Renewable Energy Transition Market Summary
As per MRFR Analysis, the Renewable Energy Transition Market was valued at 402.84 USD Billion in 2023 and is projected to grow to 1,200 USD Billion by 2035, reflecting a CAGR of 9.52% from 2025 to 2035. The market is driven by government policies, technological advancements, and rising environmental awareness, leading to increased investments in renewable energy sources such as solar, wind, and hydropower.
Key Market Trends & Highlights
The Renewable Energy Transition Market is experiencing significant growth due to various factors.
- Market Size in 2024: 441.19 USD Billion; Expected Growth to 1,200 USD Billion by 2035.
- Solar Energy projected to triple from 105.0 USD Billion in 2024 to 300.0 USD Billion by 2035.
- Wind Energy expected to grow from 125.0 USD Billion in 2024 to 350.0 USD Billion by 2035.
- Corporate sustainability goals driving demand for renewable energy solutions.
Market Size & Forecast
2023 Market Size: USD 402.84 Billion
2024 Market Size: USD 441.19 Billion
2035 Market Size: USD 1,200 Billion
CAGR (2025-2035): 9.52%
Largest Regional Market Share in 2024: North America.
Major Players
Key players include Iberdrola, RWE, Energinet, NextEra Energy, Xcel Energy, Siemens Gamesa, Orsted, Vestas, TotalEnergies, Duke Energy, Canadian Solar, First Solar, Brookfield Renewable Partners, Engie, and Enel.
Key Renewable Energy Transition Market Trends Highlighted
The Renewable Energy Transition Market is undergoing substantial trends that are influenced by a variety of factors. The growing demand for sustainable energy sources is a significant market driver, as countries endeavor to reduce their carbon footprints and fulfill international climate commitments. A favorable environment for investment in solar, wind, and other renewable sources is being established as governments worldwide implement more stringent regulations on emissions and provide incentives for the adoption of renewable energy. Furthermore, the efficiency and affordability of renewable energy systems are being enhanced by technological advancements, thereby increasing their accessibility to both consumers and businesses.
In the midst of these advancements, there are opportunities to investigate the enhancement of grid infrastructure and energy storage solutions, which are essential for the integration of renewable sources into existing energy systems. The demand for renewable energy is also increasing due to the proliferation of electric vehicles, which underscores the increasing potential for sectoral synergies. Additionally, as emerging markets endeavor to modernize their energy systems, they are beginning to invest in renewable energy initiatives, which serves as a foundation for growth. The decentralization of energy production has been a significant trend in recent years, as consumers are increasingly generating their own electricity through solar panels and other technologies.
This transition not only empowers communities and individuals, but also necessitates utilities to modify their business models to accommodate distributed energy resources. The importance of renewable energy in the construction of a sustainable future is underscored by the renewed emphasis on the development of resilient energy systems that can withstand future disturbances as the global economy recovers from past disruptions. In general, the Renewable Energy Transition Market is in a state of flux, impacted by technological, societal, and regulatory developments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Renewable Energy Transition Market Drivers
Government Policies and Regulations Supporting Renewable Energy
Global governments are increasingly implementing stringent policies to support renewable energy adoption and transition. An example of this is the commitment made by various nations under international agreements like the Paris Agreement, where countries have set legally binding targets for reducing greenhouse gas emissions by specific amounts by 2030 and 2050. This international motion is encouraging federal authorities to allocate funds towards renewable energy, with reports from several countries outlining that the transition to renewables could reduce global carbon emissions by over 70% by 2050, according to the International Energy Agency.
Furthermore, countries like Germany and China have demonstrated the effectiveness of these policies, leading to significant increases in renewable energy investments, which is driving the Renewable Energy Transition Market Industry.
Technological Advancements in Renewable Energy Solutions
The rapid technological advancements in renewable energy technologies, such as solar photovoltaics and wind turbines, have made renewable energy solutions increasingly efficient and cost-effective. For instance, the cost of solar energy has decreased by approximately 89% since 2009, as reported by the International Renewable Energy Agency. Improved efficiency rates for solar panels and advancements in energy storage systems are making renewable sources more attractive for both companies and consumers.
This technological progress not only enhances the viability of renewable energy projects but also contributes significantly to the growth of the Renewable Energy Transition Market Industry.
