Global Renewable Energy Market Size, Share, Growth Analysis, By Product(Hydro Power, Wind Power), By Application(Industrial, Residential) - Industry Forecast 2024-2031

Global Renewable Energy Market size was valued at USD 899.24 Billion in 2022 and is poised to grow from USD 1050.31 Billion in 2023 to USD 3637.99 Billion by 2031, growing at a CAGR of 16.80% in the forecast period (2024-2031).

The global renewable energy market has experienced rapid growth recently, propelled by factors such as government backing, technological progress, and escalating environmental apprehensions. Governments worldwide are instituting policies and incentives to boost renewable energy adoption and curtail carbon emissions, while advancements in renewable energy technology have enhanced efficiency and cost-effectiveness. However, the substantial initial investment required for renewable energy systems remains a significant impediment. Energy storage emerges as critical for ensuring a consistent power supply from intermittent sources like solar and wind, yet inadequate infrastructure, particularly in developing nations, poses challenges to widespread adoption. Nevertheless, the market presents numerous opportunities, including prospects for innovation and investment in energy storage solutions, along with potential job creation and economic development. Moreover, the increasing uptake of renewable energy offers avenues for reducing carbon emissions and addressing climate change effects. Despite existing challenges, the global renewable energy market is poised for sustained expansion, buoyed by governmental support, technological advancements, and mounting environmental imperatives.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Renewable Energy Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Renewable Energy Market Segmental Analysis

The global renewable energy market is segmented on the basis of product, application, and region. By product, the market is segmented into hydro power, wind power, solar power, bioenergy, and others. In terms of application, the market is segmented into industrial, residential, commercial. Regionwise, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Renewable Energy Market

Growing apprehensions regarding climate change and environmental decline have sparked a surge in the demand for renewable energy options. With a growing consciousness about the environmental consequences of energy consumption, consumers are actively pursuing cleaner and more sustainable alternatives. Embracing renewable energy not only aids in shrinking individual, corporate, and national carbon footprints, thus curbing the repercussions of climate change, but also tackles other forms of environmental deterioration like air and water pollution, stemming from fossil fuel combustion. Moreover, by transitioning to renewable energy, nations can diminish their reliance on imported fossil fuels, averting the local ecosystem degradation associated with their extraction, transportation, and refining processes.

Restraints in the Global Renewable Energy Market

The considerable upfront investment required for renewable energy ventures poses a notable obstacle for firms seeking to penetrate the market. The installation expenses of renewable energy infrastructure like wind turbines or solar panels can be dauntingly high for certain companies. Among these, offshore wind farms stand out as particularly costly endeavors to undertake, as the expenditure involved in setting up wind turbines and transmission infrastructure in deep water sites frequently surpasses that of onshore wind farms.

Market Trends of the Global Renewable Energy Market

One of the primary catalysts propelling the global renewable energy sector forward is the increasing recognition of environmental concerns, notably the pressing issue of climate change. Governments and institutions across the globe are implementing strategies to curb carbon emissions and address the detrimental impacts of climate change. Renewable energy options like wind, solar, and hydroelectric power are pivotal in these endeavors due to their low-carbon nature, thus serving as essential components in the fight against climate change.