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    US Renewable Energy Transition Market

    ID: MRFR/EnP/15688-HCR
    100 Pages
    Snehal Singh
    October 2025

    US Renewable Energy Transition Market Research Report By Energy Source (Solar Energy, Wind Energy, Hydropower, Biomass, Geothermal Energy), By Technology (Photovoltaic Technology, Concentrated Solar Power, Onshore Wind Turbines, Offshore Wind Turbines, Hydrokinetic Technology), By Application (Power Generation, Heating, Transportation, Industrial Processes) and By End Use (Residential, Commercial, Industrial) - Forecast to 2035

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    US Renewable Energy Transition Market Infographic
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    US Renewable Energy Transition Market Summary

    As per MRFR analysis, the US renewable energy-transition market size was estimated at 55.59 USD Billion in 2024. The US renewable energy-transition market is projected to grow from 60.88 USD Billion in 2025 to 151.16 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.52% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US renewable energy-transition market is experiencing robust growth driven by technological advancements and increasing consumer demand for sustainable solutions.

    • Technological advancements in energy storage are enhancing the efficiency and reliability of renewable energy systems.
    • Policy support and regulatory frameworks are fostering a conducive environment for investment in renewable energy projects.
    • Consumer demand for sustainable solutions is driving innovation in the largest segment, which is solar energy.
    • Investment in renewable infrastructure and rising energy costs are major drivers propelling the fastest-growing segment, which is wind energy.

    Market Size & Forecast

    2024 Market Size 55.59 (USD Billion)
    2035 Market Size 151.16 (USD Billion)

    Major Players

    NextEra Energy (US), Iberdrola (ES), Enel (IT), Orsted (DK), Siemens Gamesa (ES), Vestas Wind Systems (DK), Canadian Solar (CA), First Solar (US), Brookfield Renewable Partners (CA)

    US Renewable Energy Transition Market Trends

    The renewable energy-transition market is currently experiencing a transformative phase. This phase is characterized by a shift towards sustainable energy sources. This transition is driven by a combination of technological advancements, policy initiatives, and increasing public awareness regarding climate change. As stakeholders prioritize reducing carbon emissions, investments in renewable technologies such as solar, wind, and hydropower are on the rise. The market appears to be evolving rapidly, with a growing emphasis on energy efficiency and innovative solutions that enhance grid resilience. Furthermore, the integration of renewable energy into existing infrastructures is becoming more prevalent, suggesting a potential for significant growth in this sector. In addition, The renewable energy-transition market is likely to benefit from supportive government policies. These incentives aim to promote clean energy adoption. These measures may include tax credits, grants, and regulatory frameworks that facilitate the deployment of renewable technologies. As a result, the market could witness an influx of new players and increased competition, which may drive down costs and enhance accessibility for consumers. Overall, the renewable energy-transition market seems poised for continued expansion, reflecting a broader commitment to sustainable energy practices and environmental stewardship.

    Technological Advancements in Energy Storage

    Recent innovations in energy storage technologies are reshaping the renewable energy-transition market. Enhanced battery systems, such as lithium-ion and solid-state batteries, are improving energy efficiency and reliability. These advancements enable better integration of intermittent renewable sources, allowing for more consistent energy supply and reducing reliance on fossil fuels.

    Policy Support and Regulatory Frameworks

    Government initiatives play a crucial role in shaping the renewable energy-transition market. Policies promoting clean energy adoption, such as tax incentives and renewable portfolio standards, are encouraging investments in sustainable technologies. This supportive regulatory environment is likely to foster growth and innovation within the sector.

    Consumer Demand for Sustainable Solutions

    There is a noticeable shift in consumer preferences towards sustainable energy solutions. As awareness of climate change increases, individuals and businesses are seeking renewable options for their energy needs. This growing demand is driving market players to develop more accessible and affordable renewable energy products and services.

