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The renewable energy market is estimated to grow at a CAGR of 8.91% between 2022 and 2027. The size of the market is forecast to increase by 1,776.08 GW. The growth of the market depends on several factors, including the rise in global energy demand, rising government support, and an increase in investments in clean energy technologies.
This report extensively covers market segmentation by end-user (residential, industrial, and commercial), type (hydropower, wind, solar, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The supportive government policies are notably driving the renewable energy market growth, although factors such as competition from fossil fuels may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Renewable Energy Market Driver
Supportive government policies is one of the key drivers supporting the market growth. Governments across the world support the adoption of solar PV systems by providing incentives, subsidies, and tax benefits to producers and consumers. For instance, in the US, the investment tax credit (ITC) is an important federal policy developed to support the adoption of solar PV energy in the country.
Many countries are formulating policies to promote the development and adoption of solar power technologies. One such notable example is the FiT policy, formulated to encourage investments in renewable energy technologies. This policy covers various aspects of the solar PV energy industry, including eligibility criteria, bonuses, and various other grants. Such policies are expected to drive market growth during the forecast period.
Significant Renewable Energy Market Trend
The emergence of zero-energy buildings is another factor supporting the market growth. The construction industry is adopting multiple energy efficiency measures, including improved designs and materials that promote a healthy and productive environment, minimize the issues associated with GHG emissions, and reduce fossil fuel-based energy consumption. The concept of ZEBs is an energy-efficient technology in which the building obtains its energy using renewables. The energy produced is equal to the amount of energy consumed on an annual basis.
Moreover, it is already being implemented in some countries with the help of regulations and mandates formed by governments. Thus, the increased adoption of ZEBs will proliferate the use of solar PV systems, which is expected to drive the growth of the market during the forecast period.
Major Renewable Energy Market Challenge
The competition from fossil fuels is one of the factors hindering market growth. The share of renewable energy in global electricity consumption increased steadily over the years. Many countries 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.
For instance, Solar PV installations require a high initial investment even though the material cost has been significantly reduced. The requirement of a vast area for panels to generate a large amount of electricity is the major reason for the increased investment rates. These factors will impede the market growth during the forecast period.
Key Renewable Energy Market Customer Landscape
The 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 growth strategies.
Global Renewable Energy Market Customer Landscape
Vendors 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.
Sinovel Wind Group Co. Ltd. - The company offers renewable energy solutions that offer a wide range of standard hub heights and modes of operation which can be combined with an extensive list of technology options to create customized solutions to suit the needs of each unique project.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the residential segment will be significant during the forecast period. Residential buildings are the major energy-consuming sectors globally, causing energy inefficiency. They can act as a promising target with the greatest potential to reach the common goal of sustainable development. The most effective way of saving energy in the residential sector is to use clean energy instead of limited resources. This helps to fulfill the rising energy demand from the residential sector and preserve and protect limited resources for future generations, and environmental values are not damaged.
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The residential segment was valued at 1,679.15 GW in 2017 and continued to grow until 2021. Strong government push for clean and efficient energy, favorable incentives, and a focus on 100% electrification are major drivers for the growth is the residential segment. All such factors are expected to propel the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 73% 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 region held the major share of the market in focus 2022. The market in APAC will grow significantly during the forecast period. In 2020, the major leading countries in the region were China, Japan, India, Australia, and South Korea. The major growth of the market in focus in APAC is due to the financial incentives programs such as feed-in-tariffs (FiTs) in China, Japan, Thailand, and Vietnam.
The increasing GHG emissions in China and India shifted focus toward renewables, such as solar and wind energy, for power generation. Initiatives taken by many countries in the region and the pace of execution indicate an increased focus on replacing fossil fuels with solar power. The country's focus on solar PV installations has intensified in the last couple of years, which is expected to drive the demand for solar PV systems and, in turn, renewable energy during the forecast period.
In 2020, the COVID-19 pandemic in the region disrupted various verticals of industries, mainly the renewable energy industry. However, in 2021, the resumption of operations in manufacturing hubs after the lifting of lockdown measures and the increased preference for sustainable power sources may proliferate the growth of the regional market during the forecast period.
Renewable Energy Market in Canada- The renewable energy market share in Canada is expected to increase by 18.51 gigawatts from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 3.37%.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Renewable Energy Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.91% |
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Market growth 2023-2027 |
1,776.08 GW |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.22 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 73% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Acciona SA, EnBW Energie Baden Wurttemberg AG, Enel Spa, ENERCON GmbH, General Electric Co., Innergex Renewable Energy Inc., Invenergy, Schneider Electric SE, Siemens AG, Sunrun Inc., Suzlon Energy Ltd., Tata Power Co. Ltd., Vestas Wind Systems AS, Xcel Energy Inc., Duke Energy Corp., Goldwind Australia, Nextera Energy Inc., Sinovel Wind Group Co. Ltd., and Vattenfall AB |
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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, and Market condition analysis for the forecast period. |
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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 report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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