Green Energy Market Analysis by Application (Commercial, Residential, and Industrial); and by Type (Solar, Hydro, Wind, Tidal, Bio Gas, Geothermal, and Other Energy)– Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3366 | Published Date: Mar 03, 2023
The global green energy market is estimated to garner a revenue of ~USD 250 billion by the end of 2035 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 100 billion in the year 2022. The growth of the market can primarily be ascribed to the global shift from non-renewable sources of energy, such as coal and petroleum, to renewable energy. According to the data from the International Energy Agency (IEA), the annual renewable capacity additions increased by 45% in 2020, which accounted for almost 280 GW. Despite the aftereffects of the COVID-19 pandemic, installed renewable power capacity experienced a raise of 6% globally.
Green energy is important as it aids in mitigating the negative consequences of fossil-fuel-generated energy. Since green energy is a clean source of energy, it emits no greenhouse gases, protecting the environment while producing efficient and desired results. The global green energy market is used in a wide range of industries and sectors. Moreover, green energy has been a replacement for the energy generated from burning fossil fuels. Furthermore, there has been an increase in greenhouse gas emissions from the industry sector. Hence, the rapid growth of industrialization is anticipated to surge the growth of the global green energy market. Nearly 24 percent of the greenhouse emission in the year 2020 came from the industry sector in the United States.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 100 Billion |
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Forecast Year Market Size (2035) |
~ USD 250 Billion |
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Regional Scope |
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Growth Drivers
Growing Awareness Among People to Use Green Energy for Electricity – The residential sector is the main user of electricity across the globe. Therefore, there is a need to raise awareness among them to use green energy for consumption rather than relying on fossil fuels. Hence, it is expected to drive the growth of the global green energy market. According to the United States Environmental Protection Agency, approximately, 60 percent of the electricity in the United States comes from fossil fuels burning, such as natural gas, and coal.
Rising Government Initiatives to Promote Green Energy – As per the India Brand Equity Foundation, the Union budget 2022-2023 allocated USD 2.57 billion to drive the manufacturing of high-efficiency solar modules for the government.
Increasing Need for the Reduction of Greenhouse Gas Emissions – Energy-related carbon dioxide emission has increased by 6 percent in the year 2021 across the globe accounting for 36.3 billion tonnes.
Rising Adoption of Electric Vehicles – As per the data reported by International Energy Agency, total electric vehicle sales accounted to reach 6.6 million in the year 2021 across the globe.
Surging rate of Urbanization – As per the data stated by the United Nations, approximately 68 percent of the global population would live in urban areas by 2050.
Challenges
The global green energy market is segmented and analyzed for demand and supply by type into solar, hydro, wind, tidal, biogas, geothermal, and other energy out of which, the hydro energy segment is projected to witness noteworthy growth over the forecast period. The growth of the segment can be accounted to the rapid construction of hydropower plants, and their wide application across sectors. Moreover, hydropower is the pillar of low-carbon electricity generation, supplying nearly half of it globally today. Hydropower contributes 55% more than nuclear and more than all other renewables combined, including wind, solar PV, bioenergy, and geothermal. According to the data from the IEA, the total global hydropower capacity was valued at 1308 GW in 2020.
The global green energy market is also segmented and analyzed for demand and supply by application into commercial, residential, and industrial. Out of which the commercial segment is anticipated is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing demand for energy by this sector. Further, majority of companies are investing more on renewable energy owing to various environmental concern. Energy use is intimately related to climate change. The ecology is harmed by fossil fuels, and their prices are unstable. Hence, the environment could be preserved by substituting clean energy sources for fossil fuels. Also, government has launched various policies, making use of renewable energy stringent for commercial sector.
Our in-depth analysis of the global green energy market includes the following segments:
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By Application |
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By Type |
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The Asia Pacific green energy market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be ascribed to the highest utilization and adoption of solar and hydro energy in the region, along with high adoption of green energy in major countries such as China, India, and Japan which is also estimated to significantly boost the market growth. Solar power production in China increased from 39 TWh in 2015 to 260 TWh in 2020, while the total hydropower generated in 2019 crossed 1,302.00 TWh. Similarly, markets in India and Japan have witnessed robust growth in solar and wind energy respectively, which is estimated to boost the regional market growth.
Further, the market in North America is also anticipated to grow over the forecast period, backed by growing awareness regarding growing pollution and its adverse effect on the environment. Moreover, government are initiating various strategies in order to increase the adoption of green energy in this region. They are also investing in green energy which is also estimated to boost the growth of the market in this region.
Siemens Gamesa Renewable Energy (Siemens AG) to supply wind turbines for three 1,044 MW wind power projects in Hai Long in Taiwan.
November 2022: Enel X (Enel Spa) announced a collaboration with Cogenio to install photovoltaic systems in 2 Marchesi Antinori wine cellars
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Rising government initiatives to promote green energy, surging rate of urbanization, and increasing need for the reduction of greenhouse gas emission are estimated to majorly boost the market growth.
Ans: The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2035.
Ans: Irregular changes in climate conditions for green energy, and lack of workers for the installation, operation, maintenance of new technologies is estimated to challenge the market growth
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are DuPont de Nemours, Inc., Envision Group, The Dow Chemical Company, Enel X (Enel Spa), Adwen GmbH, Suzlon Energy Limited, Ming Yang Smart Energy Group Ltd, Cybrid Technologies Inc., GE Group, Siemens AG, and Others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The hydro energy segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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