United States Renewable Energy Market Outlook 2031

The United States renewable energy market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 10.1% during the forecast period, 2023–2031. The growth of the market is attributed to government policies and initiatives to fulfil increased electricity demand using renewable energy sources have been praised.



In 2020, United States electricity generated through renewable energy sources (such as wind, hydropower, solar, biomass, and geothermal energy) a record 834 billion kilowatt-hours (kWh) accounting for around 21% of all electricity generated in the US.

In the United States in 2020, only natural gas (1,617 billion kWh) produced more power than renewables. For the first time in history, renewables outperformed nuclear (790 billion kWh) and coal (774 billion kWh). This result in 2020 was mostly owing to a major reduction in coal use in energy generation in the United States, as well as constantly increasing use of wind and solar.



In 2007, coal-fired electricity output in the United States reached a high of 2,016 billion kWh, although much of that capacity has since been replaced or converted to natural gas-fired power.



Until 2016 coal was the greatest source of electricity in the US, and by 2020 was the first year when renewables and nuclear power provided more electricity than coal (according to our data series that dates back to 1949). Because many nuclear power plants retired and other nuclear facilities suffered slightly more maintenance-related interruptions, nuclear electric generation dropped by Two percent from 2019 to 2020.



With a 42 % rise between 2010 and 2020, renewable energy is the rapidly growing energy source in the United States from 2000 to 2020, it increased by 90%.



In 2020, renewables accounted for about 20% of utility-scale energy generation in the United States, with hydropower <str

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.

United States renewable energy market valued at USD 160 billion, driven by solar PV, wind growth, government incentives like Inflation Reduction Act, and tech advancements for clean energy transition.

The North America renewable energy market is primarily supporting the global industry growth, in which nearly 3058.36 Gigawatt of renewable energy was installed in 2024. Aided by the adoption of solar power as a part of renewable portfolio targets (RPS) and Federal investment tax credit (ITC), the global renewable energy installations is projected to grow at a CAGR of nearly 7.60% in the forecast period of 2025-2034 to reach 6362.26 Gigawatt by 2034.

The United States Solar Energy Market Report is Segmented by Type (Solar Photovoltaic and Concentrated Solar Power), Mounting Type (Ground-Mounted, Rooftop, and Floating Solar), and End-Use (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Investment into renewable energy technologies has grown significantly in the United States over the last decades. In 2023, investments reached **** billion U.S. dollars, in comparison to **** billion U.S. dollars in 2013. The United States’ renewable market has benefitted from green stimulus programs and uncertainties in renewable tax credits. The United States has also focused heavily on small-scale solar as well as utility-scale renewable technologies. Global renewable investments Investments in clean energy totaled *** billion U.S. dollars in 2023. China, Europe, and the United States are the largest investors in clean energy worldwide. Solar and wind technologies are the most heavily invested in worldwide. Due to the decrease in the cost of wind and solar technologies, it has been possible to purchase equipment for lower prices.

The United States renewable energy market size is projected to grow at a CAGR of 10.10% between 2025 and 2034.

The electric power sector in the United States had the highest renewable energy consumption in 2022, at about **** quadrillion British thermal units. In 2023, the industrial sector was expected to consume **** quadrillion British thermal units of renewable energy.

Renewable Energy Market is projected to reach USD 4,393.6 Billion by 2034, with a 12.9% CAGR from 2025 to 2034.

