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Renewable Energy Market Research Reports

"Powering the Future: In-Depth Look at the Global Renewable Energy Boom (2024 Market Size: USD 520 billion)"!

Renewable Energy Industry Overview

In 2023 and 2024, the renewable energy market experienced significant development and transformation, which was fueled by technological advancements, policy support, and a growing recognition of environmental issues. In 2023, global investment in renewable energy increased by 10% from the previous year, reaching up to USD 495 billion. Investments will increase to USD 520 billion in 2024 and USD 955 billion by 2031, as the trend persists. Solar and wind energy continued to be the dominant forces, collectively accounting for over 70% of new capacity additions. Two hundred forty-five gigawatts (GW) of new capacity were added globally in 2023, a 15% increase from 2022, leading to a record high in solar power installations. This expansion was stimulated by the reduction of costs, which resulted in a 7% decrease in solar module prices as a result of expanded economies of scale and innovative manufacturing processes. The market's rapid expansion is underscored by the global solar capacity will surpass 1,500 GW by 2024.

Wind energy also experienced substantial growth in 2023, with 110 GW of new installations, a 12% increase from the previous year. Offshore wind, in particular, demonstrated remarkable progress, contributing 20 GW to the total. The viable locations for wind energy generation have been expanded by advancements in turbine technology and floating wind farms. The global wind capacity is 1,000 GW in 2024, with offshore wind becoming increasingly important. Although hydropower is more established, it experienced moderate growth in 2023, adding 15 GW of capacity. The total global hydropower capacity is 1,350 GW in 2024. The market is confronted with challenges related to environmental impacts and competition for water resources despite its consistent growth.

Energy storage and green hydrogen are emerging technologies that are acquiring momentum. Global investments in green hydrogen initiatives surpassed USD 10 billion in 2023, and it will double in 2024. In 2023, the global energy storage capacity increased by 20%, reaching 25 GW, which is essential for balancing intermittent renewable generation. Energy storage capacity is 30 GW in 2024 as a result of the increased deployment of grid-scale storage solutions and advancements in battery technology. The adoption of renewable energy has been significantly influenced by policy support. In 2023, more than 140 countries established renewable energy objectives, with a significant number of them pledging to achieve net-zero emissions by 2050. In order to expedite the transition, governments are progressively implementing advantageous policies, including renewable portfolio standards, tax incentives, and feed-in tariffs. For example, the European Union has established a goal of obtaining 40% of its energy from renewable sources by 2030. In 2023 and 2024, substantial progress has been achieved in this regard.

Top Countries Contributing in Renewable Energy Market

China

The renewable energy market in China continues to be a global leader, with substantial progress made in 2023 and 2024. Around 120 GW of new renewable capacity was added in China in 2023, with 60 GW of solar and 35 GW of wind energy production. The total renewable capacity of China is 1,300 GW by the end of 2024, with solar and wind energy comprising the majority. The industrial sector is the primary consumer of renewable energy, as it is motivated by government mandates and sustainability objectives. The residential and transportation markets follow in that order. China's contribution to the global renewable energy market is substantial, with 32% market share. In 2023, China's renewable energy investments exceeded USD 150 billion, and will reach to USD 160 billion in 2024. The country's development is further fueled by its ambitious objectives, including the attainment of carbon neutrality by 2060. Significant investments in high-efficiency photovoltaic technologies and large-scale solar arrays were made in regions such as Inner Mongolia and Xinjiang, resulting in notable developments in the solar market. The installation of numerous new offshore wind farms along the eastern coast resulted in the expansion of wind energy, particularly offshore.

United States

In 2023, the renewable energy market in the United States experienced substantial development, with the addition of 45 GW of new capacity. This capacity was primarily derived from solar with 25 GW and wind with 15 GW. The US renewable energy market holds a significant revenue share of 14%, the total renewable capacity will surpass 400 GW by 2024. The commercial and residential markets, as well as electricity generation, are among the major markets that are utilizing renewable energy. Additionally, there has been a substantial transition to renewable sources in power grids. Investments in renewable energy initiatives in the United States reached USD 100 billion in 2023, and will rise to USD 110 billion in 2024. This growth has been significantly influenced by policy support, including the Inflation Reduction Act and tax credits for solar and wind initiatives. Additionally, there was a substantial increase in the adoption of energy storage solutions, which improved grid reliability and supported intermittent renewable sources.

