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Renewable Energy Investment Market Analysis By Type(Solar, Wind, Small Hydro, Biofuels), By Organization Type(Private Equity Firm, Banking Institution, Energy Company, Asset Manager) & Forecast 2024-2035

  • PUBLISHED ON
  • 07/02/2023
  • NO OF PAGES
  • 232
  • CATEGORY
  • Energy & Power

Global Renewable Energy Investment Market was valued at a worth of USD 280 billion and is estimated to grow at a CAGR of 10% during the forecast period 2022–2031. The growth in the renewable energy investment market has remained steady, despite steady fall in the capital cost, specifically in the solar energy. Moreover, increase in the capital outlays has favoured in the reduction in the cost of wind and solar, thereby resulting enhancing the sale of equipment for energy generation more cheaply. Below figure shows that would accelerate its growth during the forecast period.

Market Dynamics
Favourable government initiatives regarding the reduction in the solar and wind tariffs, has attracted many foreign direct investment, which in turn has propelled the market growth. For instance, India’s renewable energy sector has received over USD 42 billion over the few periods. Furthermore, increased focus on green project initiative has also proved to be a boon to the Indian economy. The Indian Ministry of New and Renewable Energy (MNRE) has also stated that solar energy capacity increased by over 8 times from 2.63 GW in 2014 to 22 GW, while Wind energy capacity increased by 1.6 times from 21 GW in 2014 to 34 GW.

Growing focus on clean energy sources has led to building alliance between business, investors and government bodies to create a stable environment for clean energy in the commercial and industrial sectors in the countries such as Mexico, Colombia, Indonesia and Philippines. However, certain barriers such as high capital cost, effective transmission medium and others has restrained the clean energy consumption and investment across the sector. The Clean Energy Investment Accelerator (CEIA) plays a significant role in removing the barriers by aggregating clean energy from large users and develops new advancement in renewable energy models to bring down the cost. 

CEIA strengthens the overall sector by following factors
• Mandates the private sectors such as corporations and industries to adopt clean energy commitments
• Advancement of tools and equipment to grow clean energy resources within low cost.
• Works parallel with public sector to resolve regulatory issues in the clean energy investment and deployment.

Intended Audience
• Government and Research Organizations
• Private Equity Firms
• Energy Company
• Banking Institution

Market Segmentation
Global renewable energy investment market is segmented by type and organization type, based on type the market is segmented into Solar, Wind, Small Hydro, Biofuels, and Others. Solar power holds the major share in the market, owing to increasing investment which has led to the installation of 98 gigawatts of new solar projects globally. Solar represents about 38% of the total new energy generating capacity. China accounted for about half of the total solar power installation around the world (excluding all hydro-electric projects). (Source: UN Environment).

Based on organization type, the market is segmented into Private Equity Firm, Banking Institution, Energy Company, Asset Manager, and Others. Banking Institutions has been the major provider of finance for renewable energy sources, in 2016 some of the largest banks led by KfW of Germany, the European investment bank and World Bank has lend about USD 55 billion for clean power project. Out of which KfW was the largest contributor accounting for USD 34.1 billion from USD 30.7 billion in 2018.

Regional Analysis
Asia Pacific holds the major share in the global market, mainly owing to colossal development in the renewable energy resource by China. China’s National Energy Administration encourages adopting solar energy resources on a large scale to reduce the overall cost of solar PV. Investment in the “behind-the-meter” rooftop projects is expected to remain high during the forecast period, owing to comparatively low subsidy rates. Total PV installation in the country reached about 53GW in 2017, about 20 GW more than the forecast done by UN Environment.
North America primarily contributed by the U.S. is expected to emerge as a fastest growing region during the forecast period. As compared to China market, US experience a small pause after a strong growth during the previous years. Total investment experienced a fall to USD 8.9 billion from USD 10.1 billion. The major reason behind this drop was net-metring reforms adopted in the states such as California and the states of Massachusetts and Maryland.

Reduction in the overall subsidies by the government bodies has impacted the market growth in the European region. This cut has impacted the energy projects where local residents invest in renewable power plant in return for a small return of investment and cheaper electricity.
Increased focus on renewable energy sector laid by favourable government initiatives has affected the market growth in a positive manner during the forecast period. For instance, in 2017, Nigeria adopted a policy targeting 180 MW of power from mini grids by 2020. The launch of Micro-Grid investment accelerator has also fuelled the market growth. This initiative is backed by the major companies such as Facebook and Microsoft.

Key Players
Some of the major companies operating in the market are EKF, KFW, GE Energy Financial Services, Mitsubishi UFJ Financial Group, Macquarie, Bank of America, TerraForm Power, BNP Paribas, Citigroup, Goldman Sachs, and Center Bridge Partners.

Segmentation
By Type
• Solar
• Wind
• Small Hydro
• Biofuels
• Others

By Organization Type
• Private Equity Firm
• Banking Institution
• Energy Company
• Asset Manager
• Others

DC Description
Solar energy market, nuclear energy, government initiatives, renewable energy resources, PV installations, solar energy investment, China market

Global Renewable Energy Investment Market: Regional Analysis
All the regional segmentation has been studied based on recent and future trends, and the market is forecasted throughout the prediction period. The countries covered in the regional analysis of the Global Renewable Energy Investment market report are U.S., Canada, and Mexico in North America, Germany, France, U.K., Russia, Italy, Spain, Turkey, Netherlands, Switzerland, Belgium, and Rest of Europe in Europe, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, China, Japan, India, South Korea, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), and Argentina, Brazil, and Rest of South America as part of South America.

Global Renewable Energy Investment Market: Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of various marketspaces. The key players in the markets are identified through secondary research, and their market contributions in different applications across regions and globally were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Analytics Market Research added before being presented in this report.

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Base Year: 2023
Historic Year: 2016-2022
Forecast: 2024-2035

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Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached Straits Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2028.


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