The global renewable energy market size was valued at USD 1.48 billion in 2024 and is expected to surge around USD 7.28 billion by 2034 with a CAGR of 17.23%. The Asia Pacific renewable energy market size surpassed USD 600 million in 2025 and is expanding at a CAGR of 17.26% during the forecast period.

Renewable energy sources such as wind, hydropower, solar, geothermal, and bioenergy are gaining traction worldwide. Currently, they contribute to approximately 7% of the global energy demand, a figure expected to rise considerably in the near future. The growing awareness of the environmental damage caused by fossil fuels, along with increased government support for clean energy initiatives, is driving the shift toward greener alternatives.

Additionally, public and private sector efforts to reduce carbon emissions and the rising consumer adoption of sustainable energy solutions are key factors propelling market growth. Moreover, rapid industrialization and urbanization in developing nations are anticipated to further boost the demand for renewable sources like solar and geothermal energy throughout the forecast period.

Types of Renewable Energy Sources

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  Solar Energy - Harnessed from the sun using solar panels or thermal collectors.

  
  


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  Wind Energy - Generated by converting wind movement into electricity using wind turbines.

  
  


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  Hydropower - Produced by moving water, typically from rivers or dams, turning turbines to generate electricity.

  
  


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  Biomass - Comes from organic materials (like wood, crop waste, and animal manure) that can be burned or converted into biofuels.

  
  


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  Geothermal Energy - Uses heat from the Earth's core to produce steam and generate electricity or provide direct heating.

  
  

Role of AI in Renewable Energy

AI plays a crucial role in optimizing renewable energy systems by forecasting energy production and demand, improving grid stability, and enabling smart energy management. It enhances efficiency through predictive maintenance of solar panels and wind turbines, and supports smart grids by balancing loads and managing energy storage. AI helps make renewable energy more reliable, cost-effective, and scalable for future energy needs.

• In July 2024, Orennia Inc launched Ion_AI. Ion_AI is an AI-based platform designed to help in analyzing the trends of renewable energy such as solar, wind and some others in different parts of the world.

Regional Outlook of the Renewable Energy Market

Asia Pacific

Market Dominance: Asia Pacific was the dominating renewable energy market in 2024, holding a market share of over 40.71%.

Market Size: The Asia Pacific renewable energy market was valued at USD 600 million in 2025 and is projected to reach around USD 2.96 billion by 2034.

Growth Rate: Expanding at a CAGR of 17.26% from 2025 to 2034.

Key Drivers:

• Rapid industrialization and urbanization leading to increased pollution levels.


• Rising population and residential projects, increasing electricity demand.


• Strong economic growth in emerging economies like India and China.


• Government initiatives promoting renewable energy adoption.


• Increased investments in solar energy infrastructure.

Leading Country: China is a key player, becoming the largest manufacturer of bioelectricity in 2017 and a major producer of wind, hydropower, and solar photovoltaic energy.

North America

Growth Outlook: North America is anticipated to be the fastest-growing market during the forecast period.

Key Drivers:

• Rising awareness regarding deteriorating environmental conditions.


• Increasing government initiatives to curb carbon footprint.


• Growing investments in renewable energy sources.


• High demand for renewable energy from heavy manufacturing industries.


• Focus on developing superior-grade solar panels for residential usage.

In June 2024, Nextra Energy partnered with Entergy. This partnership is done for developing 4.5 GW solar energy storage projects.

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Segments Covered In Reports

By Product

• Solar Power: The solar power segment held the dominant share of the market. Growing demand for eco-friendly energy sources globally. Rise in government initiatives aimed at adopting solar energy for commercial and residential purposes. Growing investment by companies for developing high-grade solar panels for electricity generation.

• Hydropower: The hydropower segment is likely to witness the highest growth rate during the forecast period. Rising demand for sustainable energy sources in developing nations. Growing investments in off-grid energy and electrification in isolated regions. Increasing emphasis by governments on lowering emissions.

By Application

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  Industrial: The industrial segment led the market. Rise in the number of manufacturing companies globally. Increasing investment by power industries for developing high-grade renewable energy solutions. Upsurge in demand for clean electricity in the industrial sector. Growing developments in the solar energy sector.

  
  


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  Commercial: The commercial segment is expected to grow with the highest CAGR during the forecast period. Rise in the number of corporate offices. Increasing adoption of PV modules in hotels and hospitals. Technological advancements in renewable energy sources related to the commercial sector.

  
  

Industry Leaders Announcements

• In October 2024, Gavin Adda, the CEO of Peak Energy announced that the rapid evolution and numerous opportunities in Asia's energy landscape is majorly driven by the growing demand for renewable energy sources.

Recent Developments

• In December 2024, Abb announced to acquire Gamesa Electric Business. This acquisition is done for strengthening the Renewable Power Conversion Portfolio of ABB.


• In November 2024, ACCIONA Energía announced to invest around 1 billion EURO. This investment helps in enhancing the 626 MW hydro portfolio of the company.


• In November 2024, Enel Group announced an investment of 12 billion EUROS. This investment is done for strengthening the renewable energy portfolio.

Renewable Energy Market Companies

• ABB


• Xcel Energy Inc.


• EDF


• National Grid Renewables


• Acciona


• Enel Spa


• Innergex


• The Tata Power Company Limited


• General Electric


• Invenergy

Source: https://www.precedenceresearch.com/renewable-energy-market