COVID-19 Impact on Renewable Energy Market by Technology (Wind and Solar), End-User (Utilities, Captive (Industrial, Commercial and Residential) and Region - Global Forecast to 2021
[51 Pages Report] The global renewable energy market size is projected to grow from USD 184.3 billion in 2020 to USD 226.1 billion by 2021, at a CAGR of 22.7% in the realistic scenario during the forecast period. The IEA estimates the global oil demand at 99.9 million barrels a day in 2020, down around 90,000 barrels a day from the demand in 2019. As renewable energy is the best and environment-friendly alternative to oil, the demand for renewable energy and related projects is likely to increase in the near future. This market will be less impacted during the COVID-19 period.
The solar segment is estimated to account for the largest share in 2020, followed by the wind segment in the renewable energy market
The solar segment is estimated to be the largest renewable energy market, followed by the wind segment. The adoption of new solar technologies such as floating solar farms and Building-Integrated Photovoltaics (BIPV) solar technology is likely to increase during the forecast period (from 2019 to 2021). The installation cost of floating solar farms is lesser than that of traditional land-based solar panels as there is no need to clear land or treat the soil.
In the wind segment, wind energy producers are likely to shift toward producing energy through their offshore wind farms during the forecast period. Offshore wind farms attract higher O&M costs in comparison to onshore wind farms due to higher turbine maintenance costs, higher logistics costs, and a lack of a skilled workforce.
The residential subsegment in the captive end-user segment is projected to be the largest during the forecast period
The residential subsegment in the captive end-user segment is the largest market as compared to industrial and commercial subsegmentS. The majority of the companies have given work from home facility to their employees; however, these companies have to keep their office PCs in the working mode so that the employees can get remote access. Also, many countries such as Germany, India, Australia, the US, China, Spain, France, Russia, and Italy have imposed strict lockdown and asked the citizens to quarantine themselves, which is further expected to increase the demand from the residential subsegment during the forecast period.
Asia Pacific is projected to account for the largest share in the renewable energy industry during the forecast period
Asia Pacific is estimated to be the largest market during the forecast period. The region has a high demand for electricity due to a rise in urbanization, rapid industrialization, and population growth. According to the latest report of IRENA, the region had a total solar installed capacity of 52,144 MW in 2019, which has decreased by 25% from the previous year. Also, as per the OECD report on the global COVID-19 pandemic, the electric power industry in China has witnessed a 3.67% deviation from the benchmark set in 2019. In the coming weeks, the majority of Chinese renewable energy producers are resuming their operations. The demand during the forecast period is expected to be high as these companies have to reach their clean energy targets in the second half of 2020.
Key Market Players
Key players in the global renewable energy market include Siemens Gamesa (Spain), Goldwind (China), General Electric (US), Orsted (Denmark), Canadian Solar (Canada), Jinko Solar (China), Vestas (Denmark), and SolarEdge (Israel). These players have broad industry coverage and high operational and financial strength.
Vestas was founded in 1945 and is headquartered in Arhus, Denmark. The company, through its wind turbines and wind power plants business segment, manufactures wind turbines and rotor blades. It has a presence in major geographical markets through its subsidiaries. The company employs a large workforce, with more than 15,000 employees globally. Major subsidiaries of the company include Vestas - Celtic Wind Technology Ltd, Vestas Blades Deutschland GmbH (Germany), Vestas Blades Italia S.r.l. (Italy), Vestas Wind Technology Co. Ltd. (China), and Vestas Blades America Inc. (US). The company competes with Sinoi (Germany), Acciona (Spain), Enercon GmbH (Germany), Suzlon Energy Ltd. (India), and Gamesa (Spain). Vestas has reduced production to a minimum in its Spanish factories. At its blade factory in Daimiel, minimum production of blade root continues as this is an essential segment to its global supply chain, and a complete shutdown would create a disproportional disruption. The generator factory in Viveiro is closed except for some minimal logistic services.
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Scope of the Report
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Report Metric |
Details |
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Market size available for years |
2018–2021 |
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Base year considered |
2019 |
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Forecast period |
2020–2021 |
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Forecast units |
Value (USD Million) |
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Segments covered |
Technology type, end-user, and region |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and South America |
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Companies covered |
Siemens Gamesa, Goldwind, General Electric, Orsted, Canadian Solar, Jinko Solar, Vestas, and SolarEdg |
This research report categorizes the renewable energy market based on technology type, end-user, and region.
Based on technology type:
- Solar
- Wind
- Others
Based on end-user:
- Utilities/Power Producers
- Captive
Based on region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
Recent Development
- April 2020: Vestas has reduced production to a minimum in its Spanish factories. At its blade factory in Daimiel, minimum production of blade root continues as this is an essential segment to its global supply chain, and a complete shutdown would create a disproportional disruption. The generator factory in Viveiro is closed except for some minimal logistic services.
- March 2020: Despite the country’s painful struggle with the COVID-19 outbreak, the Italian solar market is sending some encouraging signs. Italian lender Intesa San Paolo has awarded USD 60 million credit facility to Canadian Solar for a portfolio of 12 unsubsidized solar projects.
- March 2020: Siemens Gamesa has taken action to maintain high levels of activity across the business—manufacturing, installing, and servicing wind turbines—without compromising health and safety. A sophisticated supply chain supports the wind energy industry, and the company is working hard to mitigate risk and maintain continuity. Also, its installation and service teams are dealing with complicated international logistics and are monitoring all border and travel restrictions to ensure safe travel.
Key questions addressed by the report:
- Who are the major market players in the renewable energy market?
- What are the regional growth trends and the largest revenue-generating regions for the renewable energy industry?
