The global
renewable energy market is anticipated to reach USD 1512.3 billion by 2025, growing at a CAGR of 6.1 percent till 2025. This market is anticipated to grow remarkably throughout the forecast period due to increased emissions of greenhouse gases, particularly carbon-di-oxide owing to the utilization of fossil fuels for
energy generation. Furthermore, the limited presence of fossil fuel as well as its unstable prices drive the growth of the renewable energy market. Other factors are continuous advancement in technologies and increased government funding in the renewable energy sector to offer lucrative growth opportunities during the forecast period.
The renewable energy market size is increasing due to the rise in government regulations regarding climate change in the developed and developing nations. Stressing on the need for a clear future road map to boost clean energy technologies and creating standards for innovations, NITI Aayog CEO Amitabh Kant at the India Energy Forum by CERAWeek, said, “We should provide 10-year roadmap on where we want to be in clean (energy) technology.
We should provide policy clarity to innovation stakeholders because a lot of innovation will keep happening as we go along. Developing countries like India need to create standards for new technologies for Indian entrepreneurs to disrupt the global market with local innovation.”
Demand for cost-effective solutions
Various renewable energy technologies are used to convert energy from different natural sources into usable forms such as electricity. The
renewable energy market is divided into various types such as hydroelectric power, wind power, bioenergy, solar energy, and geothermal energy. One such type of energy that helps in obtaining the cheapest forms of electricity in many markets is wind energy. The declining cost of wind energy and increasing investments in the wind power sector are the factors driving the wind power equipment market. The demand for cost-effective solutions and a highly efficient product has the potential to change the dynamics of the wind power equipment industry. In some of the instances, the old equipment of the wind turbines was replaced, not due to the damage of the turbines, but owing to the availability of more efficient equipment in the market. Therefore, technological developments present themselves as opportunities to the global wind power equipment market.
Another renewable energy equipment market that is emerging rapidly across the world is the solar power equipment market. Solar power equipment harnesses the sun’s energy and converts it into electricity. This is further used by industries, utilities, commercial or residential sectors. Numerous types of solar power equipment in the market are solar panels, solar batteries, solar mounting and racking systems, solar trackers, and solar inverters. According to a recent report from Allied Market Research, the global solar power equipment market size is projected to reach USD 188,304.0 million in 2025. Factors driving the growth of this sector include an increase in construction activities and various government policies to deploy solar power systems.
Considering the pace at which the industry is moving forward, one can surmise that it will soon reduce the burden of non-renewable energy resource usage to a great extent.
