North America Renewable Energy Market - Growth, Trends, and Forecasts (2023-2028)

The North America renewable energy market is expected to register a CAGR of more than 7.2% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

Key Highlights

• Over the medium term, factors such as rising power demand using renewable energy sources and with the commitment of the government to obtain maximum energy from renewable and reduce carbon emissions, the share of renewable is expected to grow significantly and are driving the renewable energy market further.
• On the other hand, factors like harsh climatic conditions and the use of other conventional energy are a few restraining factors for the North America renewable energy market.
• Nevertheless, the United States has a vast offshore wind energy resource and possess a power potential of more than 2000 GW, nearly double the nation's current electricity use. This potential is expected to provide an enormous opportunity to deliver large amounts of clean and reliable electricity to the country’s largest population centers in the future.
• The United States is expected to dominate in the North America renewable energy market. The United States is focusing on increasing its contribution to the global renewable energy market by up to 30% by the year 2025.

North America Renewable Energy Market Trends

Solar Energy is Expected to have Significant Growth in the Market

• The solar energy market in North America is mainly dominated by the United States. Canada, Mexico, and the United States have set various regulatory frameworks and policies to develop renewable energy from various sources such as solar and wind power. Feed-in Tariffs (FIT) and Renewable Portfolio Standard (RPS) systems are also adopted in the region to endorse renewable energies.
• The solar energy market in the United States is on the rise due to the increasing demand for electricity. Furthermore, the falling costs of solar power modules, coupled with the government initiatives to increase renewable shares in the total energy mix, are driving the solar power market in the country. In 2021, the solar installed capacity in North America had reached 104.4 GW, with a decent growth rate compared to previous years.
• In addition, environmental policies in favor of renewable energy, the expanding investor interest in the sector, and advanced technologies have also underpinned the solar energy market.
• Some other key factors behind the solar power market growth are the declining cost of solar generation, the advancement in battery storage technology, and grid operators growing expertise is helping to compete with other conventional technologies.
• The solar electricity is now economically competitive with conventional energy sources in various states of the United States, including California, Hawaii, Texas and Minnesota as they aim to switch to renewable energy resources. Some states are even targeting for 100% renewable such as Hawaii set a target to have 100% renewable energy by 2045.
• Canada and Mexico have also set some goals for solar energy as both countries have the potential to generate a substantial amount of solar energy. Both countries are working to encourage the use of solar energy in residential, commercial, and industrial sectors. Therefore, in total solar energy is expected to have significant growth in the market.

United States is Expected to Dominate in the market

• Renewable energy is the fastest-growing energy source in the United States, showing decent growth over the past few years. Around 11% of the growth rate was recorded in the renewable energy produced across sectors in the United States in 2021. Renewable energy in the United States is about 325391 MW of installed capacity as of 2021.
• The share of renewable energy in electricity generation is expected to rise to 24% by 2030. Most of the increase is anticipated to come from wind and solar.
• The United States also set its capacity targets, which has further fueled the solar market. Thus, the solar power sector is expected to become one of the largest and fastest-growing markets for electricity generation over the forecast period.
• The country's solar industry employed more than 260,000 people and created jobs at a rate 17 times faster than the United States average. With upcoming and under-construction renewable energy projects, the United States is expected to dominate the market during the forecast period.
• Owing to the above points, the United States is expected to dominate the North America Renewable Energy market.

North America Renewable Energy Market Competitor Analysis

The North America renewable energy market is fragmented. Some of the major companies include (in no particular order) NextEra Energy Inc, Canadian Solar Inc., Vestas Wind Systems A/S, Electricite de France SA, and General Electric Co.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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