Need for Uninterrupted Supply of Cost-Efficient Energy Spurs Demand for Green Energy, says TMR
The green energy market is highly fragmented. Owing to low product diversification, the competition among players is expected to be high. The rapidly growing market is of high interest to new entrants as well as companies dealing with other energy forms, states a new report by Transparency Market Research (TMR). Although high capital investments can be a barrier for entry, the increasing government support for green energy is expected to encourage players to enter the market. The threat of new entrants is thus expected to be medium in the coming years. Green energy sources studied by TMR in this study are. Solar photovoltaic (PV), wind energy, hydroelectric power, bio-fuels, and geothermal energy.
Some of the leading players in the market include ABB Ltd, Alterra Power Corporation, Kyocera Solar Inc., Nordex SE, Sharp Corporation, and U.S. Geothermal Inc. Key players in the market are strategically acquiring other business in order to bridge gaps in their end market, expand their geographical presence, and also enhance their product portfolio. For instance, Nordex SE focuses on geographic expansion. The company recently bagged contracts from the U.K., Finland, and Turkey.
Need to Reduce Dependence on Conventional Sources of Energy Drives Adoption of Green Energy Sources
Changing climatic conditions and growing concerns regarding increased carbon emissions have resulted in the demand for alternative sources of energy such as wind and solar. While previously industrialized nations accounted for major carbon emissions, of late even emerging economies are experiencing an increase in these emissions. As such, green energy is seen as a technology that will bring about a significant reduction in greenhouse gases, thus driving their demand.
Another factor aiding the growth of the green energy market is the rising need for energy security. The growing population and rising economic growth, especially in the emerging nations are expected to create a demand for uninterrupted supply of cost-efficient energy. This is expected to create a huge pressure on conventional resources of energy. Thus, governments across the globe have started taking steps in order to diversify their energy portfolio mix. The adoption of green energy sources contributes to diversify the energy portfolio mix and reduce the dependence on conventional sources of energy. This is driving the market.
High Cost of Green Energy Technology to Hamper Adoption Rates
Green energy sources are costlier than conventional sources. Moreover, regulatory policies are also hampering the growth of the market. For instance, in emerging nations such as China, Iran, Saudi Arabia, and India, regulatory policies offer high subsidies on fossil fuels, thus making it difficult for green energy to compete in the market in a cost effective manner.
Hybrid Energy Generation to Emerge as New Opportunity in Market
The shift towards green energy technology will lead to a demand for newer processes, services, and technologies. This represents an attractive opportunity for the market players to grow. Hybrid energy generation is an emerging trend in the market. It is particularly becoming popular in remote areas where no single source of energy can be deemed reliable. Moreover, hybrid energy generation is cost effective.
According to the report, the global green energy market is expected to be worth US$831.9 bn by 2019. By type, the hydroelectric power segment is expected to account for 54.7% of the market by 2019. On the basis of end user, the commercial segment is expected to lead and account for 37.4% of the market by 2019. By geography, Asia Pacific is expected to lead and account for 30.2% of the market by 2019.
This information is based on the findings of a report published by Transparency Market Research titled “Green Energy Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2013 - 2019.”
The global green energy market is segmented as follows:
By Energy Type
- Solar photovoltaic (PV)
- Solar PV inverters
- String inverters
- Central inverters
- Wind energy
- Hydroelectric power
- Geothermal energy
- Solar PV inverters
- North America
- Asia Pacific
- Rest of the World (RoW)
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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