Renewable Energy: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Renewable energy comes from natural sources that replace themselves more quickly than they are used up. Examples of such sources that are continuously replenished are the sun and the wind.

Market Insights

The last ten years have seen a rapid expansion of renewable energy sources. Nearly 11% of the world’s primary energy in 2019 came from renewable sources. The market situation for renewable energy, however, is anticipated to become more difficult in the coming years. Suppliers will be challenged, particularly in the wind power industry, to find ways to lower costs even as future projects focus on more expensive offshore installations, as the prices for some renewable energy sources become more competitive and the price of natural gas declines.

With more than 45% of the world’s installed renewable energy capacity in 2022, the Asia-Pacific region has emerged as the market with the largest installed renewable energy capacity. With an anticipated compound annual growth rate (CAGR) of 10.9% from 2023 to 2039, the Asia-Pacific area is anticipated to not only have the largest installed capacity market but also the fastest-growing regional market for renewable energy. China is the region’s market leader for renewable energy and is anticipated to continue to be a major market driver over the projected period. Additionally, the expansion of the Asia-Pacific market will be aided by rising government initiatives in India to encourage the production of power using renewable resources. India made around $70 billion in investments in renewable energy between 2013 and 2020, and by 2022, it is anticipated that its installed capacity will reach 175 GW.

In 2022, hydroelectric power was the most prevalent renewable energy technology, making up more than 50% of all installed capacity. Wind power came in second place, making up 25% of all installed capacity. Hydroelectricity is one of the renewable resources with the slowest rate of growth, nevertheless. In 2020, the industry’s focus will be on developing alternative high-growth technologies including solar, wind, and ocean energy, which will make up around 50% of total installed capacity.

With an anticipated CAGR of 12.80% from 2023 to 2030, solar power, including solar photovoltaic (PV) and concentrated solar power (CSP), is anticipated to be one of the fastest-growing renewable technologies by volume. The cumulative installed capacity of the technology is anticipated to rise in Europe throughout the projection period as a result of increased PV installations in Germany. New PV installation additions totaled 782.5 GW in 2021.

Market Dynamics: Drivers

High Efficiency and Significant Cost Reductions of Solar PV Systems

Multi-junction cells are used in solar PV systems to generate power at a 42% efficiency. This efficiency is more than the 40% efficiency of wind turbines, which produce energy. Compared to complicated wind turbine or hydroelectricity-generating turbine installations, solar PV systems are less expensive and easier to install. An experimental study found that due to greater maintenance expenses, using wind turbines or hydroelectric power plants to generate electricity is more expensive than using solar PV modules. As a result, people from all over the world are drawn to solar PV systems due to their inexpensive cost of producing electricity.

The sharp decline in solar PV module prices is also the result of overproduction, which followed a flood of investment in the industry in recent years. Prices are impacted by an excess of solar PV modules and a fall in demand, particularly in Europe. Manufacturers have started using price-skimming tactics as a result of rising supply and declining demand.

Market Dynamics: Challenges

Ecological and Social Issues Related to Hydroelectric

Market expansion is anticipated to be constrained by the economic and societal problems connected with hydropower installations, particularly major dams. There are costs associated with building infrastructure for hydroelectric electricity generation, including ecological degradation and land displacement. Large dams come with significant social and environmental consequences, as well as long-term economic trade-offs including flooded agricultural and forest lands, lost fisheries, and tourism potential. The impartial World Commission on Dams reports that most projects fall short of appropriately mitigating environmental effects and compensating impacted parties for their losses. Rarely have local residents received a fair share of project benefits or had a significant say in whether or how a dam is built. For instance, massive hydropower electricity generation projects in China have resulted in the eviction of approximately 23 million people from their homes. Furthermore, estimates indicate that roughly 30% of China’s rivers are seriously polluted as a result of changes in river flow brought on by dam construction.

Market Segmentation

• Based on Technology, the Global Renewable Energy market is segmented into
  • Solar Power
    • Solar PV
      • Crystalline silicon PV
      • Thin-film PV
      • Others
    • Concentrated solar power (CSP)
      • Parabolic trough
      • Solar tower
      • Fresnel reflector
    • Hydroelectric Power
    • Wind Power
      • Onshore
      • Offshore
    • Bioenergy
      • Flash steam
      • Dry steam
      • Binary
    • Geothermal Energy
      • Flash steam
      • Dry steam
      • Binary
    • Ocean Energy
  • Based on End User, the Global Renewable Energy market is segmented into
    • Residential
    • Commercial
    • Industrial
  • Based on Geography, the Global Renewable Energy market is segmented into
    • Asia-Pacific
    • North America
    • Europe
    • Latin America
    • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2020-2021

Base Year: 2022

Estimated: 2023

Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Renewable Energy Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Renewable Energy Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Renewable Energy Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Renewable Energy Market study?