Renewable Energy Market 2025: Trends, Growth Drivers & Future Outlook
As the world faces rising climate concerns, volatile energy
prices, and increasing demand for clean alternatives, the Renewable
Energy Market stands at the forefront of global transformation. The
shift from fossil fuels to sustainable energy sources has moved from a niche
initiative to a mainstream economic and policy priority.
In this blog, we explore key trends, market dynamics, the competitive landscape, and projections shaping the renewable energy sector in
2025 and beyond.
Market Overview
As per MRFR analysis, the renewable energy market size was
estimated at 445.28 billion USD ) in 2023. The renewable energy market industry is expected to grow from 483.61 USD billion in 2024 to 1,200 USD billion by
2035. The renewable energy market CAGR (growth rate) is expected to be around
8.61% during the forecast period (2025-2035).
Major Segments:
Renewable Energy Market Energy Source Outlook
o
Solar
o
Wind
o
Hydropower
o
Geothermal
o
Biomass
Renewable Energy Market Technology Outlook
o
Photovoltaic
o
Concentrated Solar Power
o
Onshore Wind Turbines
o
Offshore Wind Turbines
o
Hydroelectric Power Plants
Renewable Energy Market Application Outlook
o
Electricity Generation
o
Heating
o
Transportation
o
Cooling
o
Industrial Processes
Renewable Energy Market End Use Outlook
o
Residential
o
Commercial
o
Industrial
o
Utilities
Renewable Energy Market Regional Outlook
o
North America
o
Europe
o
South America
o
Asia Pacific
o
Middle East and Africa
Key Trends Driving the Market
1. Grid Modernization & Decentralization
Smart grids, microgrids, and distributed energy resources
(DERs) are enabling greater integration of renewables while improving grid
reliability and efficiency.
2. Corporate Clean Energy Procurement
Large companies like Google, Amazon, and Apple are entering
long-term Power Purchase Agreements (PPAs), directly boosting renewable
capacity.
3. Storage Integration
Energy storage (particularly lithium-ion batteries) is
becoming critical to balance intermittent supply from wind and solar. The
global storage market is expected to reach $1200 billion by 2035.
4. Falling Costs
The cost of solar PV and wind has dropped by over 80%
in the last decade. This continues to make renewables more competitive than
fossil fuels in many regions.
5. Green Hydrogen Emergence
Green hydrogen, produced from renewables via electrolysis,
is gaining traction as a decarbonization solution for hard-to-electrify sectors
like shipping, aviation, and heavy industry.
Key companies in the renewable energy market include:
o
Iberdrola
o
EDP Renewables
o
NextEra
Energy
o
Pattern Energy
o
Siemens Gamesa Renewable Energy
o
Orsted
o
Tesla
o
Prologis
o
Sunrun
o
Canadian Solar
o
First Solar
o
Brookfield Renewable Partners
o
Engie
o
Vestas Wind Systems
o
Enel
Challenges Ahead
While the growth prospects are strong, the market still
faces
- Grid
bottlenecks
- Land-use
constraints
- Permitting
delays
- Supply
chain vulnerabilities
- Intermittency
and reliability concerns
Solving these will require collaboration between governments, industry players, and investors.
Future Outlook
The renewable energy sector is no longer a "future
potential"—it"'s a present reality with accelerating momentum. By 2035,
renewables are expected to account for over 80% of global electricity
generation, transforming not just how we produce energy but how we live,
work, and build economies.
Whether you're an investor, policymaker, or clean tech entrepreneur, now is the time to engage with this rapidly evolving market.
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