Renewable Energy Global Market Opportunities and Strategies to 2032

This report describes and explains the renewable energy market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global renewable energy market reached a value of nearly $567.1 billion in 2022, having grown at a compound annual growth rate (CAGR) of 9.1% since 2017. The market is expected to grow from $567.1 billion in 2022 to $933.1 billion in 2027 at a rate of 10.5%. The market is then expected to grow at a CAGR of 10.5% from 2027 and reach $1,534.3 billion in 2032.

Growth in the historic period resulted from strong emerging markets growth, the rise in use of renewable energy compared to other energy sources, the growing investments in the renewable energy sources, and rapid industrialization. Factors that negatively affected growth in the historic period were the impact of COVID-19 and the lack of infrastructure.

Going forward, the increasing electricity consumption, the rising urbanization, government initiatives, and the rise in greenhouse gas emissions will drive the market. Factors that could hinder the growth of the renewable energy market in the future include the Russia-Ukraine war and the high initial cost of installation.

The renewable energy market is segmented by type solar energy, wind energy, bio energy, hydro energy, and geothermal energy. The hydro energy market was the largest segment of the renewable energy market segmented by type, accounting for 53.4% of the total in 2022. Going forward, the solar energy segment is expected to be the fastest growing segment in the renewable energy market segmented by type, at a CAGR of 21.3% during 2022-2027.

The renewable energy market is segmented by capacity into 0-1,000 KWH, 1, 100-5,000 KWH, and more than 5,000 KWH. The more than 5,000 KWH market was the largest segment of the renewable energy market segmented by capacity, accounting for 79.4% of the total in 2022. Going forward, the more than 5,000 KWH segment is expected to be the fastest growing segment in the renewable energy market segmented by capacity, at a CAGR of 10.7% during 2022-2027.

The renewable energy market is segmented by end user into residential, commercial, industrial, and utility. The residential market was the largest segment of the renewable energy market segmented by end user, accounting for 40.5% of the total in 2022. Going forward, the industrial segment is expected to be the fastest growing segment in the renewable energy market segmented by end user, at a CAGR of 10.8% during 2022-2027.

Asia-Pacific was the largest region in the renewable energy market, accounting for 44.1% of the total in 2022. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the renewable energy market will be the Middle East and Asia Pacific where growth will be at CAGRs of 20.0% and 11.8% respectively. These will be followed by South America and Western Europe where the markets are expected to grow at CAGRs of 11.9% and 7.6% respectively.

The global renewable energy market is fragmented, and the market has a large number of players. The top ten competitors in the market made up to 9.58% of the total market in 2022. The market fragmentation can be attributed to the presence of a large number of players in different geographies. Orsted AS was the largest competitor with 2.46% share of the market, followed by Iberdrola SA with 2.15%, Enel Spa with 1.39%, Brookfield Corporation with 0.92%, Acciona SA with 0.91%, NEXTERA ENERGY, INC with 0.76%, EDF SA with 0.45%, Xcel Energy Inc. with 0.21%, The Tata Power Company Limited with 0.21% and Innergex Renewable Energy Inc. with 0.12%

The top opportunities in the renewable energy market segmented by type will arise in the solar energy segment, which will gain $142.1 billion of global annual sales by 2027. The top opportunities in the renewable energy market segmented by capacity will arise in the more than 5,000KWH segment, which will gain $298.1 billion of global annual sales by 2027. The top opportunities in the renewable energy market segmented by end user will arise in the residential segment, which will gain $146.3 billion of global annual sales by 2027. The renewable energy market size will gain the most in China at $75.7 billion.

Market-trend-based strategies for the renewable energy market include focus on developing innovative technologies, launch of renewable energy platforms, blockchain technology, use of advanced robotics, product launches, partnerships and collaborations, and new investments.

Player-adopted strategies in the renewable energy market include enhancing business operations through strategic investments, expanding operational capabilities through strategic acquisitions, and enhancing business operations through securing new contracts.

To take advantage of the opportunities, the recommends the renewable energy companies to focus on renewable energy platforms, focus on innovative product launches, focus on use of advanced robotics, focus on technological advancements, expand in emerging markets, focus on collaborations and partnerships, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on urban population and continue to target fast-growing end-users.