The green energy market comprises renewable energy sources including solar, wind, hydropower, and bioenergy for generating electricity. Solar panels and wind turbines are increasingly being utilized to harvest green energy from natural resources like sunlight, wind and water. Governments across countries are implementing supportive policies and offering incentives to businesses investing in renewable power projects. Rapid growth in solar PV installation and declining prices of solar panels are boosting the adoption of solar energy. Increasing R&D is also fostering technological advancement leading to more efficient energy products.
The green energy Market size is valued at US$ 1,134.65 Bn in 2024 and is expected to reach US$ 2,804.51 Bn by 2031, growing at a compound annual growth rate (CAGR) of 13.8% from 2024 to 2031.
Key Takeaways
Key players operating in the green energy market are F. Hoffmann-La Roche AG, Boehringer Ingelheim, Bayer AG, copyright Inc., Biogen, Daiichi Sankyo, Bristol-Myers Squibb, Johnson & Johnson, AstraZeneca, SanBio and Athersys Inc. Rapid industrialization and growing population has led to a surge in energy demand worldwide. Solar PV installations have increased substantially over the past few years and are anticipated to triple in capacity by 2031. Technological advancement has allowed development of more efficient renewable energy harvesting and storage solutions like lithium-ion batteries and boost converters.
Market Trends
The adoption of solar plus storage solutions is gaining momentum as Green Energy Market Demand providers focus on setting up renewable energy plants integrated with battery storage. This helps address the intermittency issue associated with solar and wind power sources. Green hydrogen is also emerging as a promising renewable fuel that can enable deep decarbonization of hard-to-abate industrial sectors. Many countries are developing national hydrogen strategies and roadmaps to boost production and use of clean hydrogen.
Market Opportunities
Growing focus on achieving net-zero targets through renewable energy integration presents significant business opportunities. Rising off-grid and decentralized energy demand from remote areas offer scope for distributed renewable power projects. Implementation of policies promoting rooftop solar adoption among commercial and residential complexes can further catalyze future market prospects. Partnerships between technology providers, project developers and financing institutions are helping expand green energy access worldwide.
Impact of COVID-19 on Green Energy Market Growth
The outbreak of COVID-19 pandemic had a moderate impact on the green energy market growth in the initial months of 2020. The lockdown restrictions imposed by governments around the world led to temporary closure of renewable energy projects under construction. This disrupted the supply chain and logistics for key components and equipment required for setting up solar, wind, hydro and other green power projects.
However, with easing of lockdown measures from mid-2020, the green energy market started recovering at a gradual pace. Renewable energy emerged as an attractive investment opportunity for achieving energy security and reducing dependence on imported fossil fuels. This encouraged various countries especially in Europe and Asia Pacific to announce incentives and support mechanisms for expanding domestic green power capacity through new projects. Investments in solar, wind and hydro power installations picked up momentum in 2021 supported by policy reforms, technology innovations and public-private partnerships.
As we move ahead, green hydrogen is expected to play a pivotal role in decarbonizing hard-to-abate industries like steel, chemical and cement. Governments worldwide have unveiled ambitious plans for scaling up electrolyzer manufacturing, renewable hydrogen projects and development of hydrogen infrastructure. The European Union's ‘Fit for 55’ package and China’s carbon neutrality pledge by 2060 are driving huge investments towards integrating renewable energy with green hydrogen production. This would be pivotal in sustaining the growth trajectory of global green energy market post pandemic.
Europe
Europe accounts for the largest share of global green energy market in terms of value. Countries like Germany, United Kingdom, France, Italy and Spain have historically led solar and wind power development owing to supportive policies. European Union has set a 2030 target of meeting at least 32% of its total energy needs through renewable sources to accelerate emissions reduction under the Paris Agreement. Huge investments are being channeled towards modernizing power grids, expanding offshore wind capacity and promoting distributed renewable energy systems across the region.
Asia Pacific
Asia Pacific region has emerged as the fastest growing market for green energy globally led by China, India, Japan and Southeast Asian nations. Countries like China, India and Vietnam are home to some of the world's largest onshore wind and utility-scale solar projects. Clean power capacity additions are likely to remain strong in Asia supported by rapid industrialization and economy’s increasing energy needs. Governments are encouraging renewable energy deployment combined with energy storage to maximize utilization of clean resources.
Get More Insights on- Green Energy Market
For Deeper Insights, Find the Report in the Language that You want:
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)