According to a report by ResearchAndMarkets.com, the renewable energy market accounted for revenue of US$928 billion in 2017 and is anticipated to generate US$1.512 billion by 2025. The market is projected to grow at a compound annual growth rate (CAGR) of 6.1% from 2018 – 2025.
- The solar energy segment is anticipated to witness moderate growth rate of 5.9%, in terms of revenue, during the forecast period.
- The European renewable energy market is projected to grow at a highest CAGR of nearly 6.7%, in terms of revenue, during the forecast period.
- Asia Pacific dominated the market with a revenue share of over 34.3% in 2017.
The global renewable energy market is expected to be heading toward expansion phase during the forecast period. Factors propelling the market growth include concerns regarding environmental impacts of fossil fuels such as degradation, greenhouse gas emissions (GHG), severe climate change conditions, and others. In addition, rapid urbanisation, and economic growth in the developing countries are significant factors driving the renewable energy market.
However renewable energy technologies continue to face a number of barriers. The major challenge is mainly economic, the costs comprise infrastructure investment, day-to-day operations, and market costs of supply. On the contrary, regions such as Europe and Asia, are shifting toward electrification of vehicles, wherein China leads the market. This factor is expected to provide lucrative opportunities for the growth of the renewable energy market.
In addition, Europe is aiming to reduce to greenhouse gas emissions by decreasing its dependency on the fossil fuels. Sweden, Austria, and Germany are some of the countries dominating the Europe renewable energy market. There is significant increase in biofuels production in European countries specifically in Sweden, and Austria due to which bioenergy has dominant share after hydroelectric power in Europe renewable energy market. Most of the bioenergy is produced domestically in Sweden, with a significant contribution being biomass from the forest industry. Moreover, Germany consumes more energy as compared to other countries due to presence of energy intensive industries such as chemical and automobile.
Furthermore, the renewable energy market size is increasing due to rapid urbanisation in Asia-Pacific. Presence of countries such as China, India, and Indonesia, in the Asia-Pacific that experience rapid industrialisation along with increase in stringent environmental regulations, has fuelled the demand for energy as compared to other regions. China has the dominant share in the Asia-Pacific renewable energy market.
Read the article online at: https://www.energyglobal.com/wind/22082019/renewable-energy-market-anticipated-to-exceed-us15-trillion-by-2025/