The North American Clean Energy Industry is poised for significant expansion, projected to reach a market size of approximately USD 600,000 million by 2025. This robust growth trajectory is underpinned by a Compound Annual Growth Rate (CAGR) exceeding 7.20%, signaling a dynamic and rapidly evolving sector. Key drivers fueling this expansion include increasing government incentives and supportive policies aimed at decarbonization, growing corporate sustainability commitments, and a pronounced consumer shift towards environmentally responsible energy solutions. The demand for renewable energy sources like solar and wind power, in particular, is surging as they become increasingly cost-competitive with traditional fossil fuels. Technological advancements are also playing a crucial role, enhancing the efficiency and reliability of renewable energy systems and driving down installation costs. The industry is witnessing a significant influx of investment, both public and private, dedicated to scaling up clean energy infrastructure and supporting innovation. The North American clean energy landscape is characterized by a strong emphasis on innovation and diversification within the renewable energy portfolio. While solar and wind power continue to dominate, there's a noticeable rise in the adoption of bioenergy solutions and advancements in energy storage technologies, which are critical for ensuring grid stability and overcoming the intermittency of some renewable sources. Geographically, the United States and Canada are at the forefront of this transformation, with the "Rest of North America" also showing increasing potential and adoption rates. However, challenges such as grid modernization needs, initial capital investment requirements, and occasional supply chain disruptions for key components present considerable restraints. Despite these hurdles, the overarching trend is one of sustained, accelerated growth, driven by the urgent need to address climate change and the clear economic advantages offered by a cleaner energy future. Key drivers for this market are: 4., Increasing Integration Of Renewable Energy Generation4.; Aging Power Grids And Investments In Transmission And Distribution Infrastructure. Potential restraints include: 4., Increasing Raw Material Prices And Investment In Distributed Renewable Energy Generation Affect The Growth. Notable trends are: Solar Energy is Expected to have Significant Growth in the Market.

Renewable Energy Market Outlook

According to our latest research, the global renewable energy market size reached USD 1.35 trillion in 2024, reflecting a robust expansion driven by global sustainability initiatives and technological advancements. The market is projected to grow at a CAGR of 9.8% from 2025 to 2033, reaching a forecasted value of USD 3.17 trillion by 2033. This exceptional growth is primarily attributed to the increasing adoption of clean energy technologies, government incentives, and the urgent need to mitigate climate change impacts. The renewable energy market is experiencing a paradigm shift as nations and industries prioritize decarbonization and energy security, making it a cornerstone of the global energy transition.

One of the most significant growth factors for the renewable energy market is the escalating global demand for clean and sustainable energy sources. Governments worldwide are implementing stringent policies and offering attractive subsidies to accelerate the transition from fossil fuels to renewable alternatives. The Paris Agreement and other international climate accords have set ambitious targets for reducing greenhouse gas emissions, compelling countries to invest heavily in renewable infrastructure. This policy-driven momentum is further supported by rising public awareness about environmental issues and the long-term economic benefits of renewable energy, creating a fertile landscape for market expansion.

Technological innovation is another key driver propelling the renewable energy market forward. Advances in photovoltaic cells, wind turbine efficiency, and energy storage solutions have significantly reduced the cost of renewable power generation, making it increasingly competitive with traditional energy sources. The integration of digital technologies such as artificial intelligence, IoT, and blockchain is optimizing energy management, grid integration, and predictive maintenance, further enhancing the reliability and scalability of renewable energy systems. As technology continues to evolve, the barriers to entry are diminishing, enabling broader adoption across diverse sectors and geographies.

Another critical growth factor is the increasing participation of the private sector and financial institutions in renewable energy projects. Investments from venture capital, private equity, and green bonds are fueling the development of large-scale solar farms, wind parks, and bioenergy facilities. Corporate power purchase agreements (PPAs) are also gaining traction, with multinational companies committing to sourcing 100% of their energy from renewables. This influx of capital and corporate commitment is accelerating the commercialization of emerging technologies and fostering innovation across the renewable energy value chain, driving sustained market growth.

The Renewable Energy Investment Index has emerged as a crucial tool for assessing the attractiveness of investments in the renewable sector. This index provides investors with a comprehensive overview of the market dynamics, policy frameworks, and technological advancements that influence investment decisions. By evaluating factors such as regulatory stability, market size, and growth potential, the index helps investors identify promising opportunities and mitigate risks. As the renewable energy market continues to expand, the Renewable Energy Investment Index serves as a valuable resource for guiding strategic investments and fostering sustainable growth in the sector.

