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The renewable energy investment market size is forecast to increase by USD 181.9 billion at a CAGR of 8.11% between 2023 and 2028. The market is experiencing significant growth, driven by supportive government policies and increased spending on utility-scale renewable energy projects. These trends are fueled by the global shift towards sustainable energy sources and the need to reduce greenhouse gas emissions. However, competition from fossil fuels remains a challenge, as they continue to be a cheaper alternative in some regions. Despite this, the renewable energy sector is expected to continue its growth trajectory, with investments in solar, wind, and hydroelectric power expected to increase in the coming years. Government incentives, technological advancements, and the increasing demand for clean energy are expected to drive this growth, making renewable energy a promising investment opportunity for businesses and individuals alike.
The Market is experiencing significant growth due to the global Energy crisis and the EU's deployment of renewable energy sources for Energy affordability and Energy security. Solar technology and Wind technology are leading the charge, with Biofuels also playing a crucial role. The IEA assessment highlights the importance of Policy developments, such as clean energy laws and Renewable Portfolio Standards, in driving capacity additions and Electricity generation from geothermal energy and Renewable Energy. The Paris Agreement and UN Climate Change conferences have emphasized the need for Decarbonization, leading to Federal investments and Infrastructure Investment in Renewable Energy. Offshore wind is a promising area for growth, with the Tax-credit transfer market facilitating investment. The integration of Renewable Energy into the Power system is a challenge, but advancements in Grid resilience and Generative artificial intelligence are helping to address this. Greenhouse gas emissions and Carbon reduction targets continue to be key drivers, with Biofuel demand also increasing.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The asset finance segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth as the world grapples with energy affordability and security amidst the ongoing energy crisis. The European Union (EU) is leading the deployment of renewable energy sources, such as solar technology and wind technology, to reduce greenhouse gas emissions and meet carbon reduction targets. Biofuels are also gaining traction due to increasing biofuel demand and policy developments.
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The asset finance segment was the largest segment and valued at USD 230.30 billion in 2018. However, challenges persist in the form of labor and capital costs, interconnection and permitting delays, transmission limitations, and regulatory hurdles. Utility-scale solar and wind capacity additions are crucial for electricity generation and decarbonization, but the competitiveness of renewable energy sources with fossil fuel alternatives is influenced by rising interest rates. Policy support, such as renewable portfolio standards and tax-credit transfer markets, plays a crucial role in boosting the market. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 67% 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. The market is experiencing significant growth due to the global energy crisis and EU deployment of clean energy sources. Renewable Energy, including Solar technology and Wind technology, is becoming increasingly important for energy affordability, energy security, and decarbonization. Biofuels, another renewable energy source, are witnessing increasing demand due to policy developments and carbon reduction targets. Challenges in the renewable energy sector include labor and capital costs, interconnection and permitting delays, transmission limitations, and regulatory hurdles. Hence, such factors are driving the market in APAC during the forecast period.
Our researchers analyzed the data with 2023 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.
Supportive government policies is notably driving market growth. Renewable energy sources, including solar photovoltaic (PV) and wind energy, are gaining significant traction as governments and businesses seek to reduce greenhouse gas (GHG) emissions and mitigate the energy crisis caused by the reliance on fossil fuels. In particular, Canada has been actively promoting the adoption of renewable energy through incentives such as the Investment Tax Credit (ITC).
Moreover, this federal policy offers a 26% tax credit for renewable energy installations established between 2020 and 2022 and a 22% credit for those installed in 2023. The solar PV capacity and onshore wind capacity are experiencing a rebound, with utility-scale systems and distributed systems, such as residential and commercial systems, seeing substantial growth. Thus, such factors are driving the growth of the market during the forecast period.
Increased spending on utility-scale renewable energy projects is the key trend in the market. Utility-scale renewable energy projects, particularly solar PV and onshore wind, continue to expand, with an increasing number of nations prioritizing these systems due to their potential to address electricity price concerns and mitigate energy crises caused by the reliance on fossil fuels. These projects, with capacities exceeding 10 MW, are customized energy solutions that benefit from supportive state and local policies and initiatives.
Moreover, these policies often include financial mechanisms such as tax incentives and clean energy targets. However, the decision-making process for investors and regulatory bodies regarding the adoption of renewable energy versus traditional electricity generation sources can be challenging due to the varying costs and efficiencies of each option. Thus, such trends will shape the growth of the market during the forecast period.
Competition from fossil fuels is the major challenge that affects the growth of the market. The market has witnessed significant growth in recent years due to the increasing demand for clean and sustainable energy sources. However, the shift towards renewable energy has been slow due to the high initial investment required for solar PV capacity and onshore wind capacity installations. Utility-scale systems and large commercial projects have seen the majority of investments, while residential systems have also gained traction.
Moreover, electricity prices and the energy crisis have driven the need for renewable energy, but the intermittent nature of solar PV and wind energy has led to delayed projects and a rebound in fossil fuel usage. Hence, the above factors will impede the growth of the market during the forecast period.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis 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.
Bank of America Corp: The company offers wide range of solutions for renewable energy and energy efficiency.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 is experiencing significant growth as the world grapples with Energy crisis and strives for Energy security and affordability. EU deployment of Solar technology and Wind technology is at the forefront of this transition, with Biofuels also playing a crucial role in the shift towards clean energy. Policy developments, such as Clean energy laws and Renewable portfolio standards, are driving Capacity additions in Utility-scale solar and Offshore wind, leading to increased Electricity generation from renewable sources. However, challenges persist, including Labor costs, Capital costs, Interconnection delays, Permitting delays, tidal energy, and Transmission limitations. Policy support, such as Federal investments and Infrastructure Investment, are essential to mitigate these challenges and boost competitiveness of Renewable Energy against Fossil fuel alternatives. Hydrogen deployment and Workforce reskilling are also key areas of focus for a successful transition. Decarbonization efforts and Carbon reduction targets are pushing for the integration of Renewable Energy into Power systems, requiring Grid resilience and Regulatory boosts. The Tax-credit transfer market is also playing a role in the transition, providing incentives for investments. The use of Generative artificial intelligence is further enhancing the efficiency and competitiveness of Renewable Energy projects. Rising interest rates and the need for Fossil fuel alternatives are additional factors influencing the market. Overall, the market is dynamic and requires a comprehensive understanding of the various factors shaping its growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.11% |
Market growth 2024-2028 |
USD 181.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.5 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 67% |
Key countries |
China, US, Japan, Germany, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AZORA CAPITAL SL, Bank of America Corp., Berkeley Partners LLP, BlackRock Inc., BNP Paribas SA, Capital Dynamics Holding AG, Centerbridge Partners LP, CHN ENERGY Investment Group Co. Ltd., Citigroup Inc., Deloitte Touche Tohmatsu Ltd., EKF, ESFC Investment Group, General Electric Co., KfW Bankengruppe, Macquarie Group Ltd., Mitsubishi UFJ Financial Group Inc., Nebras Power, Positive Energy Ltd., State Power Investment Corp., TerraForm Power Operating LLC, and The Goldman Sachs Group Inc. |
Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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