Solar and wind energy are playing a significant role in the growth of the renewable energy market, driven by declining technology costs, strong policy support, and increasing global demand for clean energy solutions.
According to GlobalData, the global renewable power installed capacity is forecasted to surge from 3.42 terawatts (TW) in 2024 to 11.2TW by 2035, with solar photovoltaic (PV) and wind energy acting as the primary drivers of this growth.
The global renewable energy market grew from 0.93TW in 2015 to 3.42TW in 2024, registering a compound annual growth rate (CAGR) of 16 percent, and is projected to maintain a CAGR of 11 percent from 2024 to 2035.
In 2024, solar PV accounted for 56 percent of the total installed capacity, while wind energy contributed 33 percent.
The Asia-Pacific region led the global market, with 1.18TW of installed solar PV capacity and 0.67TW of wind capacity in 2024, highlighting the region’s key role in the global energy transition.
Investment patterns further underscore the importance of solar and wind in the renewable energy sector. In 2024, solar PV attracted $329.1 billion in investments, significantly outpacing onshore wind at $151.2 billion and offshore wind at $69.6 billion.
Looking ahead, onshore wind investments are projected to grow to $186.9 billion by 2030, with a CAGR of 4 percent, while offshore wind investments are expected to reach $150.4 billion, reflecting a robust CAGR of 14 percent.
The declining costs of solar PV and wind technologies are making these energy sources increasingly competitive with fossil fuels, enabling them to dominate future electricity generation.
This cost competitiveness is being supported by technological advancements, including the integration of artificial intelligence (AI) into operations. AI is transforming the sector by optimizing generation, improving grid management, enhancing energy storage, forecasting production, and enabling real-time grid operations, ultimately making renewable energy systems more reliable and efficient.
Major companies are leveraging AI to maximize their renewable energy assets. In the wind sector, developers such as TotalEnergies, Corio Generation, EnBW, RWE, and Statkraft are employing digital platforms to enhance the efficiency of wind farm projects, while in the solar sector, companies like NextEra Energy, EDF, and ENGIE are using machine learning models to improve solar PV facility performance.
Despite strong global momentum for renewables, challenges persist, particularly in the United States, where policy barriers such as tariffs and offshore wind lease restrictions from the Trump administration have slowed growth.
The global commitment to reducing carbon emissions, technological progress, and the rising demand for clean energy continue to propel the market forward, with solar PV and wind power at the forefront of this transition.
GreentechLead.com News Desk