India

In 2023, India will add 30 GW of new capacity, primarily solar with 20 GW and wind with 8 GW, as it continues to make significant progress in renewable energy. India's renewable capacity will peak at 200 GW in 2024. The industrial sector, rural electrification, and electricity generation for the national infrastructure are the primary markets that employ renewable energy. India's renewable energy market share is 8%. The investment in renewable energy in India was USD 20 billion in 2023 and will be USD 22 billion in 2024. Government initiatives, including the National Solar Mission and wind energy auctions, have substantially influenced this development. The emphasis on hybrid renewable energy projects and the advancements in battery storage technologies in India are also noteworthy trends.

Germany

According to cognitive market research, Germany retains its position as a major participant in the renewable energy market, as evidenced by the addition of 15 GW of new capacity in 2023. This capacity includes 7 GW of solar and 5 GW of wind energy. Germany achieve a complete renewable capacity of 250 GW in 2024. Electricity generation, transportation, and heating are the markets that primarily employ renewable energy. The Germany global renewable energy market share is 6%. In 2023, Germany's renewable energy market received USD 40 billion in investments, which will be USD 42 billion in 2024. Key drivers of growth include advancements in offshore wind technology and hydrogen production, as well as robust policy frameworks like the Renewable Energy Sources Act (EEG). Germany's renewable energy expansion is significantly influenced by the Energiewende (energy transition) initiative.

Japan

In 2023, Japan's renewable energy market expanded by 10 GW, with the majority of the capacity coming from solar with 7 GW and wind with 2 GW. Japan's total renewable capacity is 120 GW in 2024. In response to the phase-out of nuclear power, the residential market and electricity generation are among the most significant markets that employ renewable energy. Japanholds five percent of the global renewable energy market. Japan invested USD 25 billion in renewable energy in 2023, and will increase to USD 27 billion in fiscal year 2024. Government subsidies and feed-in tariffs continue to reinforce the nation's emphasis on solar energy. Additionally, the market's expansion is being propelled by significant developments in offshore wind and geothermal energy.

United Kingdom

In 2023, the United Kingdom added 8 GW of new renewable capacity, with 5 GW of wind energy being the primary contributor. The United Kingdom total renewable capacity is 120 GW in 2024. The primary markets that employ renewable energy are transportation, heating, and electricity generation. UK holds 4% of the global renewable energy market share. The UK renewable energy market received USD 30 billion in investments in 2023, and USD 32 billion in 2024. Government policies and auctions support the country's significant emphasis on offshore wind energy, which continues to stimulate development. As part of its renewable energy strategy, the United Kingdom is also investigating advancements in tidal and wave energy technologies.

Brazil

In 2023, Brazil added 7 GW of new renewable capacity, primarily from 2 GW of wind energy and 3 GW of hydro energy. Brazil's total renewable capacity is 175 GW in 2024. The industrial sector and electricity generation, notably hydropower, are the primary markets that employ renewable energy. Brazil holds three percent of the global renewable energy market. In 2023, Brazil's renewable energy market received an USD 15 billion in investments, which will rise to USD 16 billion in 2024. Although hydropower remains a fundamental component, there is an increasing interest in solar and wind energy, which is being stimulated by advantageous policies and procurement systems. Brazil is also investing in bioenergy, capitalizing on its extensive agricultural resources.

France

According to cognitive market research, Solar and wind contributed significantly to France's 6 GW of new renewable capacity in 2023, with solar contributing 3 GW and wind contributing 2 GW. The total renewable capacity of France is 125 GW in 2024. The residential market, heating, and electricity generation are among the primary markets that employ renewable energy. France holds 3% market share of the global renewable energy market. Investments in France's renewable energy market were USD 20 billion in 2023 and USD 21 billion in 2024. The energy transition law and the government's encouragement of offshore wind initiatives are significant factors. Furthermore, there are emerging trends in the production of hydrogen and the storage of energy.

Spain

In 2023, Spain's renewable energy market expanded by 7 GW, with the majority of the capacity coming from 4 GW of solar energy and 2 GW of wind energy. The total renewable capacity of Spain is 110 GW in 2024. The industrial market and electricity generation, particularly solar power, are among the primary markets that employ renewable energy. Spain holds 2.5% of the global renewable energy market. Spain invest USD 18 billion in renewable energy in 2023, with an increase to USD 19 billion in 2024. The growth of Spain is being driven by its emphasis on solar energy, which is bolstered by favorable climatic conditions and government policies. Additionally, the nation is enhancing its offshore wind energy capabilities.

