The Green Energy Market is estimated to be valued at US$ 1144.49 Bn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The green energy market is valued at US$ 1144.49 Bn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. The market is primarily driven by the growing emphasis on reducing carbon emissions and adopting cleaner sources of energy across various industries and sectors.
Market Overview:
The green energy market consists of different types of energy sources including wind energy, solar energy, geothermal energy, bioenergy, and hydropower. These renewable sources of energy are becoming increasingly important in generating power while reducing environmental impacts of fossil fuel-based electricity generation. Promoting the adoption of green energy technologies by residential, industrial, and commercial sectors is key to transitioning towards a low carbon economy.
Market Dynamics:
The green energy market is witnessing high growth owing to increasing government support and initiatives to encourage renewable power generation. Many countries have outlined policies and targets to expand renewable capacity and have introduced incentives like tax credits and subsidies for renewable project development. This is boosting investments in green energy infrastructure and technologies. Additionally, the declining cost of renewable power generation technologies like solar PV and wind turbines is making green energy more affordable and competitive compared to coal and natural gas. The levelized cost of energy from utility-scale solar PV and onshore wind projects has fallen almost 70% from 2009-2019, according to the International Renewable Energy Agency. The rising awareness about climate change and environmental protection is also propelling the adoption of green and clean sources of power across industrial and commercial sectors.
SWOT Analysis
Strength: Green energy sources such as solar, wind and geothermal are renewable and their operational costs are lower than traditional fossil fuels. There is also government support for renewable energy adoption globally which is promoting investments. Green energy technologies are evolving rapidly to improve efficiencies and reduce costs further.
Weakness: High initial costs for setting up green energy power projects. Intermittent power generation from renewable sources like solar and wind requires electricity storage solutions which increases costs. Developing energy storage solutions still have technological challenges to overcome.
Opportunity: Increasing global demand for clean and reliable energy sources to address climate change concerns. Developing nations across Asia and Africa provide huge growth opportunities as their energy needs rise rapidly. Technological advancements are improving efficiencies and bringing down costs of renewable energy systems.
Threats: Fluctuations in fossil fuel prices can impact economic viability of green energy projects. Changes in government policies and subsidies support can negatively impact investments. Trade issues or raw material shortages can disrupt renewable energy supply chains. Natural disasters may damage renewable energy infrastructure in some vulnerable locations.
Key Takeaways
The Global Green Energy Market is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing concerns around climate change and focus on developing sustainable energy sources. Developed regions in North America and Europe currently account for over 50% share of the market due to early adoption. However, Asia Pacific region is expected to dominate market in coming years supported by rapid economic growth and rising energy demand in China, India and Southeast Asian countries.
Regional analysis
Asia Pacific region is projected to grow at fastest pace and emerge as dominant region in Green Energy Market during forecast period. Countries like China, India, Japan and South Korea are major markets and their growing efforts to expand renewable energy capacities through large investments will drive regional growth. China alone has set ambitious targets to increase non-fossil fuel energy share to around 25% by 2030. Europe and North America are also prominent early adopters but Asia Pacific will see highest compound annual growth.
Key players
Key players operating in the Green Energy Market are ABB Ltd., Alterra Power Corporation, Kyocera Solar, Inc., Nordex SE, Hanwha Q Cells GmbH, Sharp Corporation, Calpine Corporation, Suzlon Energy Ltd., U.S. Geothermal Inc., Yingli Green Energy Holding Co. Ltd., Enercon GmbH, and GE Energy. These companies have leading technologies and global presence with focus on expanding clean energy portfolios organically as well as through acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it