Renewable Energy Investment Market by Type and Geography - Forecast and Analysis 2022-2026

The renewable energy investment market share is expected to increase by USD 168.43 billion from 2021 to 2026, at a CAGR of 7.59%.

This renewable energy investment market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers renewable energy investment market segmentation by type (asset finance and small distributed capacity) and geography (APAC, North America, Europe, South America, and Middle East and Africa). The renewable energy investment market report also offers information on several market vendors, including 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. Ltd., TerraForm Power Operating LLC, and The Goldman Sachs Group Inc. among others.

What will the Renewable Energy Investment Market Size be During the Forecast Period?

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Renewable Energy Investment Market: Key Drivers, Trends, and Challenges

The supportive government policies is notably driving the renewable energy investment market growth, although factors such as competition from fossil fuels may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the renewable energy investment industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Renewable Energy Investment Market Driver

One of the key factors driving growth in the renewable energy investment market is the supportive government policies. Alternative energy sources have become highly critical to reducing greenhouse gas (GHG) emissions. Governments across the world are supporting the adoption of renewable energies such as wind energy, solar energy and tidal energy by providing incentives, subsidies, and tax benefits to power producers and consumers. Governments across different countries are encouraging the development of renewable energy sources, such as geothermal energy, to bring about a transformation in the power generation sector. For instance, in India, the Ministry of New and Renewable Energy (MNRE) is promoting major initiatives in research and development (R&D) for geothermal technology to harness the low-enthalpy geothermal potential available in the country. Therefore, due to the growing government initiatives and rising investment activities in the development of geothermal resources, the global renewable energy investment market is expected to grow significantly during the forecast period.

Key Renewable Energy Investment Market Trend

The increased spending on utility-scale renewable energy projects is a renewable energy investment market trend that is expected to have a positive impact in the coming years. Renewable energy projects with a capacity of more than 10 MW are classified as utility-scale energy projects, and they benefit from state and local policies and initiatives in most nations across the world. These policies and programs at the state and local levels are aimed at removing any potential impediments by putting in place the appropriate measures. When the cost of renewable energy options is compared with that of traditional electricity generation sources, it makes it difficult for the policyholders, regulatory bodies, and investors to determine the cost-effective and most efficient way of supplying electricity. Therefore, these difficulties have made it necessary for businesses and policyholders to choose an electricity generation source based on inaccurate information. It is also important for market participants to understand the cost parity of renewable energy, which will bring transparency in information. Therefore, this will encourage vendors that offer renewable energy investment services to cater more to utility-scale renewable energy projects, which will lead to market growth during the forecast period.

Key Renewable Energy Investment Market Challenge

The competition from fossil fuels will be a major challenge for the renewable energy investment market during the forecast period. The share of renewable energy in global electricity consumption has increased steadily over the years. However, many countries still prefer using fossil fuels over renewable energy because of the abundant availability of fossil fuels for electricity generation. In addition, the cost of establishing a renewable energy facility to produce power is expensive, and the power output from renewable sources is not as much as that from fossil fuels due to the intermittent nature of renewables. The need to install solar PV panels over a vast area to generate a large volume of electricity is the major reason for the increased investments and costs. Thus, the preference for non-renewable energy sources is still high in many countries worldwide. The decline in the cost of natural gas has driven its use in power generation, which poses a challenge for energy generation using renewable sources. Countries in the Middle East, which have substantial reserves of crude oil and natural gas, have not reduced their production output as they fear losing market share. The use of fossil fuels for power generation is expected to hinder the adoption of renewables, thereby inhibiting the growth of the global renewable energy investment market.

This renewable energy investment market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global renewable energy investment market as a part of the global renewable electricity market within the global independent power and renewable electricity market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the renewable energy investment market during the forecast period.

Who are the Major Renewable Energy Investment Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• 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. Ltd.
• TerraForm Power Operating LLC
• The Goldman Sachs Group Inc.

 

This statistical study of the renewable energy investment market encompasses successful business strategies deployed by the key vendors. The renewable energy investment market is fragmented and the vendors are deploying growth strategies such as focusing more on advanced technologies such as carbon capture and storage (CCS) to compete in the market.

Product Insights and News

• Bank of America Corp. - Bank of America Corp. is a public company headquartered in US. It is a global company generating $89,113 million in revenues and has around 208,000 employees. Its revenue from the global renewable energy investment market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company. 
• Bank of America Corp. - The company offers a wide range of solutions for renewable energy and energy efficiency

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The renewable energy investment market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Renewable Energy Investment Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the renewable energy investment market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Renewable Energy Investment Market?

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67% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for renewable energy investment in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The growing importance of renewable energy spurred by the need to address climate change and improve energy security will facilitate the renewable energy investment market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

Several construction activities at greenfield geothermal projects were put on hold, owing to the outbreak of the COVID-19 pandemic in the region in early 2020, which resulted in delays in operations at sites. For instance, the Sokoria Geothermal Power Plant (Indonesia) was expected to become operational in February 2020; however, owing to the COVID-19 outbreak, the scheduled date for the commencement of operations was postponed to 2021. Therefore, the pandemic hindered the growth of the regional market during 2020-2021. However, continuous investments in the development of renewable energy projects in the region are expected to propel the growth of the market during the forecast period.

What are the Revenue-generating Type Segments in the Renewable Energy Investment Market?

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The renewable energy investment market share growth by the asset finance segment will be significant during the forecast period. Market vendors that offer financial services in renewable power projects contribute to the growth of the market. Asset financing, by far the most important component of the continuum, is based on off-balance-sheet capital from large developers like power utility companies, as well as a mix of equity and debt from infrastructure investors and banks. This is essential to avoid the catastrophic effects of climate change and construct a healthier, economical, and more secure future in which everyone has access to clean and affordable energy. Thus, asset finance is required for renewable energy projects to grow during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the renewable energy investment market size and actionable market insights on post COVID-19 impact on each segment.

 

Renewable Energy Investment Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Decelerate at a CAGR of 7.59%
Market growth 2022-2026	$ 168.43 billion
Market structure	Fragmented
YoY growth (%)	8.21
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 67%
Key consumer countries	US, China, Japan, Germany, and Brazil
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
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. Ltd., TerraForm Power Operating LLC, and The Goldman Sachs Group Inc.
Market dynamics	Parent market analysis, 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 the 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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What are the Key Data Covered in this Renewable Energy Investment Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive renewable energy investment market growth during the next five years
• Precise estimation of the renewable energy investment market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the renewable energy investment industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of renewable energy investment market vendors

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