From a regional perspective, Asia Pacific stands out as the fastest-growing market for renewable energy, led by China, India, and Japan. The regionÂ’s rapid industrialization, population growth, and urbanization are creating substantial energy demand, which is increasingly being met through renewable sources. Europe remains a leader in policy innovation and market integration, while North America is witnessing a surge in corporate renewable procurement and decentralized energy systems. Latin America and the Middle East & Africa are also emerging as key players, leveraging abundant natural resources and international financing to expand their renewable energy portfolios.

• The global industry was valued at US$ 940.4 Bn in 2023
• It is estimated to advance at a CAGR of 12.4% from 2024 to 2034 and reach US$ 3.4 Trn by the end of 2034

Market Introduction

Regional Outlook

Alternative Energy Market Snapshot

North America Renewable Energy Market size was valued at USD 116.82 Billion in 2023 and is projected to reach USD 363.8 Billion by 2031, growing at a CAGR of 16.80 % from 2024 to 2031.

North America Renewable Energy Market: Definition/ Overview

Renewable energy is defined as energy generated from natural sources that are constantly renewed, such as solar, wind, geothermal and hydropower. These sources are considered sustainable since they have a low environmental impact and can recover. Renewable energy, unlike fossil fuels, does not pollute or emit greenhouse gases, making it critical for sustainable development.

United States solar energy market valued at USD 75 billion, driven by renewable investments, tech advancements, and policies like Inflation Reduction Act for sustainable growth.

Energy Transition Market Outlook

The global energy transition market size was valued at approximately USD 1.5 trillion in 2023 and is projected to reach around USD 4.2 trillion by 2032, growing at a compound annual growth rate (CAGR) of 12.1%. The market is experiencing robust growth, driven by various factors including increasing environmental awareness, technological advancements, and supportive governmental policies aimed at reducing carbon emissions and promoting sustainable energy solutions.

One of the primary growth factors for the energy transition market is the escalating focus on reducing greenhouse gas emissions and combating climate change. Governments worldwide are implementing stringent regulations and offering incentives to promote the adoption of renewable energy sources and energy-efficient technologies. The Paris Agreement and various national commitments to achieve net-zero emissions by mid-century have accelerated investments in renewable energy projects such as solar, wind, and hydroelectric power. These initiatives are bolstered by increasing corporate social responsibility and consumer demand for sustainable products and services.

Technological advancements are another critical driver propelling the energy transition market. Innovations in renewable energy technologies, such as more efficient solar panels and wind turbines, as well as advancements in energy storage systems, are making renewable energy more reliable and cost-competitive with traditional fossil fuels. Additionally, the integration of smart grid technologies and the development of electric vehicles (EVs) are playing significant roles in transforming the energy landscape. These technologies not only enhance energy efficiency but also provide new opportunities for energy management and distribution.

Economic factors also contribute to the growth of the energy transition market. The declining costs of renewable energy technologies, alongside the volatility of fossil fuel prices, make renewable energy an attractive option for both consumers and investors. Furthermore, the economic benefits of local renewable energy projects, such as job creation and energy independence, are compelling reasons for continued investment. Energy storage solutions, including batteries and other innovative systems, are essential for addressing the intermittency of renewable energy sources, further driving market growth.

Regionally, North America, Europe, and Asia Pacific are the leading markets in the energy transition sector. North America, particularly the United States and Canada, benefits from significant governmental support and substantial private sector investments in renewable energy projects. Europe is witnessing rapid growth due to the European UnionÂ’s ambitious climate targets and widespread adoption of renewable energy technologies. Asia Pacific, driven by countries like China and India, is experiencing exponential growth due to increasing energy demand and large-scale renewable energy projects. Each of these regions has unique characteristics and growth drivers, contributing to the overall expansion of the global energy transition market.

