Clean Energy Market Size & Growth | Industry Analysis by 2027

The clean energy market was valued at US$ 479.62 billion in 2019 and is projected to reach US$ 1,229.74 billion by 2027 The clean energy market is expected to grow at a CAGR of 13.0% during the forecast period from 2020 to 2027.

In recent decades, industrialization, coupled with the rising population and urbanization, has gained massive traction across the world, especially in Asian countries. With this rapid transformation, energy needs were majorly sufficed by fossil fuels, which, over time, caused havoc to the sustainability of ecology. As the world is experiencing severe consequences of climate change, clean energy sources have started gaining traction across the world. The contemporary major sources of clean energy that can replace fossil fuels are solar, wind, water bodies and ocean, biofuel, geothermal, and wind. At the beginning of the 21st  century, the renewable sources of energy were contributing a minimal amount to the entire energy supply of the world; but in recent years, clean energy sources are significantly contributing to the total energy supply of the world.

Among all clean energy sources, hydro energy sources initially held the largest share in the total clean energy consumption and the overall clean energy market, but recently solar and wind have contributed significantly. Marine energy sources are currently in the nascent stage; but they are anticipated to gain huge market share in the clean energy market coming years due to increasing investments in the development of innovative ocean energy converters. Meanwhile, solar and bioenergy are getting hugely implemented across numerous industry verticals and finding its applications in commercial and household for clean energy related projects.

Impact of COVID-19 Pandemic on Clean Energy Market

The COVID-19 outbreak has adversely affected various industries in the world, including the energy and power generation industry. Owing to the implementation of containment measures worldwide, clean energy segments such as solar, wind, bioenergy, and hydro and ocean are experiencing restrictions on supply chain, unavailability of human resources, and disruptions in timelines of ongoing and scheduled projects. The global contribution of renewable energy increased by 1.5% in the first half of 2020 compared with first half of that in 2019 as few conventional power plants were shut due to containment measures. However, the majority (70%) of solar PVs are sourced from China, while wind energy supply is more diversified in terms of manufacturers and supplier in Europe, India, and China, as well as various states in the US, and the ill-effects of the pandemic on these geographies is hampering the global supply chain activities.

Lucrative Regions in Clean Energy Market

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Clean Energy Market Insights

Significant Investments in Clean Energy Technologies to power the growth of the clean energy market

Adoption of clean energy technologies is increasing due to rising awareness among individuals and growing demand from several prominent nonprofit government organizations. For instance, according to one of the research findings of the United Nations Environment Programme (UNEP), with the total of US$282.2 billion, the global investments in renewable energy rose by 1% in 2019. Furthermore, the US registered 28% increase in their investments in renewable energy related projects, whereas in Europe, the investments reduced by 7% in 2019. Overall, the global renewable energy and, subsequently the clean energy market, has witnessed a constant growth in investments, especially in the past few years. Several developed economies across the world are increasingly emphasizing on improving their supply infrastructure for clean energy infrastructure and subsequently propelling the growth of the clean energy market.

Type-Based Market Insights

Based on type, the clean energy market is further segmented into hydro and ocean power, solar energy, bioenergy, geothermal energy, and wind energy. To reduce carbon emission, governments and corporates worldwide are heavily investing in clean energy sources. Additionally, regional and national governments are providing subsidies and tax incentives to businesses to use clean energy. Meanwhile, decreasing costs and surging capacities of renewable energy, and growing competitiveness of energy storage technologies drive the growth of the clean energy market.

Clean Energy Market, by Type – 2019 and 2027

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End User-Based Market Insights

Based on end user, the clean energy market is further segmented into residential, commercial, and industrial. Conventionally, clean energy was widely used for industrial and commercial purposes, to some extent. Over a period of time, it is now finding its applications in the residential sector owing to technological advancements and various government initiatives. For instance, wind energy and solar energy were initially used for industrial and commercial applications, but due to falling prices of clean energy technology, improvements in technology, and government benefits in forms of subsidies and tax incentives, the installation of windmills and solar PVs for residential properties has increased worldwide.

Strategic Insights

Players operating in the clean energy market focus on strategies such as market initiatives, acquisitions, and product launches to maintain their positions in the clean energy market. A few developments by key players of the clean energy market are:

In 2020, AEP Energy Partners was seeking proposals for new solar and new or re-powered wind facilities located in PJM. The company is seeking renewable energy purchase agreements of 10, 12, or 15 years for facilities that would begin operation between 2020 and 2023.

In 2019, American Electric Power received approval to acquire the 1,485 megawatts of wind generation in Oklahoma. AEP would invest around US$ 2.0 billion in the new renewable energy project to serve its Southwestern Electric Power Company and Public Service Company of Oklahoma customers.

Clean Energy Market – by Type

• Hydro and Ocean Power
• Solar Energy
• Bioenergy
• Geothermal Energy
• Wind Energy

Clean Energy Market – by End User

• Residential
• Commercial
• Industrial

Clean Energy Market – by Geography

• North America

  • US
  • Canada
  • Mexico

• Europe

  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Switzerland
  • Rest of Europe

• Asia Pacific (APAC)

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of APAC

• Middle East and Africa (MEA)

  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA

• South America (SAM)

  • Brazil
  • Argentina
  • Rest of SAM

Clean Energy Market – Company Profiles

• ABB Ltd.
• American Electric Power Company, Inc.
• Berkshire Hathaway Energy
• Électricité de France S.A.
• General Electric Company
• NextEra Energy, Inc.
• Renewable Energy Group, Inc.
• Siemens AG
• Suzlon Energy Limited
• Vestas Wind Systems A/S