Increasing Energy Demand and Global Electricity Needs
The continuous rise in global energy demand poses a significant driver behind the renewable energy transition. According to the International Energy Agency, global electricity demand increased by nearly 5% in 2021, and projections indicate that this demand could rise by over 60% by 2040. As populations expand and urbanization increases, the associated rise in electricity demand further underscores the need for sustainable energy solutions. Renewable energy sources, particularly wind and solar, are positioned to meet this demand sustainably.
As a result, the Renewable Energy Transition Market Industry is expected to witness substantial growth to accommodate future electricity needs.
Renewable Energy Transition Market Segment Insights
Renewable Energy Transition Market Energy Source Insights Â
The Renewable Energy Transition Market, focusing on the Energy Source segment, is poised for substantial growth as the shift towards sustainable energy continues to accelerate. This market reflects a significant transformation in how energy is sourced and utilized globally. Projections indicate that by 2024, the combined market valuation of various energy sources will be noteworthy, with Solar Energy valued at 150.0 USD Billion, Wind Energy at 100.0 USD Billion, Hydropower at 80.0 USD Billion, Biomass at 70.0 USD Billion, and Geothermal Energy at 41.19 USD Billion. The growing emphasis on reducing carbon emissions and promoting green technologies is expected to drive the demand for renewable energy sources.
Solar Energy is expected to become a cornerstone of the Renewable Energy Transition Market, with a valuation projected to rise to 400.0 USD Billion by 2035, highlighting its status as a significant contributor to energy sustainability. The affordability and accessibility of solar technologies are bolstering its adoption across various sectors, reinforcing its majority holding in the renewable energy landscape.
Wind Energy is also a critical player, with a market valuation anticipated to reach 250.0 USD Billion in 2035. Its ability to harness natural wind currents makes it a key component, especially in regions with favorable climatic conditions. The consistent growth in wind turbine installations signifies the uptrend in this energy source, supporting substantial job creation and economic development.
Hydropower, valued at 200.0 USD Billion in 2035, is another essential segment, utilizing water flow to generate energy. It remains one of the most widely used forms of renewable energy, particularly for large-scale energy production, providing a stable and reliable source of electricity while also contributing to water management and flood control.
Biomass is valued at 150.0 USD Billion, reflecting its utility in converting organic materials into energy. Its role in waste management and providing a renewable source of energy is gaining importance, especially in agricultural and rural sectors, making it a viable solution for diverse energy needs.
Finally, Geothermal Energy, with projections estimating its value to swell to 100.0 USD Billion by 2035, represents a lesser but significant share of the market as it utilizes the earth’s heat for power generation and heating applications. While it may not dominate like solar or wind energy, geothermal energy plays a crucial role in ensuring a diverse energy mix, particularly in regions with geothermal activity.
The Renewable Energy Transition Market data illustrates a progressive trend towards sustainability, with increasing investments and technological advancements shaping the industry's landscape. The market statistics underscore a shift towards cleaner energy sources, driven by policy initiatives and societal demand for environmentally friendly options. Key growth drivers include government incentives, technological advancements, and increasing public awareness regarding climate change, while challenges such as infrastructure development and initial capital costs remain areas for improvement. The collective shift towards these energy sources not only contributes to meeting global energy demand but also forms an integral part of the worldwide strategy for sustainable development and combating climate change.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Revie
Renewable Energy Transition Market Technology Insights Â
The Renewable Energy Transition Market, particularly within the Technology segment, is experiencing significant growth as the world shifts towards clean energy solutions to address climate change. By 2024, the market's value is expected to reach 441.19 USD Billion, with projections indicating a further rise to 1200.0 USD Billion by 2035. This growth reflects a compound annual growth rate of 9.52 percent from 2025 to 2035. Key areas within this segment include Photovoltaic Technology, which converts sunlight into electricity efficiently, playing a crucial role in urban energy solutions.
Concentrated Solar Power harnesses solar energy on a larger scale, providing reliable power generation. Onshore and Offshore Wind Turbines are imperative for harnessing wind energy, with offshore systems increasingly contributing to energy supply due to their higher capacity factors. Hydrokinetic Technology taps into the kinetic energy of water currents, presenting an innovative approach to renewable energy production. The increasing global commitment to reducing carbon emissions and enhancing sustainability drives these technologies, while challenges such as infrastructure development and regulatory frameworks continue to shape their evolution within the Renewable Energy Transition Market.
