biogas plants, is increasing at a significant rate. Solar power generation from solar PV systems and wind power are leading the charge, with solar energy harnessing the power of sunlight and wind energy utilizing the natural forces of wind. Renewable energy sources offer numerous benefits, such as energy self-sufficiency, flood control, clean drinking water, and irrigation support. Furthermore, they also contribute to emission reduction, making them an attractive alternative to traditional gas-based power.
In addition, the electricity demand for commercial, residential, and utility projects is driving the growth of the renewable energy market. Off-grid power solutions are also gaining popularity in areas prone to power outages. The environmental impact of renewable energy sources is minimal compared to traditional energy sources. Renewable energy harnesses the power of natural resources such as sunlight, wind, rain, tides, and waves, and converts them into electricity or heat. The production of renewable energy also has a lower carbon footprint and reduces the reliance on non-renewable resources, making it a sustainable and eco-friendly solution for the future. Energy efficiency and emission reduction are key focus areas for the renewable energy industry, with feed-in tariffs and incentives encouraging the adoption of renewable energy technologies.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.88% |
Market growth 2024-2028 |
USD 17.28 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.16 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acciona SA, ACWA Power International, AKER HORIZONS, AKUO ENERGY SAS, AMEA Power, Electricite de France SA, Enel Spa, Enerwhere Sustainable Energy, ENGIE SA, IBC SOLAR AG, Masdar, MVV Energie AG, PV Technology Inc., Saudi Arabian Oil Co., Scatec ASA, Siraj Power Contracting LLC, SolarAfrica Energy Pty Ltd., Solarwind M.E., SunPower Corp., and Yellow Door Energy |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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