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.
Renewable energy technologies utilize natural sources like sunlight, wind, rain, tides, and geothermal heat, which are naturally replenished. These technologies provide a sustainable solution for generating electricity, as well as reducing carbon footprint. Key renewable energy technologies include solar photovoltaic (PV), wind turbines, hydropower, and biomass.
The renewable energy technologies market is expected to witness significant growth, owing to increasing policy support from governments globally to promote renewable energy sources. For instance, the U.S. government extended the investment tax credit (ITC) for solar energy until 2023. Additionally, continuous decline in the costs of renewable technologies such as solar PV modules and wind turbines is encouraging adoption among commercial and industrial end-users. According to the International Renewable Energy Agency (IRENA), the global weighted average cost of onshore wind energy declined by 15% between 2010 and 2020. Similarly, solar PV module costs dropped by over 80% during the same period. Such falling costs of renewable technologies are expected to boost their demand over the forecast period.
- Strength: Renewable energy technologies are eco-friendly in nature and help reduce carbon emissions which is a major strength. They provide reliable source of energy and help energy independence which boosts energy security. Government incentives and subsidies provided by various nations have made renewable energy projects financially viable.
- Weakness: High initial installation cost of setting up renewable energy projects is one of the major weaknesses. Intermittency of renewable sources like solar and wind is also a challenge. Lack of efficient energy storage solutions hampers grid integration of renewable energy.
- Opportunity: Increasing global demand for cleaner sources of energy provides significant business opportunities for renewable energy technology companies. New and emerging technologies improving efficiency and bringing down costs will drive future expansion. Supportive government policies to tackle climate change favors widespread adoption of renewables.
- Threats: Fluctuations in crude oil prices affect competitiveness of renewables. Lobbies of conventional energy companies pose threat by influencing energy policies. Trade barriers and tariffs disrupt supply of key components for renewable projects.
The Global Renewable Energy Technologies Market Demand is expected to witness high growth, exhibiting a CAGR of 8.4% over the forecast period 2023 to 2030, due to increasing concerns regarding environmental pollution and need for energy independence. The market was valued at around $881.7 billion in 2022.
Regional analysis: Asia Pacific dominates the global renewable energy technologies market and is expected to continue its lead position. China, India, Japan, South Korea, and Australia are major markets in the region due to supportive government policies and presence of leading renewable energy companies. North America is another major regional market favored by presence of key players and availability of advanced technologies.
Key players: Key players operating in the renewable energy technologies market are Innergex Renewable Energy Inc, Infigen Energy, Goldwind, First Solar, Inc., Aventine Renewable 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. These players are focusing on capacity expansion, mergers & acquisitions and technology advancements to consolidate their market position.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it