Green Energy Market size was valued at USD 109.3 Billion in 2023 and is poised to cross USD 347.28 Billion by the end of 2036, expanding at more than 9.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of green energy is estimated at USD 118.45 Billion. 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.
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
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
9.3% |
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Base Year Market Size (2023) |
USD 109.3 Billion |
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Forecast Year Market Size (2036) |
USD 347.28 Billion |
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Regional Scope |
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Type (Solar, Hydro, Wind, Tidal, Bio Gas, Geothermal, Other Energy)
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.
Application (Commercial, Residential, Industrial)
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 2036. 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 market includes the following segments:
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By Application |
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By Type |
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APAC Market Statistics
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 2036. 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.
North American Market Forecast
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
Author Credits: Dhruv Bhatia
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