The global renewable energy market is anticipated to grow significantly during the forecast period owing to increased emissions of greenhouse gases (GHGs), particularly CO2 due to utilization of fossil fuels for generation of energy. The market is expected to reach $1,512.3 Billion by 2025, registering a CAGR of 6.1% from 2018 to 2025. Renewable energy technologies convert the energy from different natural sources such as sun, tides, wind and others, into its usable forms such as electricity.
In addition, limited presence of fossil fuel on the earth as well its volatile prices fuels the renewable energy market. However, generation of energy from renewable sources requires huge investment. This factor is anticipated to hamper the market growth during the forecast period. Furthermore, in the Middle East, fossil fuels are majorly used to generate energy owing to its cost effective nature as compared to other regions. This hampers the growth of the market. On the contrary, continuous advancement in technologies and increased government funding in renewable energy sector to offer lucrative growth opportunities during the assessment period. The renewable energy market size is increasing due to rise in stringent government regulations regarding climate change in the developed and developing economies.
The renuable energy market is subdivided into type, end use, and region. Based on type, the market is divided into hydroelectric power, wind power, bioenergy, solar energy, and geothermal energy. Based on end use, the market is categorized into residential, commercial, industrial, and others. Based on region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is expected to grow at the fastest rate during the forecast period. Owing to increase in demand for energy due to rise in industrialization in developing countries such as China, and India. Presence of these countries boosts the renewable energy market owing to factors such as rise in population, rapid industrialization along with favorable policies for the renewable energy sector.
The renewable energy market analysis covers in-depth information of major industry participants. Some of the major players in the market include ABB Ltd., General Electric (GE), The Tata Power Company Limited (Tata Power), Innergex, Enel Spa (Enel), Xcel Energy Inc. (Xcel Energy), EDF, Geronimo Energy, Invenergy, and ACCIONA.
Other players in the value chain of the market include Vestas Wind Systems A/S, UpWind Solutions, Inc., Senvion S.A., and Sinovel Wind Group Co., Ltd. ENERCON GmbH.
Key players are adopting numerous strategies such as product launch, acquisition, collaboration, partnership, and business expansion, to stay competitive in the market. For instance, Innergex acquired Alterra. The acquisition included two geothermal facilities in Iceland. This acquisition added 485 MW (gross 1,049 MW) of renewable energy assets, to its portfolio.
In addition, Enel won the first ever renewable energy tender in India through its subsidiary BLP Energy Private Limited. Enel is expected to invest $290 billion in the construction of the wind farm. The plant is scheduled to start its operations in the second half of 2019 and is estimated to generate 1, 000 GWh of renewable energy. This expansion has reinforced its presence in the India renewable energy market.
Based on type, the market is classified into hydroelectric power, wind power, bioenergy, solar energy, and geothermal energy. The hydroelectric power segment is expected to dominate the market during the forecast period. Furthermore, the solar energy segment is expected to grow at the highest growth rate during the forecast period.
Based on end use, the renewable energy market is classified into residential, commercial, industrial, and others. The industrial segment is expected to account for the highest market share.
Based on region, the renewable energy market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific emerged as a global leader in 2017 and is anticipated to continue its dominance during the forecast period. In terms of end use, the industrial and residential segments are expected to dominate the Asia-Pacific market owing to rapid industrialization. China is anticipated to account for the highest market share in the Asia-Pacific renewable energy market and is projected to dominate the market during the analysis period. China aims on reducing its dependency on fossil fuels by adopting renewable energy for generation of electricity.