As worries about climate change and pollution levels continue to grow, the worldwide renewable energy market size is expected to value around US$1.9 trillion by 2030, with a compound annual growth rate of 8.6% from 2022 to 2030, according to Precedence Research.
In 2021, the global renewable energy market size was estimated to worth US$952.16 billion, driven by the increased government and corporate investments in the adoption and deployment of renewable energy. Furthermore, the lower cost of renewable energy driven down by substantial technological developments is also boosting demand for renewable energy sources.
In terms of region, Asia Pacific dominated the worldwide renewable energy market in 2021, with a market share of over 35%. Increased foreign direct investments, expanding industrialization, fast urbanization, and population expansion are all driving up electricity demand in the region. The governments have been forced to focus on the adoption of clean electricity due to growing pollution levels as a result of earlier expansion in industrialization and urbanization.
In the Asia-Pacific, demand for renewable energy has increased dramatically in China and India, the most populated countries in the region and the global manufacturing hubs. The expansion in industrial projects in recent years has resulted in a large amount of pollution, forcing the two nations to switch to green energy to keep pace with the world’s emission reduction targets.
Nonetheless, the development of new resources necessitates significant capital expenditures for the construction of new infrastructure. Precedence Research predicts that in numerous nations, high initial capital investments and a lack of resources might stifle the expansion of the renewable energy market.
But the organization also forecasts that the situation will not last for too long. Renewable energy costs are expected to decrease as technology advances, and the increasing adoption of grid technology development will also help to lower the cost. In the coming years, it is projected to encourage the deployment of renewable energy sources.
Precedence Research ascribed the rapid expansion of solar market to cost reduction. The cost of solar electricity has dropped by roughly 85% in the last decade, making solar photovoltaic systems one of the most cost-competitive energy sources.
Solar-storage buildout, floating solar PV models, and community solar projects are expected to be key trends in emerging countries.
