February 25, 2024

Growing Concerns over Climate Change to Boost Growth of Renewable Energy Technologies Market

The global Renewable Energy Technologies Market is estimated to be valued at US$ 1,128.08 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Renewable energy technologies make use of renewable sources like solar, wind, hydro and biomass to produce energy. These sources have minimal environmental impact and are replenished naturally. Some key renewable energy technologies include solar photovoltaic cells, concentrating solar power, wind turbines, hydroelectric turbines, biofuel generators and geothermal generators. Renewable energy technologies play a vital role in reducing dependence on fossil fuels and mitigating the effects of climate change. They are also helpful in improving energy security by diversifying the energy supply mix of a country. Many governments offer subsidies and incentives to promote large-scale adoption of renewable energy technologies.

Market key trends:

One of the major trends in the renewable energy technologies market is growing investments in renewable capacity additions. According to the International Renewable Energy Agency (IRENA), total global investments in new renewable energy capacity reached $302.1 billion in 2020 despite the Covid-19 pandemic. China, Europe and the US accounted for the bulk of these investments. There is a rising focus on deploying newer renewables such as offshore wind, floating solar PV and geothermal energy sources. Technological advancements are also improving the efficiency and lowering the costs of renewable energy technologies. The development of innovative battery storage solutions is further enhancing the viability of solar and wind power projects. Moreover, increasing carbon neutrality pledges and green recovery packages by various nations will continue directing investments towards renewable capacities over the next decade.

Porter’s Analysis

Threat of new entrants: The renewable energy technologies market has moderate threat from new entrants due to significant initial investments required in developing new technologies and the presence of established players enjoying economies of scale.

Bargaining power of buyers: The bargaining power of buyers is moderate owing to the availability of a variety of renewable energy technologies for buyers to choose from. However, differentiated technologies give advantage to technology providers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate since renewable energy technologies require high-end components and expertise from specialized suppliers. However, established technology providers also develop in-house manufacturing capabilities.

Threat of new substitutes: The threat of substitutes is low as renewable energy technologies provide viable and environment-friendly alternatives to conventional power generation sources with limited substitution options.

Competitive rivalry: High due to the presence of numerous global and regional players offering cost-competitive and technology-differentiated solutions.

Key Takeaways

The global Renewable Energy Technologies Market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing investments in renewable projects by both public and private sectors and supportive government policies and regulations regarding clean energy adoption.

Regional analysis: Asia Pacific dominates the global renewable energy technologies market and is estimated to grow at a high CAGR during the forecast period owing to the rapidly growing energy demand in China and India compounded by government initiatives to reduce dependence on conventional energy sources. Europe and North America are also major markets supported by stringent environmental norms regarding carbon emission cuts.

Key players operating in the renewable energy technologies market are ABB Ltd., Fuji Electric Co. Ltd., Hitachi Ltd., Mitsubishi Heavy Industries Ltd. and Toshiba Corp. Key players are focusing on advancing technology efficiencies through innovations and adopting organic and inorganic growth strategies such as partnerships, expansions, and mergers & acquisitions to enhance their global presence.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it