According to a recent research report, the Global Renewable Energy Market that accounted for more than USD 751.95 Billion in 2020 and is going to surpass USD 1387.89 Billion by 2028, growing at a CAGR of more than 8.6% from 2021 to 2028.
Renewable energy comprises of solar energy, wind energy, biomass, geothermal and hydroelectricity. The volume of electricity generated through these sources helps in calculating and determining the volume of market on an annual basis of electricity generation. Increased awareness regarding the safety and efficacy of environment and the limited presence of fossil fuels in driving the market growth.
Favorable government policies have resulted into an increased adoption of renewable sources of energy and has helped the market growth, but the measures taken in order to curb the pandemic has caused a disruption in the supply chain which has delayed the ongoing projects. However, certain countries having energy sectors as essential services has seen a significant growth. Increasing technological advancement with the increased governmental investment in the renewable energy market is also contributing to the growth opportunities during the forecast period. Increasing strict rules and regulations policies regarding the environment in developing countries such as China and India are also expected to show the growth of the market.
Industrial application segment will grow at a CAGR of more than 4.96% from 2021 to 2028. This is attributable to the rapid industrialization and urbanization. With the growing industrialization the need for having better and efficient energy sources to meet the overall industrial demand of power requirement is driving the growth of renewable energy market in the industrial segment. With the increasing governmental implementation regarding the safety and efficacy of environment the rapid growth of renewable energy market can be seen over the forecast period.
The Asia Pacific region held a share of 29.45% in 2020. The region from over the years has seen an increasing demand for energy and with rapid industrialization in countries situated in this region such as China and India there is rise in demand for the generation of electricity from renewable sources and in order to meet the demand the region has developed and increased the power generation capacity which is owing to drive the overall renewable energy market in the forecast period. Other factors such as favorable governmental policies regarding the renewable sources, rapid industrialization and rise in population is also responsible for the market growth in this region.