Global Renewable Energy Market Analysis, Size, Share, Growth, Outlook to 2028

The global renewable energy market is experiencing rapid growth, driven by expanding policy support, increasing energy security concerns, surging energy consumption, and improved competitiveness compared to fossil fuel alternatives. These positive factors are overcoming challenges like rising interest rates, higher investment costs, and persistent supply chain issues.

Nevertheless, certain factors, including slow permitting processes, supply chain constraints, volatile commodity prices, and insufficient investment in grid infrastructure, act as restraints on the market's growth.

Global Renewable Energy: Current Scenario

In 2022, overall renewable power capacity additions increased by almost 13% to nearly 340 GW. However, solar PV was the only technology that set a deployment record last year, with net additions of nearly 220 GW, marking a 35% increase from 2021. Expansions in China and the European Union alone accounted for over 85% of the growth in annual PV capacity additions.

Annual PV growth increased in all major markets last year except the United States, where it contracted by almost 15% due to supply chain challenges and rising costs. After solar energy, hydropower emerged as the next-largest contributor to record-level renewable energy expansion globally, driven by the commissioning of multiple large projects, mostly in Asia.

In contrast, wind power additions experienced a decline of 21% from 2021 to 2022, marking the second consecutive year of decline following record-level expansion in 2020. During that year, developers in China were rushing to complete projects before subsidies from the central government ended. In 2022, COVID-related restrictions delayed the commissioning of multiple wind energy projects in China, resulting in a drop in annual additions.

According to the International Energy Agency (IEA), global renewable capacity additions are anticipated to increase significantly by 107 gigawatts (GW) in 2023, marking the largest absolute increase ever and bringing the total to more than 440 GW. Notably, two-thirds of this year's projected increase in global renewable capacity is attributed to solar PV capacity, encompassing both large utility-scale and small distributed systems.

Market Drivers

Expanding Policy Support

Governments worldwide are establishing renewable energy targets and implementing policies that indirectly foster the adoption of renewables. These policies encompass climate change initiatives, economic and green recovery plans, the phasing out of fossil fuels, and targets for achieving net-zero greenhouse gas emissions. The impact of these policies extends to both the demand and supply sides of the renewable energy market.

These policies establish more favorable market conditions for renewables, fostering innovation, reducing costs and emissions, creating economic opportunities, and enhancing global energy security. Recent events, such as the Russian Federation's invasion of Ukraine and rising inflation, have prompted policymakers to prioritize energy security. This has resulted in many comprehensive policies across the globe.

Notable policy developments in 2022 encompassed the US Inflation Reduction Act, the EU's Fit for 55 and RePowerEU packages, Australia's Climate Change Bill, Japan's GX Green Transformation, and China's 14th Five-Year Plan. These policies underscore increased investments and expenditures on the energy transition.

The use of feed-in tariffs and premiums has been prevalent in supporting renewables, with various countries revising and reintroducing these measures. Net-metering policies provide incentives for self-consumption and the sale of surplus renewable electricity. Auctions and tenders have successfully attracted private sector investments, while financial and fiscal policies, such as tax credits and incentives, have been implemented to foster renewable energy adoption. However, adjusting auctions and tenders has proven challenging in the face of inflation and escalating costs.

Countries, through their Nationally Determined Contributions (NDCs) in alignment with the Paris Agreement, have articulated precise targets and commitments to diminish carbon emissions. These commitments serve as incentives for investments and prioritize the development of renewable energy sources. Policies oriented towards decarbonization indirectly encourage the utilization of renewables.

Regional Analysis

Asia-Pacific: The region currently leads global renewable energy installations, driven primarily by capacity additions in China and India. In 2022, China contributed to almost half of all new renewable power capacity worldwide.

By June 2023, China had surpassed its 50% non-fossil fuel energy target for total installed electricity generation capacity, achieving this milestone ahead of its scheduled year of 2025. China's success in reaching this target can be attributed to its aggressive deployment of renewable energy sources and also its wind turbine and solar panel manufacturing prowess.

Europe: In 2022, solar and wind power collectively generated one-fifth of Europe's electricity, surpassing gas for the first time. The energy crisis prompted by Russia's invasion of Ukraine has hastened the deployment of renewable energy in the European Union, compelling the bloc to swiftly diminish its reliance on Russian natural gas imports. Over the past 18 months, European countries have introduced a higher number of policy and regulatory changes to streamline permitting than in the entire preceding decade.

North America: The United States is at the forefront of renewable installations in the North American region. In 2022, the U.S. commissioned around 43 GW of new power generation and energy storage capacity, with renewable energy sources contributing approximately three-quarters, equivalent to 32 GW of the total installed capacity. Although still significant, this reflects a modest decrease from the 37 GW installed in 2021.

