Green Power Market

Rising environmental awareness owing to rapid climate change and rising technological advancement is driving market growth

Market CAGR for the green power market is being driven by rising environmental awareness owing to rapid climate change and rising technological advancement. The rising environmental awareness owing to rapid climate change and rising technological advancement is a driving force behind the growth in market revenue.

The global green power industry is poised for substantial growth, driven by increasing awareness of the detrimental effects of greenhouse gases (GHGs). Furthermore, the significant emissions of carbon dioxide, nitrous oxide, and methane, primarily stemming from outdated fossil fuel-based energy extraction methods, are acting as key drivers of market expansion. Additionally, the depletion of fossil fuel reserves due to their widespread utilization is amplifying the demand for green power solutions, further bolstering industry growth.

As a result, it is anticipated that throughout the projection period, demand for the Green Power Market will increase due to the Rising Environmental Awareness Owing to Rapid Climate Change and Rising Technological Advancement. Thus, driving the Green Power Market revenue.

The Global Green Power Market Industry is poised for substantial growth, with projections indicating a market value of 54.5 USD Billion in 2024 and an anticipated increase to 219.5 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 13.5% from 2025 to 2035, reflecting the increasing adoption of renewable energy sources globally. As nations strive to meet their climate goals and transition to sustainable energy systems, the demand for green power solutions is expected to rise significantly. This upward trend underscores the importance of the Global Green Power Market Industry in addressing environmental challenges and promoting energy security.

Government incentives and supportive policies are pivotal in shaping the Global Green Power Market Industry. Many countries are offering tax credits, subsidies, and grants to promote the adoption of renewable energy technologies. These initiatives not only lower the financial barriers for consumers and businesses but also stimulate investment in green energy projects. For example, the implementation of feed-in tariffs and renewable portfolio standards has proven effective in various regions, encouraging the development of solar and wind farms. Such supportive measures are expected to drive the market's growth, aligning with global sustainability goals and contributing to the industry's overall expansion.

The Global Green Power Market Industry experiences a notable increase in demand for renewable energy sources, driven by growing environmental concerns and the need for sustainable energy solutions. Governments worldwide are implementing policies to transition from fossil fuels to cleaner alternatives, which is reflected in the projected market value of 54.5 USD Billion in 2024. This shift is further supported by international agreements aimed at reducing carbon emissions, indicating a collective effort to combat climate change. As a result, investments in solar, wind, and hydroelectric power are expected to surge, positioning the Global Green Power Market Industry for substantial growth.

The Global Green Power Market Industry is increasingly influenced by corporate sustainability initiatives as businesses recognize the importance of reducing their carbon footprint. Many corporations are committing to 100% renewable energy targets, thereby driving demand for green power solutions. This trend is evident in various sectors, including technology, manufacturing, and retail, where companies are investing in renewable energy projects to enhance their sustainability profiles. As more organizations adopt these practices, the market is likely to see a surge in demand for green energy, further propelling its growth and aligning with global efforts to achieve net-zero emissions.

Technological innovations play a crucial role in the Global Green Power Market Industry, enhancing the efficiency and cost-effectiveness of renewable energy systems. Advances in solar panel technology, wind turbine design, and energy storage solutions are making renewable sources more accessible and competitive with traditional energy sources. For instance, improvements in battery technology are enabling better energy storage, which is essential for managing the intermittent nature of renewable energy. These advancements are likely to contribute to the market's projected growth, with an anticipated value of 219.5 USD Billion by 2035, reflecting a robust CAGR of 13.5% from 2025 to 2035.

Consumer awareness regarding environmental issues is significantly impacting the Global Green Power Market Industry. As individuals become more informed about the benefits of renewable energy, there is a growing preference for green energy options among consumers. This shift in consumer behavior is prompting energy providers to offer more sustainable energy solutions, such as green tariffs and renewable energy certificates. The increasing demand for eco-friendly products and services is likely to drive the market's growth, as consumers actively seek to support businesses that prioritize sustainability. This trend suggests a promising future for the Global Green Power Market Industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. Many North American countries, including the United States and Canada, have implemented policies and regulations that incentivize the development and adoption of green power sources. These policies may include renewable energy mandates, tax incentives, and emissions reduction targets, which encourage the use of renewable energy technologies. In 2019, the United States had an installed renewable energy capacity of nearly 264,504 megawatts.

