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.

Market Overview:
The green energy market comprises of various renewable energy sources that are considered carbon neutral such as solar, wind, hydroelectric, biomass and geothermal energy. These energy sources have minimal environmental impact and helps reduce greenhouse emissions. Some key applications of green energy includes electricity generation, transportation, industrial, commercial and residential usage. With technological advancements, renewable sources are providing competitive prices for energy compared to fossil fuel based sources and are increasingly adopted across both developed and developing nations.

Market Dynamics:
The growing concerns regarding environment degradation and climate change has boosted the adoption of green and cleaner energy sources globally. Favorable government policies and regulations providing subsidies for production and consumption of renewable energy in various countries is a major market driver. Additionally, depleting natural resources and fluctuating fossil fuel prices has encouraged energy producers and consumers to shift towards abundant and affordable renewable sources. However, high initial installation cost of renewable plants and intermittent nature of some sources like solar and wind remains a major challenge. Ongoing research & development activities aimed at cost reduction and energy storage technologies is expected to provide promising growth opportunities in the green energy market during the forecast period.
Segment Analysis
The green energy market is primarily segmented into solar, wind, hydroelectric, and geothermal. Among these, the solar segment currently dominates the market and is expected to witness the highest growth during the forecast period. This is majorly owing to factors such as abundant availability of solar energy, decreasing costs of solar modules and inverters, and supportive government policies and initiatives promoting solar energy adoption. The solar segment is further classified into photovoltaic systems and concentrated solar power systems. Photovoltaic systems capture a major market share under the solar segment due to their flexible installation possibilities and no requirement for daily tracking of the sun.

PEST Analysis

Political: Supportive policies and regulations laid down by governments worldwide such as tax credits, net metering, renewable portfolio standards are fueling green energy market growth. Many countries have set binding renewable energy targets to reduce carbon emissions.

Economic: Continuous decline in the Levelized Cost of Energy (LCOE) from renewable sources compared to fossil fuels is making green energy commercially viable without subsidies. However, high initial investments remain a challenge for widespread adoption.

Social: Growing environmental concerns around pollution, climate change, and sustainable development is increasing consumer preference for cleaner energy sources. Renewable sources are also perceived to provide energy security.

Technological: Technology advancements in energy storage, power electronics, and renewable components are improving the efficiency and competitiveness of green energy solutions. Digitization is also enabling improved energy management and integration of distributed power systems.

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 investments in renewable capacity additions worldwide backed by supportive policies. The market size for green energy was valued at US$ 1144.49 Bn in 2023.

Regional analysis

Asia Pacific currently dominates the global green energy market and is expected to maintain its lead through 2030. This is attributed to the rapid growth of renewable installations in major countries such as China and India. Both nations have set ambitious renewable capacity targets and provide attractive investment incentives for clean energy projects.

North America is anticipated to emerge as the second largest market during the forecast period. Substantial solar and wind power capacities added across the US along with government support are aiding regional market growth. Countries in Europe such as Germany, UK, Spain, France are also witnessing strong investments into renewable sources to achieve zero carbon objectives.

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. Leading players are engaging in capacity expansions, mergers & acquisitions, and technological innovations to garner greater market share.

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