Renewable Energy Market Size Poised to Hit 7.04 Thousand GW by 2030, Says Report

For a comprehensive understanding of the trends shaping the future of the Renewable Energy Industry, access the full report on the Renewable Energy Market here. Stay ahead of the curve by leveraging our insights to drive your strategic decisions.

The renewable energy market is experiencing significant expansion, with projections indicating a substantial increase in installed capacity over the next five years. According to Mordor Intelligence, the market is expected to grow from 5.08 thousand gigawatts (GW) in 2025 to 7.04 thousand GW by 2030, reflecting a compound annual growth rate (CAGR) of 8.94% during the forecast period.

Report Overview: https://www.mordorintelligence.com/industry-reports/global-renewable-energy-market-industry?biphoo.ca

Key Growth Drivers:

Several factors are fueling the growth of the renewable energy market:

Technological Advancements: The renewable energy industry has witnessed significant technological breakthroughs, making energy generation from renewable sources more efficient and cost-effective. For example, solar photovoltaic (PV) technology has advanced rapidly, leading to decreased prices for solar panels and making them a preferred choice for both utility-scale and residential installations. Similarly, the growth of offshore wind technology, with improved turbine designs and increased capacity, has enhanced its potential as a viable renewable energy source.

Government Support and Policies: A growing number of governments are implementing policies that promote the use of renewable energy. These include tax incentives, subsidies, and the establishment of renewable energy targets to reduce reliance on fossil fuels and mitigate climate change. Policy-driven incentives are supporting the development of renewable energy projects, which are expected to account for an increasing share of global energy capacity in the coming years.

Corporate Sustainability Initiatives: Many global companies are shifting towards renewable energy sources to meet their sustainability goals. In response to rising demand for green energy, corporations are investing heavily in clean energy infrastructure and entering long-term power purchase agreements (PPAs) to secure renewable energy for their operations. This corporate shift is accelerating the adoption of renewable energy technologies and supporting market growth.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/global-renewable-energy-market-industry?biphoo.ca

Market Segmentation and Regional Insights

The renewable energy market is segmented by energy source, technology, and region. Here's a look at key developments in these segments:

Solar Energy: Solar power continues to dominate the renewable energy market. As of 2024, solar energy accounted for 42% of the global renewable energy market share. Over the next five years, the solar energy sector is expected to maintain its leading position, growing at a CAGR of 13% through 2030. The decline in the cost of solar panels, combined with advancements in solar energy storage technologies, is expected to further boost solar power adoption worldwide.

Wind Energy: Wind energy, particularly onshore and offshore wind farms, is gaining momentum due to advances in turbine technology and rising demand for clean energy. The offshore wind market is expected to experience significant growth, with a projected CAGR of 13% between 2025 and 2030. The development of offshore wind projects in countries with strong wind potential, such as the UK, Germany, and the US, is expected to contribute to the industry's expansion.

Hydropower: Hydropower remains a significant contributor to the global renewable energy mix. While growth in hydropower installations has slowed down in some regions due to environmental concerns and project financing challenges, the sector is expected to continue playing a key role in providing baseload renewable energy, particularly in countries with abundant water resources.

Bioenergy: Bioenergy, including biomass, biogas, and biofuels, is also witnessing considerable growth. The adoption of bioenergy technologies is expected to rise due to advancements in feedstock production, waste-to-energy technologies, and growing awareness of reducing carbon emissions. Bioenergy is particularly relevant in regions with large agricultural industries and waste resources

Geography Insights:

Asia-Pacific: The Asia-Pacific region is the largest market for renewable energy, accounting for over 55% of the global renewable energy market share in 2024. Leading countries such as China, India, and Japan are investing heavily in solar and wind energy projects. China, in particular, is leading the way with the largest share of global solar energy production. The country has also become a major player in the global wind energy market, particularly in offshore wind installations.

North America: The North American renewable energy market is seeing rapid growth, driven by favorable policies in the United States and Canada. The U.S. has become one of the largest markets for solar and wind energy, supported by federal incentives and state-level renewable energy mandates. Additionally, the growing corporate demand for renewable energy is contributing to the expansion of green energy capacity in the region.

South America: South America is experiencing the fastest growth in renewable energy adoption, with a projected CAGR of 16% between 2025 and 2030. Countries such as Brazil and Chile are tapping into their vast natural resources to expand renewable energy capacity. Brazil, with its large hydropower capacity, and Chile, with its growing solar energy sector, are leading the charge in the region.

Renewable Energy Top Companies

• NextEra Energy, Inc.
• Orsted A/S
• Iberdrola, S.A.
• Vestas Wind Systems A/S
• JinkoSolar Holding Co. Ltd.

Explore more insights on Renewable Energy Market Competitive Landscape: https://www.mordorintelligence.com/industry-reports/global-renewable-energy-market-industry/companies?biphoo.ca

Challenges and Opportunities

While the renewable energy market presents significant growth opportunities, it also faces several challenges:

Grid Integration: As the share of renewable energy in the global energy mix increases, the need for advanced grid infrastructure becomes more apparent. Integrating intermittent energy sources like solar and wind with the grid requires significant investment in smart grid technologies, energy storage solutions, and grid modernization.

Financing and Investment: Large-scale renewable energy projects require substantial investments, and access to financing remains a challenge in certain regions. Governments and private investors must work together to ensure the availability of funding for renewable energy projects, especially in developing countries.

Environmental and Social Impact: While renewable energy projects are critical for reducing carbon emissions, their development can sometimes have unintended environmental and social consequences. Proper planning, consultation with local communities, and environmental impact assessments are essential to mitigate any negative effects.

Conclusion:

The global renewable energy market is expected to grow significantly in the coming years, driven by technological advancements, supportive government policies, and increasing corporate demand for clean energy. As more countries transition to renewable sources, solar, wind, and other forms of renewable energy will play a pivotal role in shaping the future of global energy consumption.

In addition to trend analysis, Mordor Intelligence offers a comprehensive competitive landscape featuring profiles of major market players, detailing their product offerings, market strategies, and recent developments.

About Mordor Intelligence:

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions Renewable Energy organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & Renewable Energy, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

For any inquiries or to access the full report, please contact:

media@mordorintelligence.com
https://www.mordorintelligence.com/