The country possesses a substantial offshore wind energy potential, estimated at over 2,000 gigawatts, which is nearly double its current electricity consumption. This significant potential presents lucrative opportunities for providing large-scale clean and reliable electricity to meet the nation's future needs. Furthermore, the U.S. government has committed to expanding its renewable energy infrastructure and achieving specific targets by 2025, which is expected to accelerate market growth.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Green Power Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Green Power market accounts for the second-largest market share as the energy crisis experienced in 2022 expedited Europe's determination to undergo an energy transition. Germany has taken decisive and swift actions to advance its renewable energy agenda. These measures include streamlining approval processes for renewable projects, fostering the development of a domestic supply chain, offering subsidies for cost-effective electricity to energy-intensive industries, and undertaking substantial efforts to modernize the power grid infrastructure.

Germany's commitment to renewable energy is exemplified by its ambitious plan, amounting to approximately €250 billion of investment over roughly 10 years. This significant financial commitment provides a substantial boost to the overall funding available for green energy initiatives across Europe. Further, the German Green Power market held the largest market share, and the UK Green Power market was the fastest-growing market in the European region

The Asia-Pacific Green Power market is expected to grow at the fastest CAGR from 2025 to 2034. This prominence can be attributed to factors such as increased industrialization, infrastructure development, and proactive government initiatives within the region. Governments across countries like China and India are spearheading initiatives aimed at ensuring widespread access to electricity, further boosting market prospects. China, in particular, holds a significant share of the Asia Pacific green power market. The Chinese government is actively pursuing a strategy to reduce its reliance on fossil fuels by embracing renewable energy sources for electricity generation.

This not only aligns with environmental goals but also presents substantial market opportunities. In 2019, the United States had an installed renewable energy capacity of nearly 264,504 megawatts.

The country possesses a substantial offshore wind energy potential, estimated at over 2,000 gigawatts, which is nearly double its current electricity consumption. This significant potential presents lucrative opportunities for providing large-scale clean and reliable electricity to meet the nation's future needs. Furthermore, the U.S. government has committed to expanding its renewable energy infrastructure and achieving specific targets by 2025, which is expected to accelerate market growth. The expansion of renewable energy capacity, including wind, solar, and hydropower, will lead to a substantial increase in clean energy generation.

This will contribute to a larger share of green power in the overall energy mix. Moreover, China’s Green Power market held the largest market share, and the Indian Green Power market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Green Power market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Green Power industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Green Power industry to benefit clients and increase the market sector. In recent years, the Green Power industry has offered some of the most significant advantages to society and the environment.

Major players in the Green Power market, including Trina Solar, First Solar, Canadian Solar, ABB, GE, Tata Power Solar Systems Limited, Innergex, Enel Green Power, Xcel Energy, EDF, Geronimo Energy, Invenergy LLC, ACCIONA, Vestas, UpWind Solutions, Inc., Senvion, and Sinovel Wind Group Co., Ltd., are attempting to increase market demand by investing in research and development operations.

Trina Solar, a vertically integrated solar power product manufacturer, operates a comprehensive business model that spans the design, construction, operation, and sale of solar power projects both within China and internationally. The company specializes in providing smart PV solutions tailored for large-scale power stations, energy storage systems, commercial and residential applications, and the production of photovoltaic modules. Trina Solar's extensive range of services encompasses project development, including engineering, procurement, financing, installation, monitoring, construction, as well as operations and maintenance.

The company's distribution network extends across the Asia Pacific, North America, South America, the Middle East, Europe, Africa, and various other regions. Trina Solar maintains a global presence, with offices and operations located in key strategic markets, including China, the UK, Japan, Switzerland, and the US, among others. The company's headquarters are situated in Changzhou, Jiangsu, China, serving as its central hub for overseeing its diverse portfolio and operations.

Acciona is a well-known supplier of environmentally friendly options for infrastructure and renewable energy projects. The business provides a full range of services that cover every stage of a project's lifespan, from design and construction through operation and maintenance. Acciona specializes in the development and management of various infrastructure projects, renewable energy initiatives, water facilities, and other critical assets. Furthermore, Acciona extends its expertise to provide Engineering, Procurement, and Construction (EPC) services to third-party clients. The company is also engaged in the sale of renewable energy and the development of wind turbines, utilizing its proprietary Acciona Wind Power technology.

Beyond its core activities, Acciona diversifies its portfolio by offering financial services, fund management, stock broking, and housing development services.

Additionally, the company is involved in wine production. Acciona operates on a global scale, with a presence spanning across Europe, North America, Asia, Oceania, Central and South America, as well as the Middle East and Africa. Its corporate headquarters are situated in Alcobendas, Madrid, Spain. Notably, in May 2020, the Cerro Dominador solar thermal project, which is owned by EIG Global Energy Partners, was being built with help from Acciona and Abengoa.

This project involved the intricate process of melting 46,000 tons of salts sourced from the Chilean Atacama Desert and boasts an impressive capacity of 110 MW, underlining Acciona's commitment to pioneering renewable energy solutions.