Renewable energy technologies are a sustainable and clean source of energy. The most commonly used renewable energy technologies include solar photovoltaic, wind, hydropower, and bioenergy. Solar photovoltaic technology converts sunlight directly into electricity, while wind turbines use wind to drive electric generators. Hydropower harnesses the kinetic energy of water by turning turbines to generate electricity. Bioenergy technologies produce renewable energy from biomass and waste sources like municipal solid waste, landfill gas, and anaerobic digestion of animal wastes and food processing residues.
These renewable energy technologies are playing a key role in reducing reliance on fossil fuels and mitigating climate change. Rapid urbanization and industrialization are increasing global energy demand. In response, governments across the world are introducing supportive policies and regulations to encourage deployment and use of renewable energy. Corporates and industries are also adopting renewable energy technologies to achieve sustainability goals and reduce carbon footprint. The global renewable energy technologies market is estimated to be valued at US$ 1128.08 billion in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing concerns regarding environmental degradation and climate change have fueled demand for clean energy technologies across both developed and developing nations. Government policies promoting renewable energy adoption through investment subsidies, generation-based incentives and renewable purchase obligations have encouraged increased investment in solar, wind and other renewables. For instance, the U.S. Inflation Reduction Act provides tax credits worth $370 billion to drive deployment of clean energy technologies like solar panels and electric vehicles over the next 10 years. Similarly, the European Union’s REPowerEU plan aims to rapidly reduce dependence on Russian fossil fuels by 2030 through accelerated rollout of renewable energy.
Rising demand for sustainable energy solutions from industrial and commercial sectors will further drive market growth over the forecast period. Key industries like manufacturing, food & beverage, pharmaceuticals are implementing on-site renewable power projects to reduce energy costs and meet their ESG commitments. This increased commercial and industrial demand is boosting manufacture and uptake of renewable technologies like solar panels, wind turbines andgreen hydrogen equipment.
Segment Analysis
The renewable energy technologies market size is dominated by Solar PV technology segment which holds around 25% of the total market share. Solar PV technology segment is dominating as it is widely used for power generation in both commercial and residential sectors due to declining costs of solar panels and supportive government policies and incentives promoting use of solar energy. The wind energy segment is the second largest segment and accounted for around 20% share in 2023.
PEST Analysis
Political: Many countries across the globe have set ambitious renewable energy targets and carbon reduction goals to meet their commitments under the Paris Agreement which is supporting the growth of the renewable energy technologies market. Governments are offering various incentives like tax credits, rebates etc. to boost adoption of renewables.
Economic: Transition to renewable sources of energy is helping many countries to reduce import dependence on fossil fuels thereby lowering energy security risks. It is also helping in energy cost stabilization as renewable tariffs are lower than conventional energy sources.
Social: Growing climate change concerns among general public and organizations is driving preference for cleaner and greener sources of energy. Renewable technologies are also creating new job opportunities in related industries.
Technological: Rapid technology advancement in areas like solar PV, batteries, offshore wind etc. have significantly improved the efficiencies and lowered costs of renewable systems. Emerging technologies like floating solar, green hydrogen are further expanding the applications of renewables.
Key Takeaways
The global renewable energy technologies market is expected to witness high growth over the forecast period supported by supportive government policies, falling technology costs and growing climate change concerns.
The European market for renewable energy technologies is expected to showcase significant growth owing to region’s ambitious decarbonization targets under European Green Deal. Countries like Germany, UK, France are investing heavily in clean energy transition which will drive demand for renewables.
Key players operating in the renewable energy technologies market are Becton, Dickinson and Company, Abbott, ACCESS BIO, CELLTRION INC., Siemens Healthcare GmbH, ACON Laboratories Inc., ARKRAY, Inc, F. Hoffmann-La Roche Ltd., OraSure Technologies Inc., Quest Diagnostics, Bionime Corporation, Btnx Inc., iHealth Labs Inc., InBios International, Inc. and True Diagnostics Inc. The industry is witnessing increasing strategic partnerships and M&A activities to enhance technology capabilities and geographical reach.
