Renewable Energy Market Overview:
- Conversion of the energy from different natural sources such as sun, tides, wind and others, into usable form such as electricity using technologies is known as Renewable energy.
- Based on the type the market is divided into Hydroelectric, Wind, Bioenergy, Solar and Geothermal energy sectors.
- By end-use, the market is bifurcated into Residential, Commercial, Industrial and Others
- As per the research report of AGR, it is estimated that global renewable energy market was ~ USD 980 Billion in 2018 and is expected to grow @ CAGR of ~ 6% CAGR from 2020 to 2025 to reach USD 1,500 Billion
- Solar PV and wind accounted for 86% of global renewable capacity additions in 2018.
- During the forecast period, the market is expected to be dominated by hydroelectric power segment. Likewise, the Solar Energy segment is also expected to grow at the higher growth rate.
- End-use market is expected to be dominated by industrial and residential segments, due to rapid industrialization.
- The renewable energy sector saw substantial demand from most of the market segments as overall consumer sentiment remained positive.
Renewable Energy Market Outlook:
- The renewable energy industry is set to enter a new phase of growth driven mostly by increasing customer demand, price aggressiveness, innovation, and collaboration
- Asia-Pacific emerged as the renewable energy market leader in 2019, and its dominance is anticipated to continue over the forecast period.
- Asia-Pacificmarket is to be dominated by industrial and residential segments.
- China is predicted to account for the highest market share of the renewable energy market in Asia-Pacific and is projected to dominate the market during the forecast period. China aims to reduce its fossil-fuel reliance by implementing renewable energy for electricity generation.
- China is projected to account for 40% of global renewable capacity expansion over the forecast period because of improved system integration, lower curtailment rates and enhanced competitiveness of both solar PV and onshore wind.
- Higher planned renewable auction volumes and faster distributed solar PV growth in member states to meet renewable energy targets, expected to give more optimistic outlook to the European Union.
- In the United States, wind and solar PV developers are hastening to complete projects before the end of federal tax incentives, while corporate power purchase agreements (PPAs) and state-level policies contribute to growth.
Renewable Energy Market Growth Drivers and Trends:
Most primary factors driving the world renewable energy market are:
- Increased gas emissions (GHGs), particularly carbonic acid gas from the utilization of fossil fuels for energy generation
- Growing concerns over the environmental implication of burning fuel
- Volatile fuel costs
- Rapid industrial readiness together with favorable policies for the renewable energy sector
- Increasing demand for eco-friendly power generation resolution
The market for renewable energy is predicted to grow in the developed and developing economies because of the implementation of strict government laws concerning global climate change.
- Declining prices and rising capability factors of renewable energy sources, alongside raising fight of battery storage, expected to drive the expansion of renewable energy market
- Steady decline of costs for battery storage has begun to feature worth to renewables, creating intermittent wind and star progressively competitive with ancient, “dispatchable” energy sources.
With many countries increasing their renewable portfolio standards (RPS) in 2019, the business can possibly see necessary RPS-driven procurement growth throughout the forecast period, whereas voluntary demand can still hit new levels
As countries become progressively involved concerning global climate change and therefore the role of renewable energy in curtailing it, wind power, alongside alternative renewable energy varieties, is predicted to possess an additional focus from all the countries, throughout the approaching years.
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Challenges disrupting the market:
Though the global renewable energy market has numerous growth drivers, there are certain major constraints hindering the market growth.
- Huge capital requirements for generation of energy from renewable sources
- Suspensions of construction activity due to supply chain interruption
- Lockdown measures and social‑distancing guidelines due to COVID 19
- Emerging financing challenges for new projects
- Power grid expansion plans
- Delay in renewable energy connection
However, increasing government support in the renewable energy sector and continuous technological advancements are expected to provide lucrative opportunities for renewable energy market growth during the forecast period
Renewable Energy Market Players Perspective:
- Some of the key players operating in the Renewable Energy market profiled in this AGR report are ABB Ltd., ACCIONA, Canadian Solar Inc, EDF, Enel Spa (Enel), ENERCON Ltd, General Electric (GE), Geronimo Energy, Innergex, Invenergy, NextEra Energy, Inc., Ocean Power Technologies, Inc., Orsted A/S , On Power, Senvion S.A., Sinovel Wind Group Co., Siemens AG, SynTech Bioenergy LLC , Tata Power Company Limited (Tata Power), Tocardo BV, UpWind Solutions, Inc., Vestas Wind Systems A / S, Xcel Energy Inc. (Xcel Energy), Yingli Solar, etc,.
- Companies are implementing various strategies to amalgamate their market position, which include partnerships & collaboration and contracts & agreements. Key players are taking up several strategies such as product launch, acquisition, collaboration, partnership, and business expansion, to stay competitive in the market.
- For instance, Innergex acquired Alterra, which had enabled them with additional 485 MW (gross 1,049 MW) of renewable energy assets, to its portfolio.
- GE Renewable Energy in partnership with Juhl Energy, has recently initiated a solar-wind hybrid power generation project in the US
Renewable Energy Market Research Scope:
- The base year of the study is 2018, with projection done up to 2025. The study presents a systematic analysis of the competitive landscape, considering the market shares of the leading companies. These provide the key market participants with the required business intelligence and help them realize the future potential of the Renewable Energy market.
- The assessment includes the estimate, an overview of the competitive structure, market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to measure their impact over the projection period.
- The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include opportunity areas for Renewable Energy market.