Green energy is renewable energy that is commercially viable and is used to generate energy around the globe. Green energy extract energy from natural sources such as tides, solar photovoltaic, sun, and wind. Green energy is widely used across residential, commercial, and industrial sectors. Green energy is an ideal alternative to fossil fuels.
The global green energy market is estimated to be valued at US$ 975.79 billion in 2021 and is expected to exhibit a CAGR of 8.3 % over the forecast period (2021-2028).
In March 2021, India introduced Gram Ujala, an ambitious programme to include the world's cheapest LED bulbs in rural areas for Rs. 10 (US$ 0.14), advancing its climate change policy and bolstering its self-reliance credentials.
In March 2021, the European Union joined the Coalition for Disaster Resilient Infrastructure (CDRI), an India-led initiative aimed at ensuring long-term development while addressing the climate change's adverse effects.
Asia Pacific held dominant position in the global green energy market in 2020, accounting for 30.8% share in terms of value, followed by Europe and North America, respectively. Asia-Pacific is expected to grow at the fastest rate during the forecast period. Owing to increase in demand for energy due to rise in industrialization in developing countries such as China, and India.
Figure 1. Global Green Energy Market Value (US$ Bn), by Region, 2020
Growing environmental issues due to fluctuating weather conditions are predominantly fueling the market growth of green energy. Changing climatic conditions is one of the major concern and this has increased the need for reducing carbon emissions. This has created a huge demand for an alternative source of energy. Emerging economies coupled with the rapid industrialization and urbanization around the globe has also increase the carbon emission level and harsh weather conditions which is again driving the demand for green energy.
The increasing reliability of consumer on green energy sources is expected to augment the market growth. Increasing investments in the research and development activities by the key manufacturer for making energy sources for reliable and economically feasible is expected to bolster the market growth of the green energy. Also, the declining price of PV modules and onshore wind turbines is further anticipated to boost the adoption of the green energy sources which is again fueling the market growth.
Increasing biodiesel initiatives and the advent of new feedstock is expected to bring new market opportunities over the forecast period. Growing focus on clean energy sources coupled with the growing need for reducing carbon emission caused due to burning petrol-based products is also expected to augment the market growth. Thus, increasing use of biodiesel for reducing fuel costs as these are cleans and efficient sources of energy are expected to propel the market growth of green energy.
Expansion of green energy projects around the globe is projected to serve key opportunities in the market. The increasing number of biodiesel and bioethanol producers across developing regions is again expected to foster the market growth of green energy. Moreover, the growing development of solar PV systems around the globe coupled with the emergence of the geothermal energy system is further expected to accelerate the market growth of green energy over the forecast period.
Green Energy Market Report Coverage
|Base Year:||2020||Market Size in 2021:||US$ 975.79 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||8.3%||2028 Value Projection:||US$ 1,704.88 Bn|
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, and GE Energy
|Restraints & Challenges:||
The increasing launch of the solar power generation system by the key manufacturer is one of the key trends in the market. For instance, in April 2019, Okaya Power Group announced that it has launched a solar power generation system in order to cater to the increasing demand from customers for such products. The system consists of combinations of PV panels, solar inverters, and charge controllers and solar batteries, all available in different ratings to suit different installations and applications.
Growing strategic partnerships and agreements among key players for business expansion on regional as well as the global level is one of the current trends in the market. For instance, in November 2019, LONGi, the solar technology company, and Adani Green Energy, India’s photovoltaic power station developer, has entered into a strategic partnership agreement where LONGi will supply Adani Green Energy with its new generation Hi MO4 modules in India.
Figure 2. Global Green Energy Market Share, By Product Type, 2020
Key Takeaways of the Graph:
Lack of awareness regarding the renewable source of energy across developing countries is acting as a major challenge for market growth. For this manufacturer need to focus on the advertising in order to position their product in the market.
The intermittent nature of green energy sources such as wind and solar energy is expected to restrict the adoption rate. Due to their intermittency nature, solar and wind power projects can be used as per their full capacity. This factor is expected to hinder the market growth of the green energy sources over the forecast period.
Few Recent Developments
Key players in the market are focused on adopting partnership strategies to expand their product portfolio. For instance, in August 2020, ABB has signed a contract for the installation of a substation and transformers, plus automation and control systems at a 100MW solar photovoltaic plant in Bangladesh.
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