North America Renewable Energy Market: Industry Analysis and Forecast (2024-2030)

North America Renewable Energy Market Overview:

The North American Renewable Energy Market is primarily supporting global market growth, with over 2460 gigawatts of renewable energy was installed in 2023. The increased growth in solar PV in North America is being driven by the lower cost of technologies in recent years. Efforts to fulfil increased power demand with renewable energy sources are also expected to contribute significantly to market growth. With the government's determination to collect as much energy as possible from renewable sources while reducing carbon emissions, the share of renewable energy is expected to rise dramatically, driving the renewable energy market growth. The adoption of solar power as part of renewable portfolio targets (RPTs) and the Federal investment tax credit (ITC) are expected to help the global renewable energy installations increase at a CAGR of almost 7.8% from 2024 to 2030, reaching 4161 gigawatts by 2030.

 

 

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North America Renewable Energy Market Dynamics:

Growing Environmental Awareness:

 

North America is one of the most advanced regions in terms of renewable energy technologies and infrastructure. Solar PV has grown in popularity in North America as technology costs have decreased in recent years, resulting in increased growth. By 2027, the US is expected to increase its contribution to the global renewable energy industry by up to 32%. Currently, fossil fuels are the primary source of electricity in the country. Due to increased capacity in wind and solar power technologies, other markets in the region, such as Canada, are also rising steadily.

 

The growth of alternative electricity capacity in North America is driving the renewable energy market in the region. Consumers are becoming more conscious of the global consequences of pollution and climate change produced by fossil fuels and conventional power sources such as oil, coal, and natural gas, and are increasingly choosing the usage of alternative power sources for various purposes. Alternative power sources are being favoured and required to ensure environmental sustainability due to the depletion of natural resources. As a result, growing public awareness of green energy sources is boosting the renewable energy market growth.

 

The government encourages the use of sustainable power sources by providing tax reliefs and other incentives for renewable energy adoption, which is boosting market growth. Solar power's adoption as part of renewable portfolio targets (RPTs) and the Federal investment tax credit (ITC) are helping to propel the industry forward. Government investments in alternative power facilities to save money on electricity and reduce environmental risks are boosting the market growth.

 

Regional Outlook of Renewable Energy Sector:

Thanks to the innovation, ease of digitalization, greater consumer demand, and rising price parities, the energy sector is progressively migrating from conventional to renewable power sources, fueling market growth. Solar and wind power projects are on the rise in the region, particularly in Canada. There are various opportunities in the non-residential and utility PV categories in the pipeline, which will boost the market growth in North America. Wind power's potential has grown in Canada and the United States. The wind supply base in both countries is substantial, inviting additional investments throughout the forecast period.

 

By 2050, multiple approaches are expected to result in an 80% decrease in carbon emissions from the electricity industry across the North American region. Wind and solar cost reductions can speed up and reduce the cost of the transition, and carbon targets can be met with conservative wind and solar cost assumptions.

 

All technologies contribute to resource adequacy in the future low-carbon system, which is expected to balance supply and demand in a wide range of future scenarios. Between 1,200 and 2,000 gigawatts of renewable energy can be implemented in the United States by 2050 to meet planning reserve requirements while producing 70–80% of the country's electricity. Hydropower, gas, and wind technologies in Canada are the most important contributors to future resource adequacy.

 

The electric power system in North America is changing significantly, with renewable resources now contributing more generation than ever before a transformation that is expected to continue as technology costs fall and ambitious decarbonization goals at the federal, state, local, corporate, and consumer levels are met. Increasing electricity trading between countries has the potential to add $10 billion to $30 billion to the system's net value. Interregional transmission growth has a net benefit of up to $180 billion. Despite the fact that these figures represent a minor portion (less than 4%) of the entire $5 trillion to $8 trillion total system costs (which include all capital and operating generation as well as transmission system expenses), the transmission plays a critical role in cost reduction.

