North America Renewable Energy Market Outlook to 2030
Region:North America
Author(s):Sanjna
Product Code:KROD11264
December 2024
95
About the Report
North America Renewable Energy Market Overview
- The North American renewable energy market is experiencing significant growth, driven by substantial investments and supportive government policies. The market was valued at USD 314 billion, reflecting a robust expansion over the past five years. This growth is primarily attributed to declining costs of renewable technologies, increased environmental awareness, and favorable regulatory frameworks.
- The United States leads the North American renewable energy sector, followed by Canada and Mexico. The U.S. dominance is due to its substantial investments in renewable infrastructure, technological advancements, and comprehensive policy support. Canada's significant hydropower resources and Mexico's favorable solar and wind conditions also contribute to their prominent positions in the market.
- The U.S. government has implemented various tax credits and subsidies to promote renewable energy adoption. The Residential Clean Energy Credit offers a 30% tax credit for the installation of qualified clean energy systems, such as solar panels and wind turbines, in homes. Additionally, the Clean Electricity Production Credit provides incentives for electricity generated from renewable sources, encouraging investment in clean energy infrastructure.
North America Renewable Energy Market Segmentation
By Energy Source: The North American renewable energy market is segmented by energy source into wind energy, solar energy, hydropower, bioenergy, and geothermal energy. Among these, wind energy holds the dominant market share, primarily due to extensive wind resources in regions like the Midwest and Texas, coupled with significant investments in wind farm development. The scalability and cost-effectiveness of wind power have further solidified its leading position in the market.
By End-Use Sector: The market is also segmented by end-use sector into residential, commercial, industrial, and utility. The utility sector dominates the market share, driven by large-scale renewable energy projects aimed at supplying power to the grid. Utility companies are increasingly investing in renewable energy to meet regulatory requirements and consumer demand for cleaner energy sources, thereby reinforcing the sector's leading position.
North America Renewable Energy Market Competitive Landscape
The North American renewable energy market is characterized by the presence of several key players who contribute significantly to its growth and development.
North America Renewable Energy Market Analysis
Growth Drivers
- Government Policies and Incentives: In 2024, the U.S. government allocated $10.6 billion to the Department of Energy's climate and clean energy programs, aiming to advance research, development, and deployment of renewable technologies. Additionally, the Inflation Reduction Act (IRA) has catalyzed nearly $880 billion in private investments since January 2021, with over $410 billion directed towards clean energy manufacturing, electric vehicles, and clean power generation. These substantial investments underscore the government's commitment to fostering a robust renewable energy sector.
- Technological Advancements: Technological innovations have significantly enhanced the efficiency and deployment of renewable energy systems. In 2023, the U.S. commissioned an estimated 7.5 gigawatts (GW) of battery storage capacity, setting a new national record and positioning the country as the second-largest energy storage market globally. Furthermore, the adoption of advanced grid management technologies has improved the integration of renewable sources, facilitating a more resilient and reliable energy infrastructure.
- Declining Costs of Renewable Technologies: The cost of renewable energy technologies has been decreasing, making them more competitive with traditional energy sources. For instance, the price of polysilicon, a key component in solar panels, dropped by 40% within six months in 2024, leading to a significant reduction in solar panel costs. This decline has spurred increased adoption of solar energy across North America.
Challenges
- Grid Integration Issues: Integrating renewable energy into the existing grid presents challenges due to infrastructure limitations. In 2024, the Federal Energy Regulatory Commission (FERC) approved a new rule to facilitate the transmission of renewable energy, aiming to modernize the aging U.S. power grid to meet increasing demands from data centers, electric vehicles, and other technologies. However, the implementation of these upgrades requires significant time and investment.
- Intermittency of Renewable Sources: The variable nature of renewable energy sources like solar and wind can lead to supply inconsistencies. In 2024, the U.S. experienced periods where renewable energy generation fluctuated, necessitating reliance on backup power sources to maintain grid stability. This intermittency underscores the need for advanced energy storage solutions to ensure a consistent energy supply.
North America Renewable Energy Market Future Outlook
Over the next five years, the North American renewable energy market is expected to experience significant growth, driven by continuous government support, advancements in renewable technologies, and increasing consumer demand for sustainable energy solutions. The integration of energy storage systems and smart grid technologies will further enhance the reliability and efficiency of renewable energy sources, contributing to the market's expansion.
