The global renewable energy market is projected to reach a significant size of USD 3.60 trillion by 2030, according to a new report by Grand View Research, Inc. This market is expected to grow at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2030. A major driver behind this growth is the global push to reduce Greenhouse Gas (GHG) emissions. Governments worldwide have implemented a range of regulations aimed at addressing climate change, promoting the shift toward low-carbon fuels, and enforcing stringent environmental standards, particularly in developed countries. These measures have significantly bolstered the renewable energy sector. As climate change continues to be a pressing issue, governments are setting ambitious targets to reduce emissions, which in turn has led to substantial investments in renewable energy sources and alternative fuels. This trend is expected to continue for the foreseeable future.

The growing emphasis on eco-friendly solutions to reduce emissions is anticipated to further drive the demand for renewable energy in the coming years. Among the various renewable energy sources, hydropower accounted for 16.65% of the overall market revenue in 2023. Hydropower, or hydroelectric power, provides multiple benefits to communities, including storage capabilities, power generation, and flexibility services. As a domestic energy source, hydropower enables countries to generate their own energy without dependence on international fuel sources, making it a key player in global efforts to combat climate change.

Solar power is expected to see the highest growth in the renewable energy market during the forecast period. Solar energy’s lower cost, combined with its ability to reduce electricity interruptions, makes it an attractive option for widespread adoption. The industrial sector was the largest contributor to the renewable energy market in 2023, accounting for about 61.90% of the revenue share. This growth can be attributed to the increasing demand for clean electricity, which has led to a rise in utility projects and, consequently, the growth of the photovoltaic (PV) modules market in the industrial sector.

The commercial sector is expected to experience the fastest growth in the coming years, driven by the rapid adoption of PV modules in various commercial establishments such as corporate offices, hotels, and hospitals. Additionally, there is a growing demand for renewable energy in communication base stations and data centers, further fueling product demand across the commercial sector.

In terms of geographic regions, Asia Pacific led the renewable energy market in 2023, accounting for 40.98% of the market share. The rising demand for renewable energy in this region can be largely attributed to the growing installation of solar power projects in China and India, two of the largest markets for solar panels both globally and within Asia Pacific. Other countries in the region, including Australia and Japan, also present significant growth potential. These nations have made considerable investments in solar power generation over the past few years, further boosting market opportunities.

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FAQ: Global Renewable Energy Market Outlook (2024–2030)

1. What is the projected size of the global renewable energy market by 2030?

The global renewable energy market is expected to reach USD 3.60 trillion by 2030, expanding at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2030 .

2. What factors are driving the growth of the renewable energy market?

Key drivers include:

• Government Regulations: Numerous governments worldwide have implemented regulations to reduce greenhouse gas (GHG) emissions.

• Shift Toward Low-Carbon Fuels: The transition to low-carbon fuels is gaining momentum.

• Stringent Environmental Regulations: Developed countries are enforcing stricter environmental regulations, providing a significant boost to the renewable energy sector.

• Climate Change Concerns: Increasing environmental concerns have led to substantial investments in renewable energy and alternative fuels .

3. Which renewable energy segment accounted for the largest revenue share in 2023?

The industrial segment was the largest in 2023, accounting for approximately 61.90% of the overall revenue. This growth is attributed to the increasing demand for clean electricity, which has led to a rise in utility projects and the growth of photovoltaic (PV) modules in the industrial sector .

4. Which renewable energy segment is expected to witness the largest growth?

The solar power segment is anticipated to experience the largest growth over the forecast period. This is due to its low cost and ability to reduce electricity interruptions, making it an attractive option for widespread adoption .

5. Which region led the renewable energy market in 2023?

Asia Pacific led the renewable energy market in 2023, accounting for 40.98% of the revenue share. The increasing demand for renewable energy in this region is attributed to the rising installation of solar power projects in China and India .

6. Who are the key players in the renewable energy market?

Prominent companies in the renewable energy market include:

• ABB

• Acconia S.A.

• Enel Spa

• General Electric

• Innergex

• Invenergy

• Schneider Electric

• Siemens Gamesa Renewable Energy, S.A.

• Suzlon Energy Ltd.

• Tata Power

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