Renewable Energy Market Size & Share, by Type (Solar, Wind, Hydropower, Bioenergy, Geothermal); End-User; Deployment Mode; Grid Mode - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2026-2035

Renewable Energy Market - Regional Analysis

Asia Pacific Market Insights

The Asia Pacific is predicted to dominate the renewable energy market with the largest revenue share of 39.4% over the projected years from 2026 to 2035, primarily attributed to the swift industrialization, urbanization, and a heavy policy push towards clean energy. For example, the APEC area, which has 21 economies such as China, Japan, and India, with a total population of approximately 38% of the global population. Final energy consumption, power generation, and energy provision in the region contribute 57%, 50%, and 63% of the global total, respectively. In addition, developed countries such as China, India, and Japan are at the forefront with heavy investment in solar, wind, and hydroelectric power. Renewable energy incentives by governments, including feed-in tariffs and renewable energy targets, have prompted the uptake of renewable technologies. Moreover, there is an explosion of renewable energy chemical markets in the region, such as Gallium Arsenide (GaAs) wafers used in high-efficiency solar cells. The merging of smart grid technologies and energy storage systems also contributes to the reliability and efficiency of renewable energy systems. A combination of these factors makes APAC a force to be reckoned with in the world of renewable energy.

The renewable energy market in China is likely to hold the highest share of renewable energy in the Asia Pacific region by 2035. The power of China is its sheer scale of deployment and manufacturing: it is already the leading producer of solar PV, battery production, and wind turbines, and encompasses the overwhelming majority of module and inverter production lines. The Chinese government uses tools such as the National Development and Reform Commission (NDRC) five-year plans, subsidy mechanisms, and green industrial zones to direct investment towards renewables and related chemical industries (e.g., precursor materials, rare earths, hydrogen catalysts). In addition, the state planning in China is able to build large gigawatt-scale wind + solar farms with chemical value chains (e.g., silicon, polysilicon, battery precursor, electrolyzer catalysts). For example, in 2024, China produced 1.82 million tonnes of polysilicon, or an increase of 23.6% over the prior year. Its centralized grid and capital mobilization capability enable a fast scale-up.  Demand is guaranteed by Chinese policies like the Dual Carbon objective (peak emissions by 2030, become carbon-neutral by 2060) as well as provincial green transition requirements. For instance, China aims to reach about 20% by 2025, 25% by 2030, and more than 80% by 2060. Moreover, it targets the reduction of carbon dioxide emissions per unit of GDP by 18% as of 2020, and over 65% as of 2030, in comparison with the 2020 level. It also seeks to ensure that by 2030, a total installed capacity of wind and solar power is more than 1,200 gigawatts. Accordingly, China will take the lion's share of the renewable energy revenues in APAC, and with its economies of scale and integrated supply chain, the country will solidify its position as a leader in this region.

India’s renewable energy market is anticipated to grow with the fastest CAGR from 2026 to 2035, fuelled by national and accelerated infrastructure investment. Domestic manufacturing of key materials (e.g., green hydrogen, electrolyzer catalysts, and advanced PV modules) is more and more funded by the government through ministries such as MNRE, DST, and the Ministry of Chemicals and Fertilizers, with chemical value chains being localized. For example, the total installed renewable energy capacity within the country has reached a record 220.10 GW, with an addition of 29.52 GW in the financial year 2024-25. The growing power demand, grid modernization, battery storage, and electrification of the industry all drive demand growth. The reforms in India to rooftop solar, competitive auction, and manufacturing incentive (PLI schemes) are drawing in private capital. Financing internationally (e.g., through multilateral development banks) and support through domestic policy alleviate risk. Moreover, the chemical sector in India is also fast-moving towards using more environmentally-friendly processes through FICCI/ICC initiatives, which have allowed renewables and chemicals to work together. For instance, the Indian chemicals and petrochemicals industry is expected to expand to USD 304 billion by 2025 at a CAGR of 9.3%. This is attributed to the fact that the industry has become more concerned with sustainability and green practices. Considering this continued trend, renewable energy (and the related chemical supply) in India will experience the highest CAGR in the region of APAC during the period.