The intersection of Manufacturing And Energy is becoming increasingly significant in the context of the energy transition. As industries strive to reduce their carbon footprints, the manufacturing sector is exploring innovative energy solutions to power their operations sustainably. This includes the adoption of renewable energy sources and energy-efficient technologies within manufacturing processes. The integration of solar panels, wind turbines, and energy storage systems in manufacturing facilities not only reduces reliance on fossil fuels but also enhances energy independence. Moreover, advancements in smart manufacturing technologies are enabling more efficient energy management, contributing to the overall goals of the energy transition.

Technology Analysis

The technology segment of the energy transition market encompasses renewable energy, energy storage, smart grids, electric vehicles, and other emerging technologies. Renewable energy technologies, including solar, wind, and hydroelectric power, form the backbone of the energy transition. Solar energy is particularly significant due to its widespread availability and the continuous improvements in photovoltaic cell efficiency, which have drastically reduced costs over the past decade. Similarly, wind energy has seen substantial growth, with advancements in turbine design an

Gain insights into the North America Renewable Energy Market size at USD 314 billion in 2023, featuring Leading Players, Market Forecasts & Outlook, and Key Players.

Renewable energy production in the United States reached an all-time high of 8,788 trillion British thermal units in 2024. Consumption followed closely behind at 8,581 trillion British thermal units. U.S. investment in clean energy The United States' investment in renewables has greatly increased in the past two decades. Clean energy in the United States currently comes primarily from wind, solar, and hydropower, with significant contributions from biofuel and biomass - also known as biopower. Investments are motivated not only by environmental concerns, but also by unstable markets for traditional fossil fuels. Crisis in oil markets When oil prices peaked during the 2008 financial crisis, investors turned toward developing renewables as well as increasing domestic oil production as a more economically viable source. During the 2010s oil glut, oversupply of shale oil followed the expansion of extraction methods such as hydraulic fracturing, used to access the country’s large reserves of sandstone deep underground.

United States Solar Energy Market is projected to grow at significant rate during the Forecast period, on account of increasing awareness among consumers, huge investments, and supportive government policies.

US Power Market size was valued to be USD 363.6 Billion in the year 2024 and it is expected to reach USD 517 Billion in 2031, at a CAGR of 4.5% over the forecast period of 2024 to 2031.The U.S. power market is driven by several key factors: the increasing demand for electricity, propelled by the rapid expansion of data centers and the electrification of transportation, necessitates significant investments in transmission infrastructure to enhance grid capacity and reliability. The growing emphasis on renewable energy sources, such as wind and solar, is reshaping the energy mix, influenced by both economic factors and policy initiatives. Technological advancements, including the integration of artificial intelligence and the Internet of Things, are further transforming grid operations and energy management. Additionally, policy and regulatory frameworks, including government incentives and environmental regulations, play a crucial role in shaping market dynamics.

The Latin America renewable energy market attained a volume of 300.80 Gigawatt in 2024. The industry is expected to grow at a CAGR of 4.10% during the forecast period of 2025-2034. By 2034, the market is expected to reach 449.56 Gigawatt.

The growing population and industrialization are driving an increased demand for clean energy, favoring the Latin America renewable energy market revenue. As per industry reports, the population of Latin America and the Caribbean reached 663 million people in 2024, further necessitating a large expansion in energy infrastructure. As urbanization and industrial activity intensify, energy consumption across commercial, residential, and industrial sectors is projected to rise significantly. In response, governments and energy stakeholders are leveraging advanced data modelling and predictive analytics to forecast energy demand patterns and optimize infrastructure development. These technologies enable more accurate planning and resource allocation, supporting efforts to meet future energy needs without compromising environmental goals.

The strong commitment towards net zero emissions is increasing the Latin America renewable energy market value. Supporting with industry reports, nearly half of the 33 Latin American and Caribbean nations, including Brazil, Chile, Costa Rica, and Colombia, have committed to achieving net-zero emissions by 2050. These commitments are backed by international agreements, national policies, and investments in renewable energy infrastructure. The goal of net-zero emissions also involves the transition towards renewable energy sources for enhancing energy efficiency while implementing carbon capture technologies. These factors are contributing to global climate change mitigation efforts.