The global renewable energy certificate market was valued at USD 10 billion in 2022 and is expected to reach USD 114.87 billion by 2032, poised to grow at a CAGR of 27.70% during the forecast period 2023 to 2032.
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The U.S. renewable energy certificate market accounted for USD 2.28 billion in 2022 and is projected to expand USD 26.19 billion by 2032, at a CAGR of 25.9% between 2023 to 2032.
Based on region, North America dominated the global renewable certificate market in 2022, in terms of revenue. The renewable energy certificates are non-tangible energy commodity that can be easily traded in the country like US. The compliance and the voluntary are the two prominent markets in the US. The increased demand for the renewable or green power in the region has significantly boosted the market growth in the region. The region is characterized by the presence of several technologically advanced companies that has huge energy requirements that fosters the development of the renewable energy sources. Further, the government initiatives to promote the growth of the renewable energy certificates has significant contributions in the growth of this region.
On the other hand, Europe is estimated to be the most opportunistic market during the forecast period. This is attributed to the rising demand for the green energy across multiple industries. Moreover, increased consciousness regarding the deteriorating environmental conditions has forced the European government to heavily invest in the development of renewable energy certificate market.
The growth of the global renewable energy certificate market is driven by rising demand for the various types of power and the government policies that mandates a company to meet the required targets to use of renewable energy. The increased pollution levels, ozone layer depletion, and global warming are the major issues that compelled the governments across the globe to adopt certain policies in order to reduce carbon footprint. The acquisition of the renewable energy certificate implies that 1MWh of power or electricity is generated by using the eligible and specified source of renewable energy. The increased consciousness regarding the deteriorating conditions of the environment across the globe is a major driver of the global renewable certificate market. The burgeoning sales of the solar panels, micro hydro-power plants, and micro wind turbines are supplementing the growth of the renewable energy certificate market. The implementation of strict government regulations regarding the use of renewable energy sources is the most prominent factor that is expected to drive the growth of the global renewable energy certificate market.
The adoption of the micro hydro power plants is supported by the presence of canals, water streams, and various resources of flowing water. Moreover, the heavy investments in the innovations in the field of the communication technology and rising demand for reducing the GHG emissions is significantly fueling the demand for the renewable energy certificate. Further, rising investments in the development of hydro power plant that produces electricity of around 100 KW using flowing water sources is supplementing the market growth. The rising preference of the green energy is fostering the revenue generation through the trade of the renewable energy certificates across the globe. The growing focus of the consumers, government, and corporates on attaining sustainability is a major factor that plays a crucial role in the growth of the market across the globe.
| Report Highlights | Details |
| Market Size in 2032 | USD 114.87 Billion |
| Growth Rate | CAGR of 27.70% From 2023 to 2032 |
| Largest Market | North America |
| Fastest Growing Market | Europe |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regional Scope |
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| Segments Covered | Energy Type, Energy Type, Capacity, Geography |
| Companies Mentioned | Central Electricity Regulatory Commission, Green-e Energy, Environmental Tracking Network of North America, Western Area Power Administration, General Services Administration, US Environment Protection Agency and Defense Logistics Agency Energy |
Based on the energy type, the solar energy segment dominated the market with largest revenue share in 2022. The solar power is obtained from the conversion of the solar heat into electricity. It is one of the most popular and essential source of renewable energy. Solar power is obtained from sunlight by either using concentrated solar energy or by photovoltaic. Photovoltaic is popular for the medium and small size applications. The growth of this segment is driven by the rising applications of the solar energy in a wider variety of products such as calculators and remotes. Further, the rising government initiatives and government investments to develop solar panels and increase its adoption across the globe has fueled the growth of this segment. The rising investments from the private sector to develop the solar power plants on large scale is expected to further foster the growth of the solar energy renewable energy certificate market across the globe.
Based on the capacity, the 5000 KWH segment dominated the global renewable certificate market in 2022, in terms of revenue. This is attributable to the rapidly growing number of wind and solar farms across the globe owing the rising demand for the renewable energy. The extensive usage of fossil fuels have resulted in its depletion and hence the demand for the various renewable energy sources is growing rapidly across the globe.
Based on the end use, the compliance segment dominated the global renewable certificate market in 2022, in terms of revenue. This is simply attributed to the increased government initiatives to promote the adoption of green energy and implementation of regulations regarding meeting the targets of minimum level use of renewable energy.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
The various developmental strategies like acquisition, partnerships, mergers, and government policies fosters market growth and offers lucrative growth opportunities to the market players.
Segments Covered in the Report
By Energy Type
By End Use
By Capacity
By Geography
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