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The renewable electricity generation market size is forecast to increase by USD 215.77 billion, at a CAGR of 11.5% between 2023 and 2028. The market is experiencing significant growth, driven by various factors. One key trend is the implementation of tax incentives for renewable electricity generation projects, which provide financial incentives for businesses and individuals to invest in resources. Another trend is the integration of renewable energy and storage technologies, enabling the storage of excess energy for use during peak demand periods. However, the high initial cost of infrastructure and technology remains a significant challenge for market growth. Despite this, the market is expected to continue expanding due to increasing global awareness of the need to reduce greenhouse gas emissions and transition to cleaner energy sources.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The solar segment is estimated to witness significant growth during the forecast period. The market is experiencing substantial growth, with solar and wind energy leading the charge. Sources, including sunlight, rain, tides, waves, geothermal heat, bioenergy and biomass, are becoming increasingly important as the world transitions to a low-carbon economy. Plants, such as solar farms and wind turbines, are being developed to meet escalating energy demand and reduce reliance on fossil fuels, such as coal, oil, and natural gas. Climate change and energy security are major drivers of this shift, as sources offer a sustainable and clean alternative to traditional power sources. However, the integration into the existing electricity grid presents challenges, including variations in production and the need for energy storage. Hybrid projects, such as the Green River Energy Center in Utah, are addressing these challenges by combining renewable power sources with energy storage systems. This large-scale project, which has a capacity of 400 MW of solar production and 1,600 MWh of battery storage, is a model for the industry.
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The solar segment was the largest and was valued at USD 72.28 billion in 2018. Energy efficiency measures, such as smart grids and electric vehicles (EVs), are also playing a role in the transition. EVs and vehicle-to-grid (V2G) technology enable the storage and distribution of excess renewable energy, reducing electricity distribution costs and minimizing power outages. Renewable energy targets and feed-in tariffs are incentivizing the development projects, while emissions intensity targets are driving the adoption of low-carbon energy sources. The use of biomass feedstock and hydroelectric power is also contributing to the growth of the market. Despite these advancements, the transition is not without challenges. The emissions intensity of gas-based power and coal-based power generation must be addressed, as well as the environmental impact of production and the availability of resources. Nonetheless, the benefits, including reduced greenhouse gas emissions and improved energy security, make it a worthwhile investment for the future.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Renewable power generation continues to gain momentum as industries and residential sectors seek energy self-sufficiency and reduced carbon footprints. Hydropower systems and solar power generation are leading the charge, with the solar industry experiencing significant growth due to the affordability and versatility of solar PV systems. Solar power projects, including utility-scale and commercial installations, are driving down electricity production costs, making renewable energy a viable alternative to traditional fossil fuels. Hydropower, with its ability to provide consistent electricity, remains a key player in the industrial and commercial sectors.
Meanwhile, solar PV panels and wind energy are increasingly being adopted for residential use. Renewable power generation offers numerous benefits, such as flood control, clean drinking water, and irrigation support, in addition to low-cost electricity and reduced greenhouse gas (GHG) emissions. Emissions regulations and the demand for low-carbon fuels are further fueling the growth of the renewable energy sector. Biogas plants and wind power capacity are also contributing to the shift towards unconventional power generation. The solar industry is poised for continued growth, with solar PV installations expected to increase significantly in the coming years. Overall, renewable energy is becoming a critical component of the global energy mix, offering a sustainable and cleaner alternative to traditional energy sources.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acciona SA - The company offers renewable electricity solutions to corporations, businesses, and organizations that are intended to minimize carbon footprints and optimize energy use.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
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Market structure |
Fragmented |
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YoY growth 2023-2024 |
11.2 |
The generation from sources such as sunlight, wind, rain, tides, and waves, is gaining significant traction in the global energy market, as the world transitions towards a low-carbon economy. Plants, including solar, wind, hydropower systems, and geothermal heat, offer environmental benefits by reducing emissions from traditional fossil fuel-based power sources, such as coal, oil, natural gas, and biomass feedstock. Renewable power sources, including solar energy and wind energy, are becoming increasingly cost-competitive with gas-based power and coal-based power generation. The environmental impact of generation is minimal, as it does not emit greenhouse gases (GHG) or other pollutants. The demand is driven by several factors, including emissions regulations, energy self-sufficiency, and the need for unconventional power generation. Generation from sunlight and wind is particularly promising, as it can provide energy during power outages and contribute to flood control.
The solar industry is expected to grow significantly in the coming years, with advancements in technology leading to increased efficiency and decreased costs. Wind energy is also becoming more competitive, with larger turbines and improved technology leading to higher capacity factors. Despite the benefits of generation, there are challenges to its widespread adoption, including the intermittency of some renewable sources and the high upfront costs of plants. However, as technology advances and economies of scale are achieved, it is expected to become an increasingly important part of the global energy mix. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Tax incentives for renewable electricity generation projects is notably driving market growth. Renewable energy sources, such as sunlight, wind, rain, tides, waves, geothermal heat, and biomass, are increasingly becoming the focus of global energy production due to their environmental benefits and decreasing costs. Targets and feed-in tariffs are driving the growth of industries like wind, solar, and hydroelectric power. For instance, tax incentives, such as the investment tax credit (ITC), significantly reduce the financial risk of projects by offering a 30% tax write-off for renewable technologies deployed through 2034. This incentive directly reduces the tax liability of projects, enhancing their net present value (NPV) and making countries like Canada an attractive destination for investments.
