The renewable energy market is projected to reach 2.15 trillion U.S. dollars worldwide in 2025. The growth in the renewable energy market has seen the propensity for non-renewable energy sources, such as coal, subsiding and the demand for renewable sources rising as long-term cost-effectiveness becomes increasingly feasible. Renewable sources like wind and solar have reached price parity along the electricity grid and are getting ever closer to reaching the performance potential of conventional sources. Increased use of technological advancements like automation, artificial intelligence, and blockchain will also increase renewable capacity deployment by decreasing costs and easing the integration of new energy infrastructure.

Clean energy investment
Clean energy investment has also generally risen in the past decade. Lower investment figures during this time are usually due to the reduction in project development costs. Investors focusing on long-term investments over short-term will also drive these investment trends. It is estimated that clean energy investment must accelerate to a faster pace in order to reduce emissions to levels recommended by the United Nations Intergovernmental Panel on Climate Change (IPCC).

Global Renewable Energy Market reached USD 1.1 trillion in 2022 and is expected to reach USD 2.0 trillion by 2031

The report covers North America Renewable Energy Market Outlook and is segmented by type (Hydro, Solar, Wind, Bioenergy, and Others) and Geography (United States, Canada, and Rest of North America). The market size and forecasts are provided in installed capacity (Gigawatts) for all the above segments.

The renewable energy market size is projected to grow from USD 1,262 billion in 2024 to USD 4,607 billion by 2035, representing a CAGR of 12.48%, during the forecast period till 2035.

According to Cognitive Market Research, the global renewable energy investment market size will be USD 981542.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 9.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 392616.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 294462.66 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 225754.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 49077.11 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 19630.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
The solar energy is the fastest growing segment of the renewable energy investment industry

Market Dynamics of Renewable Energy Investment Market

Key Drivers for Renewable Energy Investment Market

Increasing global energy demand to drive market growth

Increasing global energy demand is a significant driver of growth in the Renewable Energy Investment Market. As populations expand and economies develop, the need for sustainable and reliable energy sources intensifies. Urbanization and industrialization, particularly in emerging economies, lead to higher electricity consumption, pushing energy providers to seek alternatives to fossil fuels. Renewable energy sources, such as solar, wind, and hydro, present viable solutions that not only meet rising demand but also contribute to environmental sustainability. Additionally, the push for energy security and independence encourages investments in renewable technologies, allowing countries to reduce their reliance on imported fuels. This growing appetite for clean energy solutions drives innovation, efficiency improvements, and ultimately, a more robust and diversified energy portfolio, facilitating a transition to a low-carbon economy.

International climate agreements to boost market growth

International climate agreements play a crucial role in boosting growth in the Renewable Energy Investment Market. Initiatives like the Paris Agreement set ambitious targets for reducing greenhouse gas emissions, compelling nations to transition from fossil fuels to renewable energy sources. These agreements foster global cooperation, encouraging countries to commit to specific renewable energy targets, thereby increasing investments in clean technologies. As governments implement policies aligned with these agreements, they provide incentives such as tax breaks, subsidies, and grants, further driving investment. Moreover, corporate commitments to sustainability and net-zero emissions align with international goals, amplifying market demand for renewable energy projects. This synergistic relationship between policy frameworks and market dynamics accelerates the development and deployment of renewable energy solutions, positioning the sector for significant growth in the coming years.

Restraint Factor for the Renewable Energy Investment Market

High initial investment costs to limit market growth

High initial investment costs represent a significant restraint on the growth of the Renewable Energy Investment Market. While renewable technologies, such as solar panels and wind turbines, have seen decreasing costs over time, the upfront capital required for infrastructure development remains substantial. This barrier can deter potential investors, especially in regions where financial resources are limited or where fossil fuel alternatives are more economically attractive in the short term. Additionally, the lengthy payback periods associated with renewable energy projects can further complicate investment decisions. Smaller businesses and households may lack access to financing options, limiting their ability to participate in the renewable energy transition. Consequently, these high initial costs can slow down the adoption of renewable technologies, hindering the overall market growth desp...