North America Market Insights

The North American renewable energy market is anticipated to grow significantly with a revenue share of 25.7% over the forecast years by 2035, owing to the rising clean energy efforts in Mexico and the growing use of solar, wind, and biomass technologies in the area. For example, Mexico has shown commitment to renewable energy in its updated Nationally Determined Contributions (NDCs) under the Paris accord. The country seeks to realize a 35% cut in greenhouse gas (GHG) emissions by 2030, and a higher target of 40% with international support under UNDP Climate Promise. Additionally, by 2030, Mexico has set a goal of producing 40 gigawatts (GW) of clean energy, which has the potential to supply up to 30 million homes per year, UNDP Climate Promise. This growth is driven by government programs aimed at reducing carbon and using energy more efficiently, with international agreements as the support mechanism. The industrial sector is currently considering ways of incorporating renewable energy solutions to achieve both sustainability and cost reduction objectives. For instance, the global renewable energy sector directly and indirectly employed 13.7 million people in 2022, with solar photovoltaic, bioenergy, hydropower, and wind power as the main drivers, according to the International Renewable Energy Agency (IRENA). More renewable energy projects and updating the grid infrastructure are essential to maintain long-term growth.

The U.S. market is expected to dominate the North American region over the forecast years, attributed to the rising federal investments and technology in the country. In 2023, clean energy jobs increased by 4.9%, equivalent to 149,000 jobs, with the wind and solar sectors registering the highest percentage growth. In addition, with almost 2,000 active awards, the Department of Energy 2024 Investment Snapshot focuses on employment opportunities, economic development, and lower consumer energy expenses. In 2024, to boost domestic clean energy production, the DOE initiated a competition worth over USD 11 million through the MAKE IT Prize and a USD 32 million funding round to jumpstart clean energy innovation. These attempts are on the way toward the U.S. government meeting 100% clean electricity by 2035, and wind and solar energy sources are expected to provide 60% -80% of electricity generation in the lowest-cost electricity portfolio in 2035. The overall generation will expand to approximately three times the 2020 capacity and include a total of 2 terawatts of wind and solar.

The market in Canada is expected to grow significantly, driven by the governmental efforts and investments of the private sector. As of 2022, 16.9% of the total primary energy supply in Canada comes from renewable sources, of which hydroelectric power is the most common. The Clean Energy for Rural and Remote Communities Program saw the federal government spend CAD 220 million on funding projects that may help avoid the use of diesel fuel, as well as encourage clean energy solutions. Furthermore, Canada is developing hydrogen technology, and about 80 low-carbon production projects were announced involving more than 100 billion dollars of potential investments. These initiatives are within the wider Canadian plan to move to a low-carbon economy and energy security. Moreover, Canada's Clean energy gross domestic product is estimated to increase to CAD 107 billion in the next five years due to a combination of approximately CAD 58 billion a year of investment through 2030 and the creation of over 600,000 jobs.

Europe Market Insights

The European market is projected to grow at a notable rate during the forecast years. By 2022, the EU had installed 56 GW of wind and solar power, a 16% growth over 2021, and the figure is estimated to grow to 73 GW in 2023. The overall renewable energy potential in the EU is nearly 480 GW, saving an estimated 13 bcm of natural gas. The EU has a renewable energy target of at least 42.5% in 2030, and is expected to achieve 45%.  Additionally, as of 2022, the European Union consisted of 23% renewable energy. In its 2028-2034 budget proposal, the European Commission projects high investment in renewable energy infrastructure and innovation to increase energy security in Europe and mitigate greenhouse gas emissions. Transparency and efficiency are growing thanks to technological advancements, including the adoption of digital platforms and blockchain in renewable energy certificate markets. Furthermore, the low-carbon and renewable energy economy (LCREE) in the UK has a turnover of £67.5 billion in 2023, with a workforce of around 314,300 full-time equivalents (FTEs). Additionally, in 2022, renewables constituted 17% of all power in Germany. The share of renewable energy in final energy consumption is 21% and the biomass constitutes about 55% of renewable energy.