Global Renewable Energy Market 2022 – 2030

The “Global Renewable Energy Market” report includes comprehensive information regarding the market’s historical and current estimations, future projections, market trends, competition, market dynamics, and recent developments in the Renewable Energy market forecast from 2022 to 2030.

According to the study, the market accounted for around USD 885 billion in 2021 and is expected to grow at a CAGR of 8.5% during 2022-2030. The market for global Renewable Energy market is forecasted to account for nearly USD 1980 billion by 2030.

Overview

Renewable Energy is derived from resources capable to be recycled or replenished naturally. Electricity is produced using all forms of Renewable Energy. Geothermal steam is additionally used directly for cooking and heating. Also, biomass and solar energy are used for space and water heating. For transportation, ethanol, biodiesel, and to a lesser extent, gaseous biomethane is used.

Renewable Energy sources emit no or low greenhouse gases during operation. The emissions from a neutral source are balanced by the carbon dioxide taken in throughout the growing phase. However, the overall environmental impact of any source depends on its lifecycle.

COVID – 19 Impact Analysis

As per the International Energy Agency, despite ongoing logistical issues and rising costs, renewable electricity capacity installations hit another record in 2021, and biofuel demand nearly returned to pre-Covid levels. However, the invasion of Ukraine by the Russian Federation has shocked the oil and agricultural industries, leading to an unprecedented global energy crisis.

Many governments are taking initiatives to hasten the switch to sustainable energy technologies, minimize reliance on Russian supply, and shield consumers from rising energy prices. Also, the demand for biofuel recovered back in 2021 from COVID-19 lows to levels close to those of 2019.  Further, it is anticipated to increase year over year by 5% in 2022 and by 3% in 2023. Demand for biofuels in the US is likely to rise by 6% in 2022 compared to 2021. This growth will be fueled by the return of gasoline and diesel use to pre-COVID levels, California's low carbon fuel regulations, the adoption of renewable fuel standards, and the federal tax credits for biodiesel blenders.

Growth Drivers

Rising Focus on Next Generation Technologies

The development of next-generation technology is gaining momentum. Stakeholders in the Renewable Energy sector are considering investing in them, which might eventually support the assured integration of variable renewables, including wind and solar, into the electric grid. Private investment, pilot projects, and federal research funding might hasten the commercialization of cutting-edge technologies such as enhanced batteries, green hydrogen, and other types of long-duration storage for a previously focused market on solar and wind.

The goal of 100% clean energy can be achieved through these technologies. They can offer zero-carbon, longer-term seasonal electricity storage, reduce grid congestion, stem Renewable Energy curtailment, and increase reliability. Further, they make integrating solar and wind power into the grid easier.

Growth in Solar Power Investments

Solar photovoltaic systems are among the most economically competitive energy sources on the market, with costs having dropped by 85% over the previous ten years. The solar sector will probably raise attempts to examine alternative configurations and business models as it stretches its competitive strength. Additionally, the sector may explore floating solar PV modules in 2022 as well as growing solar community projects into new geographies.

Another significant trend noticed is the growth of community solar initiatives into new markets in the US. In addition to Washington, DC, 22 states have policies that support community solar. These programmers enable residential consumers to take advantage of shared solar power since more than half of US families are unable to purchase rooftop solar due to insufficient sunlight, access to credit, homeownership, or other issues.

Floating solar photovoltaics, a nascent technology, are also gaining popularity in the US. Several developers are looking into these projects, either independently or in combination with hydro, which might benefit from a common substation and transmission.

Segmentation Analysis

The Renewable Energy market is segmented into energy type and end user. By energy type, the hydroelectric power segment market is expected to lead the market throughout 2022-2030. Brazil had a tremendous quantity of hydropower development. Across the SAM continent, activity has increased, with significant projects in Colombia and Peru.

The market for small hydropower plants has expanded as a result of an increase in investments in off-grid energy generation and rural electrification throughout developing nations, including India, China, Brazil, and Vietnam. In addition, programs such as the Rajiv Gandhi Grameen Vidyutikaran Yojana and the Small Hydropower Programme by the Ministry of New and Renewable Energy aim to electrify rural areas and encourage the use of small hydropower energy for off-grid and mini-grid, are anticipated to fuel market expansion.

Report Scope

Key Insights:

• As per the analysis shared by our research analyst, the Renewable Energy market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2022-2030).
• In terms of revenue, the Renewable Energy market size was valued at around USD 885 billion in 2021 and is projected to reach USD 1980billion by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• Based on energy type, the hydroelectric power segment was estimated to hold maximum market share in the year 2021.
• Based on end-user segmentation, the residential segment was the leading revenue-generating category in 2021.
• On the basis of region, the Asia Pacific region was the leading revenue generator in 2021.
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Recent Development

• July 2022: India-based Adani Enterprises announced its plans to invest US$ 70 billion in clean energy with an aim to become a facilitator for the country’s green energy transition. Further, the company plans to become the net exporter of clean energy.
• July 2022: Proteus Power and Pelion Green Future collaborated to build more than 3 GW of Renewable Energy as well as energy storage projects in North America.
• July 2022: Canadian Solar Inc. has successfully sold two fully authorized solar and battery energy storage projects in the UK to Gresham House, a specialized alternative asset manager. The two projects include a collocated solar and battery energy storage project in Durham with a solar capacity of 50 MWp and a battery energy storage capacity of 38 MW (or 76 MWh) and a stand-alone solar project in Warwickshire with a solar capacity of 28 MWp.
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Regional Landscape

In 2021, the Renewable Energy market in the Asia Pacific was estimated to hold a market share of over 35%. According to estimates, the Asia Pacific region consumes more than half of all Renewable Energy produced worldwide.

The region's increasing industrialization and urbanization are the factors attributing to the sharp rise in pollution levels. The need for clean electricity is also being fueled by the region's rapidly growing population and residential development.

Competitive Landscape

Due to the presence of several major market competitors, the market for Renewable Energy is moderately fragmented. To enhance their positions and expand their market shares, these market players are consistently engaged in a variety of developmental strategies, including partnerships, mergers, acquisitions, collaborations, new product launches, and many others.

The global Renewable Energy market is segmented as follows:

By Energy Type

• Solar Power
• Wind Power
• Hydroelectric Power
• Geothermal
• Bio Energy
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By End User

• Residential
• Industrial
• Commercial
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By Geography

• North America
• The U.S.
• Canada
• Mexico
• Europe
• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• Australia
• South Korea
• Rest of AsiaPacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America