Green Energy Market Size, Share, Growth, Trend 2023-2030

Industry Prospective:

The global green energy market was valued at $900B in 2021 and is expected to grow at a CAGR of 8.5% by 2028 and generate a market revenue of $1,950B during the forecast period. The report analyzes the green energy market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the global green energy market.

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Global Green Energy Market: Overview

Green energy is generated from renewable natural resources like wind power, geothermal energy, solar energy, hydroelectric power, and biomass. Energy is deemed as green energy when it does not produce any harmful effects on the environment and does not lead to pollution. It is easy to get confused between green energy and renewable energy. However, there is a slight difference between the two. Using organic material for power generation can be called renewable energy but cannot be deemed as green energy because of the release of carbon dioxide during the burning process which is a pollutant.

Green energy is naturally refilled, contrary to the energy generated with the help of fossil fuels like coal or natural gas. Generating green energy means avoiding any process which may damage the ecosystem like mining or drilling operations. Greenhouse energy is termed as the most sustainable form of energy because even during its entire lifecycle they release far less harmful gases in comparison to fossil-fuel-generated energy. This benefits not just the environment but the health of the general population as well.

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COVID-19 Impact

The global green energy market was impacted negatively during COVID-19 owing to the transportation restrictions across the globe and the general shift of focus on containing and treating the virus. Closure of manufacturing units along with scarce availability of raw materials contributed to the dip in the global market growth during 2020 and 2021.

Green Energy Market: Growth Drivers

Increasing pressure on industries to opt for green energy to act as a market growth driver

With growing commercialization, industrialization along with modernization of cities we have reached newer heights of technological advancements but the price we had to pay to reach higher heights is the severe harmful impact on the environment. At the current time, large-scale discussions about sustainable ways of further advancement are being encouraged globally with mass initiatives taken by regional governments, private investors along with global environmental agencies like UNEP, IEA, and UN to name a few. This has forced the producers or manufacturers to look for clean energy sources since the basic material to run any business is the constant flow of energy, thus propelling businesses to use green energy wherever possible and to conduct extensive R&D on green energy creation for further use. The rising pressure on industries and businesses to opt for cleaner energy is expected to aid the growth of the global energy market during the forecast period. This is also aided by the depletion of fossil fuel or natural gases making their accessibility difficult as well as expensive, thus creating more demand for green energy creation. The rising awareness amongst the general population about the deterioration of the environment has aided the shift in preference of the end consumers towards less harmful energy sources and accommodate their use wherever possible, like the use of solar panels at homes to generate electricity or the adoption of EV over gas-run vehicles. The preference change is anticipated to aid the global market expansion.

Green Energy Market: Restraints

Abrupt changes in climatic conditions may restrain market expansion

Because of many years of ignorance towards the climate and environmental damage due to rapid industrialization, global warming is at its peak as of 2022. The climatic changes have become extremely abrupt and do not remain as predictable as they were up until a few years ago. The sudden changes in climatic conditions may act as restraining factors in global market growth because the producers may not have sufficient time to adjust to the sudden variations in climatic conditions.

Green Energy Market: Opportunities

Rising awareness amongst the general population toward environmental health to provide opportunities for market growth

With the rising population, there is a subsequent increase in demand for intelligent and energy-run devices. However, with multiple initiatives untaken by educational institutes and government projects along with programs run by international and domestic environmental welfare organizations, there is a change in perspective amongst the general population towards environmental health. This has led to a shift in preference or increase in demand for more sustainable energy sources not just for larger vehicles but even for smaller devices like home electric appliances. The changing consumer preference is expected to provide growth opportunities in the global green energy market because manufacturers have to produce what the consumer group demands.

Green Energy Market: Challenges

High initial investment to create challenging situations for market growth

Setting up a green energy infrastructure can be a costly affair at least during the initial phase. The cost-effectiveness of clean energy can be witnessed only once it has been used for a long time thus creating hesitancy amongst consumer groups. Coupled with this are time and extensive research required to set up an energy harvesting architecture which may pose a challenge for the global market expansion.

Green Energy Market: Segmentation

The global green energy market is segmented by type, end-user, and region.

Based on type, the global market is segmented into solar energy, geothermal energy, hydroelectric power, bioenergy, and wind power. The global market was dominated by the hydroelectric power segment in 2020 and is expected to follow the same trend during the forecast period owing to its wide application across sectors.

Based on end-user, the global market is segmented into commercial, residential, industrial, and others where the residential sector is expected to generate the highest revenue owing to the utilization of solar and wind energy even at a small scale and the emergence of multiple manufacturers offering energy generators for home devices.

Recent Development

• In April 2021, Walmart announced the installation of solar power systems of 6.5 MW by Sol Client Solutions in the California location. Their portfolio increased to solar systems worth $10M with BOA acting as a tax equity partner.
• In April 2021, after the partnership of Engie and Eocyle-Xant, the decentralized energy solution range of Engie’s witnessed the installation of small turbines for their Belgian-based clients. The partnership is projected to install around 110 SWTs for small and medium-sized firms.

Global Green Energy Market Report Scope:

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Green Energy Market: Regional Landscape

Asia Pacific to rule the global market during the forecast period

Asia Pacific is anticipated to dominate the global green energy market owing to the increasing population, rapid cities' rapid modernization, and robust industrialization. This has propelled the use of energy consumption leading to detrimental climatic changes in this region pressurizing the governments to take necessary measures like the adoption of green energy wherever possible and laying down stringent regulations for businesses in terms of release of harmful gases from their manufacturing units.

Europe is anticipated to grow significantly during the projection period because of rising awareness about green and cleaner energy, the high spending capacity of consumer groups along with initiatives undertaken by the European Union to create a carbon-neutral region in the coming decades.

Green Energy Market: Competitive Landscape

Some of the leading players in the global green energy market are SynTech Bioenergy, Canadian Solar Inc., Ocean Power Technologies, Invenergy LLC, Innergex, Tocardo BV, TATA Power, Ørsted, ONPOWER Business Energy, ABB Product Group Solar, NextEra Energy, Inc., Vestas, Siemens AG, EDF.

The global green energy market is segmented as follows:

By Type:

• Solar energy
• Geothermal energy
• Hydroelectric power
• Bioenergy
• Wind power

By End-user:

• Commercial
• Residential
• Industrial
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa