The global renewable energy market grows at the CAGR of 7.50% and will contribute $1020 billion till 2022. The energy which is collected from resources that are naturally replenished on a human time scale like wind, sunlight, tides, rain, geothermal heat and waves is known as renewable energy. The renewable energy industry is one of the most transformative vibrant and ever-changing, sectors of the global economy. Cost declines, catalytic influence of new financing structures, and technological improvements, have turned the sector into a catalyst of economic growth, in the United States, Asia pacific, Europe and around the world. The investment in global clean energy, including renewable energy, has been growing at a faster pace in 2016. The major reason is the cost of most renewable energy technologies is continued as a lowering trend, the world’s investment supports an unknown deployment of new renewable energy projects despite the availability of very cheap fossil fuels. There is a rising global consensus that the world must deal with the climatic threats like change in part, through the assigning of clean energy technologies. International climate agreement conclusion in Paris, in December 2015 has provided a new momentum for countries to promote policy for encouragement of clean energy development, which should thrust investment in almost all markets.
There are many major factors that rises the global renewable energy market upwards like volatile petroleum prices, rising applications of renewable energy in many sectors, growing awareness regarding renewable energy etc. People are getting aware regarding green energy sources which are less harmful for the environment.
The major factor that pushes the biofuels renewable energy is rising crude oil prices. The crude oil prices are rising at a rapid rate reason being shortage of natural resources. Crude oil is taken out from underground mines beneath sea, these mines are sedimentary deposits which took millions of year in its formation. Crude oil is a major ingredient in manufacturing of petrol and petrol by products. The prices of petrol is fluctuating due to rise in demand, this enhances the market for a substitute of petrol. The bio fuels is a good substitute of petrol and petro products. Bio diesel is made up of bio based feedstock, which is less harmful for the environment as compared to standard petrol product.
The renewable energy requires huge capital investment and large area for the machinery setup. This increases the cost of the renewable energy, while on the other hand conversion of renewable energy is a complex process. This complex and costly manufacturing process acts as a restraint in the growth of global renewable energy market.
Global renewable energy market is segmented into types of energy, applications and regional outlook. In types of energy, market is divided into biofuels, hydroelectric power, geothermal energy, solar photovoltaic and wind energy. Market for biodiesel is rising due to increasing petrol prices and rising demand of automobiles in the world. Hydroelectric market is also growing its popularity due to abundant source of water resources and government investment in hydroelectric reservoirs. Photovoltaic such as crystalline silicon PV cells, monocrystalline silicon PV cells, amorphous films, solar photovoltaic etc. are types of photovoltaic cells. Majorly photovoltaic is used in automobiles, and space science field. Wind energy is rising majorly in North American region. There are two types of wind turbines that is horizontal axis wind turbines and vertical axis wind turbines which are present in the applications segment market and is divided into geothermal electricity generator, automotive applications, industrial applications and other applications. Industrial application for renewable energy is growing at a very rapid rate due to rising industrialization and rising urbanization. In regional outlook market is divided into North America, Asia pacific, Europe and rest of the world. North America dominates the global renewable energy market the major reason is rising wind energy plants in this region, rising energy demand and so on. Asia pacific is the fastest growing market in terms of production. China and India are the two major countries in this region. Rising demand for energy sources due to rising population is one of the major reason, rising automotive sector and rising industrialization is also boosting the market in this region. European market is also growing at a fast pace as government of Europe initiates steps towards clean and green energy. The renewable energy produces low air pollution. Rest of the world is growing in terms of energy demand. Saudi Arabia, South Africa are the major countries in this region.
Some of the major market players are Archer Daniels Midland Company, Gamesa Corporation Technologica Sa, Cosan Sa Industria E Comercio, Yingli Green Energy Hold. Co. Ltd., Suzlon Energy Ltd., Suntech Power Holding Co. Ltd., Sharp Corporation, Satluj Jal Vidyut Nigam Ltd., Magma Energy Corp., Etc. Acquisition, mergers and expansions are the key strategies adopted by the market players to sustain in the market.
