Global Renewable Energy Market to Grow 8.5% Annually in Coming Years

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The global renewable energy market size and share is expected to register an annual growth rate of 8.5% and industry revenue is expected to increase from $860 billion in 2021 to reach $1.68 trillion by 2029, according to a recent research study published by Polaris Market Research.

Renewable has long been used for heating, transportation, lighting, electricity, and cooling. Though it collectively provides around 7% of the world’s energy demand, it is likely to eventually be more expensive than fossil fuel. Still, concerns regarding minimizing greenhouse gas emissions, poor advancement in nuclear power application, and a surge in the search for power security are the key factors expected to accelerate the global renewable energy market growth during the forecast period.

The growing use of renewable energies and rising awareness regarding global warming due to carbon dioxide (CO2) emissions are boosting the market growth. Also, increasing concerns about the reduction of greenhouse gas emissions and the aversion to traditional nuclear power are also expected to drive the market growth during the forecast period. Governments worldwide are introducing various policies and regulations to promote renewable energy sources in order to reduce pollution. All these factors are responsible for a surge in the demand for renewable energy, fueling market growth.

Renewable or clean energy usually comes from natural sources that are constantly restored. Solar energy, wind energy, hydro energy, tidal energy, geothermal energy, and biomass energy are the most popular renewable energy sources. Wind energy, one of the types of energy, is used to produce electricity using the kinetic energy source. Wind energy can be based onshore and offshore. Onshore wind power is when onshore turbines are located on land, while offshore wind power refers to turbines that are located in the ocean or sea. 

Leading players operating in the global market include ABB Ltd., Acciona, Canadian Solar Inc., EDF, Enel SPA, First Solar Inc., General Electric, Geronimo Energy, Iberdrola SA, Innergex, Nordex SE, Orsted A/S, Siemens Gamesa, Sunpower, Tata Power, Vestas Wind Systems, and Xcel Energy. 

North America witnessed the largest share of the market in 2021. Various companies across the country are collaborating for increasing power sources, thus fueling the market growth in the region. Moreover, Asia Pacific is anticipated to generate a high CAGR in the global market during the projected time period. This is because countries such as China and India have experienced significant surges in power consumption owing to growing investment in renewable power projects.