The global renewable energy market will reach $2.45 trillion by 2032, growing at a compound annual growth rate of 9.47%, due to increased global power consumption and worldwide efforts to decrease carbon emissions, according to a market report from Straits Research.
Straits Research said a number of benefits to using renewable energy instead of fossil fuels in explaining the market’s rapid growth. Countries have recognized renewable energy sources as reliable and resilient -- they are abundantly available as they rely on natural processes, and they are less susceptible to wide-scale power failure. The cost of renewable energy is comparatively lower than fossil fuels, and they are especially beneficial in remote or underdeveloped areas with less access to grid systems.
Because of factors like worldwide population growth, infrastructure development, and increased urbanization, power consumption is expected to increase from 25,000 terawatt hours in 2017 to 38,700 terawatt hours in 2050 according to BloombergNEF. As demand increases and the need for emissions-free energy follows, world leaders have determined a need to triple renewables in the years leading up to 2030.
The report considers the Asia-Pacific region the most significant global renewable energy market shareholder, and it is projected to grow at 8.1% during the forecast period due to the area’s expanding population and rising income. A recent report from the International Energy Agency confirms this growth, finding that the majority of worldwide electricity demand growth comes from China, India, and countries in Southeast Asia.
The Asia-Pacific region, currently home to some of the world’s major polluters, is working to increase wind, bioenergy, solar, and hydropower production to address environmental concerns while also accounting for price volatility and energy supply security.
The North American market is expected to grow at 8.79% as corporations in the United States invest heavily in renewable energy generation systems. Solar and wind energy are expected to dominate the North American market, and Canada reportedly accounts for the fastest expansion of these renewable energy sources at present.
When considering the industrial, residential, and commercial segments, the market report found the industrial segment to hold the highest market share of the three, with a CAGR of 9.2% over the forecast period.
Meanwhile, the hydropower segment is responsible for the largest market share in terms of renewable energy type, above wind, solar, bioenergy, geothermal energy, and ocean energy. The hydropower industry is also expected to grow by 11.2% over the forecast period.
The market report named Ocean Power Technologies, Ørsted, General Electric, NextEra Energy, Enel Spa, On Power, Yingli Solar, Tocardo, SynTech Bioenergy, Vestas Wind Systems, Siemens, and Canadian Solar as key players in the renewable energy market.