The shift is essential to mitigate climate change, reduce dependence on fossil fuels like coal, oil, and natural gas, and promote a low-carbon economy. This transition also includes the adoption of smart grids, energy efficiency measures, electric vehicles (EVs), and vehicle-to-grid (V2G) technology. However, the integration into electricity distribution networks poses challenges, such as electricity distribution costs and power outages. To address these challenges, the development of renewable power sources, like wind power, bioenergy, and geothermal energy, must continue alongside advancements in energy storage technologies and electricity grid infrastructure. Thus, such factors are driving the growth of the market during the forecast period.
Integration of renewable energy and storage is the key trend in the market. The market is witnessing a significant shift towards integrating renewable energy sources with advanced storage solutions. Renewable energy, derived from sunlight, wind, rain, tides, waves, geothermal heat, and other natural sources, is becoming increasingly popular as a low-carbon alternative to fossil fuels such as coal, oil, and natural gas. However, the intermittent nature of these sources poses challenges in ensuring a stable and reliable electricity supply. To address this issue, plants are being paired with storage systems. For instance, the Green River Energy Center in Utah, initiated by Plus Energies, integrates a 400 MW photovoltaic solar power plant with a 1,600 MWh battery storage system. This large-scale project ensures a consistent electricity supply by compensating for production variations, thereby addressing the intermittency issue. The integration of renewable energy and storage is crucial in the context of climate change, energy security, and fossil fuel reserves depletion. It also helps reduce greenhouse gas emissions, contributing to the transition towards a low-carbon economy.
Smart grids, energy efficiency, electric vehicles (EVs), and vehicle-to-grid (V2G) technologies are other significant trends in the renewable electricity generation industry. Hydroelectric power, wind power, bioenergy, solar energy, and geothermal energy are the primary renewable power sources, while coal-based power generation and gas-based power are being gradually replaced. The electricity distribution costs and power outages are major concerns, making the integration of renewable energy and storage a viable solution. Renewable energy targets and feed-in tariffs are driving the demand for renewable energy, while emissions intensity and biomass feedstock are critical factors in the selection of renewable energy plants. Thus, such trends will shape the growth of the market during the forecast period.
High initial cost of infrastructure and technology is the major challenge that affects the growth of the market. Renewable energy sources, including sunlight, wind, rain, tides, waves, and geothermal heat, are increasingly being adopted as alternatives to fossil fuels such as coal, oil, and natural gas, due to their environmental benefits and the need for a low-carbon economy in the face of climate change. Renewable energy targets and feed-in tariffs have driven the growth of renewable energy plants, particularly in wind and solar energy. However, the high initial costs of infrastructure and technology, particularly for offshore wind and ocean energy projects, pose a significant challenge. These projects require substantial capital investment for installation, transmission infrastructure, and ongoing maintenance. For instance, marine energy projects, such as tidal and wave energy systems, often involve complex engineering solutions to withstand harsh marine environments, making them expensive to develop. The high upfront costs create a significant financial barrier, slowing the development and scaling of these renewable energy projects.
Renewable power sources, such as hydroelectric power, wind power, bioenergy, and solar energy, are essential for energy security and reducing emissions intensity. However, the transition to renewable energy requires significant investment in smart grids, energy efficiency, electric vehicles (EVs), and vehicle-to-grid (V2G) technology. The ongoing maintenance and electricity distribution costs of renewable energy plants must also be considered to ensure the sustainability and reliability of the power grid. Coal-based power generation and gas-based power continue to dominate the energy landscape, but the shift towards renewable energy is gaining momentum. The environmental impact of fossil fuels and the depletion of fossil fuel reserves further underscore the need for a renewable energy future. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Renewable energy generation is a growing sector that harnesses sunlight, wind, rain, tides, waves, geothermal heat, and other natural sources to produce electricity. Renewable energy is becoming increasingly important due to concerns over climate change, energy security, and the depletion of fossil fuel reserves. The environmental impact of fossil fuels, including coal, oil, and natural gas, has led to a push for a low-carbon economy and a reduction in greenhouse gas emissions. Renewable energy sources, such as hydroelectric power, wind power, solar energy, geothermal energy, and bioenergy, offer a sustainable alternative to traditional energy sources.
Smart grids and energy efficiency measures, along with the increasing popularity of electric vehicles (EVs) and vehicle-to-grid (V2G) technology, are further driving the demand for renewable electricity. Renewable energy targets and feed-in tariffs are incentivizing the development of renewable energy plants, while advances in technology are reducing the emissions intensity of renewable power sources. The shift towards renewable energy is also aimed at improving energy security and reducing the reliance on coal-based power generation and gas-based power. Despite the challenges, such as electricity distribution costs and power outages, the future of renewable energy looks promising as the world moves towards a more sustainable energy mix.
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Market Scope |
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Report Coverage |
Details |
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Page number |
218 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.5% |
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Market growth 2024-2028 |
USD 215.77 billion |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key countries |
China, US, India, Germany, Japan, Canada, Italy, UK, Mexico, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acciona SA, Adani Green Energy Ltd., BP Plc, Brookfield Business Partners LP, Canadian Solar Inc., Constellation Energy Corp, Duke Energy Corp., Enbridge Inc., GE Vernova Inc., Iberdrola SA, Innergex Renewable Energy Inc., Invenergy, Orsted AS, Plug Power Inc., Schneider Electric SE, Siemens Gamesa Renewable Energy SA, Suzlon Energy Ltd., Tata Power Renewable Energy Ltd., and Vestas Wind Systems AS |
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Market dynamics |
Parent market analysis, market research and growth, market report, market forecast, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID -19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by End-user
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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