The market for green energy is anticipated to reach an estimated value of US$ 157.69 billion by 2032, up from an estimated US$ 52.89 billion in 2022, and to grow at a CAGR of 11.56% during that same period.
| Report Attribute | Details |
|---|---|
| Market Value (2022) | US$ 52.89 Billion |
| Market Anticipated Value (2032) | US$ 157.69 Billion |
| Market Growth Rate (2022 to 2032) | 11.56% CAGR |
Governments are acting in numerous locations throughout the world to make green power accessible to the general public. The market is being driven by these growing government initiatives, which are predicted to increase. The availability of environmentally acceptable options for producing power, such as wind, solar, and other sources, is also known to consumers. These sources are being used by lots of users to produce electricity on a small basis.
Both industrialized and emerging nations have seen an increase in the demand for energy solutions that are environmentally benign, practical, and affordable. One of the key aspects driving the growth of the global green power market industry is the high flexibility and promotion of renewable energy solutions.
Green power has become more popular as a result of rising energy demand and the steadily rising cost of fossil fuels and non-renewable energy sources. The global market for green power is expanding as a result of factors related to environmental concern, such as lowering carbon emissions and raising consumer awareness.
The lack of a robust battery storage system, ageing infrastructure, and government laws are all to blame for the market's slow growth. There are entry hurdles for new market entrants. Installation costs are also substantial for some projects.
The increased development of solar parks in various countries provides a significant chance for the industry to grow. Governments are launching campaigns to raise consumer knowledge about renewable energy sources. These facts suggest that this market will increase during the predicted period. Governments in Germany, the United States, India, Japan, and China are expanding the green energy market.
When compared to fossil fuels, renewable energy requires more land to produce power. It also presents a problem for wildlife conservation. The widespread adoption of green energy is hampered by a variety of economic, social, political, and structural issues.
The increasing global population and fast urbanization are increasing the demand for electricity generation. This is one of the most crucial factors influencing the industry favorably. The increasing development of residential and commercial structures, as well as the expansion of various sectors, are driving power consumption, which is propelling market growth.
Additionally, increased public awareness of the health and environmental benefits of green electricity is producing a good market outlook. Consumer preference for electric cars (EVs) is also contributing to market expansion. EVs reduce tailpipe emissions, reduce reliance on fossil fuels, promote community health, ensure energy security, and improve employment and upskilling.
As a result, demand for naturally replenished green energy sources is increasing. Rapid electrification of the transportation and industrial sectors, as well as the expansion of the electrical value chain in the oil and gas industry, are driving market growth. Furthermore, increased government attempts to establish renewable energy sources are providing manufacturers with lucrative growth potential.
Furthermore, governments in several countries are sponsoring public awareness efforts to educate people about the availability of green energy sources. Furthermore, several renewable energy breakthroughs and benefits are leading in a faster energy shift, supporting the green power business.
In recent years, the North America has dominated the global market. To reduce carbon emissions, many businesses are converting to green energy. Google, for example, has over 20 green energy agreements and generated 2,600 megawatts of green power in 2017.
Google has 11 renewable collaborations in the United States out of 20 green power partnerships. Furthermore, continued acceptance of green energy solutions among industrial, commercial, and residential customers is likely to drive market expansion in the approaching years.
However, the Asia-Pacific green power industry is expected to be the fastest growing in the future years. Government support and increased usage of solar energy are significant factors that are expected to boost market growth soon.
Furthermore, the government is pushing people to build renewable energy solutions by providing subsidies for each installation.
Green power is basically production of electrical energy from environment friendly and renewable sources such as wind, geothermal, biomass, solar and low-impact hydropower. There has been an increased awareness among consumers regarding use of environment friendly sources of electricity supply.
This in turn has led towards demand for green power sources in the recent past. In order to support green environment campaign, governments of various countries are taking initiatives to enhance consumer awareness as well as availability of green power sources.
Globally, there has been integration of renewable energy and equipment installations. For instance, in Iceland 80% of the electricity is generated from earth’s heat. Similarly in Norway, 98% of electricity is generated using geothermal, hydroelectric and wind energy.
There have been increased number of attempts to offer low-cost, environment-friendly options to low down the negative impact of using non-renewable sources of energy for electricity generation. For instance, in India the untapped market of renewable energy is anticipated to be around US$ 10.5 billion by 2017 end.
In order to tap this potential market, government of India is taking various measures such as promotion of small power plants for both biomass and solar, entrepreneurship development for electricity in rural areas through solar power, biomass waste and rice husk, solar cooking initiatives, green campuses and buildings construction, and projects for off-shore wind generation, among others.
With introduction of programs offering consumer choice for domestic electricity ensuring price stability balancing the increased electricity price volatility in some countries is leading towards increased adoption of green power sources as a mode of electricity generation.
Factors such as population growth, urbanisation, industrialisation, growing per capita consumption, depletion of conventional reserves and increasing concerns for climatic change are contributing towards increasing adoption of green power sources as mode of electricity generation.
This is further fuelling green power market growth at a robust rate and is expected to gain significant traction in the near future. However, proper balance of environmental stability and economic development is a concern for government and environment control authorities across the globe.
However, barriers towards growth of green power market include low cost of utility default service, high entry barriers for new entrants, lack of existing renewable energy plants and insufficient unbundling of revenue-cycle services.
Despite of the aforementioned challenges, green power market is anticipated to grow significantly in the near future. This is attributed to development of solar parks, government initiatives and programs, increasing awareness regarding use of renewable energy sources, among others.
Depending on the equipment manufacturers for energy resources such as wind energy, solar energy, geothermal energy and hydropower energy, some of the key solar panel manufacturers are Trina Solar Limited, Yingli Solar, Canadian Solar and others.
Similarly prominent wind turbine manufacturers include Siemens AG, General Electric Company (GE Power), and Senvion SE among others. Few prominent geothermal energy system manufacturers include FHP Bosch Group, Earthlinked Technologies Inc., Aquatherm Industries, Inc., and Ormat Technologies, Inc. among others.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
Green power market is segmented on the basis of energy resources, equipment type. Different type of energy resources include solar, biomass, wind and small hydropower. Of which, biomass is further segmented into landfill gas and agricultural waste.
On the basis of different energy resources, equipment vary and are classified into solar energy equipment, wind energy equipment, geothermal energy equipment and hydropower energy equipment. Further, agricultural waste is sub-segmented into poultry litter and others.
Geographically, the green power market is segmented into seven regions namely North America, Western Europe, Japan, Asia Pacific Excluding Japan, Middle East and Africa and Latin America.
The market is likely to register a CAGR of 11.56% through 2032.
The market is currently valued at US$ 52.89 Bn in 2022.
The market is likely to grow to a valuation of US$ 157.69 Bn by 2032.
North America is likely to be a leading market during the forecast period.
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