Australia

According to cognitive market research, the primary contributors to the 5 GW of new renewable capacity added by Australia in 2023 were wind with 1.5 GW and solar with 3 GW. Australia's total renewable capacity is 65 GW in 2024. Electricity generation, particularly for the national grid and remote communities, and the residential market are among the major markets that employ renewable energy. Australia holds 2% of the global renewable energy market. Investments in the renewable energy market of Australia were USD 10 billion in 2023 and USD 11 billion in 2024. The country's supportive policies and copious solar resources are significant factors. Furthermore, in order to improve its renewable energy infrastructure, Australia is emphasizing the development of energy storage solutions and ecological hydrogen production.

PESTEL Analysis of Renewable Energy Market

Political

The political landscape significantly influences the renewable energy market. The necessity of transitioning to sustainable energy sources has been increasingly acknowledged by governments worldwide, leading to substantial policy support and regulatory frameworks. Renewable energy targets and commitments to reduce greenhouse gas emissions have been established in numerous countries, frequently in accordance with international agreements such as the Paris Agreement. For example, the European Union plans to produce 40% of its energy from renewable sources by 2030, a goal that is bolstered by initiatives like the European Green Deal. Subsidies, tax incentives, and feed-in tariffs are frequently implemented as political instruments to motivate renewable energy investments. These measures increase the economic viability and appeal of renewable initiatives to investors. For instance, the United States provides tax credits for solar and wind initiatives, which substantially stimulates the market's expansion. Furthermore, government-sponsored research and development initiatives are essential for the advancement of renewable technologies, the reduction of costs, and the enhancement of efficiency. Long-term investment in renewable energy necessitates political stability and policy consistency. Investment may be discouraged by sudden changes in government or policy reversals, which can generate uncertainty.

Economical

The development and sustainability of the renewable energy market are significantly influenced by the economic factors that surround it. The decreasing cost of renewable energy technologies is one of the most significant economic drivers. The costs of solar and wind power have decreased significantly over the past decade as a result of increasing competition, economies of scale, and technological advancements. For example, the cost of solar photovoltaic (PV) modules has decreased by over 80% since 2010, rendering solar energy more competitive with conventional fossil fuels. Investment trends underscore the economic importance of the renewable energy market. The global investment in renewable energy was USD 495 billion in 2023, and USD 520 billion in 2024. Both the private and public sectors are responsible for this resurgence. The market's long-term growth prospects and alignment with environmental, social, and governance (ESG) criteria are attracting the attention of governments and private investors, who are increasingly allocating funds to renewable projects. Economic policies, including tax incentives and subsidies, significantly influence the promotion of renewable energy. For instance, the United States provides tax credits for solar and wind installations, which substantially increase investment in these technologies.

Social

The renewable energy market is significantly influenced by social factors, which affect public perception, adoption rates, and overall market dynamics. The increasing awareness and concern regarding environmental sustainability and climate change are among the primary social drivers. The public's support for renewable energy solutions has increased as the consequences of global warming become more apparent. This change in societal attitudes has resulted in a greater acceptance of renewable energy initiatives and an increased demand for clean energy. The successful implementation of renewable energy initiatives is significantly influenced by public opinion and community support. The development of local communities is contingent upon the adoption of renewable installations, such as solar parks and wind farms. Effective community engagement and benefit-sharing mechanisms, such as providing residents with reduced energy rates or investment opportunities in initiatives, can increase social acceptance and reduce opposition. Renewable energy is also a substantial social influence due to its health benefits. In contrast to fossil fuels, renewable energy sources, including hydro, solar, and wind, emit negligible to no air pollutants. This decrease in pollution results in an enhancement of air quality, which has a direct positive effect on public health.

Technological

Technological advancements fundamentally drive the renewable energy market's rapid development and evolution. The costs of renewable energy production have been considerably reduced as a result of continuous technological innovation, rendering it more competitive with traditional fossil fuels. For instance, the cost of solar photovoltaic (PV) modules has decreased by over 80% in the past decade as a result of efficiencies in manufacturing processes and economies of scale. Significant technological advancements have been achieved in the fields of solar and wind energy during the years 2023 and 2024. The efficiency and affordability of solar power generation have been improved by the development of high-efficiency solar panels, such as bifacial modules that capture sunlight on both surfaces and advancements in thin-film solar technology. The expansion of viable locations for wind energy generation and the increase in overall capacity have been facilitated by the development of larger and more efficient turbines, including offshore and inflatable wind farms, in the field of wind energy. Another critical area of innovation is energy storage technology. The efficiency, capacity, and cost-effectiveness of energy storage systems are being enhanced by advancements in battery technology, particularly lithium-ion and emerging alternatives such as solid-state batteries.

