Global Green Energy Market Projected to Expand to an Estimated Value of 2,321.9 Billion USD by 2034
Global Green Energy Market Expands Rapidly, Reaching $2.9 Trillion by 2034
The global green energy market is experiencing a significant surge, with projections indicating a compound annual growth rate (CAGR) of around 10.2% between 2024 and 2034, reaching an estimated $2.9 trillion by 2034[2]. This growth encompasses key sectors such as solar, wind, hydropower, and energy storage.
Regarding the solar photovoltaic (PV) segment, which accounts for a substantial portion of the green energy market, its market size is expected to increase from $176 billion in 2024 to $397 billion by 2034, growing at a CAGR of about 8.5% to 8.9%[1].
Key regional market shares and growth insights for the solar PV market are as follows:
| Region | Market Size 2024 | Forecast Size 2034 | CAGR (2025-2034) | Market Share & Highlights | |--------------|------------------|--------------------|------------------|---------------------------------------------------------------| | Asia-Pacific | $70.4 billion | $165.6 billion | ~8.9% | Largest market size; rapid growth in China, India, Japan[1] | | North America| $45.8 billion | $102.9 billion | ~8.6% | Strong incentives like the U.S. Inflation Reduction Act[1] | | Europe | $40.3 billion | $90.1 billion | ~8.4% | Driven by EU Green Deal policies; Germany, Spain lead[1] |
Energy storage systems, crucial for enabling green energy, are forecasted to grow from $241.3 billion in 2024 to $540 billion by 2034 at a CAGR of 8.5%, supporting renewable energy reliability and grid stability[3]. Advances in grid-forming inverters, essential for integrating renewable energy, are predicted to grow at around 8.8% CAGR globally, with North America leading adoption[5].
The growth of the green energy market is primarily driven by technological advancements reducing costs of solar panels, wind turbines, and energy storage, supportive government policies and subsidies worldwide, and increasing electrification and adoption of electric vehicles driving demand for clean energy[2].
Notable developments in 2025 include RWE commissioning 999 MW across six U.S. projects, powering approximately 177,000 homes and supporting over 1,400 construction jobs[4]. Iberdrola also operated 44,675 MW of renewable capacity by 2025, comprising wind, solar, hydro, and green hydrogen projects[6].
The green energy market is segmented by source (Solar Energy, Wind Energy, Hydropower, Geothermal Energy, Biomass Energy, Others) and application (Electricity Generation, Heating, Transportation, Industrial Processes). Utility-scale solar farms, which convert sunlight into electricity at scale, supply power to millions and support grid decarbonization[7].
As the green energy market continues to grow, businesses in the sector are advised to focus on innovation in storage technologies, partner with local governments and utility providers, diversify energy portfolios, invest in digital tools, develop scalable models for urban and rural markets, and prioritize sustainability branding and carbon compliance. Green energy is set to remain a central pillar in economic and environmental strategy due to its increasing cost-competitiveness and environmental benefits.
References:
- MarketsandMarkets
- International Energy Agency
- Allied Market Research
- RWE
- IHS Markit
- Iberdrola
- U.S. Department of Energy
The renewable-energy industry, specifically the solar PV segment, is forecasted to undergo substantial growth, with the market size expected to increase from $176 billion in 2024 to $397 billion by 2034, largely driven by technological advancements and supportive government finance [1]. Energy storage, an integral part of renewable-energy systems, is also anticipated to grow from $241.3 billion in 2024 to $540 billion by 2034, supporting renewable energy reliability and grid stability [3].