    US Renewable Energy Transition Market Drivers

    Corporate Sustainability Initiatives

    The renewable energy-transition market is increasingly influenced by corporate sustainability initiatives. Many companies are committing to ambitious renewable energy targets, with over 50% of Fortune 500 companies pledging to achieve 100% renewable energy by 2030. This shift is driven by consumer demand for sustainable practices and the recognition that renewable energy can enhance brand reputation. As corporations transition to renewable energy sources, they contribute to the overall growth of the market, creating a ripple effect that encourages suppliers and partners to adopt similar practices. This trend not only supports the renewable energy-transition market but also fosters a culture of sustainability across various industries.

    Investment in Renewable Infrastructure

    The renewable energy-transition market is experiencing a surge in investment, driven by both public and private sectors. In 2025, investments in renewable energy infrastructure in the US are projected to exceed $100 billion, reflecting a growing commitment to sustainable energy sources. This influx of capital is likely to enhance the development of solar, wind, and other renewable technologies, thereby accelerating the transition away from fossil fuels. Furthermore, the establishment of new renewable energy projects not only creates jobs but also stimulates local economies, contributing to a more resilient energy landscape. As financial institutions increasingly prioritize green investments, The renewable energy-transition market is poised for substantial growth. This indicates a robust future for clean energy initiatives.

    Rising Energy Costs and Market Volatility

    The renewable energy-transition market is being shaped by rising energy costs and market volatility associated with fossil fuels. As traditional energy prices fluctuate, consumers and businesses are increasingly seeking stable and predictable energy sources. The cost of renewable energy has decreased significantly, with solar and wind energy now often cheaper than fossil fuels in many regions. This economic advantage is prompting a shift towards renewable energy solutions, as stakeholders recognize the long-term financial benefits. Consequently, the renewable energy-transition market is likely to expand as more entities prioritize energy independence and cost stability, further driving the transition away from conventional energy sources.

    Technological Innovations in Energy Generation

    Technological advancements are playing a pivotal role in the renewable energy-transition market. Innovations in solar panel efficiency, wind turbine design, and energy generation methods are enhancing the viability of renewable sources. For instance, the efficiency of solar panels has improved by approximately 20% over the past few years, making solar energy more competitive with traditional energy sources. Additionally, the integration of smart grid technologies is optimizing energy distribution and consumption, further supporting the transition to renewable energy. These technological breakthroughs not only lower costs but also increase the reliability of renewable energy systems, thereby attracting more stakeholders to invest in the market.

    Public Awareness and Education on Renewable Energy

    Public awareness and education regarding renewable energy are crucial drivers of the renewable energy-transition market. As more individuals become informed about the environmental and economic benefits of renewable energy, there is a growing demand for clean energy solutions. Educational initiatives and community programs are fostering a better understanding of renewable technologies, which in turn encourages adoption at the consumer level. Surveys indicate that nearly 70% of Americans support increased investment in renewable energy, reflecting a shift in public sentiment. This heightened awareness is likely to influence policy decisions and market dynamics, ultimately propelling the renewable energy-transition market forward.

    Market Segment Insights

    By Energy Source: Solar Energy (Largest) vs. Wind Energy (Fastest-Growing)

    In the US renewable energy-transition market, Solar Energy holds the largest market share, thanks to increasing adoption and favorable policies driving its growth. Wind Energy follows as a significant player, noted for its rapid expansion in recent years. Hydropower, Biomass, and Geothermal Energy also contribute to the diversity of the energy mix, though they occupy smaller market shares relative to Solar and Wind. The growth trends in this segment are predominantly powered by technological advancements, cost reductions, and rising consumer demand for cleaner energy solutions. Solar Energy leads with its established infrastructure, while Wind Energy is on an upward trajectory, benefitting from increased investments and improved efficiency in turbine technology. Biomass and Geothermal show promise in niche applications, furthering the overall transition towards renewable energy sources.

    Solar Energy (Dominant) vs. Wind Energy (Emerging)

    Solar Energy is characterized by its scalability and widespread adoption across residential, commercial, and utility-scale projects. Its ability to harness sunlight and convert it into electricity has led to a robust infrastructure in the US renewable energy-transition market. On the other hand, Wind Energy is rapidly emerging, leveraging vast wind resources in coastal and inland regions. It is evolving with innovations in turbine design and offshore installations. As the market dynamics shift, both Solar and Wind Energy showcase unique strengths: Solar drives immediate installations, while Wind Energy is anticipated to grow significantly in capacity, making both indispensable to the clean energy landscape.

