Green energy is clean and renewable energy and these include biofuels, wind, solar photovoltaic, and geothermal. Green energy is gaining huge demand on the account of rising fossil fuel prices and growing environmental concerns. Power generation (grid-scale), rural energy (off-grid) and transportation fuels are some of the key applications of green energy.
The global green energy market valued US$ 831.99 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 8.3% during the forecast period (2020 to 2027).
The rising need for energy safety and security is projected to propel the market growth of green energy. The growing need for the safety of energy due to the increasing population and increasing consumption of energy around the globe. Hence, the concern of energy safety and security is a major concern over conventional resources of energy. Moreover, governments across countries such as the U.S., Germany, UK, France, China, and India are taking various steps to diversify their energy portfolio mix which is expected to foster the market growth of green energy over the forecast period.
The growing popularity of hybrid energy generation is expected to provide lucrative market opportunities to the market. The growing focus of manufacturers to introduce more advanced and cost-effective green sources technology is again expected to foster market growth. Growing awareness regarding the green energy sources across rural and remote areas coupled with the growing investment in the green sources is further expected to augment the market growth over the forecast period.
The high cost of green energy technologies to conventional sources is expected to restrict market growth. For example, electricity production from natural or shale gas is more cost-effective as compared to solar or wind resources. Thus, the high cost of green energy technologies is projected to restrict market growth.
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Hydroelectric Power segment dominated the global green energy market in 2019, accounting for 54.7% revenue share, followed by Solar Photovoltaic and Biofuels, respectively. Hydroelectric power is one of the largest sources of green power as it fulfills about 15–21% demand for electricity, depending on capacity factors.
Burgeoning middle-class population across the Asia Pacific region has resulted in an increase in energy demand. According to the International Renewable Energy Agency, Asia accounted for 61 percent of total new renewable energy installations and grew installed renewables capacity by 11.4 percent in 2017. Moreover, in the region, China and India are making a huge investment in installing the renewable energy sources system, which is further fueling the market growth of green energy. Furthermore, growing efforts by the government to tackle the increasing level of pollution in the environment and to adopt the eco-friendly power generation system is one of the current trends in the market. Growing environmental impact and increasing exploration of new energy resources due to the growing need for sustainable energy and the environment is expected to again bolster the market growth of the green energy. Thus, growing environmental concern around the globe will favor the market growth of green energy in the near future.
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Global Green Energy Market - Impact of Coronavirus (Covid-19) Pandemic
The global spread of (Covid-19) pandemic has led to lockdown measures, and cease in economic activities which has severely impacted the manufacturing sector. In addition to this, inadequate supply of raw materials will result into rapid price fluctuation. The supply chain of the country is widely affected and most of the manufacturer were not be able to clear their old stock as the country is under strict lockdown. The demand for green energy faced limitation amidst the ongoing pandemic outbreak. The green energy are widely used in sectors such as residential, commercial, and industrial. These sectors are widely hindered due to the ongoing pandemic. Moreover, social distancing guidelines have been triggering supply chain disruption. Also, lockdown measures may result into delays in project construction. Restrictions on business activities, and travelling have led into limitation of energy demand in transport and industries. Companies are compelled to follow precautionary safety measures owing to ongoing pandemic. This has resulted into the limitation of workers on site. This factor is expected to hinder the growth of the Global Green Energy Market till the period of 2021.
Few Recent Developments
In January 2019, GE announced that it is planning to intensify its focus on the growing renewable energy market by consolidating all of the company's renewable and grid assets into a single, simplified Renewable Energy business.
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