The global green energy market offers sustainable energy sources like solar, wind, hydro and geothermal energy for various applications. Solar photovoltaic systems convert sunlight directly into electricity using PV cells, while wind turbines use wind energy to drive electric generators. Hydropower utilizes the kinetic energy of flowing water to turn turbines and geothermal plants tap into Earth's natural underground heat to generate renewable electricity with minimal emissions. These green energy solutions provide cleaner and cost-effective alternatives to conventional fossil fuels, helping reduce dependence on imported fuels and curbing carbon footprint.
The Global green energy market is estimated to be valued at US$ 1058.73 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period from 2024 to 2031. Increasing investments in renewable capacities, favorable policies promoting clean energy usage, rising power demand, and global efforts to achieve carbon neutrality are fueling market growth.
Key Takeaways
Key players operating in the green energy market are ABB Ltd., Alterra Power Corporation, Kyocera Solar, Inc., Nordex SE, Hanwha Q Cells GmbH, Sharp Corporation, Calpine Corporation, Suzlon Energy Ltd., U.S. Geothermal Inc., Yingli Green Energy Holding Co. Ltd., Enercon GmbH, and GE Energy.
Growing power needs, rapidly declining costs of solar and wind technologies, and climate change concerns are driving strong demand for renewable power worldwide. Many countries have committed to increasing the share of renewables in their energy mix to reduce dependence on depleting fossil fuels.
Major players are investing heavily in the development of large utility-scale green projects and expanding manufacturing capacities globally to tap opportunities in emerging markets and help address the urgent need for clean energy transition. Partnerships and mergers & acquisitions remain key strategies by companies to gain expertise and market share.
Market Key Trends
One of the major trends driving the green energy market expansion is the focus on carbon neutrality by countries and corporates. Setting net-zero emissions targets and committing to 100% renewable or clean energy goals is accelerating investments into wind, solar and other emission-free sources. The need for countries to meet climate change mitigation goals under the Paris Agreement is further boosting the adoption of renewables. Rising private sector participation through power purchase agreements is also supporting new project additions. The market is also expected to benefit from rapid technological improvements, digitalization and energy storage solutions over the forecast period.
Porter’s Analysis
Threat of new entrants: New players face high barriers to entry such as resource, technology and R&D hurdles to produce green energy.
Bargaining power of buyers: Buyers have strong bargaining power as they can switch between renewable sources such as solar, wind and hydro energy based on prices.
Bargaining power of suppliers: Suppliers of components and materials have moderate bargaining power due to diversity and availability of options.
Threat of new substitutes: Threat from new substitutes is moderate as different green energy sources continue to provide alternatives to each other.
Competitive rivalry: Intense competition exists among existing players to gain market share and earn higher margins.
Geographical Regions
In terms of value, the green energy market is concentrated in Asia Pacific region. Countries like China, Japan and India have shown highest adoption and capacity addition of renewable energy sources such as solar and wind over the years.
The green energy market is forecasted to grow the fastest in Latin America during the forecast period. Countries in the region offer abundant natural resources and favourable government policies to attract major investments in greenfield projects across renewable sources of energy generation.