The Asia-Pacific region has taken a dominant position in the global renewable energy market, contributing to a 41.1% share in 2016. India will contribute 10.27% of share in the Asia-Pacific market by 2025, growing at a CAGR of 4.9% from 2017 to 2025. These are the main findings of a report published by Allied Market Research (AMR) titled, “Renewable Energy Market – Global Opportunity Analysis and Industry Forecast, 2014–2025”. As per the report, the global renewable energy market is expected to reach $2,152.9 billion by 2025, registering a CAGR of 4.9% from 2017 to 2025.
The report offers insights on drivers, restraints, and opportunities in the global renewable energy market. Steady rise in government initiatives, rise in demand from corporate buyers, and increase in awareness about environment safety drive growth in the global renewable energy market. However, high initial investment costs and lack of knowledge on the optimum use of renewable energy hinder growth in the industry.
On the other hand, ever-rising demand for energy and limited availability of non-renewable sources of energy would present new opportunities in the industry. The research outlines Porter’s Five Forces Analysis based on bargaining power of buyers, bargaining power of suppliers, threat of substitutes, industrial rivalry, and threat of new entrants.
The report segregates the global renewable energy market into energy type, end-user, and geography. Energy types analyzed in the research include biofuels, hydro power, solar energy, wind energy, and geothermal energy. Based on end users, it is segmented into commercial, residential, and industrial & others. Geographically, the regions analyzed are North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region dominated the market worldwide, contributing to a 41.1% share in 2016. Moreover, it is expected to grow at a CAGR of around 4.8% during the forecast period. Countries analyzed in the Asia-Pacific region include China, Japan, India, Australia, and South Korea.
According to the report, the Indian renewable energy market is expected to grow at a CAGR of 4.9% from 2017 to 2025, generating nearly $90.52 billion in revenue by 2025. India will contribute 10.27% of share in the Asia-Pacific market by 2025. Around $42 billion has been invested in India’s renewable energy sector since 2014 and 11,788 MW of renewable energy capacity was added in FY2018.
The commercial end-user segment in India is expected to register the highest CAGR of 5.7% during the forecast period. This segment garnered $14.43 billion in 2017 and is estimated to generate $22.43 billion by 2025. However, industrial & other end users contributed to the highest market share of 44.6% in 2017 and are expected to contribute the share of 45.3% in 2025. Reduction in cost and supportive government initiatives will drive the Indian market in coming years.
The report offers insights such as detailed analysis of business operating segments, product portfolio, business performance, and key strategies adopted by each market player. Market players analyzed in the research are General Electric (GE Power), Terra-Gen, LLC, ABB Ltd., CPFL Energia S.A., IHI Corporation, Tata Power, Mitsubishi Heavy Industry, Shenzhen Energy Group Co., Ltd., Alstom SA, and Enel Green Power S.P.A.
Recently, the world’s largest solar park named Shakti Sthala Pavagada Solar Park was inaugurated in Tumkur district of Karnataka with an investment of $2.55 billion. Mumbai-based Tata Power is developing 250 MW (50 MW x 5 Nos) of solar projects in the Pavagada Solar Park. The generated energy will be supplied to the various state power companies as per Power Purchase Agreements. The firm won the bid for this capacity at a tariff of INR2.85/kWH from Karnataka Renewable Energy Development Limited during April 2018.