Renewable Energy Market Research Report By Energy Source (Solar, Wind, Hydropower, Geothermal, Biomass), By Technology (Photovoltaic, Concentrated Solar Power, Onshore Wind Turbines, Offshore Wind Turbines, Hydroelectric Power Plants), By Application (Electricity Generation, Heating, Transportation, Cooling, Industrial Processes), By End Use (Residential, Commercial, Industrial, Utilities) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035

Global Renewable Energy Market Overview:

As per MRFR analysis, the Renewable Energy Market Size was estimated at 445.28 (USD Billion) in 2023. The Renewable Energy Market Industry is expected to grow from 483.61 (USD Billion) in 2024 to 1,200 (USD Billion) by 2035. The Renewable Energy Market CAGR (growth rate) is expected to be around 8.61% during the forecast period (2025 - 2035).

Key Renewable Energy Market Trends Highlighted

The Renewable Energy Market is witnessing significant trends as countries work towards reducing carbon emissions and increasing energy security. A strong market driver is the commitment from governments worldwide to transition towards cleaner energy sources. This is evident as many nations have set ambitious renewable energy targets and implemented supportive policies, such as tax incentives and subsidies, to encourage investment in wind, solar, and hydropower projects. The global push for sustainability has triggered innovation in technology and infrastructure, paving the way for more efficient energy solutions. Opportunities abound in this sector, particularly as advancements in energy storage and smart grid technology allow for better integration of renewable sources into existing energy systems.

Expansion in developing nations provides an opportunity to boost the use of renewable energy in places where natural resources exist but where there are no conventional forms of energy. These countries are looking into off-grid systems, which would help meet energy demand and facilitate economic growth within the region. Recently, there has been a marked trend towards a self-sufficient energy supply, making it possible for households and businesses to purchase more solar systems. Due to the negative social consequences associated with the use of conventional energy, there has been a growing appetite for alternatives.

Furthermore, corporate investments in renewable energy are becoming more prevalent, driven by the realization of the long-term financial benefits and the desire to meet sustainability targets. The Renewable Energy Market is steadily evolving, reflecting a collective transition towards a more sustainable and resilient energy future.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable Energy Market Drivers

Growing Government Initiatives and Policy Support

Around the globe, governments are increasingly committing to renewable energy as part of their strategies to mitigate climate change, a key driver in the Renewable Energy Market Industry. Policies, including subsidies, tax incentives, and investment in Research and Development, are being implemented to promote renewable energy technologies. For instance, the European Union has pledged to increase its share of renewable energy sources to 32% by 2030, which could significantly change energy infrastructures in member states.

This commitment is backed by EU legislation that aims to ensure significant reductions in greenhouse gas emissions by at least 40% below 1990 levels. Countries like Germany, with initiatives such as the Energiewende, actively promote a transition to a low carbon, environmentally sound, reliable, and affordable energy supply. This strong policy support is expected to drive the market growth, positioning it for an average growth rate of 8.61% across the decade of 2025 to 2035.

Technological Advancements in Renewable Energy Technologies

Innovations in renewable energy technologies are crucial for expanding the Renewable Energy Market Industry. Technological advancements in solar photovoltaic systems and wind turbine efficiency are drastically reducing costs while improving performance. According to the International Renewable Energy Agency (IRENA), the global weighted average levelized cost of electricity for solar photovoltaic technologies dropped by approximately 83% between 2010 and 2019.

This decreasing cost trend is expected to stimulate more investments in renewable energy, making it a more attractive option compared to fossil fuels. Companies investing in solar and wind technologies, such as Siemens and General Electric, are leading the charge in transforming energy systems worldwide through R efforts, enhancing the growth trajectory of the renewable market.

Increasing Demand for Clean Energy Solutions

The rising demand for clean and sustainable energy solutions significantly contributes to the growth of the Renewable Energy Market Industry. Global concerns regarding air pollution and its health impacts have gained much attention recently, with studies indicating that air pollution is linked to approximately 7 million premature deaths annually, according to the World Health Organization (WHO). This alarming figure has sparked public interest and increased demand for cleaner energy sources, pushing governments and corporations alike to switch to renewables.

The commitment from major companies such as Google and Apple to power their operations entirely with renewable energy reinforces this trend, demonstrating the shifting landscape towards sustainability and exerting positive pressure on the renewable energy market.

Renewable Energy Market Segment Insights:

Renewable Energy Market Energy Source Insights

The Renewable Energy Market industry exhibits significant growth within the Energy Source segment, showcasing diverse opportunities across various energy forms. In 2024, the complete market was valued at 483.61 USD Billion, illustrating robust investor and governmental interest in sustainable energy frameworks. The Solar energy domain dominated within this segment, valued at 120.0 USD Billion in 2024 and projected to reach 300.0 USD Billion by 2035, highlighting its increasing adoption and technological advancements. This growth in solar energy can be attributed to declining costs of photovoltaic cells and increased efficiency, making it a preferred choice for both residential and commercial applications.

