High carbon emissions caused by non-renewable energy sources, such as coal and fossil fuels, are driving the ongoing climate change crisis to worrying levels. The struggle to slow this crisis rages on, with renewable energy sources taking the lead – and seeing a decade of intense growth.
Over the last 10 years, most countries worldwide have shown substantial commitments to promoting renewable energy sources that allow us to take a collective, giant step towards a reduction in our global carbon footprint. A sustainable future is now high on the agenda around the world. This commitment has had a positive impact on the global renewable energy market, sparking a reduction in production costs considerably and consistently over the last few years.
Coupled with ongoing government mandates, the private sector has also joined the crusade against the climate crisis. This concerted private and public sector effort highlights a renewed civic responsibility to our planet and its inhabitants. This, in turn, is urging businesses to adopt sustainable business practices and thus further driving the demand for renewable energy.
According to a recent BCC report, the global renewable energy market is expected to achieve $1.5 trillion by 2027. That’s up from $923.3 billion in 2022 at a compound annual growth rate of 10% for the forecast period.
The hydroelectric power segment of the market is expected to grow at a CAGR of 6.5%, reaching $645.1 billion in 2027, while the solar power segment of the global renewable energy market is expected to grow at a CAGR of 15.3% to reach $371.7 billion.
According to the same report, the Asia-Pacific region has emerged as the leading regional market, with close to half of the global installed renewable energy capacity in 2021. BCC also expects this region to grow faster than any other, with a double digit CAGR across the forecast period.
Equally, tax benefits and financial incentives in nations across the United States, Germany, Iceland, the UK, China and India are all expected to drive production of renewable energy – but it won’t be a walk in the park. BCC anticipate the comparatively high costs of renewable energy production to generate some market friction. However, with the triple threat of climate change, energy dependence and the urgent need for sustainable economic development looming on a global scale, renewable energy is the only clear way forward.
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