Environmental

Environmental factors fundamentally drive the growth and adoption of renewable energy. The primary impetus for the transition to renewable energy sources is the necessity to mitigate greenhouse gas emissions and address climate change. Renewable energy sources, including wind, solar, hydro, and geothermal, are essential for reducing the carbon footprint of the global energy market, as they emit minimal to no carbon emissions during operation. The environmental advantages of renewable energy are not limited to the reduction of carbon emissions. The combustion of fossil fuels is frequently associated with the production of air pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter. However, renewable energy generation does not produce these pollutants. This results in enhanced air quality and substantial public health advantages, such as decreased prevalences of cardiovascular and respiratory diseases. Conserving water resources is also a critical function of renewable energy. Renewable energy sources, such as solar and wind, necessitate minimal water for operation, in contrast to conventional power plants that necessitate substantial quantities of water for refrigeration.

Legal

The development, implementation, and administration of the renewable energy market are contingent upon the legal framework that surrounds it. A diverse array of laws and regulations have been implemented by governments worldwide in order to ensure a stable and sustainable energy supply, mitigate climate change, and promote renewable energy. These legal measures encompass renewable energy targets, incentives, and mandates that establish a structured approach to increasing the proportion of renewable energy sources in the energy balance. The establishment of renewable energy targets and mandates is one of the most significant legal drivers. Numerous nations have established ambitious objectives for the proportion of energy that will be derived from renewable sources by specific dates. For instance, the European Union has established a goal of obtaining a minimum of 32% of its energy from renewable sources by 2030. These objectives frequently serve as legally binding directives for energy producers, utilities, and investors. Renewable energy certificates, tax credits, and feed-in tariffs are frequently implemented as incentive programs to encourage the renewable energy market. Feed-in tariffs ensure that renewable energy producers receive a fixed price for the electricity they produce, thereby promoting investment and ensuring a consistent revenue stream.

Key Players of Renewable Energy Market

NextEra Energy

One of the greatest renewable energy companies in the world is NextEra Energy, which is headquartered in Florida. NextEra Energy's revenue from renewable energy operations was USD 20 billion in 2023, and USD 21.5 billion in 2024. The company has made substantial investments in research and development (R&D), with a particular emphasis on advanced solar and wind technologies, grid optimization, and battery storage. NextEra Energy allocated USD 1 billion to research and development initiatives in 2023, and will increase by 10% in 2024. NextEra Energy's primary business segments are electricity generation, transmission, and distribution, with a particular concentration on renewable energy. NextEra Energy Resources, the company's renewable energy segment, is a pioneer in the production of solar and wind electricity. One of the largest in the globe, this segment operates more than 25 GW of solar and wind capacity. Furthermore, NextEra Energy is a pioneer in the integration of renewable energy with storage solutions, as it is heavily invested in energy storage initiatives. NextEra Energy is a significant player in the global renewable energy market, representing 4% of the total global renewable capacity. The company's market position has been strengthened by its strategic focus on large-scale renewable initiatives and ongoing expansion in the U.S. and international markets.

Iberdrola

Iberdrola, a Spanish company, is a global leader in renewable energy and has a significant presence in Europe, North America, and Latin America. Iberdrola's revenue from renewable energy operations was €15 billion in 2023, and €16.2 billion in 2024. The company has been proactive in its research and development endeavors, investing a €800 million in 2023 in markets including offshore wind, renewable hydrogen, and smart grids. In 2024, the company increase this investment by 15%. Distribution, retail, and electricity generation comprise Iberdrola's principal business segments. Iberdrola Renovables, the company's renewable energy segment, targets hydroelectric power, solar power, and wind power (both onshore and offshore). Iberdrola has a renewable energy capacity of over 35 GW as of 2023, with substantial initiatives in solar parks in Spain and Latin America and offshore wind farms in the North Sea. Iberdrola holds a substantial portion of the global renewable energy market, accounting for 5% of the total global renewable capacity.

