The worldwide renewable energy industry is primed for a huge breakthrough. Installed capacity is projected to skyrocket from 3.42 terawatts (TW) in 2024 to an astounding 11.2 TW in 2035. This growth is mainly driven by rapid technological advancements and cost reductions in solar photovoltaic (PV) and wind power technologies. All three of these renewable sources have become competitive with traditional fossil fuels at an unprecedented pace.
Solar PV and wind power have truly revolutionized the renewable energy industry. They are especially important in increasing the aggregate energy capacity. By 2024, solar PV systems will lead the market with a forecast 56% share of installed capacity. At the same time, onshore and offshore wind power will account for 33% of that total. This trend towards renewables is a sign of the times—a larger market transition as investors look for more sustainable energy investments.
Cost Competitiveness and Investment Trends
Retreating costs of Solar PV and Wind technologies have made them comparatively sound and attractive investment opportunities. Just in 2024, the solar PV industry attracted $329.1 billion in investments. By contrast, investments in onshore wind came to just $151.2 billion, while the burgeoning offshore wind sector pulled in $69.6 billion. The bottom line is these emerging clean energy resources are highly cost effective—which is a good thing as they get more attractive to investors and consumers.
Because the renewable energy landscape is changing extremely fast. As it stands, solar PV systems are set to continue to lead in new investments, ahead of both onshore and offshore wind technologies. Renewable sources dominate this expansion, with renewable capacity jumping from 0.93 TW in 2015 to 3.42 TW at the end of 2024. That increase represents a CAGR of 16%. This continuing increase trend is a reflection of the increasing confidence in the sector’s potential.
Regional Developments and Market Dynamics
As a collective, the Asia-Pacific region has quickly become a juggernaut within the global renewable energy market. In 2024, it has published stellar installed capacities of 1.18 TW for solar PV and 0.67 TW for wind power allowance. This overwhelming supremacy has made the region a national leader in renewable energy. It’s the gold standard for other markets globally.
The combined cumulative installed capacity of renewable energy sources is expected to increase dramatically. From 2024 to 2035, we anticipate this expansion will happen at an astounding CAGR of 11%. The onshore wind sector is expected to increase exponentially, up to $186.9 billion by 2030. Concurrently, investments in offshore wind are projected to grow by even more — a whopping $150.4 billion — representing a robust CAGR of 14%. These numbers both show a strong market push to meet increasing energy needs and eco-friendly energy trends.
Tariffs and offshore wind lease restriction policies are all very important. They will go a long way in determining which companies will emerge as leaders in the renewable energy industry. These regulatory actions have a profound effect on making or breaking investment decisions and market dynamics, which in turn affects all segments’ respective growth rates.
Future Outlook
The promise and future of renewable energy is radiant. Now, leaders worldwide and investors alike are realizing that the time has come to move toward clean, alternative energy solutions. The immense growth of the RE industry can largely be attributed to solar PV and wind power. Get ready for continued technological innovations that will decrease costs and increase efficiency.
As demand for cleaner, decentralized energy solutions accelerates, the renewable sector is uniquely equipped to rise to these challenges. The anticipated growth of solar PV and wind power signifies not only a shift in investment patterns but a commitment to sustainable practices that will benefit future generations.