The Renewable Energy Technologies Market Is Estimated To Witness High Growth Owing To Increasing Environmental Concerns
The renewable energy technologies market is estimated to be valued at US$ $881.7 billion in 2022 and is expected to exhibit a CAGR of 8.4% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Renewable energy technologies utilize renewable sources such as sunlight, wind, rain, tides, plants, algae and geothermal heat. Some of the major renewable energy technologies available in the market include solar photovoltaic (PV), wind power, hydroelectricity, bioenergy and geothermal power. These technologies are playing a vital role in reducing carbon emissions by generating electricity from clean and sustainable resources. Solar PV systems utilize solar panels to convert sunlight directly into electricity for residential and commercial uses. Wind turbines use wind energy to drive electric generators for generating electricity.
Market Dynamics:
The renewable energy technologies market is witnessing significant growth owing to increasing environmental concerns regarding greenhouse gas emissions and fossil fuel depletion. Various countries and governments around the world are promoting use of clean energy sources by introducing favorable policies and incentives. For instance, in July 2021 the U.S. House of Representatives passed a $3.5 trillion budget package focusing on clean energy initiatives. Similarly, European Union aims to generate at least 32% of its total energy from renewable sources by 2030 as part of its clean energy policy framework.
Growing investments by both public and private players in development of renewable energy projects is another key factor fueling the market growth. Numerous private companies including Innergex Renewable Energy Inc, Infigen Energy, Goldwind, First Solar, Inc., Aventine Renewable Anwell Technologies Ltd., SunPower Corporation, Yingli Green Energy Holding Co, LTD.
Segment Analysis
The global renewable energy technologies market is segmented on the basis of technology, which includes solar photovoltaic, wind turbines, hydropower, bioenergy and geothermal. Among these, the solar photovoltaic segment dominated the market in 2020 owing to declining prices of solar panels and supportive government policies and initiatives for adoption of solar energy across both residential and commercial sectors.
PEST Analysis
- Political: Supportive government policies such as tax credits and rebates have encouraged investment in renewable energy sources. Many countries have announced targets for increasing share of renewable energy in their overall energy mix.
- Economic: Transition to renewable sources of energy is expected to provide cost savings over coal and other fossil fuels in the long run. In the short-term, higher installation costs pose a challenge.
- Social: Population is more aware about climate change issues and health hazards of fossil fuels. This has boosted social acceptance for renewable energy adoption.
- Technological: Advancements are being made in areas such as thin-film technology, smart grid systems which is improving efficiency and driving down costs of renewable energy systems.
Key Takeaways:
The Global Renewable Energy Technologies Market Growth is expected to witness high, exhibiting CAGR of 8.4% over the forecast period, due to increasing support through government policies and climate change concerns.
Regional analysis: Asia Pacific dominated the global market in 2020 due to presence of major solar panel manufacturers and supportive government policies in China and India for adoption of clean energy technologies. China has emerged as the largest market for renewable energy globally.
Key players: Key players operating in the renewable energy technologies market are Innergex Renewable Energy Inc, Infigen Energy, Goldwind, First Solar, Inc., Anwell Technologies Ltd., SunPower Corporation, Yingli Green Energy Holding Co, LTD., Vestas Wind Systems A/S, SMA Solar Technology, AG, and Ocean Power Technologies, Inc. amongst others. First Solar is currently the largest U.S based solar panel manufacturer. SunPower and Vestas are focusing on expanding wind and solar project development regions globally.