Renewable Energy Market Size, Share, and Trends 2025 to 2034

Renewable Energy Market Size and Forecast 2025 to 2034

The global renewable energy market size was estimated at USD 1.48 trillion in 2024 and is anticipated to reach around USD 7.28 trillion by 2034, expanding at a CAGR of 17.23% from 2025 to 2034. The rising demand for clean energy in different industries across the world drives the growth of the renewable energy market.

Renewable Energy Market Key Takeaways

• Asia Pacific dominated the global market with the largest market share of 40.71% in 2024.
• North America is projected to expand at the notable CAGR during the forecast period.
• By type, the hydroelectric power segment contributed the highest market share in 2024.
• By type, the solar segment is expected to grow at a significant CAGR from 2025 to 2034.
• By end user, the residential segment captured the biggest market share in 2024.
• By end user, the commercial segments is estimated to be the fastest-growing segment during the forecast period.

What is the Role of AI in Renewable Energy?

The advancements in AI have changed the landscape of the energy and power industry. The renewable energy companies have started integrating AI in their manufacturing centers for developing advanced products in less amount of time. Also, AI helps in improving energy supply and demand predictions, optimizing energy storage and distribution and automating critical energy systems. Moreover, AI enhances resource integration and helps companies in forecasting energy production for future requirements. Thus, the integration of AI in renewable energy solutions has played a crucial role in shaping the renewable energy industry in a positive direction.

• In July 2024, Orennia Inc launched Ion_AI. Ion_AI is an AI-based platform designed to help in analyzing the trends of renewable energy such as solar, wind and some others in different parts of the world.

Asia Pacific Renewable Energy Market Size and Growth 2025 to 2034

The Asia Pacific renewable energy market size was evaluated at USD 600 billion in 2024 and is predicted to be worth around USD 2960 billion by 2034, rising at a CAGR of 17.26% from 2025 to 2034.

Asia Pacific was the dominating renewable energy market with a market share of over 40.71% 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.

The renewable energy market is witnessing a rapid growth in the emerging economies like India and China owing to the strong growth in the economy owing to rising industrialization. The government initiatives are playing a crucial role in the adoption of the renewable energy across various end user applications. Furthermore, the increasing demand for the electricity owing to the increased investments in the industrialization is attracting a huge expenditure in the deployment of solar energy infrastructure. In 2017, China became the largest manufacturer of the bioelectricity and is now of the key producers of the wind energy, hydropower, and solar photovoltaic.

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.

In North America, there are several heavy manufacturing industries that increases the demand for renewable energy. Also, the rising focus on developing superior grade solar panels for residential usage along with rapid government investment in renewable energy sources has positively impacted the market growth. Moreover, the presence of several renewable energy solution providers such as NextEra Energy, Brookfield Renewable, General Electric and some others is driving the industrial expansion.

• In June 2024, Nextra Energy partnered with Entergy. This partnership is done for developing 4.5 GW solar energy storage projects.

Renewable Energy Market Growth Factors

There are various renewable sources of energy such as wind, hydropower, solar, geothermal, and bioenergy. It is estimated that around 7% of the global energy demand is fulfilled by the renewable energy sources, currently. This share is expected to increase significantly in the forthcoming future. The rising awareness regarding the harmful effects of the fossil fuels on the environment, rising government initiatives to promote the adoption of clean and green energy, rising public and private efforts to curb carbon emission, and growing adoption of the green energy among the consumers are the major factors that are expected to foster the growth of the global renewable energy market. The rising industrialization and urbanization in the developing countries across the globe is expected to drive the demand for the various renewable energy sources like geothermal energy and solar energy during the forecast period.

The increasing developments in the technology are resulting in the decline costs of the renewable energy and the increasing competitiveness of the battery storage systems is positively impacting the growth of the renewable energy market. The rising concerns related to the climate change and ESG concerns all over the globe is attracting huge investments towards the adoption of the renewable energy sources. The government in various developed and developing economies is offering subsidies to the corporate sector to shift towards the clean and green energy in order to promote sustainability and preserve the environment. These factors are prominent in the growth of the renewable energy market across the globe.

Market Scope

Drivers

Technological Developments and Other Factors Accelerates the Market Growth

The increasing developments in the technology are resulting in the decline costs of the renewable energy and the increasing competitiveness of the battery storage systems is positively impacting the growth of the renewable energy market. The rising concerns related to the climate change and ESG concerns all over the globe is attracting huge investments towards the adoption of the renewable energy sources. The government in various developed and developing economies is offering subsidies to the corporate sector to shift towards the clean and green energy in order to promote sustainability and preserve the environment. These factors are prominent in the growth of the renewable energy market across the globe.

Restraint

Lack of Workforce and Other Issues Hinders the Industry

The renewable energy market encounters numerous problems in their day-to-day operations. Firstly, the lack of skilled professionals in this sector has created havoc in the industry. Secondly, the concerns regarding weather along with requirement of huge capital for deploying a renewable energy plant is hampering the industry.

Opportunity

Advancements in Energy Storage Systems to Create Opportunities

The renewable energy companies are highly engaged in developing superior energy storage systems for longer usage. Several technologies are being developed that allows storing solar and wind energy that can be used during emergencies. Also, government of numerous countries have increased their focus on energy storage systems to maintain their energy requirements during calamities. Moreover, rapid investment by battery companies for producing high-quality energy storage systems is an ongoing trend in the industry. Thus, rapid advancements in energy storage systems are expected to create ample growth opportunities for the market players in the upcoming days.

Product Insights

The solar power segment held the dominant share of the market. The growing demand for eco-friendly energy sources across the world has boosted the market growth. Also, the rise in number of government initiatives aimed at adopting solar energy for commercial and residential purposes drives the industrial expansion. Moreover, the growing investment by several companies for developing high-grade solar panels for generating electricity is further proliferating the market growth.

The hydropower segment is likely to witness the highest growth rate during the forecast period. The rising demand for sustainable energy sources in developing nations has driven the market growth. Also, the growing investments in off-grid energy along with electrification in isolated regions is also contributing to the market expansion. Moreover, the increasing emphasis by government of several countries for lowering emission has propelled the growth of the renewable energy market.

Application Insights

The industrial segment led the industry. The rise in number of manufacturing companies around the world has increased the demand for renewable energy sources, thereby driving the market growth. Also, the rising investment by power industries for developing high-grade renewable energy solutions has driven the market expansion. Moreover, the upsurge in demand for clean electricity in industrial sector along with growing developments in solar energy sector has driven the market growth.

The commercial segment is expected to grow with the highest CAGR during the forecast period. The rise in number of corporate offices has boosted the market growth. Also, the rising adoption of PV modules in hotels and hospitals drives the market growth. Moreover, the technological advancements in renewable energy sources related to commercial sector is expected to foster the growth of the renewable energy market.

Renewable Energy Market Companies

• ABB
• Xcel Energy Inc.
• EDF
• National Grid Renewables
• Acciona
• Enel Spa
• Innergex
• The Tata Power Company Limited
• General Electric
• Invenergy

Industry Leaders Announcements

• In October 2024, Gavin Adda, the CEO of Peak Energy announced that the rapid evolution and numerous opportunities in Asia’s energy landscape is majorly driven by the growing demand for renewable energy sources.

Segments Covered in the Report

By Product

• Hydropower
• Wind Power
• Solar Power
• Bioenergy
• Others

By Application

• Industrial
• Residential
• Commercial

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)