    By Technology: Photovoltaic Technology (Largest) vs. Offshore Wind Turbines (Fastest-Growing)

    In the US renewable energy-transition market, Photovoltaic Technology holds the largest share, reflecting the robust adoption of solar energy solutions across various sectors. With increasing consumer awareness and favorable government policies supporting solar installations, this segment continues to expand, dominating the landscape. In contrast, Offshore Wind Turbines represent the fastest-growing segment, driven by advancements in technology and a heightened focus on sustainable energy sources to combat climate change. The growth trends in these segments reveal significant advancements and investments, particularly for Offshore Wind Turbines, which are becoming increasingly viable due to technological innovations. These developments enhance efficiency, reduce costs, and expand the potential for energy generation. Furthermore, the push for renewable energy targets, as well as financial incentives for clean energy projects, are driving growth in both the photovoltaic and wind turbine sectors, contributing to a more sustainable energy framework for the future.

    Technology: Photovoltaic Technology (Dominant) vs. Offshore Wind Turbines (Emerging)

    Photovoltaic Technology dominates the US renewable energy-transition market, characterized by its wide adoption and established infrastructure. As technologies evolve, innovations in photovoltaic materials and installation methods further bolster its market position, making solar solutions more accessible and cost-effective for consumers. Conversely, Offshore Wind Turbines are emerging as a key player, offering significant potential for large-scale energy production in coastal regions. This segment is gaining traction due to investments in offshore infrastructure and increasing efficiency of wind technologies, coupled with supportive regulatory frameworks aimed at reducing greenhouse gas emissions. The dynamics between these segments reflect a broader shift towards a diverse and resilient renewable energy landscape.

    By Application: Power Generation (Largest) vs. Transportation (Fastest-Growing)

    In the US renewable energy-transition market, the distribution of market share among applications reveals that Power Generation commands the largest portion, reflecting the ongoing investments in wind, solar, and hydropower technologies. Following closely are Heating and Transportation, with the latter gaining traction as policies and technological advancements drive a shift towards electrification and alternative fuels in the transportation sector. Growth trends in this segment are robust, particularly for Transportation, which is expected to expand rapidly due to increased government mandates for electric vehicles and supportive infrastructure developments. On the other hand, Power Generation continues to enhance its dominance, fueled by technological innovations and a heightened focus on sustainable energy sources. This dynamic promotes an overall diversification of application areas, with each segment contributing to a greener energy future.

    Power Generation (Dominant) vs. Transportation (Emerging)

    Power Generation has established itself as the dominant application in the US renewable energy-transition market, driven by substantial investments in renewable infrastructure and a clear shift towards sustainable energy sources. This segment covers a range of technologies, including wind, solar, and hydro, which collectively harness vast natural resources to generate electricity, thus reducing reliance on fossil fuels. In contrast, Transportation is emerging as a significant player, propelled by increasing consumer demand for electric vehicles and enhanced policy support aimed at reducing carbon emissions. The transformation in vehicle technology, alongside the development of charging infrastructure, positions Transportation as a rapidly evolving sector, attracting investments and innovation that aim to facilitate a comprehensive transition to cleaner energy alternatives.

    By End Use: Residential (Largest) vs. Commercial (Fastest-Growing)

    The US renewable energy-transition market showcases a distinct distribution of market share among the end-use segments, with the residential segment holding the largest share, driven by increasing consumer awareness and the shift towards sustainable living. Meanwhile, the commercial segment is rapidly gaining traction as businesses recognize the financial and environmental benefits of renewable energy adoption, leading to a competitive landscape that is reshaping energy consumption patterns. Growth trends in the US renewable energy-transition market are significantly influenced by government incentives and technological advancements. The residential segment benefits from rising investments in solar and energy-efficient appliances, while the commercial segment's growth is fueled by the need for sustainability and operational cost reduction. As organizations seek to enhance their corporate social responsibility profiles, the push for energy transition is expected to accelerate, further amplifying the commercial segment’s growth potential.

