According to the Market Statsville Group (MSG), the Global Clean energy Market was valued at USD 992.7 million in 2023 and is expected to grow from USD 1098.9 million in 2024 to USD 2231.4 million by 2033, by exhibiting a CAGR of 10.7% during the forecast period (2024-2033)
The market for clean energy is the generation, trading, and usage of clean energy from renewable and sustainable energy resources. These types of sectors are important one to address climate change and reduce the dependency on fossil fuels. Geothermal energy employs the heat from the earth’s core for power generation and as a source of heating. Flow batteries are, for instance, different from lithium-ion batteries which is the most widespread for storing renewable energy. A pumped hydroelectric storage system entails the use of water pumped at a higher level to form a reservoir, then allowing the water to flow and generate power. Combines renewable energy with more sophisticated metering, monitoring, and management systems to raise effectiveness and reliability. Reduce the use of fossil energies in transport while supporting in general clean energy standards. Investors’ interest in clean energy is on the rise globally, with large capital being channeled towards solar, wind, and battery storage power sources. This goes hand in hand with the improved efficiency of the photovoltaic system, better technology for wind turbines, and enhanced batteries for the storage of the energy.
Furthermore, the government encourages clean energy through policies, incentives, and regulations. As if all that was not enough, companies are making massive declarations on net-zero emissions and are investing even on clean energy. The urgent need to reduce greenhouse gas emissions is a primary driver of the clean energy market. Diversifying energy sources to reduce dependence on fossil fuels enhances national energy security. Job creation, economic growth, and energy price stability are significant benefits of investing in clean energy. Increasing consumer awareness and demand for sustainable and environmentally friendly products are pushing the market forward.
Clean energy was produced from resources that had little or no release of greenhouse gas emissions or pollutants hence reducing the negative impact on the environment. This source of energy is sustainable, renewable, and sometimes produced from natural processes which are continually replenished. Clean energy sources help in reducing dependence on fossil powers, controlling climate change, and improve natural and open well-being.
The main driver that got the market for clean energy up and running is the sense of urgency to address climate change. Constrain worldwide warming to well below 2°C over pre-industrial levels and seek after endeavors to constrain the temperature increment to 1.5°C. Nationally Determined Contributions (NDC) countries are required to set and update their emission reduction targets every five years. The agreement has provoked critical speculations about renewable vitality as nations endeavor to meet their NDCs. Over 130 countries have made commitments to attain net-zero emissions by mid-century. More than a thousand companies and corporations commit annually toward meeting their net-zero objectives-fuelling private investment in clean energy technologies. In contrast, IRENA reported that renewable energy reached 260 GW for the world in 2020, reflecting an increase of 10.3 percent above the prior year.
According to IEA, however, solar and wind power accounted for 91% of this growth, with solar capacity up by 127 GW and wind capacity by 111 GW. The investment in renewable energy worldwide in 2021 amounted to $366 billion. This means that there is a growth of 6.9% more than what was invested in 2020. The geographical regions that take the lead in the investment of renewable energy include China, the United States, and Europe, which account for more than 70% of the total. The cost of solar photovoltaic electricity has fallen by as much as 89 percent over the past decade, making it one of the cheapest sources of new electricity in many regions. The International Energy Agency (IEA) predicts that in almost all countries, solar PV will be the cheapest source of electricity generation by 2030.
Intermitency is a characteristic showing uncertain and unpredictable generation of electricity due to natural sources such as sunlight and wind. Electricity is generated in a solar board just like under the shining light of the sun. These occurrences are due to cloud cover, seasonal effects, and night hours. Wind turbines require wind to generate electricity. Wind speeds can vary significantly by time of day, season, and location. Fluctuations in energy supply can destabilize the power grid, making it difficult to match supply with demand. Dependence on intermittent sources can lead to gaps in energy availability, especially during periods of low solar or wind activity. The need to store energy generated during peak production times for use during periods of low production increased.
Moreover, the frequent ramping up and down of traditional power plants to balance the grid can cause wear and increase maintenance costs. Governments are providing financial incentives for energy storage projects. The U.S. offers investment tax credits for energy storage systems. Public funding for upgrading grid infrastructure to accommodate renewable energy and storage technologies. California has been a leader in addressing intermittency issues through large-scale energy storage projects. Spreading renewable energy projects across diverse locations reduces the impact of local weather variations.
The study categorizes the clean energy market-based on energy source, technology, and application area at the regional and global levels.
Based on the energy source, solar energy relies on the energy generated in the sunlight to produce electricity or heat according to its source of energy. Two major technologies will achieve this: PV systems convert sunlight directly into electricity and CSP systems collect sunlight through a reflective surface, such as mirrors or lenses, to generate thermal energy. Advancements in the PV cell technologies, particularly multi-junction cells and perovskite materials are finding greater efficiency in the solar panel. Advancements in the solar technology industry have made its prices plummet because of economies of scale, improved manufacturing processes, and technological innovations. With many areas with a comparable price to that of traditional fuels, solar energy competes on a par with them. To promote the use of solar energy, the government provides incentives such as tax credits, rebates, and subsidies. Some examples include the Investment Tax Credit (ITC) in the United States, feed-in tariffs in several European countries, and others.
Furthermore, for the desires of environmental sustainability and climate change, the aspect of a cleaner energy transition is already underway. Solar power has been described by many firms as one of the strongest solutions available to reduce reliance on oil and lower CO2 emissions. Companies include solar energy in their CSR to minimize carbon footprints. More jobs are created in the production, installation, and maintenance of the industry of solar energy, thereby providing a boost towards economic growth. Several employment and local economic opportunities are created through the development of the solar sector. Solar energy provides a way to energy independence through curbing import dependency on fossil fuels and thereby enhancing energy security.
Based on the region, North America is of great importance in the global market of clean energy; the United States and Canada form this region. Most of the technologies used in renewable energy production are adopted and developed considering the variance of natural resources, friendly policies, and tremendous investments in the region. According to IBEF, over 280 GW of installed renewable energy capacity existed in the United States by the end of 2021 that came from each source of solar, wind, and hydropower. The capacity will continue to grow up to 400 GW by 2030 owing to incessant investments and policy support. More than 3 million residential solar installations will be installed by 2021, contributing significantly to the overall capacity. Major solar farms like the Solar Star (579 MW) in California and the Copper Mountain Solar Facility (802 MW) in Nevada highlight the growth in utility-scale solar projects.
Clean Energy Market The clean energy market is a significant competitor and very ruthless in the industry. It uses strategies involving partnerships, product launches, acquisitions, agreements, and growth to strengthen its respective positions in the market. Most sectors within businesses target the expansion of their operations worldwide and developing long-term partnerships.
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