Kazakhstan Renewable Energy Market is Segmented by Type (Hydropower, Wind, Solar, and Other Types). The report offers the market size and forecast in revenue (USD billion) for the above segments.

The global value of the waste-to-energy market reached 32.9 billion U.S. dollars in 2021. By 2028, the waste-to-energy market is expected to be valued at 48.54 billion U.S. dollars, growing at a CAGR of 6.7 percent from 2022 to 2028.

India's Renewable Energy Market is set to grow from USD 24 Billion in 2024 to USD 37 Billion by 2030, with a 9% CAGR from 2025-30, driven by sustainable energy initiatives.

BIS Research undertakes detailed study report on Asia Pacific Wind Energy market. The report analyzes key market size, report, research, analysis & forecast.

Global renewable energy market size & share estimated to surpass USD 2,202.90 billion by 2032, to grow at a CAGR of 8.5% during the forecast period.

Global Solar Energy Market to hit USD 515.3B by 2029 growing at 23.8% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

The Report Covers the Global Renewable Energy Market Size and Share, and the Market is Segmented by Type (Solar, Wind, Hydro, Bioenergy, and Other Types (Geothermal, Tidal, Etc. )) and Geography (North America, Asia-Pacific, Europe, South America, and Middle East and Africa). The Report Offers the Market Size and Forecasts in Installed Capacity for all the Above Segments.

The global Waste to Energy Market is projected to reach USD 92.42 billion by 2034 With at a CAGR of 8.2% during the forecast period.

Uncover the Renewable Energy Market, valued at USD 1080 Billion in 2024, projected to reach USD 1918 Billion by 2030, growing at a 12.17% CAGR during 2025-30.

According to Cognitive Market Research, the global Renewable Energy Source market size will be USD 915245.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 17.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 366098.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 274573.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 210506.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 45762.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 18304.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.9% from 2024 to 2031.
The Solar Energy category is the fastest growing segment of the Renewable Energy Source industry

Market Dynamics of Renewable Energy Source Market

Key Drivers for Renewable Energy Source Market

Increasing awareness of climate change to Boost Market Growth

Increasing awareness of climate change is significantly driving the renewable energy source market as individuals and organizations recognize the urgent need to transition away from fossil fuels. Public concern over environmental issues has led to heightened demand for sustainable energy solutions that can mitigate climate impacts. This awareness has influenced governments to implement supportive policies and incentives to promote renewable technologies, encouraging investments in clean energy projects. Additionally, corporations are increasingly adopting sustainability goals, driving further investment in renewable energy sources. As consumers demand greener products and practices, the market is shifting towards cleaner energy alternatives, reinforcing the commitment to combat climate change and ensuring a more sustainable future. For instance, ArcelorMittal announced that its Brazilian division, ArcelorMittal Brazil, has partnered with Casa dos Ventos, a Brazilian renewable energy firm, to create a joint venture for the Babilonia wind power project, which has a capacity of 554 MW. This initiative is projected to require an investment of USD 800 million and will be situated in Bahia’s central region in northeastern Brazil. ArcelorMittal is expected to retain a 55% stake in the joint venture, with Casa dos Ventos owning the remaining share.

Declining costs of renewable technologies to Drive Market Growth

The declining costs of renewable technologies are a significant driver of the renewable energy source market, making clean energy solutions more accessible and appealing. Advances in manufacturing processes, economies of scale, and increased competition have led to substantial reductions in the prices of solar panels, wind turbines, and energy storage systems. As these technologies become more affordable, both businesses and consumers are more inclined to invest in renewable energy solutions, resulting in higher adoption rates. Lower costs also enhance the financial viability of renewable projects, attracting investments from various sectors. This trend not only supports the global transition towards sustainable energy but also encourages innovation and development within the industry, fostering further advancements in renewable technologies.