Ørsted

Ørsted, a Danish corporation, is a global frontrunner in offshore wind energy. Ørsted's revenue from renewable energy operations was DKK 75 billion in 2023, and DKK 80 billion in 2024. The organization has made substantial investments in research and development, with a particular emphasis on ecological hydrogen production, floating wind farms, and offshore wind technology. In 2023, Ørsted allocated DKK 5 billion to research and development, with intentions to augment this amount by 10% in 2024. Offshore wind, onshore wind, and solar power comprise Ørsted's principal business segments. The renewable energy segment of the corporation is the foundation of its operations, with a particular emphasis on offshore wind farms. Ørsted is currently developing additional projects in Europe, Asia, and North America, in addition to operating more than 10 GW of installed offshore wind capacity. The corporation is also diversifying its renewable energy sources by expanding its onshore wind and solar portfolio. Ørsted holds a substantial portion of the global renewable energy market, with offshore wind comprising 3% of the total global renewable capacity.

Vestas Wind Systems

Vestas Wind Systems, a Danish company, is among the major manufacturers of wind turbines in the world. Vestas' revenue from renewable energy operations was €16 billion in 2023, and €17 billion in 2024. The company heavily invests in research and development, with a particular emphasis on the improvement of turbine efficiency, offshore wind technology, and sustainable manufacturing processes. Vestas allocated €600 million to research and development in 2023, with intentions to augment this figure by 12% in 2024. The primary business segments of Vestas are the manufacturing, sales, and servicing of wind turbines. Wind power, whether onshore or offshore, is the primary focus of the company's renewable energy segment. Vestas is a prominent participant in the wind energy market, having installed more than 145 GW of wind capacity worldwide. The company's market position is further reinforced by its comprehensive service offerings, which include the maintenance and optimization of wind farms. Vestas is a significant player in the global renewable energy market, accounting for 6% of the total global renewable capacity. The company's substantial market share is guaranteed by its extensive global presence and its leadership in wind turbine manufacturing.

Enel Green Power

Enel Green Power, a subsidiary of the Italian multinational Enel Group, is a significant participant in the renewable energy market. Enel Green Power's revenue from renewable energy operations was €13 billion in 2023, and €14 billion in 2024. The organization is committed to research and development, with a particular emphasis on hydroelectric, geothermal, solar, and wind energy. In 2023, Enel Green Power allocated €700 million to research and development, with intentions to augment this sum by 10% in 2024. Enel Green Power's primary business segments are electricity generation and distribution, with a particular emphasis on renewable energy. The company has significant initiatives in Europe, North America, and Latin America, and it operates more than 54 GW of renewable capacity on a global scale. Enel Green Power's renewable portfolio is diverse, encompassing solar, wind, hydroelectric, and geothermal energy, thereby guaranteeing a wide market reach. Enel Green Power occupies a substantial portion of the global renewable energy market, accounting for 5% of the total global renewable capacity.

Recent developments in Renewable Energy Market

  • January 2023: Iranian authorities submitted a measure to parliament in January 2023 to request approval for the International Solar Alliance. The International Solar Alliance (ISA) is an action-oriented platform driven by its members. Its objective is to ensure the security and accessibility of energy as well as the increased deployment of solar energy technologies.

Conclusion

In 2023 and 2024, the renewable energy market went through a period of tremendous change and expansion. In 2023, renewable energy investment reached a remarkable USD 495 billion. Investments will increase to USD 520 billion in 2024 and USD 955 billion by 2031, with a CAGR of 7.90%. More than 70% of the additional capacity has come from renewable sources, such as solar and wind power. A record 245 GW of solar power was installed in 2023, up 15% from 2022, while 110 GW of wind power was added to the grid. As per our research analyst, wind power will reach 1,000 GW and solar power will surpass 1,500 GW by the end of 2024.

Solar module prices have dropped by 7%, and breakthroughs in wind turbine technology, including floating wind farms and other technological advancements that have reduced costs significantly, have been crucial. The capacity to store energy, which is essential for dealing with the intermittent nature of renewable power sources, increased by 20% in 2023 to 25 GW and will exceed 30 GW by the end of 2024. Green hydrogen investment also skyrocketed, reaching over USD 10 billion in 2023, and will be double by 2024. With the backing of policy, many nations have pledged to achieve net-zero emissions by 2050, and more than 140 have established renewable energy targets. Demand has been further boosted by sustainability-focused corporate pledges, such as the one from over 300 multinational firms, to use only renewable energy by 2030.