Renewable Energy Transition Market Application Insights Â
The Renewable Energy Transition Market, valued at 441.19 USD Billion in 2024, is experiencing significant growth driven by the increasing global demand for sustainable energy solutions. The Application segment plays a crucial role in this market, encompassing Power Generation, Heating, Transportation, and Industrial Processes. Power Generation is pivotal as it serves as a primary source of energy for various industries, utilizing renewable resources like solar and wind to produce electricity, which promotes environmental sustainability. Heating applications are gaining traction, particularly in residential and commercial settings, where energy-efficient solutions reduce carbon footprints.
In Transportation, the shift towards electric vehicles and biofuels is reshaping the landscape, supported by policies aimed at reducing greenhouse gas emissions. Industrial Processes leverage renewable energy to enhance efficiency and lower operational costs, addressing the rising need for sustainable manufacturing. Overall, the Renewable Energy Transition Market segmentation highlights a diverse array of applications that contribute to energy transformation, reflecting a robust trend towards decarbonization and sustainable practices across various sectors.
Renewable Energy Transition Market End Use Insights Â
The Renewable Energy Transition Market is projected to be valued at 441.19 USD Billion in 2024, reflecting a robust shift towards sustainable energy solutions across various end-use categories. This market encompasses critical segments such as Residential, Commercial, and Industrial applications, each playing a vital role in the overall energy landscape. The Residential segment is significant as it drives the adoption of solar panels and energy-efficient solutions among homeowners, contributing to localized energy generation. Meanwhile, the Commercial segment is essential for businesses investing in renewable technologies for reducing operational costs and carbon footprints.
The Industrial segment focuses on manufacturers and factories implementing renewables to drive efficiency in production processes, thus impacting the Renewable Energy Transition Market statistics positively. As this market continues to grow, it faces challenges such as regulatory barriers and the need for substantial investment in infrastructure but also presents immense opportunities. Enhanced technologies, policy support, and a global emphasis on sustainability act as major growth drivers, making these segments pivotal in the transition to a low-carbon future.
Renewable Energy Transition Market Regional Insights Â
The Regional segment of the Renewable Energy Transition Market showcases varied growth dynamics across different areas, with strong revenue trajectories evidenced by the latest market data. In 2024, North America holds a prominent position with a valuation of 132.23 USD Billion, projected to expand to 329.38 USD Billion by 2035, primarily driven by advancements in technology and supportive government policies fostering renewable initiatives. Europe closely follows, valued at 140.63 USD Billion in 2024 and expected to reach 380.25 USD Billion in 2035, reflecting a robust commitment to sustainability and clean energy solutions.
The Asia Pacific region, valued at 122.47 USD Billion in 2024, emphasizes its significance, expecting to grow to 364.75 USD Billion over the same period, due to increasing urbanization and energy demands. South America and the Middle East and Africa represent smaller yet substantial markets, with valuations of 30.1 USD Billion and 15.76 USD Billion in 2024, growing to 79.8 USD Billion and 46.82 USD Billion respectively by 2035. Their developing energy infrastructure presents opportunities for growth, especially as they seek diversification from traditional energy sources.
Overall, the Renewable Energy Transition Market is evolving, with varied regional strengths driving innovation and investment in cleaner energy solutions globally.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Renewable Energy Transition Market Key Players and Competitive Insights
The Renewable Energy Transition Market is witnessing rapid growth fueled by an increasing demand for sustainable energy solutions and a worldwide commitment to combat climate change. This transition is characterized by the shift from traditional fossil fuels to renewable sources such as solar, wind, hydropower, and bioenergy. Key players in this market are leveraging advanced technologies, innovative financing solutions, strategic partnerships, and government incentives to enhance their competitive edge. The presence of diverse stakeholders, including energy companies, technology firms, and government entities, creates a dynamic environment where competition is fierce, encouraging significant investments in research and development as companies strive to maintain leadership in sustainable energy practices.
NextEra Energy stands out in the Renewable Energy Transition Market due to its extensive investments and development in solar and wind energy projects. The company has developed a robust portfolio that positions it as a leader in clean energy generation. Its strengths include a strong focus on innovation, operational efficiency, and a commitment to reducing greenhouse gas emissions. NextEra Energy also benefits from a well-structured business model that emphasizes long-term sustainability and stakeholder engagement. The company's ability to harness cutting-edge technology and maximize resource efficiency allows it to deliver cost-effective renewable energy solutions. As it continues to expand its market presence globally, NextEra Energy remains a pivotal force driving the renewable energy agenda.
