Green Energy Market Size - Global Industry, Share, Analysis, Trends and Forecast 2024 - 2032

Green Energy Market Highlights

• The global green energy market revenue is expected to reach USD 2.41 trillion by 2032, growing at a CAGR of 8.7% from 2024 to 2032
• In 2023, the Asia-Pacific green energy market was valued at approximately USD 471.5 billion
• North America's green energy market is projected to grow at a CAGR exceeding 9.3% from 2024 to 2032
• The solar energy segment accounted for an estimated 31% market share in 2023, based on energy type
• The industrial end-user segment demonstrated a growth rate of 62% in 2023
• Rapid advancements in energy storage solutions and smart grid technologies, enhancing the efficiency and reliability of renewable energy systems is the green energy market trend that fuels the industry demand

Green energy is also called as renewable energy sources that are environment- friendly and sustainable, reducing carbon emissions and pollution. This covers energy produced by solar, wind, hydroelectric, geothermal, and biomass sources. Green energy's key applications range from generating electricity for homes and businesses to providing heating and cooling solutions and powering electric vehicles. In addition, green energy is critical for off-grid power solutions, which improve energy access in rural places. Its implementation not only helps to combat climate change, but also enhances energy security and reduces reliance on fossil fuels. Overall, green energy is critical for establishing a sustainable future and transitioning to a low-carbon economy. For instance, by 2030, cheap renewable electricity might account for 65 percent of global electricity supply. It has the potential to decarbonize 90 percent of the electricity sector by 2050, significantly reducing carbon emissions and contributing to climate change mitigation.

Global Green Energy Market Dynamics

Market Drivers

• Supportive regulations and financial incentives foster investment in renewable energy projects
• Innovations in energy efficiency and storage enhance the viability of renewable sources
• Increased public concern about climate change boosts demand for clean energy solutions

Market Restraints

• Upfront capital requirements can deter investment in renewable energy projects
• Variability in energy generation from sources like solar and wind complicates supply management
• Inadequate grid infrastructure limits the integration of renewable energy sources

Market Opportunities

• Rising energy demands in developing regions present growth opportunities for renewable deployment
• Businesses increasingly seek renewable energy to meet sustainability targets and enhance their brand
• New financing mechanisms, such as green bonds, facilitate investment in renewable projects

Green Energy Market Report Coverage

Green Energy Market Insights

The growing public concern about climate change has raised awareness about the environmental consequences of fossil fuel consumption. For instance, according to the Our World in Data, in a 2023 Edelman Trust Barometer study, 83% of Americans agreed that "I believe that climate change poses a serious and imminent threat to the planet". In the United Kingdom, 90% of respondents answered the same question. In a 2023 survey conducted by Ipsos Mori in the United Kingdom, 77% of respondents expressed concern about climate change. As people and communities acknowledge the importance of tackling climate change, there is an increasing demand for ecologically friendly energy solutions that reduce greenhouse gas emissions. This shift in public opinion encourages governments and corporations to look at renewable energy sources like solar and wind as viable alternatives.

Supportive regulations and financial incentives foster investment in renewable energy projects also helps to increase growth in renewable energy market. For instance, according to Invest India, India has set a goal of dropping the nation's carbon intensity by less than 45% by the end of the decade, installing 50% renewable electricity by 2030, and reaching net-zero carbon emissions by 2070. India wants to install 500 GW of renewable energy capacity by 2030. This aims for lowering carbon intensity and growing renewable energy capacity demonstrate a strong commitment to supportive laws and financial incentives to encourage renewable energy growth. However, inadequate grid infrastructure can confound the successful integration of renewable energy sources by limiting the ability to transmit and distribute electricity from these variable sources to end users.

Furthermore, rising energy demands in developing regions present growth opportunities for renewable energy market. For instance, according to U.S Energy Information Administration, in 2022, wind and solar combined to generate 14% of all electricity in the United States. In February Short-Term Energy Outlook, estimated that wind and solar will marginally increase, accounting for 16% of total output in 2023 and 18% in 2024. Overall, growing energy demand significantly boosts demand for green energy industry in coming years.

Green Energy Market Segmentation

The worldwide market for green energy is split based on type, end-user, and geography.

Green Energy Types

• Wind Energy
• Bio Energy
• Solar Energy
• Hydroelectric Energy
• Others

According to the green energy industry analysis, solar energy has emerged as a dominant force in the green energy sector due to its widespread availability and low costs. As governments and corporations prioritize sustainability, solar power's ability to produce clean, renewable energy makes it an essential component worldwide and move to a greener economy.

Hydroelectric energy is seeing substantial expansion in the industry. Hydroelectricity, with its ability to produce baseload power and store energy via pumped storage facilities, is critical for stabilizing energy networks and facilitating the integration of other renewable sources. For instance, according to International Hydropower Association, hydropower is the largest single source of renewable energy, with pumped storage hydropower contributing more than 90% of all stored energy worldwide.

Green Energy End-Users

• Industrial
• Commercial
• Residential

According to the green energy market forecast, industrial end-users play an important role in market since they consume a large part of global energy. These industries, which include manufacturing, chemicals, and heavy machinery, are rapidly turning to renewable energy sources to satisfy sustainability targets and minimize operational costs. By switching to green energy, industrial end users not only reduce their carbon footprints but also increase their competitiveness in a changing market that values ecologically responsible activities. This transition not only increases demand for renewable energy solutions, but it also fosters innovation in energy efficiency and sustainable manufacturing methods across multiple industries.

Green Energy Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Green Energy Market Regional Analysis

For several reasons, the Asia-Pacific region dominating in renewable energy market, driven by rapid urbanization and rising energy demand. Countries such as China and India are heavily investing in renewable technologies to meet expanding energy demands while combating climate change. For instance, according to International Energy Agency (IEA), Chinese energy investments remained extraordinarily high, accounting for one-third of global clean energy investments and contributing significantly to China's overall GDP development. China has set dual carbon targets to peak carbon emissions by 2030 and attain carbon neutrality by 2060 and has made significant progress in increasing renewable capacity. This expansion is further aided by government measures and boosting sustainable energy practices across the region.

North America is growing significantly in renewable energy market due to significant expenditures in renewable energy infrastructure and a varied range of energy sources. For instance, according to International Renewable Energy Agency (IRENA), New York, United States of America, September 24, 2024, the world's largest utility companies today made a united commitment to invest more than US$116 billion per year in clean power generation and power system grid infrastructure worldwide in the next years. The region has vast natural resources, including wind, solar, and hydroelectric potential, which has resulted in the creation of large-scale projects. Furthermore, favorable government regulations and incentives, as well as increased business pledges to sustainability, are boosting the expansion of green energy in North America.

Green Energy Market Players

Some of the top green energy companies offered in our report include First Solar, Enel, Tesla, Siemens Gamesa Renewable Power Private Limited, Invenergy, BP, JinkoSolar, Vestas, Iberdrola, and SunPower.