Market Opportunities
- Expansion of Energy Storage Solutions: The growth of energy storage technologies presents significant opportunities for the renewable energy market. In 2023, the U.S. commissioned an estimated 7.5 GW of battery storage capacity, a new national record. The increasing adoption of battery energy storage systems (BESS) is expected to grow by at least30% year-over-year, reflecting their critical role in modernizing power systems. This expansion enhances grid reliability and facilitates the integration of intermittent renewable sources, supporting a more resilient energy infrastructure.
- Development of Smart Grid Infrastructure: Advancements in smart grid technologies offer opportunities to optimize energy distribution and consumption. In 2024, the U.S. Department of Energy allocated substantial funding towards modernizing the grid, aiming to improve efficiency and accommodate a higher share of renewable energy. The advancements in smart grid technologies are anticipated to enhance grid management capabilities, reduce energy losses, and improve overall resilience against disruptions such as natural disasters.
Scope of the Report
|
Segment |
Sub-Segments |
|
By Energy Source |
- Wind Energy |
|
By End-Use Sector |
- Residential |
|
By Technology |
- Photovoltaic Systems |
|
By Country |
- United States |
|
By Installation Type |
- New Installations |
Products
Key Target Audience
Renewable Energy Developers
Utility Companies
Technology Providers
Environmental Advocacy Groups
Energy Storage Solution Providers
Industrial and Commercial Energy Consumers
Government and Regulatory Bodies (e.g., U.S. Department of Energy, Natural Resources Canada)
Investors and Venture Capitalist Firms
Companies
Players Mentioned in the Report
NextEra Energy, Inc.
Vestas Wind Systems A/S
General Electric Company
Siemens Gamesa Renewable Energy
Canadian Solar Inc.
Enel Green Power North America, Inc.
rsted A/S
Brookfield Renewable Partners L.P.
First Solar, Inc.