Brookfield Renewable Partners is a significant player in the Renewable Energy Transition Market, renowned for its diverse portfolio of renewable energy assets that include hydroelectric, wind, and solar facilities. The company's strategic approach encompasses the optimization of its existing assets and the exploration of new opportunities to enhance its market share in renewable space. Brookfield Renewable Partners is particularly strong in its ability to identify and execute mergers and acquisitions that bolster its position within the industry, enabling it to expand its global footprint effectively. The company leverages its expertise in long-term contracts and stable cash flows from its operations, ensuring a strong competitive advantage. In addition, its commitment to sustainability and responsible energy development aligns with the increasing demand for renewable energy solutions worldwide, further solidifying its role as an influential entity in the market.
Key Companies in the Renewable Energy Transition Market Include:
- NextEra Energy
- Brookfield Renewable Partners
- Siemens Gamesa
- EDP Renewables
- ABB
- Vestas
- Orsted
- Duke Energy
- Iberdrola
- First Solar
- TotalEnergies
- Enel
- Sunnova Energy
- Canadian Solar
Renewable Energy Transition Market Industry Developments
The Renewable Energy Transition Market is witnessing significant developments, with major players like NextEra Energy and Siemens Gamesa focusing on expanding their renewable energy portfolios amid rising global demand.
Octopus Energy & DTEK initiated the €100 million "Rise" solar-plus-battery initiative in Ukraine in June 2025. The initiative is designed to fortify the grid's resilience in the face of ongoing wartime harm by implementing 100 projects.
Meta Platforms also contracted with Invenergy to provide an additional 791 MW of solar and wind power across U.S. sites, bringing their total to 1,800 MW. This renewable energy will be used to power AI data centers.
Siemens Gamesa and Japan's METI executed a cooperation agreement in June 2025 to establish domestic offshore wind supply chains. The agreement encompassed the procurement of turbines and permanent magnets through a TDK partnership.
Renewable Energy Transition Market Segmentation Insights
Renewable Energy Transition Market Energy Source Outlook
- Solar Energy
- Wind Energy
- Hydropower
- Biomass
- Geothermal Energy
Renewable Energy Transition Market Technology Outlook
- Photovoltaic Technology
- Concentrated Solar Power
- Onshore Wind Turbines
- Offshore Wind Turbines
- Hydrokinetic Technology
Renewable Energy Transition Market Application Outlook
- Power Generation
- Heating
- Transportation
- Industrial Processes
Renewable Energy Transition Market End Use Outlook
- Residential
- Commercial
- Industrial
Renewable Energy Transition Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2023
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402.84 (USD Billion)
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Market Size 2024
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441.19 (USD Billion)
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Market Size 2035
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1199.65 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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9.52% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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NextEra Energy, Brookfield Renewable Partners, Siemens Gamesa, EDP Renewables, ABB, Vestas, Orsted, Duke Energy, Iberdrola, First Solar, TotalEnergies, Enel, Sunnova Energy, Canadian Solar
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Segments Covered
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Energy Source, Technology, Application, End Use, Regional
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Key Market Opportunities
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Decentralized energy generation solutions, Energy storage innovations, Green hydrogen production advancements, Electrification of transport sector, Smart grid technologies integration
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Key Market Dynamics
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regulatory support and incentives, technological advancements, increasing consumer demand, declining costs of renewables, climate change awareness
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Renewable Energy Transition Market Highlights:
Frequently Asked Questions (FAQ) :
The overall market size of the Renewable Energy Transition Market is expected to be valued at 441.19 USD Billion in 2024.
By 2035, the Renewable Energy Transition Market is projected to be valued at 1199.65 USD Billion.
The expected CAGR for the Renewable Energy Transition Market from 2025 to 2035 is 9.52%.
In 2024, Europe holds the largest market share in the Renewable Energy Transition Market, valued at 140.63 USD Billion.
The estimated market size for the Solar Energy segment is projected to reach 400.0 USD Billion by 2035.
Key players in the Renewable Energy Transition Market include NextEra Energy, Siemens Gamesa, and Vestas among others.
The market size for Wind Energy is expected to be 100.0 USD Billion in 2024.
The Asia Pacific region is expected to grow to 364.75 USD Billion by 2035.
The projected market value of Biomass in the Renewable Energy Transition Market is 150.0 USD Billion by 2035.
The growth of the Renewable Energy Transition Market is driven by the increasing adoption of sustainable energy sources and innovation in renewable technologies.
