The global renewable energy market size is estimated to grow by $708.6 billion from 2024-2028, according to Technavio.
The market is estimated to grow at a compound annual growth rate (CAGR) of 13.15 percent during the forecast period. Rise in global energy demand is driving market growth, with a trend towards rising popularity of clean energy technologies.
“Renewable energy markets are experiencing significant trends in 2023. Energy security is a top priority, with interest rates and investment costs influencing the decision-making process for utility-scale systems like solar PV and wind energy. Solar PV capacity is booming, with both utility-scale and small distributed systems gaining traction,” Technavio said.
However, competition from alternative energy sources poses a challenge.
Also, electricity prices are on the rise due to the global energy crisis, making renewables increasingly competitive. Policy makers are implementing new policies and incentives to accelerate renewables construction and grid connection. In the residential segment, solar energy and small distributed systems are popular, while commercial systems are also seeing growth.
Wind energy, including onshore and offshore wind, is a key player in the renewables market. Hydropower, bioenergy, and geothermal energy are also important contributors. Module prices are decreasing, making renewables more affordable. Environmental concerns, including carbon footprint and ESG considerations, are driving demand for renewables.
Battery storage systems are also gaining popularity to ensure energy security and manage intermittency. Major players in the market include Acciona, Enel Spa, Innergex, Invenergy, Sol Customer Solutions, Engie, and others. Off-grid energy and electrification are also trending, with smart cities and heating applications driving demand.
Regulatory reforms and subsidies are essential for the continued growth of renewables. Nuclear power and fossil fuels face increasing competition, with renewables offering a more sustainable and cost-effective solution. Climate change and carbon dioxide (CO2) emissions are major concerns, making renewables a crucial part of the energy mix. Ocean power and wind turbines are emerging technologies with great potential.
Key market players include ABB Ltd., Acciona SA, Duke Energy Corp., EnBW Energie Baden Wurttemberg AG, Enel Spa, ENERCON GmbH, General Electric Co., Goldwind Australia, Innergex Renewable Energy Inc., Invenergy, Nextera Energy Inc., Schneider Electric SE, Siemens AG, Sinovel Wind Group Co. Ltd., Sunrun Inc., Suzlon Energy Ltd., Tata Power Co. Ltd., Vattenfall AB, Vestas Wind Systems AS, and Xcel Energy Inc..
When it comes to demand, Tehnavio said that global electricity demand has experienced substantial growth due to urbanization and industrialization, particularly in countries like China and India.
“This trend has led to a significant increase in the use of fossil fuels, such as coal and natural gas, for power generation. Consequently, CO2 emissions from electricity and heat production reached over 42 percent of the global total in 2022,” it added.
These emissions primarily stem from the combustion of these fuels. To address this issue, businesses are increasingly investing in renewable energy sources, such as wind, solar, and hydroelectric power, to reduce reliance on fossil fuels and decrease greenhouse gas emissions.
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