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.
Market Overview:
Renewable energy technologies play a vital role in decarbonizing the energy sector by producing clean energy from renewable and replenishable sources like solar, wind, hydropower and bioenergy. These technologies provide pollution-free electricity and fuels for heating, cooling and mobility applications to meet the energy needs in a sustainable manner.
Market Dynamics:
Rising concerns over climate change and global efforts to reduce greenhouse gas emissions are a key driver propelling growth of the renewable energy technologies market. According to the IPCC, the energy sector needs to rapidly transition away from fossil fuels to renewable sources by 2020 to achieve net-zero carbon emissions and limit global warming below 1.5°C. Governments across various countries have implemented supportive policy mechanisms and financial incentives like renewable portfolio standards, renewable energy credits, tax incentives and net metering policies to encourage large-scale adoption of renewable technologies. Additionally, falling technology costs and improving efficiency of solar PV modules and wind turbines in recent years have also significantly boosted the commercial and economic viability of renewable energy systems.
Market key trends:
The renewable energy technologies market has seen growth in solar, wind, hydropower, and other renewable energy sources over the past decade. Solar and wind technologies have become more efficient and cost effective, making them competitive with traditional fossil fuel options in many places. Storage solutions are also improving, allowing renewable sources to provide electricity even when the sun isn't shining or the wind isn't blowing. Governments around the world have also implemented policies like renewable portfolio standards and carbon pricing initiatives to incentivize the increased adoption of clean energy.
SWOT Analysis
- Strengths: Renewable energy sources are abundant and widely distributed, helping to improve energy security. They also have zero fuel costs and reduce emissions.
- Weaknesses: Upfront capital costs are high for new renewable projects. The intermittent nature of solar and wind also requires fossil fuel backups or energy storage solutions.
- Opportunities: Many countries and states have set ambitious renewable energy and decarbonization targets, opening large potential markets. Technological improvements continue to drive down costs.
- Threats: Fossil fuel lobbies may try to slow or roll back clean energy policies and subsidies. Natural disasters could damage renewable infrastructure.
Key Takeaways:
The Global Renewable Energy Technologies Market Size was valued at $881.7 billion in 2022. It is expected to witness high growth, exhibiting a CAGR of 8.4% over the forecast period from 2023 to 2030.
Regional analysis: The Asia Pacific region currently dominates the renewable energy technologies market, led by China, India, Japan, and other emerging economies. Asia Pacific accounted for over 40% of renewable capacity additions in 2021 due to strong policy support for solar and wind projects in China, India, and other nations.
Key players: Key players operating in the renewable energy technologies market include 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 companies are focusing on expanding their renewable energy capacities and investing in new technologies like floating offshore wind to capitalize on the growing industry.
