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  • Published In : Feb 2024
  • Code : CMI4604
  • Pages :130
  • Formats :
      Excel and PDF
  • Industry : Energy

The green energy Market size is valued at US$ 1,134.65 Bn in 2024 and is expected to reach US$ 2,804.51 Bn by 2031, growing at a compound annual growth rate (CAGR) of 13.8% from 2024 to 2031. Hot melt adhesive is an adhesive that is used across packaging, automotive, nonwovens, product assembly, tapes and labels, woodworking, paper bonding, and electronics sectors due to its adhesion properties. It is a thermoplastic polymer containing more than one polymer and additive such as pigments, resins, and stabilizers.   

Global Green Energy Market Regional Insights:

  • Asia Pacific held the largest share of over 37% in 2024. It is estimated that over half of the renewable energy across the globe is consumed in Asia Pacific region. The rapid industrialization and urbanization in the region had resulted in the rapid increase in the pollution levels. Furthermore, a rapid increase in the population and rise in the residential projects in the region is fueling the demand for the electricity.
  • North America is anticipated to be the fastest-growing market during the forecast period. The rising awareness regarding the deteriorating environment conditions, rising government initiatives to curb carbon footprint and growing investments in the renewable energy sources are the major factors that are driving the growth of the North America renewable energy market.
  • Europe is predicted to witness steady growth across the forecast period. Increasing the solar photovoltaic construction activities, and increased online product delivery services across developed countries in Western Europe including Italy, the U.K., Germany, France, and Spain will positively influence the market growth in the region.

Figure 1. Green Energy Market Share (%), By Region, 2024


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Analyst’s Views:

The market continues to be driven by supportive government policies and regulations that encourage renewable energy deployment. Many countries have set ambitious targets to increase the share of renewable energy in their overall energy mix which will require significant investments in solar, wind, hydropower, and other green technologies over the next decade. 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. Geopolitical risks that are associated with fossil fuel imports are another motivating factor for the increased adoption of indigenously produced green energy. Meanwhile, heightened environmental consciousness among consumers and the private sector is creating new demand for renewable solutions in power generation and transportation. The green energy sector also offers lucrative employment opportunities which policymakers are eager to promote. Nevertheless, lack of infrastructure in some emerging markets and the need for massive capital investments pose restraints.

Based on recent trends, Asia Pacific region will likely dominate the global green energy landscape led by strong commitments from China and India. European markets will remain significant contributors. However, growth rates in many developing economies across Latin America, Middle East, and parts of Africa are projected to be higher over the medium term on account of their relatively lower existing renewable capacity and late start

Global Green Energy Market Drivers:

Government policies and incentives: Government policies and incentives are playing a major role in driving the growth of market. Many countries, with targeted policy initiatives and financial aid program, 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 US$1.8 trillion of investments towards green technologies and initiatives over the next decade. Countries like Germany, France and U.K. are aggressively encouraging renewable energy adoption through incentives like tax credits, feed-in-tariffs and renewable portfolio standards. As a result, solar and wind energy capacity and usage has been rising sharply across Europe in the past 2 years. According to Eurostat, renewable sources accounted for 38% of Europe's energy consumption in 2020, up from 34.6% in 2019.

Growing environmental concerns: Growing environmental concerns is driving significant growth in the market. Globally, governments and businesses are devoting more resources into renewable energy sources like solar, wind, and hydropower to reduce carbon emissions. According to data published by the  REN21's 2023 Renewables Global status report, renewable energy capacity growth in 2021 remained strong despite the pandemic, with renewables accounting for over 90% of new power generation additions during the year.

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. For instance, the European Union's 'Fit for 55' climate package 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.

Untapped potential in developing nations: Developing nations hold great untapped potential in the market that can drive the industry's growth trajectory going forward. With a significant portion of the world's population living in developing countries and growing energy demands in these regions, investing in and scaling up, sustainable energy solutions can have immense long-term economic and environmental benefits.

Countries like India, Brazil, Indonesia and others are experiencing energy consumption boom due to rapid industrialization and development. At the same time, easy access to resources like solar and wind power provides an opportunity to meet new demands through clean energy instead of replicating the fossil fuel dependent models of developed economies. Internationally, funded projects and public-private partnerships can help developing nations overcome the challenges of high upfront investment and lack of infrastructure to support mass adoption of renewable technologies.

Global Green Energy Market Opportunities:

Increasing investment in research and development: 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 both private industries and public research institutions, would help drive the discoveries required to significantly decrease the costs of solar, wind, battery storage, and other renewable technologies over the coming decade.

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.

Emerging markets for green electricity: Emerging markets for green electricity present a promising opportunity for advancement in the global renewable energy sector. 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 help to accelerate renewable energy deployment in developing regions. According to the International Renewable Energy Agency, renewable investments of US$40 billion per year in emerging economies through 2030 could generate US$16 trillion in total savings worldwide, by reducing fossil fuel consumption and improving public health.

Scope for rural electrification: Rural electrification presents a significant opportunity in the growing market. While energy access has expanded rapidly in urban and sub-urban regions across the world, rural and remote areas still lag far behind with unreliable or no access to electricity. The International Energy Agency estimates that over 770 million people worldwide still rely on kerosene for lighting and diesel generators for power till 2021. At the same time, reducing emissions from the energy sector is critical to address climate change. Transitioning rural populations to decentralized renewable energy solutions can achieve universal energy access while supporting climate action goals.

