Global Renewable Energy Market Size and Forecast 2025–2033
The global renewable energy market is projected to reach US$ 5,065.98 billion by 2033, up from US$ 1,320.8 billion in 2024, growing at a CAGR of 16.11% from 2025 to 2033. The growth is driven by declining technology costs, supportive government policies, rising environmental concerns, and the increasing global demand for clean energy alternatives. Additionally, factors such as investments in storage technologies, grid modernization, and corporate sustainability commitments are accelerating the adoption of renewable energy across residential, commercial, and industrial sectors.
Request a free sample copy of the report: https://www.renub.com/request-sample-page.php?gturl=renewable-energy-market-p.php
Market Overview
Renewable energy is derived from naturally replenished sources such as sunlight, wind, water, tides, waves, and geothermal heat. Unlike fossil fuels, these energy sources are sustainable, release minimal greenhouse gases, and do not deplete over time. Key renewable sources include solar, wind, hydroelectric, biomass, and geothermal energy, which are harnessed using technologies like solar panels, wind turbines, and hydroelectric dams.
With global electricity demand rising in residential, commercial, and industrial applications, renewable energy plays a crucial role in meeting these needs while reducing carbon emissions. Governments worldwide are incentivizing renewable energy adoption through subsidies, tax credits, and grants, while businesses are committing to carbon neutrality and environmental, social, and governance (ESG) initiatives. Improved technology in wind turbines, solar photovoltaics, and battery storage is driving down operational and installation costs, making renewable energy increasingly competitive compared to conventional fossil fuels.
Growth Drivers
1. Expansion of Wind Power
Wind energy is a critical component of the global energy transition. By 2023, installed wind power reached 117 GW, a 50% increase over 2022. Technological innovations, such as larger rotor sizes, improved grid connectivity, and hybrid systems with energy storage, are enhancing efficiency and reducing costs per megawatt. Both onshore and offshore wind projects are expanding, supported by favorable regulations, tax incentives, and extended power purchase agreements. The growth of wind power is essential for reducing fossil fuel dependency and advancing national and corporate carbon neutrality goals.
2. Governmental Policies and Incentives
Government policies are pivotal to renewable energy growth. Subsidies, tax credits, feed-in tariffs, and carbon pricing mechanisms reduce costs and encourage adoption. National renewable energy targets, tenders for large-scale projects, and public-private partnerships for research and development further accelerate adoption. For instance, India's 2024 Integrated Clean Energy Policy approved projects worth ₹71,400 crore, aiming to create 7.5 lakh jobs and attract ₹10 lakh crore in investments. Large-scale projects like Tata Power’s 400 MW solar farm and Greenko-John Cockerill’s 2 GW hydrogen electrolyzer exemplify government-driven growth initiatives.
3. Rising Concerns About Climate Change
Global warming and extreme weather events underscore the urgency of transitioning away from fossil fuels. Global CO₂ emissions reached 37.4 billion tons in 2024, up 0.8% from the previous year. Renewable energy sources like solar, wind, geothermal, and hydro not only reduce greenhouse gas emissions but also improve air quality, conserve water, and protect ecosystems. Corporations and governments are aggressively investing in large-scale renewable energy projects, grid modernization, and energy storage solutions to meet net-zero targets.
Get Customization in the Report: https://www.renub.com/request-customization-page.php?gturl=renewable-energy-market-p.php
Challenges in the Renewable Energy Market
High Initial Capital Expenditure
Renewable energy infrastructure, including solar farms, wind turbines, and geothermal plants, requires substantial upfront investment. While operational costs are generally lower than fossil fuel alternatives, the high initial cost remains a barrier, particularly in developing economies. Government incentives, financing schemes, and supportive legislation are necessary to encourage adoption and reduce financial risks.
Grid Integration Issues
Intermittent renewable sources like wind and solar pose challenges for grid stability and integration. Traditional grids are designed for centralized, steady power from fossil fuels, making real-time monitoring, smart grids, and energy storage systems essential for managing variable inputs. Upgrading infrastructure and integrating renewable energy efficiently requires significant investments and modern regulatory frameworks.
Regional Insights
· United States: Rapid market growth driven by supportive policies, falling technology costs, and increasing consumer demand for clean energy. Projects like the Empire Wind offshore project contribute to the U.S. target of 30 GW offshore wind capacity by 2030.
· Germany: A global leader in renewable energy through the Energiewende program, emphasizing solar, wind, and biomass. Germany continues to expand offshore wind capacity through projects like Nordseecluster.
· India: The market is growing due to ambitious government targets of 500 GW non-fossil fuel capacity by 2030, private sector investments, and declining technology costs. Companies like Ayana Renewable Power are investing heavily in solar and wind projects.
· Saudi Arabia: Driven by government goals under Vision 2030 and projects like Al Shuaibah 1 & 2 solar plants, the kingdom aims to generate 50% of electricity from renewables, attracting both domestic and international investments.
Recent Developments
· May 2025: REplace raised USD 2.1 million for an AI-based renewable project site-selection tool.
· May 2025: Toyota Boshoku America launched a 5.7 MW solar project at its Kentucky facility.
· February 2025: Australia introduced the Hunter Hydrogen Infrastructure Masterplan.
· January 2025: Nevada announced a USD 1.2 billion Valmy solar-plus-storage project.
· June 2024: ReNew inaugurated a 400 MW solar plant in Rajasthan, generating 1,331 million units of power annually and offsetting 1.4 million tons of CO₂ emissions.
Market Segmentation
Type: Hydro Power, Wind Power, Solar Power, Bioenergy, Others
End User: Industrial, Residential, Commercial
Regions Covered:
· North America: United States, Canada
· Europe: France, Germany, Italy, Spain, UK, Belgium, Netherlands, Turkey
· Asia Pacific: China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, New Zealand
· Latin America: Brazil, Mexico, Argentina
· Middle East & Africa: South Africa, UAE, Saudi Arabia
Key Players
· Innergex Renewable Energy Inc.
· ABB Ltd.
· Siemens Energy AG
· Acciona S.A.
· National Grid plc
· Électricité de France S.A.
· Enel S.p.A.
· General Electric Company
· Duke Energy Corporation
· Invenergy
Report Details:
· Base Year: 2024
· Historical Period: 2021–2024
· Forecast Period: 2025–2033
· Market Value: US$ Billion
· Segments Covered: Type, End User, Country
· Post-Sale Analyst Support: 1 Year
· Delivery Format: PDF & Excel (Editable PPT/Word available on request)
About the Company:
Renub Research is a Market Research and Consulting Company. We have more than 15 years of experience, particularly in international B2B research, surveys, and consulting. We provide a wide range of business research solutions to help companies make informed decisions. We partner with clients across all sectors and regions to identify high-value opportunities, address critical challenges, and transform their businesses. Our clientele spans Healthcare, Travel & Tourism, Food & Beverages, Power & Energy, IT & Telecom, Chemicals, Logistics, Automotive, Consumer Goods, Retail, Construction, and Agriculture. Our core team comprises experienced professionals with graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, HR, Biotechnology, Medicine, IT, Environmental Science, and more.
Contact Us:
Company Name: Renub Research
Contact Person: Rajat Gupta
Phone: (D) +91-120-421-9822 (IND)
Email: rajat@renub.com