Restraint Factor for the Renewable Energy Source Market

High Initial Costs will Limit Market Growth

High initial costs are a significant restraint on the renewable energy source market, often deterring investment and adoption. Many renewable technologies, such as solar panels, wind turbines, and energy storage systems, require substantial upfront capital for installation and infrastructure development. This financial barrier can be particularly challenging for small businesses and low-income households, limiting their access to renewable energy solutions. While long-term savings on energy bills can offset these costs, the lack of immediate affordability may discourage potential users. Additionally, financing options ma...

The Southeast Asia Renewable Energy Market size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 7.40 % during the forecast's periods. Currently, the Southeast Asia renewable energy market is vibrant due to rising awareness and concern on environmental conservation and energy portfolio diversification across the region’s countries. Southeast Asia has abundant renewable resource endowment such as solar energy, wind energy, hydro energy, biomass energy etc. for which the country is in a good standing to harness environmental amenities to respond to increasing energy demands and climate change challenges. Countries such as Thailand, Vietnam, Indonesia, and the Philippines are among those in the region that are most progressing in terms of renewable energy plans and available diverse energy sources. The government has the most influence because existing markets are mainly dependent on these policies and bonuses to grow. Most of the SEA countries have adopted the supporting policies like feed-in tariffs, tax exemptions, and quotas for the renewables to spur investment and promote more project activities. The cost of renewable technologies has come down over the years; they have improved in efficiency and are generally cheaper as compared to the conventional energy sources. Nevertheless, the market’s opportunities are sided with challenges, such as regulations, limited grids and access to finance. Moreover, the fluctuating nature of solar and wind energy sources implies that investment has to be made in other areas of electric infrastructure and hence storage technologies. Nevertheless, the given challenges should not overshadow the fact that the renewables market in SEA remains promising, which will contribute to the energy security of the region, its economic development, as well as the achievement of environmental objectives and increase the significance of SEA in the process of transformation of the world’s energy mix. Recent developments include: February 2024: The French development agency, Agence Française de Développement, announced that it was seeking to engage individual regional or international specialists to form a panel of experts to provide technical assistance services for the development of the 1.2 GW Bac Ai pumped-storage hydropower plant in the Ninh Thuan province of Vietnam., January 2024: Nexif Ratch Energy Investments Pte. Ltd, an owner/operator of clean-energy power, acquired the 30 MW Minh Luong hydropower plant, a run-of-river facility with peak-hour storage in Lao Cai province, Vietnam. The acquisition contributes to strengthening the Nexif Ratch Energy portfolio’s growth path in renewables and will create a stable and recurring income through a long-term power purchase agreement.. Key drivers for this market are: 4., Increasing Investments in Renewable Energy Generation4.; Favorable Government Policies. Potential restraints include: 4., Initial Cost of Renewable Energy Is High. Notable trends are: Solar Energy Segment to Witness Significant Growth.

The global wind energy market size reached US$ 89.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 164.6 Billion by 2032, exhibiting a growth rate (CAGR) of 6.8% during 2024-2032. The increasing demand for renewable energy sources, the increasing implementations of favorable policies and incentives, such as tax credits, subsidies, and feed-in tariffs, in stringent manner, and the development of energy storage technologies represent some of the key factors driving the market toward growth

The Report Covers the Southeast Asia Renewable Energy Market Size and Share, and It is Segmented by Type (Solar, Wind, Hydro, Bioenergy, and Other Types) and Geography (Vietnam, Malaysia, Thailand, Philippines, Indonesia, and Rest of Southeast Asia). The Market Size and Forecasts are Provided in Installed Capacity (GW) for all the Above Segments.

The Latin America renewable energy market attained a capacity of more than 300.80 Gigawatt in 2024. The market is further expected to grow at a CAGR of 4.10% during the forecast period of 2025-2034 to reach a capacity of more than 449.56 Gigawatt by 2034.

Explore the Renewable Energy Market trends! Covers key players, growth rate 9.8% CAGR, market size $1735.29 Billion, and forecasts to 2034. Get insights now!