Green Energy Market Trends

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

• Developing New Green Energy Sources Requires High Initial Investment – Infrastructure development for the development of new resources demands significant upfront investments. The cost of producing power rises as a result of these investments, particularly in the early years. The first step for the developers is to identify places that are acceptable to the general public, have good resources, and have access to transmission lines. Locating a potential solar location involves several years of monitoring to determine if they are acceptable or not. The workers also need to receive training on how to install, use, and maintain the new technologies. Before the performance may be optimized, some require operational knowledge under specific climatic conditions. Throughout the projected period, this issue is estimated to impede the market's expansion for green energy.

• Irregular Changes in Climate Conditions for Green Energy
• Lack of Workers for the Installation, Operation, and Maintenance of New Technologies