Renewable Energy Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Renewable Energy Market Forecast 2023-2027

The renewable energy market is estimated to grow by 1,776.08 GW at a CAGR of 8.91% between 2022 and 2027. The market growth relies on several factors, notably the escalating global energy demand driven by industrialization and urbanization. Additionally, governments' increasing support for clean energy initiatives, coupled with rising investments in clean energy technologies, fosters market expansion. These investments fuel innovation and drive the adoption of renewable energy sources, such as solar and wind power, contributing to sustainability efforts worldwide. As clean energy solutions become more cost-effective and efficient, they attract greater interest from consumers and businesses alike, propelling further market growth and development. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Renewable Energy Market Growth and Analysis

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The Renewable Energy Market is witnessing substantial growth driven by increasing demand for renewable energy and the implementation of supportive policy frameworks. With the cumulative world renewable capacity on the rise, there's an accelerated case for transitioning towards distributed solar PV and wind energy solutions. Residential systems and utility-scale installations are meeting diverse energy needs while addressing concerns about energy security and environmental conditions. Interest rates and investment costs play critical roles in shaping the market dynamics, impacting the adoption of solar PV capacity and wind turbines. As policy makers advocate for sustainability, the market continues to expand, offering solutions for both commercial and residential sectors amid the ongoing global energy crisis.

Market Dynamics

The Renewable Energy Market refers to the global business sector involved in the production, distribution, and consumption of energy derived from renewable sources such as Solar, Hydro, Wind, and Biomass. The Securities and Exchange Commission (SEC) regulates this market, ensuring transparency and compliance with regulations. The industry is driven by the increasing global awareness of the need to reduce carbon emissions and the depletion of traditional energy resources. Investors are particularly interested in this sector due to its potential for long-term returns and its alignment with sustainability goals. The costs of renewable energy technologies have been decreasing, making them increasingly competitive with traditional energy sources. The Solar and Wind industries are currently leading the market, with Solar having the largest market share. The market is expected to grow significantly in the coming years, driven by government incentives, technological advancements, and increasing consumer demand.  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.

Market Driver

Supportive government policies is one of the key drivers supporting 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 this 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 these technologies. This policy covers various aspects of the solar PV industry, including eligibility criteria, bonuses, and various other grants. Such policies are expected to drive market growth during the forecast period.

Market Trends

The emergence of zero-energy buildings is another factor supporting the market. The construction industry is adopting these multiple 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 consumption. Fossil fuels accounted for approximately 70% of this growth. Asian countries, including China and India, have been major contributors to this trend. The increasing demand for electricity has been driven by various factors, such as environmental conditions, ESG concerns, and the shift towards electrification in smart cities. Renewable energy sources, including hydroelectric power, wind energy, solar energy, geothermal energy, and ocean power, have emerged as viable alternatives to fossil fuels. Companies like Acciona, Enel Spa, Innergex, General Electric, Invenergy, Sol Customer Solutions, and Engie are leading the charge in this sector. Battery storage systems have also gained prominence in the context of renewable energy, enabling the integration of intermittent sources. Regulatory reforms and subsidies have further boosted the renewable energy market. Renewable energy sources, such as wind and solar, have the potential to significantly reduce carbon footprint and greenhouse gas emissions, mitigating the impact of carbon dioxide (CO2) and global warming. Nuclear power remains a contentious issue in the context of renewable energy, with ongoing debates regarding its environmental impact and safety concerns. Thus, the increased adoption of ZEBs will proliferate the use of solar PV systems, which is expected to drive the market during the forecast period.

Market Challenge

The competition from fossil fuels is one of the factors hindering the market. The share of these in global electricity consumption increased steadily over the years.However, the environmental concerns surrounding fossil fuels, such as their substantial carbon footprint and contribution to climate change, have led to increased focus on renewable energy. Key players in the renewable energy market include Acciona, Enel Spa, Innergex, General Electric, Invenergy, and Sol Customer Solutions, among others. They focus on various renewable energy sources like hydroelectric power, wind energy, solar energy, geothermal energy, and ocean power. Battery storage systems play a crucial role in the integration of renewable energy into the grid. ESG (Environmental, Social, and Governance) concerns are driving the shift towards renewable energy.

Regulatory reforms and subsidies have also been instrumental in promoting the adoption of renewable energy. Renewable energy applications extend to off-grid energy, electrification, smart cities, heating applications, and the commercial segment. Renewable energy sources, such as wind and solar, generate electricity without emitting carbon dioxide (CO2), making them essential in the fight against global warming and greenhouse gas emissions. Other renewable energy sources, like nuclear power from Enel Green Power, also contribute to reducing carbon emissions. Wind energy can be harnessed through wind turbines, with onshore and offshore installations, while solar energy can be generated using photovoltaic panels. Besides electricity generation, renewable energy sources have applications in heating, such as geothermal energy, and in various industries, including transportation and manufacturing. The transition to renewable energy is a critical step in addressing climate change and reducing our carbon footprint.

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 during the forecast period.

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 Market Customer Landscape

Who are the Major Renewable Energy Market Companies?

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.

Sinovel Wind Group Co. Ltd. - The company offers 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 companies, including:

• 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.

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.

