Renewable Energy
Market, Supplier, Risk and
Competitive Intelligence

Global Market Outlook on Renewable Energy

Total renewable energy installation reached a 2536 GW in 2019, with an increase of 8 percent compared to 2018. An increase of 6 percent in RE installations is expected in 2020. The reduced growth rate is expected due to the Covid-19 pandemic, which has resulted in the slow down of RE projects globally

The global renewable energy industry was worth $881.7 billion in 2020 and is expected to reach $1,977.6 billion by 2030, increasing at an 8.4 % CAGR between 2021 and 2030. Renewable energy, also known as clean energy, is typically produced from natural sources.

The size of the renewable energy market in the Asia-Pacific is anticipated to increase at an approximate CAGR of 9.6% during the forecasted period and would represent 35.2% of the renewable energy market globally in 2020.

Due to a boom in manufacturing and population, the region uses more energy than the rest of the world combined. Markets for renewable energy have expanded significantly in nations like China and India. In 2017, China overtook the United States as the world's top bioelectricity producer, and it is now a major participant in onshore wind power, hydropower, and solar photovoltaic technology.

• Of the increase in RE installations, the increase in Solar PV systems accounts for 98 GW and wind power installations constitute for 59 GW across the globe
• China leads the way for hydropower (356.40 GW), solar (205.49 GW) & wind (210.47 GW) in terms of installed capacity in 2019. Geothermal energy is most popular in the United States with an installed capacity of 2.54 GW
• New technologies such marine energy have been implemented in Republic of Korea leading to an installed capacity of 0.256 GW making it the world leader in this technology, followed by France at 0.218 GW of installed capacity. China is the leading country when it comes to Bio energy with 16.53 GW of installed capacity
• Analysis of the market for renewable energy is done by type, end-use, and geographic region. The market is divided into hydroelectric power, wind power, bioenergy, solar energy, and geothermal energy according to type.
• The hydroelectric power sector, which generated the most revenue in 2020, is expected to expand at a CAGR of 6.5 percent over the course of the forecast year. Brazil had tremendous growth in hydropower development. Across the continent, there has been an uptick in activity, with significant projects in Peru and Colombia.
• The market for small hydropower plants has expanded as a result of an increase in investments in rural electrification and off-grid energy generation throughout developing nations including India, Vietnam, Brazil, and China.
• The market for renewable energy is divided into categories based on the energy source, use, and geography. The market is segmented by energy type into biofuels, hydropower, geothermal power, solar photovoltaic electricity, and wind power.
• Geothermal power generators, automotive applications, industrial applications, and other applications are the different subcategories of the segment market in terms of applications. Due to accelerating industrialization and accelerating urbanization, the industrial application of renewable energy is expanding very quickly.

Global Outlook

Innovation & ease of digitization, increase in consumer demand, price parities are the key reasons for the transformation of the energy sector from conventional to renewables. The transition to renewable energy is possible but slow, also the advances is uneven among the various sectors. Amongst all the available technologies, Solar & wind stand out to be most preferred ones to cater to the demand. 

Renewable energy share by technology

• The year 2018, registered a 12.5 percent increase in the non-hydro renewable energy generation. Quarter of world's energy demand was met through renewable energy in 2018.
• China & United states accounted for almost 50 percent of the contribution of renewable based electricity generation in the year 2018.
• Solar & Wind saw the highest increase in contribution from 2017 to 2018. A 24 percent increase in the solar power and 20 percent increase in wind power was registered in 2018 across the globe.
• Due to decline in the component prices of solar and wind, the bid prices for renewables across the world dropped significantly. China & India lead the world on solar PV technologies.

Renewable power capacity by top 6 countries- 2018 Capacity

• The fact that the price and the performance of renewables is reaching parity with conventional sources is one of the key reasons, which has enabled these technologies to be recognized in the main stream along with conventional sources.
• China saw 68 percent increase in the solar installed capacity from 2018 to 2017. Similarly offshore wind energy in China contributes to 28 percent of the total renewable energy generation.
•  Brazil registered a huge increase in the renewables in the year 2018. On shore wind & solar PV are key contributors to Brazil's renewable energy mix. Onshore wind energy increased by 22 percent in 2017 while Solar PV increased to 1000 MW in 2019.

Porter's Five Forces Analysis 

For the purpose of developing a strategy, Porter's five forces analysis helps examine the potential of buyers and suppliers as well as the competitive environment of the sector.

Supplier Power

• Supplier has a certain amount of power in the reducing profit margins and the industry profitability for renewable energy.
• The more concentrated is the whole supplier's industry the higher is their bargaining power
• The advancement in technology has helped in reducing the cost of manufacturing and increased competition

Barriers to New Entrants

• The barrier for new entrant is medium due to the many support scheme offered by the government.
• The Barrier for New Entrant depend on the economics of scale, capital Investment, government policies and products differentiation.

Intensity of Rivalry

• Intensity of Rivalry is high due to the presence of new emerging companies globally. The presence of incentives and subsidies focused towards renewable energy has given it a boom for new companies to enter into the market.
• The presence of global warming has also increased the companies to focus of clear energy

Threat of Substitutes

• The obvious substitution for renewable energy would be electricity generated from fossil-fuel or nuclear power stations.
• Economic benefits of renewable energy substitutes make this the most severe threat level in the industry

Buyer Power

•   Buyers power is medium due to the large number of small sized buyers, and small number of energy supplier
•   Buyer have medium power has they have the option to shift to different generators, due to the low cost that offered by energy supplier.
•   Energy buyers are more price sensitive in choosing the energy supplier.