Segment Analysis

Solar power market is taking the lead in the global renewable energy landscape regarding capacity additions. Solar PV emerged as the sole technology that set a deployment record last year, achieving net additions of nearly 220 GW, marking a 35% increase from 2021. The substantial growth in annual PV capacity additions was predominantly driven by expansions in China and the European Union, contributing to over 85% of the overall increase.

Annual PV growth increased in all major markets last year, with the exception of the United States, where it contracted by almost 15% due to supply chain challenges and rising costs. Following solar PV, hydroelectric power emerged as the next-largest contributor to the record-level expansion of renewable energy globally. This was attributed to the commissioning of numerous large projects, primarily in Asia.

Recent Developments

• In November 2023, RWE AG, a German energy company, increased its global green electricity investment target to EUR 55 billion for the rest of the decade. This adjustment accompanies a heightened renewables capacity goal, with RWE aiming to achieve 65 GW by 2030, a substantial increase from its previous target of around 35 GW.
• Emirates Development Bank (EDB), a crucial financial entity driving the UAE's economic development and industrial progress, has pledged a commitment of up to AED 1.3 billion (USD 350 million) to bolster the Energy Transition Accelerator Financing (ETAF) platform. This global climate finance facility, initiated by the International Renewable Energy Agency (IRENA), is designed to expedite the financing of renewable energy projects and facilitate funding for such projects in developing countries.
• In October 2023, Amazon revealed the addition of 39 new renewable energy projects in Europe throughout the year. This expansion contributes over one gigawatt of clean energy capacity to grids across the continent.
• In November 2023, the Indonesian government unveiled a Comprehensive Investment and Policy Plan (CIPP) that entails securing USD 20 billion in funding from global lenders to foster the development of its renewable energy resources. This initiative, spearheaded by the United States and Japan, signals a significant commitment to advancing sustainable energy initiatives in Indonesia.
• In November 2023, the Danish renewable energy developer GreenGo Energy Group revealed ambitious plans for a substantial green energy project in Mauritania. The project aims to integrate 60 GW/190 TWh of hybrid solar and wind generation along with 35 GW of electrolysis capacity.
• Indian renewable energy project financing company, REC Ltd., is broadening its international portfolio by securing a green hydrogen ammonia project in Oman. Additionally, the company is exploring potential projects in Bhutan, Nepal, Bangladesh, and Sri Lanka.
• In September 2023, the Conservative government in Britain eased planning rules and removed restrictions that previously prohibited the construction of new onshore wind farms in England.

Opportunities

• Expanding economies in Southeast Asia offer a major opportunity for renewable energy companies to expand their business footprint as the region is planning to move away from coal-based energy.
• Solar energy is the fastest-growing renewable energy source in the world, as many nations have already announced their future green energy plans, which include a significant number of solar projects. This provides a huge opportunity for solar panel, inverter and other solar equipment manufacturers, as demand is bound to rise in the future. similar opportunity for wind energy as well.
• The increasing number of renewable energy installations generates huge opportunity for energy storage companies, as storage solutions play a major role in solving the intermittency issue associated with renewable energy sources.

The new report from Blackridge Research on Global Renewable Energy Market comprehensively analyses the Renewable Energy Market and provides deep insight into the current and future state of the industry.

The study examines the drivers, restraints, and regional trends influencing Global Renewable Energy Market demand and growth.

The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the Renewable Energy Market, important commercial developments, trends, regions, and segments poised for fastest growth, competitive landscape, and market share of key players.

Further, the report will also provide Renewable Energy Market size, demand forecast, and growth rates.

What Do We Cover in the Report?

Renewable Energy Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.

Renewable Energy Market Analysis

This report discusses the overview of the market, latest updates, important commercial developments and structural trends, and government policies and regulations.

Renewable Energy Market Size and Demand Forecast

The report provides Global Renewable Energy Market size and demand forecast until 2027, including year-on-year (YoY) growth rates and CAGR.

Renewable Energy Market Industry Analysis

The report examines the critical elements of renewable energy industry supply chain, its structure, and participants.

Using Porter's five forces framework, the report covers the assessment of the Green Energy industry's state of competition and profitability.

Renewable Energy Market Segmentation & Forecast

The report dissects the Global Renewable Energy Market into various segments based on type (solar, hydro, wind, bioenergy, and others which include tidal power, geothermal energy, etc.). A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for a "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and global market outlook.

In addition, market size, demand forecast, and growth rates will be provided for all regions.

Following are the notable countries covered under each region.

North America - United States, Canada, Mexico, and Rest of North America

Europe - Germany, France, United Kingdom (UK), Russia, and Rest of Europe

Asia-Pacific - China, India, Japan, South Korea, Australia, Rest of APAC

Rest of the world - Middle East, South America, and Africa

Key Company Profiles

This report presents detailed profiles of Key companies in the Green Energy industry. In general, each company profile includes - overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.

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