Technological advancement has enabled newer, more efficient and cost-effective solutions like rooftop and community solar home systems, mini-grids powered by solar-wind hybrid systems and micro-hydels. For example, an Impact Evaluation Survey conducted of households in Bihar and Uttar Pradesh, India, in 2022, found that, solar home lighting systems increased time for productive activities and education.

Green Energy Market Report Coverage

Report Coverage Details
Base Year: 2023 Market Size in 2024: US$ 1,134.65 Bn
Historical Data for: 2019 to 2023 Forecast Period: 2024 - 2031
Forecast Period 2024 to 2031 CAGR: 13.8% 2031 Value Projection: US$ 2,804.51 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East:  GCC Countries, Israel,  and Rest of Middle East
  • Africa:  South Africa, North Africa, and Central Africa 
Segments covered:
  • By Product Type: Solar photovoltaic, Wind energy, Hydroelectric power, Biofuels, and Geothermal energy 
  • By End User: Residential, Commercial, and Industrial
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

Growth Drivers:
  • Government policies and incentives
  • Growing environmental concerns 
  • Untapped potential in developing nations
Restraints & Challenges:
  • High initial investments and infrastructure costs 
  • Intermittency in renewable sources

Global Green Energy Market Trends:

Increased adoption of hybrid renewable energy systems: The 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.

Focus on sustainable development and reducing carbon footprint: Sustainable development and reduced carbon emissions have become a major global priority in recent years. Consumers and corporations alike are increasingly conscious of their environmental impact and looking for sustainable options. This shift in attitudes and priorities is having a profound effect on the growing green energy market worldwide.

More companies and governments are investing in renewable and clean energy sources like solar, wind, and hydro power to reduce their reliance on fossil fuels and lower carbon emissions. For example, in 2020, the International Renewable Energy Agency reported, that renewable power capacity additions increased by 45% from the previous year. They found solar PV additions alone increased by 18%. This strong growth has been driven by targets adopted by many countries to transition to green energy and net zero emissions by 2050 in line with the Paris Climate Agreement goals.

Global Green Energy Market Restraints:

  • High initial investments and infrastructure costs: High initial investments and infrastructure costs pose a major challenge for 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, grid connectivity, and others. According to International Renewable Energy Agency (IRENA), the levelized cost of electricity from utility-scale solar PV plants ranges between US$0.068– US$0.346 per kWh, with an average of US$0.143/kWh in 2020. Onshore wind energy costs US$0.050 - US$0.146/kWh. These costs are still higher as compared to traditional fossil fuel based sources.
  • Counter Balance: To overcome this restrain, follow the Governments rules and financial institutions can provide incentives and funding to support renewable energy investments, thereby reducing the burden of high initial costs.
  • Intermittency in renewable 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.
  • Counterbalance: one obvious source of counterbalance to the intermittency of renewables is storage, particularly in the form of batteries and other new technologies, and designing diversified renewable energy systems to balance multisector performance is another approach. For example, in many regions, hydropower is called to counterbalance the temporal variability of intermittent renewables like solar and wind. 

Figure 2. Green Energy Market Share (%), By End User, 2024


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Recent Developments:

  • In April 2021, Walmart announced the installation of solar power systems of 6.5 MW by Sol Client Solutions in the California location. Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores in the United States.
  • In April 2021, after the partnership of Engie and Eocyle-Xant, the decentralized energy solution range of Engie, witnessed the installation of small turbines for their Belgian-based clients. The partnership is projected to install around 110 Solar Wind Termination Shocks (SWTs) for small and medium-sized firms.

Top Companies in the this Market

  • ABB Ltd.
  • Alterra Power Corporation
  • Kyocera Solar, Inc.
  • Nordex SE
  • Hanwha Q Cells GmbH
  • Sharp Corporation
  • Calpine Corporation
  • Suzlon Energy Ltd.
  • S. Geothermal Inc.
  • Yingli Green Energy Holding Co. Ltd.
  • Enercon GmbH
  • GE Energy

Definition: Green energy which is also known as renewable energy, refers to energy that is generated from natural resources, such as sunlight, wind, water, and geothermal heat. It is characterized by its minimal impact on the environment and its ability to be replenished naturally. Green energy sources are constantly renewed and do not deplete finite resources. This type of energy is often associated with lower emissions of carbon and other pollutants, thereby making it an environmentally friendly alternative to traditional and non-renewable energy sources. Green energy is a key component of efforts to mitigate climate change and reduce the overall environmental impact of energy production and consumption.

Frequently Asked Questions

High initial investments and infrastructure costs and intermittency in renewable sources are the key factors hampering the growth of the global green energy market.

Government policies and incentives, growing environmental concerns and untapped potential in developing nations are the major factors driving the global green energy market growth.

The residential is the leading end user type segment in the global green energy market. 

The major players operating in the global green energy market are 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.

Asia Pacific leads the global green energy market.

The CAGR of the global green energy market is 13.8%.

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