Invenergy LLC
Table of Contents
1. North America Renewable Energy Market Overview
1.1 Definition and Scope
1.2 Market Taxonomy
1.3 Market Growth Rate
1.4 Market Segmentation Overview
2. North America Renewable Energy Market Size (In USD Million)
2.1 Historical Market Size
2.2 Year-On-Year Growth Analysis
2.3 Key Market Developments and Milestones
3. North America Renewable Energy Market Analysis
3.1 Growth Drivers
3.1.1 Government Policies and Incentives
3.1.2 Technological Advancements
3.1.3 Declining Costs of Renewable Technologies
3.1.4 Increasing Environmental Awareness
3.2 Market Challenges
3.2.1 Grid Integration Issues
3.2.2 Intermittency of Renewable Sources
3.2.3 High Initial Capital Expenditure
3.3 Opportunities
3.3.1 Expansion of Energy Storage Solutions
3.3.2 Development of Smart Grid Infrastructure
3.3.3 Cross-Border Energy Trade
3.4 Trends
3.4.1 Rise of Corporate Renewable Power Purchase Agreements (PPAs)
3.4.2 Growth in Distributed Energy Resources (DERs)
3.4.3 Integration of Artificial Intelligence in Energy Management
3.5 Government Regulation
3.5.1 Renewable Portfolio Standards (RPS)
3.5.2 Tax Credits and Subsidies
3.5.3 Emission Reduction Targets
3.5.4 International Agreements and Commitments
3.6 SWOT Analysis
3.7 Stakeholder Ecosystem
3.8 Porters Five Forces Analysis
3.9 Competitive Landscape
4. North America Renewable Energy Market Segmentation
4.1 By Energy Source (In Value %)
4.1.1 Wind Energy
4.1.2 Solar Energy
4.1.3 Hydropower
4.1.4 Bioenergy
4.1.5 Geothermal Energy
4.2 By End-Use Sector (In Value %)
4.2.1 Residential
4.2.2 Commercial
4.2.3 Industrial
4.2.4 Utility
4.3 By Technology (In Value %)
4.3.1 Photovoltaic Systems
4.3.2 Concentrated Solar Power (CSP)
4.3.3 Onshore Wind Turbines
4.3.4 Offshore Wind Turbines
4.3.5 Biomass Conversion Technologies
4.4 By Country (In Value %)
4.4.1 United States
4.4.2 Canada
4.4.3 Mexico
4.5 By Installation Type (In Value %)
4.5.1 New Installations
4.5.2 Retrofit Installations
5. North America Renewable Energy Market Competitive Analysis
5.1 Detailed Profiles of Major Companies
5.1.1 NextEra Energy, Inc.
5.1.2 Vestas Wind Systems A/S
5.1.3 General Electric Company
5.1.4 Siemens Gamesa Renewable Energy, S.A.
5.1.5 Canadian Solar Inc.
5.1.6 Enel Green Power North America, Inc.
5.1.7 rsted A/S
5.1.8 Brookfield Renewable Partners L.P.
5.1.9 First Solar, Inc.
5.1.10 Invenergy LLC
5.2 Cross Comparison Parameters (Number of Employees, Headquarters, Inception Year, Revenue, Installed Capacity, Market Share, Key Projects, Regional Presence)
5.3 Market Share Analysis
5.4 Strategic Initiatives
5.5 Mergers and Acquisitions
5.6 Investment Analysis
5.7 Venture Capital Funding
5.8 Government Grants
5.9 Private Equity Investments
6. North America Renewable Energy Market Regulatory Framework
6.1 Environmental Standards
6.2 Compliance Requirements
6.3 Certification Processes
7. North America Renewable Energy Future Market Size (In USD Million)
7.1 Future Market Size Projections
7.2 Key Factors Driving Future Market Growth
8. North America Renewable Energy Future Market Segmentation
8.1 By Energy Source (In Value %)
8.2 By End-Use Sector (In Value %)
8.3 By Technology (In Value %)
8.4 By Country (In Value %)
8.5 By Installation Type (In Value %)
9. North America Renewable Energy Market Analysts Recommendations
9.1 Total Addressable Market (TAM), Serviceable Available Market (SAM), Serviceable Obtainable Market (SOM) Analysis
9.2 Customer Cohort Analysis
9.3 Marketing Initiatives
9.4 White Space Opportunity Analysis
Research Methodology
Step 1: Identification of Key Variables
The initial phase involves constructing an ecosystem map encompassing all major stakeholders within the North American Renewable Energy Market. This step is underpinned by extensive desk research, utilizing a combination of secondary and proprietary databases to gather comprehensive industry-level information. The primary objective is to identify and define the critical variables that influence market dynamics.
Step 2: Market Analysis and Construction
In this phase, we compile and analyze historical data pertaining to the North American Renewable Energy Market. This includes assessing market penetration, the ratio of marketplaces to service providers, and the resultant revenue generation. Furthermore, an evaluation of service quality statistics is conducted to ensure the reliability and accuracy of the revenue estimates.
Step 3: Hypothesis Validation and Expert Consultation
Market hypotheses are developed and subsequently validated through computer-assisted telephone interviews (CATIs) with industry experts representing a diverse array of companies. These consultations provide valuable operational and financial insights directly from industry practitioners, which are instrumental in refining and corroborating the market data.
Step 4: Research Synthesis and Final Output
The final phase involves direct engagement with multiple renewable energy developers to acquire detailed insights into product segments, sales performance, consumer preferences, and other pertinent factors. This interaction serves to verify and complement the statistics derived from the bottom-up approach, thereby ensuring a comprehensive, accurate, and validated analysis of the North American Renewable Energy Market.
Frequently Asked Questions
01. How big is the North America Renewable Energy Market?
The North American renewable energy market was valued at USD 314 billion, reflecting substantial growth driven by investments and supportive policies.
02. What are the challenges in the North America Renewable Energy Market?
Challenges in North American renewable energy market include grid integration issues, intermittency of renewable sources, and high initial capital expenditures, which can hinder the rapid deployment of renewable energy projects.
03. Who are the major players in the North America Renewable Energy Market?
Key players in North American renewable energy market include NextEra Energy, Inc., Vestas Wind Systems A/S, General Electric Company, Siemens Gamesa Renewable Energy, and Canadian Solar Inc., among others.
04. What are the growth drivers of the North America Renewable Energy Market?
North America Renewable Energy Market is propelled by factors such as favorable government policies, technological advancements, and decreasing costs of renewable technologies like solar and wind. Additionally, increasing consumer awareness regarding environmental issues is accelerating the shift toward renewable energy.
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