Government nativities and increasing presence of market players in the Asia-Pacific region drive the growth of the global green power market. The uncertainty in the economy and fluctuating oil prices due to prolonged lockdown across several countries have reduced investments in new projects of green power.
Increased government initiatives, strict regulation toward greenhouse gas emission, and surge in number of market players in the Asia-Pacific region have boosted the growth of the global green power market. On the contrary, rise in electric vehicles opens lucrative opportunities for the market players in the future. Green power market is anticipated to generate $103.5 billion by 2027. The market is projected to experience growth at a CAGR of 12.3% during 2020 to 2027.
Presence of countries, such as China and India, are the major factor that boosts the Asia-Pacific green power market, owing to rise in investment in green power projects. There is significant increase in energy demand due to rapid industrialization and rise in population in countries such as China and India. The buildings and industrial sectors are expected to consume more energy during the forecast period in Asia-Pacific. Furthermore, India has significant growth potential; however, due to its inconsistent policy and business environment the in past, the green power share in the total energy production was less. The shift in trend toward the use of localized energy procurements has been witnessed in recent years.
Various government bodies in countries, such as India, have taken the advantage of community choice aggregation (CCA) policies, which permit governments to procure green power resources on behalf of their constituents while retaining their existing electricity providers for transmission and distribution services. However, high cost involved to set up the base for green power restrains the market growth.
The global green power industry is segmented into power source, end-use sector, and region. The global green power market is segmented on the basis of power source, end-user sector, and region. Based on power source, the solar segment is estimated to manifest the highest CAGR of 12.7% during the forecast period. The wind segment dominated the market in 2019 while the solar segment is expected to grow at a higher CAGR during the forecast period.
Based on the end-use sector, the market is categorized into transport, industrial, non-combustible, buildings, and others. The buildings sector dominated the market in 2019; however, the transport sector is expected to grow at faster pace during the forecast period. Based on region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Europe dominated the market in 2019 while Asia-Pacific is expected to grow at a higher CAGR, owing to increased government and private investments in the green power market.
The green power market has low impact of COVID-19 as the sector is less dependent on macro factors such as supply chain or lockdowns. Moreover, the power generation and transmission infrastructure are self-sufficient to continue their working during the pandemic.