The global renewable energy market was estimated ~US $881.5 billion in 2020. The market is expected to grow at a CAGR of 8.2% during the forecast period from 2021 to 2027.
Renewable energy is a replenishable source of energy obtained from natural sources. The widely used forms of renewable energy are wind energy, solar energy.
Wind energy is transformed into mechanical energy through a wind turbine, which is then converted into electric energy through the generator. Renewable energy is used in heating, cooling, electricity generation, and transportation. Renewable energy meets 7% of the world’s energy requirement.
Renewable energy is comparatively costly than fossil fuel. However, several factors like global warming, combustion of fossil fuels are promoting the use of renewable energies.
The rising concerns of carbon dioxide (CO2) emission from the combustion of fossil fuels is the major reason for the surge in the Renewable energy market. Furthermore, the declining progress rate in nuclear power application will raise the demand for the geothermal power market during the forecast period.
Various countries and their authorities have started taking initiatives to promote the use of renewable energy sources. Renewable energy not only provides better output but also helps in reducing pollution of the area. These factors are likely to bring acceleration in the growth of the global renewable energy market.
Developing an advanced system for renewable energy can cost high expenses, thereby increasing the cost of electricity. Moreover, the initial stage requires a potential solar site with other suitable features. Determining these features could be time taking. Also, the development of industries requires trained workers to install, operate, and maintain the new technologies. These aspects are likely to prohibit the growth of the renewable energy market during the forecast period.
Countries like China and India can boost the market, owing to the rising demand for the geothermal power sector in the economies.
The upcoming years will observe the increase in the use of localized energy. The Indian authorities have a benefit of community choice aggregation (CCA) policy to help them obtain renewable energy resources while maintaining their current electricity provider for transmission and distribution services. All these factors are likely to add opportunities to the growth of the global renewable energy market.
Regional Analysis
Asia-Pacific region is likely to exhibit growth in the renewable energy market size during the forecast period. The region estimates higher global energy consumption, owing to the large population and growing industrialization.
The residential and industrial sectors in the Asia-Pacific region are most likely to consume renewable energy during the forecast time frame. The significant growth potential will be observed in India in the upcoming years. In India, the growing investments in renewable energy projects will amplify the growth in the overall Asia-Pacific market.
Impact of Covid-19 on the global renewable energy Market
The wake of the Covid-19 pandemic has seized the growth of the renewable energy market. The pandemic critically affected the manufacturing activities of wind turbines, which halted the overall deployment of China and Germany.
Maintenance of industries requires a workforce, but that was difficult during the Covid-19 pandemic. The key markets for blade and wind turbine production were affected by the delays and cancellation of the projects. Siemens Gamesa Renewable Energy SA registered a net decline of US $577 million in 2020.
Key Market Segments
By Region
Key Market Players
