Clean Energy Market Size, Trends and Growth Analysis by 2027

The clean energy sector was valued at approximately US$ 479.62 billion in 2019 and is anticipated to grow to US$ 1,229.74 billion by 2027. This growth represents a compound annual growth rate (CAGR) of 13.0% during the forecast period from 2020 to 2027.

Numerous leading nations worldwide are making substantial investments in clean energy to enhance the proportion of their energy supply derived from renewable sources. The growth of the clean energy market in the upcoming decade is expected to be fueled by significant investments in the development of advanced and scalable clean energy projects, supportive government policies, and an increasing demand for reducing industrial carbon emissions. Despite facing challenges such as high capital expenditures (CapEx) and variable weather conditions, commercial projects based on solar and wind energy continue to attract considerable investments from various stakeholders, including government agencies. Consequently, the clean energy market for these two energy sources is projected to experience the highest CAGR from 2020 to 2027. Nevertheless, hydroelectric power remains the most prevalent form of clean energy in many countries and is expected to retain its leading position in the clean energy market throughout the forecast period.

In 2019, developed regions like North America and Europe collectively dominated the clean energy market due to significant investments and early adoption of clean energy technologies. In contrast, emerging economies in Asia, the Middle East, and Africa still heavily depend on traditional energy sources, such as thermal, coal, and oil, which constitute the largest share of their overall energy supply.

The Asia-Pacific (APAC) region is the largest energy consumer globally and includes some of the fastest-growing economies that are investing heavily in infrastructure development to reduce their reliance on conventional energy sources by advancing clean energy technologies. Over the years, countries in Asia, particularly China and India, have become the largest markets for clean energy, including solar, wind, hydroelectric, and bioenergy. Additionally, a significant portion of the leading manufacturers of solar components and other clean energy technologies in these nations is comprised of numerous small and medium-sized enterprises.

However, the recent nationwide lockdowns and disruptions in supply chains caused by the COVID-19 pandemic have impeded the growth of the clean energy market in the APAC region. As a result, many market participants in these countries are likely to pursue strategic partnerships to enhance business opportunities within the clean energy sector.

The overall size of the clean energy market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the clean energy market. This approach also aims to provide an overview and forecast of the clean energy market across all segments. Furthermore, it offers insights and forecasts for the global clean energy market based on various segments across four major regions: North America, Europe, Asia Pacific, Middle East and Africa (MEA), and South America (SAM).

In addition to secondary research, primary interviews were conducted with industry participants and commentators to validate the data and gain deeper analytical insights into the subject. Participants in this process included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the clean energy market.