    Residential (Dominant) vs. Commercial (Emerging)

    The residential segment is recognized as the dominant force within the US renewable energy-transition market, characterized by a robust adoption of solar panels and energy-efficient technologies tailored for homeowners. This segment is propelled by incentives, rebates, and a notable shift in consumer preferences towards self-sustainability. On the other hand, the commercial segment is emerging, particularly as small to medium-sized businesses seek renewable solutions to reduce overhead costs and meet regulatory requirements. This segment is increasingly adopting solar energy, electric vehicles, and smart grid technologies, indicating a strong trend towards sustainability in business practices. Both segments are poised for significant expansion, driven by changing energy policies and technological innovations.

    Get more detailed insights about US Renewable Energy Transition Market

    Key Players and Competitive Insights

    The renewable energy-transition market is currently characterized by a dynamic competitive landscape, driven by increasing demand for sustainable energy solutions and regulatory support for clean energy initiatives. Key players such as NextEra Energy (US), Iberdrola (ES), and First Solar (US) are strategically positioned to leverage their technological advancements and operational efficiencies. NextEra Energy (US) focuses on expanding its renewable energy portfolio, particularly in solar and wind, while Iberdrola (ES) emphasizes its commitment to sustainability through significant investments in offshore wind projects. First Solar (US) is innovating in solar technology, enhancing efficiency and reducing costs, which collectively shapes a competitive environment that prioritizes innovation and sustainability.

    In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance resilience and reduce costs. The market appears moderately fragmented, with a mix of established players and emerging companies vying for market share. The collective influence of these key players fosters a competitive structure that encourages collaboration and innovation, as companies seek to differentiate themselves through unique value propositions.

    In October 2025, NextEra Energy (US) announced a strategic partnership with a leading battery storage manufacturer to enhance its renewable energy projects. This collaboration is expected to bolster NextEra's capacity to store energy generated from its solar and wind assets, thereby improving grid reliability and supporting the transition to a more sustainable energy system. The strategic importance of this move lies in its potential to address energy intermittency issues, a critical challenge in the renewable sector.

    In September 2025, Iberdrola (ES) unveiled plans to invest €3 billion in the development of offshore wind farms along the U.S. East Coast. This investment is indicative of Iberdrola's strategy to expand its footprint in the U.S. market, capitalizing on favorable regulatory conditions and growing demand for clean energy. The significance of this initiative is underscored by its potential to create thousands of jobs and contribute to local economies while advancing the global transition to renewable energy.

    In November 2025, First Solar (US) launched a new line of solar panels that utilize advanced materials to achieve higher efficiency rates. This product innovation is crucial as it positions First Solar to capture a larger share of the market amid increasing competition. The introduction of these panels not only enhances First Solar's product offerings but also reflects a broader trend in the industry towards technological advancements that improve energy output and reduce costs.

    As of November 2025, current competitive trends in the renewable energy-transition market include a strong emphasis on digitalization, sustainability, and the integration of artificial intelligence (AI) in operations. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in achieving common sustainability goals. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability, underscoring the importance of adaptability in a rapidly changing market.

    Key Companies in the US Renewable Energy Transition Market market include

    Industry Developments

    The US Renewable Energy Transition Market is witnessing significant developments, particularly with companies like First Solar reporting major expansion initiatives in August 2023 aimed at doubling manufacturing capacity to meet rising solar demand. Enphase Energy has also announced in September 2023 a partnership with residential energy companies, further promoting its renewable solutions. In terms of market valuation, NextEra Energy reveals a robust growth trajectory attributed to substantial investments in solar and wind projects, reflecting a positive shift in the industry's financial landscape.