 

Transmission, electricity storage, and flexible operation of all generator types, including hydropower, wind, solar, and thermal generating, all contribute to operational flexibility. Hydropower supplies the system with a carbon-free source of energy, capacity, and flexibility. Annual system costs are $2.3 billion higher without the capacity to change power output from U.S. and Canadian hydropower sources when comparing identical scenarios with and without this flexibility.

 

North America Renewable Energy Market Segment Analysis:

By Type, the Renewable Energy Market is segmented into Hydroelectric Power, Wind Power, Bioenergy, Solar Energy, and Geothermal Energy. The Solar Energy segment is expected to grow at a significant CAGR of 8.1% during the forecast period. In North America, the United States dominates the solar energy market. Canada, Mexico, and the United States have established a variety of regulatory frameworks and policies to promote the development of renewable energy sources such as solar energy. In addition, dropping solar power module costs along with government attempts to raise renewable energy percentages in the total energy mix are boosting the region’s solar power energy segment.

 

Solar electricity is currently cost-competitive with traditional energy sources in a number of US states, including California, Hawaii, Texas, and Minnesota, which are pursuing renewable energy sources. Some states are even aiming for 100% renewable energy, for example, Hawaii has set a goal of having 100% renewable energy by 2045. In addition, both Canada and Mexico have established solar energy goals, as both countries have the ability to create significant amounts of solar energy. Solar energy is being promoted in the home, commercial, and industrial sectors in both countries. As a result, the market for the solar energy segment is expected to develop significantly throughout the forecast period.

 

 

 

Renewable Energy Market Country wise Analysis:

The United States region is expected to grow at a CAGR of 9.6% during the forecast period. Renewable energy is the fastest-growing energy source in the US, with steady growth over the last few years. As of 2019, the installed capacity of renewable energy in the United States was over 264504 MW. In 2018, renewables accounted for 458.5 TWh of net electricity generation in the country. Renewable energy consumption is expected to grow at an annual rate of 1.8% over the next 30 years, faster than the overall growth rate in energy consumption in a business-as-usual scenario.

 

In 2019, renewables accounted for 18.3% of total electricity generation, with hydro, wind, and solar accounting for the bulk. By 2030, renewable energy is expected to account for 24% of total electricity generation. The United States has also established capacity targets, which has driven the solar sector even more. As a result, over the forecasted period, the solar power sector is expected to become one of the largest and fastest-growing industries for electricity generation.

 

The objective of the report is to present a comprehensive analysis of the North America Renewable Energy Market to the stakeholders in the industry. The report provides trends that are most dominant in the North America Renewable Energy Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the North America Renewable Energy Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the North America Renewable Energy Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the North America Renewable Energy Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the North America Renewable Energy Market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the North America Renewable Energy Market. The report also analyses if the North America Renewable Energy Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the North American Renewable Energy Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the North America Renewable Energy Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the North America Renewable Energy Market is aided by legal factors.

 

North America Renewable Energy Market Scope:

North America Renewable Energy Market
Market Size in 2023	USD 315.17 Bn.
Market Size in 2030	USD 550.74 Bn.
CAGR (2024-2030)	8.3 percent
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Type Hydroelectric Power Wind Power Bioenergy Solar Energy Geothermal Energy
	by Application Residential Commercial Industrial Others
Country Scope	United States Canada Mexico

 

North America Renewable Energy Market Key Players:  

• Swinerton Renewable Energy (San Francisco, California, United States)
• Signal Energy LLC (Chattanooga, Tennessee, United States)
• M. A. Mortenson Company (Minneapolis, Minnesota, United States)
• General Electric Co. (Boston, Massachusetts, United States)
• NextEra Energy Inc (Juno Beach, Florida, United States)
• Hydro Quebec (Montreal, Canada)
• Canadian Solar Inc. (Guelph, Canada)
• National Grid Renewables (Bloomington, United States)
• Entergy Arkansas (New Orleans, Louisiana, United States)
• Xcel Energy Inc.( Minneapolis, Minnesota, United States)