Green Power Market

Green Power Market Size (2024 to 2032)

The Global Green Power Market size was valued at USD 59.56 billion in 2023. The global market is expected to reach USD 68.37 billion in 2024 and is anticipated to generate USD 206.11 billion by 2032 and is predicted to register a CAGR of 14.79% during the forecast period.

Market Overview

There have been more and more attempts to provide low-cost and environmentally friendly options to reduce the negative impact of using non-renewable energy sources for power generation. For example, in India, the untapped renewable energy market is predicted to grow to around US$ 49.99 billion by the end of 2021. To tap into this potential market, the Indian government is taking various measures such as promoting small power plants for biomass and solar energy, business development for electricity in rural areas through solar energy, biomass waste, and rice husk, solar cooking initiatives, ecological campus and construction of buildings and offshore wind generation projects, among others. With the introduction of programs that offer consumers the option to choose domestic electricity, ensuring price stability, the balance of higher volatility in electricity prices in some countries is leading to greater adoption of sources of green energy as a mode of electricity production.

Green energy is essentially the production of electrical energy from renewable and environmentally friendly sources such as wind, geothermal energy, biomass, solar energy, and low-impact hydroelectric energy. Consumers are highly aware of the use of environmentally friendly sources of electricity. This, in turn, has led to a call for green energy sources in the recent past. To support the campaign for a green environment, the governments of several countries are taking initiatives to increase awareness among consumers and the availability of green energy sources. Worldwide, there has been the integration of renewables and equipment installations. For example, in Iceland, 80% of electricity is produced from the heat of the earth. Similarly, in Norway, 98% of electricity is produced by geothermal, hydroelectric, and wind power.

Market Trends

The main trend observed in the worldwide green power market is the increase in investment in the development of energy projects associated with clean and green energy. These resources are abundant in nature and respect the environment. Due to its benefits, there has been an upward trend of more investment in green energy projects. The global green power market is driven by the need for energy security and environmental concerns. The industry faces limitations due to higher installation costs. There are several expansion opportunities in the future due to comparatively lower penetration in developing countries.

Market Drivers

Factors such as population expansion, urbanization, industrialization, escalating per capita consumption, the depletion of conventional reserves, and growing concern about climate change are contributing to the growing adoption of green power sources as a modality of electricity production. Also, it is driving the expansion of the green energy market at a steady pace and is predicted to gain popularity in the near future. The main driver identified in the green energy market is government initiatives to promote green energy sources. Due to the benefits of green energy projects as cleaner energy sources, countries around the world are opting for various initiatives such as subsidies for green energy projects, limitation of expansion of conventional energy projects, and expansion based on the objectives of these projects. Countries such as China and India aim to meet a significant portion of the energy needs of green energy projects, which in turn drives market expansion.

Market Restraints

A good balance between environmental stability and economic development is a concern for the government and environmental authorities around the world. However, obstacles to the expansion of the green energy market include the low cost of the default utility, high entry barriers for new entrants, the lack of existing renewable power plants, and insufficient separation of power plants.

Market Opportunities

Despite the aforementioned challenges, the global green power market is predicted to see significant expansion in the near future. This is attributed to the development of solar parks, government initiatives, and programs, and escalated awareness about the use of renewable energy sources, among others. Aggressive biodiesel initiatives and the emergence of new raw materials are opportunities for the green power market. Some of the factors contributing to the growing focus on clean sources are the rising need for energy security, climate change, and environmental problems caused by the burning of petroleum products. Furthermore, switching to biofuels results in reduced costs in the long run because these fuels are clean, more efficient, and renewable in nature. Due to these advantages, biodiesel and other biofuels offer expansion opportunities in the market.

Market Challenges

The main limitation identified in the green power market is the intermittent nature of some green energy sources, notably solar energy and wind energy. Due to their intermittency, solar and wind power projects cannot be employed to their full capacity because the electrical load factor of these projects is reduced to weather conditions. Furthermore, the intermittent nature of these projects also affects the stability of the network, thus acting as a major limitation.

Market Recent Developments

• The Ministry of New and Renewable Energies has introduced its latest website to satisfy the needs of interested parties relating to the latest schemes and projects. The main feature of the website includes an optimized user interface and allows easy access from a variety of devices, including mobile phones, according to a statement from the ministry.
• Private equity firm KKR has announced the launch of its renewable energy platform to acquire green energy assets in India. India's green economy has attracted a large number of investors ranging from private equity funds, pension funds, and strategic players, among others.

REPORT COVERAGE

Market Segmentation

Green Power Market Analysis By Type

• Solar Energy
• Wind Energy
• Hydroelectric Power
• Biofuels
• Others

Solar energy is further classified according to the types of inverters, such as microinverters, central inverters, and string inverters. Hydropower dominates the market due to escalated capacity. However, the solar energy segment is predicted to drive the market in the future owing to the falling cost of related equipment and escalated efficiency.

Green Power Market Analysis By End User

• Residential
• Industrial
• Commercial

The residential end-user segment is likely to continue to grow rapidly in the future. Commercial end-user applications are also foreseen to increase due to government regulations.

Market Regional Analysis

• North America - U.S., Canada.

• Europe - UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic & Rest of Europe.

• Asia Pacific - India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore & Rest of APAC.

• Latin America - Brazil, Mexico, Argentina, Chile & Rest of LATAM.

• Middle East & Africa - KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, rest of MEA.

Among all regions, Asia-Pacific had a significant market share, driven by the growing large-scale development of solar projects in countries such as China, India, Japan and other APAC countries. The large-scale deployment of solar projects is predicted to drive the market during the outlook period.

China recently issued the first green energy exchange certificate grant to 20 renewable energy projects as part of the country's strengthened reforms that focus primarily on renewable energy production, green certificates, and the green certificate exchange energy system.

Market Key Players

Some of the key players in the green power market are

1. Trina Solar Limited
2. Yingli Solar
3. Canadian Solar
4. Siemens AG
5. General Electric Company (GE Power)
6. Senvion
7. FHP Bosch Group
8. Earthlinked Technologies Inc
9. Aquatherm Industries, Inc
10. Ormat Technologies, Inc