Wind energy followed closely, with a valuation of 150.0 USD Billion in 2024 and an expected surge to 400.0 USD Billion by 2035, indicating its role as a significant player in the global energy portfolio. Wind turbines have become more cost-effective, enhancing their feasibility in energy-rich areas, thus contributing to their growing market share. Hydropower, valued at 130.0 USD Billion in 2024, remains pivotal as a reliable renewable source, reaching an anticipated value of 250.0 USD Billion by 2035. This source benefits from established infrastructure in various regions and governments striving for energy security.

Geothermal energy, though smaller in scope with a valuation of 40.0 USD Billion in 2024, had significant room for growth, predicted to expand to 100.0 USD Billion by 2035. Its reliability and efficiency in providing base-load power make it essential for countries with suitable geology. Lastly, Biomass, valued at 43.61 USD Billion in 2024 and projected to grow to 150.0 USD Billion by 2035, signifies the push towards utilizing waste materials, further enhancing energy sustainability. The integration of these energy forms plays a vital role in driving the overall Renewable Energy Market growth, addressing the urgent need for clean energy solutions in alignment with international environmental commitments.

Growth drivers in this segment include technological advancements, supportive government policies, and the shift from fossil fuels, while challenges encompass investment requirements and regulatory hurdles. As the demand for renewable energy surges globally, the Energy Source segment continues to gain traction and offers substantial opportunities for future investment and development.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable Energy Market Technology Insights

The Renewable Energy Market, focusing on the Technology segment, has been experiencing considerable growth and was valued at 483.61 USD Billion in 2024. This segment showcases important technologies, including Photovoltaic, which significantly contributes to energy generation through solar power harnessing. Concentrated Solar Power leverages solar heat for electricity production and continues to gain traction as a vital renewable source. Onshore and Offshore Wind Turbines are pivotal in harnessing wind energy, with the offshore segment providing vast potential due to expansive water bodies.

Hydroelectric Power Plants play a crucial role in energy sustainability, offering reliable electricity through water flow. Each of these technologies carries unique advantages, with Photovoltaic systems becoming increasingly cost-effective and wind energy demonstrating high capacity factors. The growing demand for cleaner energy sources, along with government incentives and policies, is driving market growth. According to Renewable Energy Market Statistics, this Technology segment is vital for meeting future energy needs while addressing climate change challenges..

Renewable Energy Market Application Insights

The Renewable Energy Market, particularly within the Application segment, is on track for considerable growth, valued at 483.61 Billion USD in 2024 and expected to reach 1200.0 Billion USD by 2035. This diverse segment encompasses various categories such as Electricity Generation, Heating, Transportation, Cooling, and Industrial Processes. Electricity Generation dominates due to its critical role in transitioning to sustainable power sources, leveraging solar, wind, and hydroelectric systems. Heating, meanwhile, addresses both residential and industrial needs through renewable technologies like solar thermal systems, emphasizing energy efficiency.

The Transportation segment is increasingly vital, focusing on electric vehicles and biofuels to reduce carbon emissions. Cooling applications have also gained traction, utilizing renewable energy to decrease environmental impact in temperature regulation. Lastly, Industrial Processes utilize renewable energy to enhance production efficiencies and sustainability practices. This emphasis on the Application segment reflects a broader trend towards integrating renewable technologies across all sectors, driven by favorable government policies, technological advancements, and growing environmental awareness, as evidenced by Renewable Energy Market revenue trends observed in recent years.

The ongoing transition to renewable energy sources is supported by robust Renewable Energy Market data highlighting increased investment and innovation opportunities.

Renewable Energy Market End Use Insights

The Renewable Energy Market, reached a valuation of 483.61 USD Billion by 2024, showcases a diverse range of End Use segments with significant growth. The Residential segment, emphasizing individual energy needs, has gained traction due to increasing awareness of sustainability and energy efficiency. The Commercial segment reflects a strong movement towards renewable sources as businesses aim to reduce operational costs and enhance corporate responsibility. In the Industrial sector, the demand for renewable energy is rising as industries strive for higher efficiency and regulatory compliance.

Lastly, the Utilities segment remains dominant, driven by the global shift towards decentralized energy generation and a focus on reducing carbon footprints. This diverse segmentation within the Renewable Energy Market revenue highlights the pivotal role of each category in driving overall market growth, with key trends emphasizing technological innovations and supportive government policies further fueling expansion in this sector. The market also faces challenges, such as supply chain disruptions and the need for substantial investment, but presents vast opportunities for innovation and development in a rapidly evolving energy landscape.

Renewable Energy Market Regional Insights

The Renewable Energy Market is witnessing substantial growth was, valued at 483.61 USD Billion in 2024. Leading this growth, the APAC region dominated the market with a valuation of 190.0 USD Billion in the same year, driven by significant investments in solar and wind energy projects. Europe followed closely, with a market valuation of 140.0 USD Billion, highlighting its commitment to renewable energy policies and initiatives aimed at sustainability. North America also played a crucial role, with a valuation of 110.0 USD Billion, benefiting from innovative technologies and strong regulatory support.