    On the mergers and acquisitions front, Iberdrola completed the acquisition of a significant wind asset in September 2023, enhancing its renewable portfolio in the US. Additionally, Duke Energy revealed plans to invest heavily in battery storage and solar PV projects across multiple states. Over the past few years, policies promoting clean energy and investments have accelerated transitions, with the Biden administration’s initiatives in 2021 and the subsequent Infrastructure Investment and Jobs Act in November 2021 significantly shaping the sector. Various states are adopting ambitious renewable targets, driving competition and innovation within the sector.

    The increasing push for sustainability continues to evolve the market dynamics, compelling companies to adapt to changing consumer demands and regulatory frameworks.

    Future Outlook

    US Renewable Energy Transition Market Future Outlook

    The renewable energy-transition market is projected to grow at a 9.52% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing demand for sustainable solutions.

    New opportunities lie in:

    • Development of energy storage solutions for residential applications.
    • Expansion of electric vehicle charging infrastructure in urban areas.
    • Investment in renewable energy consulting services for businesses.

    By 2035, the market is expected to be robust, driven by innovation and strategic investments.

    Market Segmentation

    US Renewable Energy Transition Market End Use Outlook

    • Residential
    • Commercial
    • Industrial

    US Renewable Energy Transition Market Technology Outlook

    • Photovoltaic Technology
    • Concentrated Solar Power
    • Onshore Wind Turbines
    • Offshore Wind Turbines
    • Hydrokinetic Technology

    US Renewable Energy Transition Market Application Outlook

    • Power Generation
    • Heating
    • Transportation
    • Industrial Processes

    US Renewable Energy Transition Market Energy Source Outlook

    • Solar Energy
    • Wind Energy
    • Hydropower
    • Biomass
    • Geothermal Energy

    Report Scope

    MARKET SIZE 2024 55.59(USD Billion)
    MARKET SIZE 2025 60.88(USD Billion)
    MARKET SIZE 2035 151.16(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 9.52% (2024 - 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 NextEra Energy (US), Iberdrola (ES), Enel (IT), Orsted (DK), Siemens Gamesa (ES), Vestas Wind Systems (DK), Canadian Solar (CA), First Solar (US), Brookfield Renewable Partners (CA)
    Segments Covered Energy Source, Technology, Application, End Use
    Key Market Opportunities Integration of advanced energy storage solutions to enhance grid reliability and support renewable energy adoption.
    Key Market Dynamics Regulatory shifts and technological advancements drive rapid growth in the renewable energy-transition market.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Renewable Energy Transition Market in 2024?

    The US Renewable Energy Transition Market is expected to be valued at 46.32 USD Billion in 2024.

    What will be the market size of the US Renewable Energy Transition Market by 2035?

    By 2035, the US Renewable Energy Transition Market is anticipated to reach a value of 151.8 USD Billion.

    What is the expected compound annual growth rate (CAGR) for the US Renewable Energy Transition Market from 2025 to 2035?

    The expected CAGR for the US Renewable Energy Transition Market from 2025 to 2035 is 11.395 percent.

    Which energy source is projected to dominate the US Renewable Energy Transition Market in terms of value by 2035?

    By 2035, Solar Energy is projected to dominate with a market value of 41.25 USD Billion.

    What is the projected market value for Wind Energy in the US Renewable Energy Transition Market by 2035?

    The projected market value for Wind Energy by 2035 is 33.25 USD Billion.

    What are some of the key players in the US Renewable Energy Transition Market?

    Key players in the market include Iberdrola, Enphase Energy, Duke Energy, and NextEra Energy.

    What will be the market value of Hydropower in the US Renewable Energy Transition Market by 2035?

    The Hydropower segment is expected to reach a market value of 24.9 USD Billion by 2035.

    How is the Biomass segment expected to grow by 2035 in the US Renewable Energy Transition Market?

    By 2035, the Biomass segment is projected to be valued at 22.0 USD Billion.

    What challenges does the US Renewable Energy Transition Market currently face?

    The market faces challenges such as regulatory barriers and the need for technological advancements.

    What opportunities exist within the US Renewable Energy Transition Market?

    Opportunities include increased investments in clean energy technologies and supportive government policies.

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