The Renewable Energy Technologies Market is estimated to be valued at Us$ 1,128.08 Bn in 2023 and is expected to exhibit a CAGR Of 10 % over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Renewable energy technologies refers broadly to solar photovoltaics, onshore and offshore wind energy, hydropower, bioenergy and geothermal energy. These technologies generate electricity or other energy forms from renewable sources like sunlight, wind, water, biomass and geothermal heat. They are increasingly being used globally as a cleaner and more sustainable alternative to fossil fuels.
The renewable energy technologies market is primarily driven by increasing government subsidies and initiatives towards promoting clean energy sources. Many governments around the world offer various subsidies and tax incentives for both individuals and businesses utilizing renewable energy technologies. This has boosted their adoption significantly. Another key driver is the declining cost of renewable energy generation compared to fossil fuels. The costs of solar PV modules and wind turbines have reduced substantially over the past decade owing to technology advancement and economics of scale, making renewable energy cost competitive with coal and natural gas in many parts of the world.
Strength: Renewable energy technologies have three key strengths. First, they are environmental friendly sources of energy that mitigate the impacts of climate change. Second, they are mostly indigenous sources that enhance energy security by reducing reliance on imported fossil fuels. Third, the costs of renewable technologies like solar and wind have declined sharply in the last decade, making them competitive with fossil fuel options.
Weakness: Renewable energy technologies have high upfront installation costs and require large initial investments. Second, the output from renewable sources like solar and wind is intermittent in nature and depends on availability of source. This requires high costs for energy storage solutions.
Opportunity: Growing government focus on achieving nationwide renewable energy targets and increasing investments in renewable energy infrastructure present key opportunities. Second, rapid growth in electricity demand from growing economies and rising electrification provide a massive market opportunity for renewable sources.
Threats: Uncertainty in government policies including changes in tariff structures and subsidy withdrawls pose major threats. Second, strong lobbying from the fossil fuel industry works as a challenge for wide adoption of renewable technologies.
The global Renewable Energy Technologies Market is expected to witness high growth, exhibiting a CAGR of 10.% over the forecast period, due to increasing government support through favourable policies and subsidies. The market size for renewable energy technologies is projected to reach US$ 1,928.28 Bn by 2030.
Regional analysis: Asia Pacific dominated the global renewable energy technologies market in 2023, accounting for around 35% of the overall shares. China, India and Japan are witnessing high investments in renewable capacity addition to meet their nationally determined carbon targets. North America and Europe follow Asia Pacific in terms of market shares and are also expected to exhibit strong growth.
Key players: Key players operating in the renewable energy technologies market include ABB Ltd., Fuji Electric Co. Ltd., Hitachi Ltd., Mitsubishi Heavy Industries Ltd. and Toshiba Corp. These companies are focusing on new product launches, partnerships and mergers and acquisitions to gain leading position in the high growth renewable energy market.