Market Segment

In the current global context, the Renewable Energy Market holds significant importance as countries strive to reduce their carbon footprint and transition towards sustainable energy sources. The market encompasses various technologies such as Geothermal, Fossil Fuels, Wind, and Solar Energy. Carbon offsets play a crucial role in this transition, with organizations and individuals purchasing them to compensate for their carbon emissions. The Fossil Fuels sector, although a significant contributor to energy production, faces increasing competition from Renewable Energy. Wind and Solar Energy systems have become increasingly efficient and cost-effective, making them attractive alternatives. The European Union, for instance, aims to achieve a 32% share of renewable energy in its consumption by 2030. Moreover, the Onshore and Offshore Wind sectors are experiencing substantial growth, with China leading the way in new installations. The Carbon Credits market also plays a vital role in the Renewable Energy sector, providing financial incentives for organizations to reduce their carbon emissions. In conclusion, the Renewable Energy Market is a dynamic and evolving sector, driven by the need to reduce carbon emissions and transition towards sustainable energy sources. Technologies like Geothermal, Wind, Solar, and Hydroelectric Power, along with Carbon Credits, are shaping the future of energy production.

By End-User

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 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 in the residential sector is to use these instead of limited resources. This helps to fulfill the rising 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, 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.    

By Type

The renewable energy market witnessed significant growth in 2022, with hydropower leading the sector due to increasing clean energy demand, power demand, and hydropower sector investments. In 2021, hydropower generated approximately 4,300 TWh of electricity, reaching a capacity of 1,330 GW. Notable projects included the Lauca facility in Angola (2.1 GW), Jixi pumped storage facility in China (1.8 GW), and the lower Kalekoy project in Turkey (0 GW). Amidst the global energy crisis, renewable energy sources, including solar PV, utility-scale systems, and small distributed systems, have gained interest due to their role in energy security and affordability. Solar PV capacity expansion continues, with utility-scale systems and residential and commercial systems contributing to the rebound. Policy makers face challenges such as interest rates and investment costs, affecting the implementation of policies and incentives for renewables. Solar PV module prices have decreased, while wind energy additions have increased, with onshore and offshore wind projects undergoing construction and grid connection. Despite these advancements, challenges persist, including undersubscription of auctions, permitting delays, and legislation. Policymakers are accelerating case processing to address these issues and promote the growth of renewables, including hydroelectric power, solar energy, wind, geothermal, and bioenergy, as alternatives to fossil fuels. High electricity prices have further emphasized the importance of renewables in mitigating the energy crisis.

Which are the Key Regions for the Market?

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 APAC region dominates the renewable energy market, with China, Japan, India, Australia, and South Korea as key contributors

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The market's expansion is driven by policy incentives like feed-in-tariffs (FiTs) in China, Japan, Thailand, and Vietnam. The shift towards renewables is influenced by rising greenhouse gas emissions and the global energy crisis. Solar PV capacity expansion includes utility-scale systems and small distributed systems. Policy makers are focusing on replacing fossil fuels with renewables, such as solar, wind, hydropower, and bioenergy. Solar energy, particularly PV-utility and PV-distributed, is rebounding due to high electricity prices. Wind energy additions face challenges like undersubscription of auctions, permitting delays, and legislation. Renewables, including utility-scale onshore wind, hydroelectric power, residential solar, and commercial systems, are crucial for energy security. Investment costs and interest rates impact the implementation of policies and incentives. Module prices and construction grid connections are also significant factors. Geothermal energy is another renewable source gaining attention. Fossil fuels remain a challenge to renewables' growth.

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 during the forecast period.

Renewable Energy Market in Canada- The 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%. 

Segment Overview

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. 

• End-user Outlook
  • Residential
  • Industrial
  • Commercial

• Type Outlook
  • Hydropower
  • Wind
  • Solar
  • Others

• Region Outlook
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In the current global context, the Renewable Energy sector is experiencing significant growth and innovation. Solar and wind power are leading the charge, with Onshore wind and Solar Power being the most installed technologies worldwide. The market for these technologies is driven by various factors, including government policies, increasing costs of traditional energy sources, and advancements in technology. The cost of renewable energy has decreased dramatically in recent years, making it more competitive with fossil fuels. In 2020, utility-scale Solar and Wind power were the cheapest sources of electricity in many parts of the world. The market for renewable energy is expected to continue growing, with the International Energy Agency projecting that renewables will account for 95% of the increase in global power capacity by 2025. The role of Policy makers is crucial in creating a favorable regulatory environment to boost investment in renewable energy. The future of the energy industry lies in the integration of renewable energy into the power grid, making it more reliable and sustainable.The market is driven by the need to reduce Greenhouse gas emissions and shift from Conventional sources like Coal-based power generation to more sustainable options. Government regulations play a crucial role in promoting renewable energy sources such as Biomass feedstock, Hydropower systems, and Solar power generation.

The Solar industry has seen significant growth, with Domestic source of energy becoming increasingly important. Feed-in tariffs have incentivized the development of Solar power segment. Similarly, Biogas plants are gaining popularity in the Renewable energy sector, contributing to the Bioenergy segment. Wind power segment and Hydropower segment are also expanding, with Installed capacity measured in Gigawatts (GW). Geothermal energy is emerging as a reliable source, particularly in the Industrial and Commercial sectors. As the Transportation industry, Buildings industry, and Agriculture industry seek to reduce their Carbon footprint, renewable energy is becoming more integral. Gas-based power generation is also being considered as a cleaner alternative. Overall, the Market is witnessing growth across various segments, driven by a global shift towards sustainable and environmentally friendly energy sources.

Renewable Energy Market Scope
Report Coverage	Details
Page number	179
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.91%
Market growth 2023-2027	1,776.08 GW
Market structure	Fragmented
YoY growth 2022-2023(%)	8.22
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 73%
Key countries	US, China, India, Japan, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market Forecasting, 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.
Customization purview	If our market 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 Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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