South America, valued at 30.0 USD Billion, is emerging as a significant player due to its vast natural resources and potential for hydropower development. Meanwhile, the MEA region, although valued lower at 13.61 USD Billion, is gradually increasing its focus on renewable energy in light of climate commitments and diversification efforts. The combined dynamics of these regions underscore the importance of regional strategies in the overall Renewable Energy Market, reflecting current trends toward sustainability and energy independence.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable Energy Market Key Players and Competitive Insights:

The Renewable Energy Market has witnessed significant growth and transformation over the past decade, driven by technological advancements, regulatory support, and an increasing awareness of environmental sustainability. As countries aim to reduce their carbon footprints and transition to cleaner energy sources, the competitive landscape has become increasingly dynamic, with both established players and new entrants vying for market share. Key factors that contribute to competitive insights in this sector include innovations in energy generation technologies, the cost-effectiveness of renewable sources, government policies promoting clean energy, and shifting consumer preferences toward sustainability. Additionally, the market is characterized by a blend of regional players that cater to local demands and multinational corporations that operate across borders, increasing competition and collaboration within the industry.

Iberdrola stands out as a major player in the Renewable Energy Market, renowned for its commitment to sustainable practices and clean energy solutions. The company's strengths lie in its expansive portfolio in wind and solar energy, which helps to solidify its market presence. With a well-established infrastructure and strong financial backing, Iberdrola has consistently invested in innovative technologies, enabling it to maintain a competitive edge. The company focuses on renewable projects globally and has built strategic partnerships that enhance its capabilities in energy generation. It has also taken significant steps toward digital transformation, integrating smart technologies into its operations, which has further optimized its efficiency and service delivery in the renewable energy sector.

EDP Renewables has made a notable impact in the Renewable Energy Market, particularly through its investments in wind and solar energy worldwide. The company offers a variety of services related to the development, construction, and management of renewable energy facilities. EDP Renewables stands out for its diverse and growing portfolio in both onshore and offshore wind projects, emphasizing its commitment to sustainability and innovation. The company has established itself with a strong global presence, particularly in Europe, North America, and Latin America. Its growth strategy includes strategic mergers and acquisitions, enabling EDP Renewables to expand its operations and improve its market position. The company’s focus on research and development, coupled with its dedication to minimizing greenhouse gas emissions, further solidifies its reputation as a responsible leader in the renewable energy sector.

Key Companies in the Renewable Energy Market Include:

• Iberdrola


• EDP Renewables


• NextEra Energy


• Pattern Energy


• Siemens Gamesa Renewable Energy


• Orsted


• Tesla


• Prologis


• Sunrun


• Canadian Solar


• First Solar


• Brookfield Renewable Partners


• Engie


• Vestas Wind Systems


• Enel

Renewable Energy Market Industry Developments

I can only provide recent news developments and current affairs related to the Renewable Energy Market without a summarization or conclusion. Recent developments have seen significant investments and project expansions among key players, notably Iberdrola and EDP Renewables, increasing their offshore wind capacity. NextEra Energy continues to lead in solar and wind installations globally, while Pattern Energy is focused on enhancing its energy storage capabilities. In terms of mergers and acquisitions, Siemens Gamesa Renewable Energy acquired a stake in a significant offshore wind project in March 2023, enhancing its project portfolio.

Orsted has expanded its renewable assets through acquisitions in the past year. Notably, Tesla announced breakthroughs in battery technology that are set to impact renewable storage solutions positively. In a significant market valuation update, Brookfield Renewable Partners reported a growth of over 20% in market valuation in 2023, contributing to the sector's overall progression. The last few years have seen Vestas Wind Systems and Enel scaling up production to meet the rising global demand for renewable energies, with major policies aimed at reducing carbon footprints impacting the market landscape and pushing for faster adoption of renewable solutions.

Renewable Energy Market Segmentation Insights

Renewable Energy Market Energy Source Outlook

• Solar


• Wind


• Hydropower


• Geothermal


• Biomass

Renewable Energy Market Technology Outlook

• Photovoltaic


• Concentrated Solar Power


• Onshore Wind Turbines


• Offshore Wind Turbines


• Hydroelectric Power Plants

Renewable Energy Market Application Outlook

• Electricity Generation


• Heating


• Transportation


• Cooling


• Industrial Processes

Renewable Energy Market End Use Outlook

• Residential


• Commercial


• Industrial


• Utilities

Renewable Energy Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	445.28 (USD Billion)
MARKET SIZE 2024	483.61 (USD Billion)
MARKET SIZE 2035	1200.0 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	8.61% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Iberdrola, EDP Renewables, NextEra Energy, Pattern Energy, Siemens Gamesa Renewable Energy, Orsted, Tesla, Prologis, Sunrun, Canadian Solar, First Solar, Brookfield Renewable Partners, Engie, Vestas Wind Systems, Enel
SEGMENTS COVERED	Energy Source, Technology, Application, End Use, Regional
KEY MARKET OPPORTUNITIES	Rising demand for clean energy, Technological advancements in storage solutions, Government incentives for renewable investments, Growing corporate sustainability initiatives, Expansion of electric vehicle infrastructure.
KEY MARKET DYNAMICS	policy support and incentives, technological advancements, increasing energy demand, environmental concerns, investment and financial flows
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA