The global green energy market size is estimated to grow at a compound annual growth rate (CAGR) of 14.0% during the forecast period, reaching USD 2,847.15 Bn by 2032, up from USD 1,137.83 Bn in 2025.
The global green energy market is expected to witness robust growth during the forecast period. This is mostly due to supportive government policies as well as regulations that encourage renewable energy deployment.
Many countries have set ambitious targets to increase the share of renewable energy in their overall energy mix. This will require significant investments in solar, wind, hydropower, and other green technologies over the next decade.
For instance, Indian Government has taken several steps and initiatives to promote as well as accelerate renewable energy capacity in the country. These efforts aim to achieve the target of 500 GW of non-fossil fuel electricity generation by 2030.
Technological advancements are also lowering the costs of renewable energy generation, thus boosting its competitiveness as compared to fossil fuels. However, intermittency remains a challenge due to the variable nature of resources like solar and wind. This increases the need for innovations in battery storage technologies.
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European Union's REPowerEU Plan and Energy Security Crisis |
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Grid Integration and Energy Storage Technology Developments |
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Based on product type, solar photovoltaic segment is estimated to hold the highest market share of 35.2% in 2025. This is attributed to rising adoption of solar photovoltaic systems across developed and developing regions.
Solar photovoltaic leads the green energy industry because it is easy to install, scalable, and suitable for both small and large applications. Many nations receive abundant sunlight, which makes solar PV a reliable option for meeting rising energy needs.
The cost of solar panels has also dropped significantly in recent years. This is making them more affordable for homes, businesses, and large power projects. With government incentives and growing awareness about clean energy, more people are choosing solar PV.
According to the IEA, the world is forecasted to add over 5,500 gigawatts (GW) of new renewable energy capacity between 2024 and 2030. Solar PV alone is expected to account for about 80% of that increase in global renewable capacity. This rapid expansion highlights the rising global adoption of solar PV and clearly explains why it continues to maintain the largest share in the green energy market.
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Asia Pacific is projected to retain its dominance in the global green energy industry. It will likely account for a global market share of 37% in 2025. This can be attributed to rapid expansion of renewable energy infrastructure, supportive government policies, and declining solar PV costs.
It is estimated that over half of the renewable energy across the globe is consumed in the Asia Pacific region. Rapid industrialization and urbanization in the region have resulted in a rapid increase in pollution levels. This, in turn, is fueling demand for green energy solutions.
Governments in nations like India and China are increasingly promoting the adoption of renewable energy sources like solar and wind power through supportive regulations and financial incentives. For example, in February 2024, the Indian government launched PM Surya Ghar: Muft Bijli Yojana, a scheme to help households install rooftop solar panels and generate their own electricity.
Also, electricity demand in Asia Pacific is increasing significantly due to rapid population growth and rise in residential projects. This is expected to create lucrative growth opportunities for green energy market companies during the forthcoming period.
North America is anticipated to emerge as the fastest-growing green energy market during the forecast period. Rising awareness regarding the deteriorating environmental conditions and increasing government initiatives to curb carbon footprint are key growth factors.
Growing investments in renewable energy sources are expected to boost the green energy market value in North America. Similarly, innovations in solar panels, wind turbines, energy storage, and smart grids are reducing costs and improving efficiency, making green energy more attractive.
China remains one of the fastest-growing markets for green energy solutions. This is mostly due to strong government support through policies and subsidies that encourage investment in solar, wind, and hydroelectric projects.
In addition, China’s rapid industrialization and urbanization are driving the need for cleaner energy alternatives. Rising public awareness about environmental pollution and technological advancements in energy storage and grid integration are also supporting expansion of the green energy sector.
The U.S. green energy industry is poised to grow rapidly during the assessment period. This can be attributed to increased private sector investments in renewable energy projects, especially in solar and wind power. Federal and state-level incentives, such as tax credits and grants, are accelerating the adoption of clean energy technologies.
Moreover, the transition toward electric vehicles and smart grids is boosting demand for renewable energy sources. Advances in energy efficiency technologies, combined with growing consumer preference for sustainable energy solutions, are creating significant opportunities for market expansion.
Leading companies are constantly innovating to create advanced solutions, including solar panels, biofuels, and wind turbines. For instance, SANY RE recently launched SY1310A blade, the world’s longest onshore wind turbine blade. The blade is designed for use in the company’s 15 MW onshore wind turbine.
Many industry players are partnering with governments and private companies for the delivery of green energy sources. Similarly, acquisitions, collaborations, and mergers are becoming common in the market as companies look to boost their sales as well as expand their regional footprint.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 1,137.83 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 14.0% | 2032 Value Projection: | USD 2,847.15 Bn |
| Geographies covered: |
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| Companies covered: |
ABB Ltd., Alterra Power Corporation, Kyocera Solar, Inc., Nordex SE, Hanwha Q Cells GmbH, Sharp Corporation, Calpine Corporation, Suzlon Energy Ltd., U.S. Geothermal Inc., Yingli Green Energy Holding Co. Ltd., Enercon GmbH, GE Energy |
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Government policies and incentives are playing a major role in driving growth of the green energy market. Many countries, with targeted policy initiatives and financial aid programs, are trying to promote renewable sources of energy like solar and wind. For instance, the European Union (EU) introduced strict climate change laws and emission reduction targets as part of its European Green Deal.
The EU aims to become climate neutral by 2050 and has committed USD 1.8 trillion of investments towards green technologies and initiatives over the next decade. Countries like Germany, France, and the U.K. are aggressively encouraging renewable energy adoption through incentives like tax credits, feed-in-tariffs, and renewable portfolio standards.
For example, the UK government announced an investment of USD 260 million in solar panels for schools & hospitals. These initiatives are expected to boost growth of the green energy market during the assessment period.
Rising environmental concerns are boosting sales of green energy solutions. Globally, governments and businesses are devoting more resources to renewable energy sources like solar, wind, and hydropower to reduce carbon emissions.
As awareness about climate change impacts increases, citizens are demanding more large-scale transition to greener alternatives from fossil fuels, which are heavily polluting. Many nations have announced ambitious targets over the next decade to increase the share of renewables in their total energy mix and move away from coal.
The European Union's 'Fit for 55' climate package, for instance, proposes reducing net greenhouse gas emissions by at least 55% by 2030 from 1990 levels. It aims for a 40% cut in greenhouse gas emissions from the energy sector by increasing the share of renewable energy to at least 40% of final energy consumption in the EU by 2030.
Investing more in research and development (R&D) could unlock tremendous opportunities in the market. As global demand for cheaper and cleaner sources of energy grows, the need for innovative technologies also accelerates the worldwide transition to renewables.
Increased R&D spending by private industries and public research institutions can accelerate breakthroughs that lower the costs of solar, wind, battery storage, and other renewable technologies. These advancements are expected to make renewable energy significantly more affordable during the forthcoming period.
Many analysts believe green technologies will witness their most drastic cost reductions and performance boosts in the next 10-15 years. More efficient solar photovoltaic panels, lightweight building-integrated wind turbines, longer-lasting, and higher-capacity battery chemistries could all emerge from boosted research efforts.
Many developing nations are experiencing rapid economic growth and a ballooning demand for power. However, their electricity grids have traditionally relied heavily on fossil fuel sources that produce greenhouse gas emissions.
A shift towards cleaner, locally-generated solar and wind power could help these countries leapfrog older carbon-intensive technologies to meet new demand. This would get them on a more sustainable path to power their growing populations and economies for decades to come.
Countries that make strategic investments in renewables will be well-positioned to capitalize on this emerging market. They can develop domestic industries to produce green technology components and position themselves as leaders in the global transition to net-zero emissions.
International cooperation through financing mechanisms and knowledge-sharing can significantly accelerate the deployment of renewable energy in developing regions. The International Renewable Energy Agency estimates that investing US$ 40 billion per year in renewables in emerging economies through 2030 could yield US$16 trillion in global savings. These savings would result from reduced fossil fuel consumption and improved public health outcomes.
The target market is experiencing significant growth and shift as the adoption of hybrid renewable energy systems is increasing worldwide. Hybrid systems, which integrate two or more renewable resources along with battery storage, are providing a more reliable and cost-effective clean energy solution as compared to individual systems. This is leading more homeowners, businesses, utilities, and even off-grid communities to install hybrid models.
For example, in Australia, solar-plus-storage hybrids have grown greatly in popularity over the last five years. The Australian PV Institute reported that between 2020-2022, over 650,000 Australian households installed domestic battery storage alongside their rooftop solar, up from less than 50,000 systems in 2015. This demonstrates both homeowners’ desire for affordable clean energy as well as hybrid systems ability to provide power day and night by collecting and storing solar energy.
Utilities are also employing large scale hybrid plants to add more renewable sources while maintaining grid stability. According to Bloomberg New Energy Finance, hybrid projects accounted for 17% of new utility-scale clean power that was commissioned globally in 2021, up from just 5% in 2018.
High initial investments and infrastructure costs pose a major challenge to the growth of the market. Setting up renewable energy power plants or projects requires huge capital expenditure due to the advanced technologies involved.
Solar and wind energy projects need heavy investment in land acquisition, installation of solar panels or wind turbines, setting up electricity transmission infrastructure, and others. This could reduce overall green energy market demand during the forthcoming period.
According to International Renewable Energy Agency (IRENA), the levelized cost of electricity from utility-scale solar PV plants ranges between USD 0.068 – USD 0.346 per kWh. Onshore wind energy costs USD 0.050 – USD 0.146/kWh. These costs are still higher compared to traditional fossil fuel based sources.
Intermittency in renewable energy sources like solar and wind is one of the major hurdles slowing down the global growth of green energy market. These renewable sources are dependent on natural forces like sunlight and wind speed, which fluctuate constantly, thus making the energy generation from them intermittent and variable in nature. This intermittency poses challenges for integration of large-scale renewable energy into existing power grids that are designed primarily for centralized fossil fuel generation.
The intermittent power from renewable sources can cause issues like voltage fluctuations and frequency variations in electricity grids. This makes it difficult for utilities to balance power supply and demand at all times.
On a sunny and windy day, renewable energy output may exceed demand, forcing utilities to curb production. Conversely, on still and cloudy days, renewable output falls sharply, increasing reliance on reserve generation capacity.
Due to this variability, utilities need to maintain sufficient backup capacity from dispatchable sources to make up for shortfalls during low renewable output phases. This imposes additional costs on power systems and makes large-scale renewable integration challenging.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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