- What are the key regions and industries that are projected to witness significant growth in the renewable energy market?
- What is the impact of COVID-19 across various stakeholders in the supply chain of the renewable energy market during the forecast period?
- Which technology type and end-user segment are projected to dominate the renewable energy market during the forecast period?
Frequently Asked Questions (FAQ):
What are factors responsible for the growth of the market even during the COVID-19 pandemic?
The growth of this market is likely to be driven by the reduction in oil consumption, owing constricting travel and broader economic activity.
Which technology is leading the market of renewable energy during the forecast period?
The solar segment is expected to lead the market during the forecast period. As solar cells one of the fastest-growing renewable energy technologies. The cost of manufacturing solar panels has drastically decreased, making them the cheapest means of producing electricity.
Which end user provides the most opportunity for growth?
The utilities segment to provide the most lucrative opportunity for the growth of the renewable energy market. Utilities or power producers can be broadly defined as an entity engaging in the generation and/or delivery of energy to consumers in a specific geographical area/jurisdiction. The Renewable Energy Buyers Alliance (REBA), a trade association composed of large corporate buyers, agrees that the financial fallout of COVID-19 will not affect corporate decarbonization goals.
Which region is expected to dominate the renewable energy market during the forecast period?
Asia Pacific dominate the renewable energy market as this region will face no shortage of renewable energy component parts. As China has already relocated some of its production capacity in neighboring countries such as Vietnam and India. .
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TABLE OF CONTENTS
1 INTRODUCTION
1.1 COVID-19
1.2 CONFIRMED CASES AND DEATHS BY GEOGRAPHY
2 COVID-19 IMPACT RENEWABLE ENERGY ECOSYSTEM
2.1 VALUE CHAIN OF RENEWABLE INDUSTRY
2.2 IMPACT ON VALUE CHAIN
2.2.1 RAW MATERIALS/SUPPLIERS
2.2.2 MANUFACTURING
2.2.3 TRANSPORT AND LOGISTICS
2.2.4 INSTALLATION
2.2.4 GRID CONNECTION
2.2.6 OPERATION AND MAINTENANCE
2.3 MACROECONOMIC INDICATORS/
2.3.2 DRIVERS
2.3.2 CHALLENGES
3 CUSTOMER ANALYSIS
3.1 SHIFT IN SOLAR POWER PRODUCERS
3.1.1 DISRUTPTION IN THE INDUSTRY
3.1.2 KEY INITIATIVES TO MITIGATE/REDUCETHE IMPACT AND TO RESUME/IMPROVE PRODUCTION
3.1.3 SOLAR ENERGY SUPPLY CHAIN
3.1.4 NEW MARKET OPPORTUNITIES/GROWTH OPPORTUNITES
3.2 SHIFT IN WIND ENERGY PRODUCERS
3.2.1 DISRUTPTION IN THE INDUSTRY
3.2.2 KEY INITIATIVES TO MITIGATE/REDUCETHE IMPACT AND TO RESUME/IMPROVE PRODUCTION
3.1.3 WIND ENERGY SUPPLY CHAIN
3.2.4 NEW MARKET OPPORTUNITIES/GROWTH OPPORTUNITES
4 DISRUPTIONS IN RENEWABLE ENERGY MARKET
4.1 BIGGEST GANIERS AND LOSERS BY TECHNOLOGY
4.1.1 WIND
4.1.2 SOLAR
4.2 BIGGEST GANIERS AND LOSERS BY END USERS
4.2.1 UTILITIES / POWER PRODUCERS
4.2.2 CAPTIVE (COMMERCIAL, INDUSTRIAL, AND RESIDENTIAL)
5 SHORT TERM STRATEGIES OF RENEWABLE ENERGY COMPANIES DUE TO COVID-19 IMPACT
5.1 IMPACT ON WIND ENERGY COMPANIES PORTFOLIO
5.1.1 PRODUCT/APPLICATION
5.1.3 REGION
5.2 IMPACT ON SOLAR ENERGY COMPANIES PORTFOLIO
5.2.1 PRODUCT/APPLICATION
5.2.3 REGION
5.3 WINNING STRATEGIES TO GAIN MARKET SHARE
5.3.1 SHORT TERM STRATEGIES
5.3.3 LONG TERM STRATEGIES
6 IMPACT OF COVID-19 IN RENEWABLE ENERGY MARKET
6.1 RENEWABLE ENERGY BY TECHNOLOGY TYPE
6.1.1 SOLAR
6.1.2 WIND
6.1.3 OTHERS
6.2 RENEWABLE ENERGY BY END-USER
6.2.1 UTILITIES / POWER PRODUCERS
6.2.2 CAPTIVE
6.2.2.1 COMMERCIAL
6.2.2.2 INDUSTRIAL
6.2.2.2 RESIDENTIAL
6.3 REGION
6.3.1 NORTH AMERICA
6.3.1.1 US
6.3.1.2 CANADA
6.3.1.3 MEXICO
6.3.2 EUROPE
6.3.2.1 GERMANY
6.3.2.2 UK
6.3.2.3 FRANCE
6.3.2.4 ITALY
6.3.2.5 REST OF EUROPE
6.3.3 ASIA PACIFIC
6.3.3.1 CHINA
6.3.3.2 INDIA
6.3.3.3 JAPAN
6.3.3.4 AUSTRALIA
6.3.3.5 REST OF ASIA PACIFIC
6.3.4 MIDDLE EAST & AFRICA
6.3.4.1 SAUDI ARABIA
6.3.4.2 UAE
6.3.4.3 SOUTH AFRICA
6.3.4.4 REST OF MIDDLE EAST & AFRICA
6.3.5 SOUTH AMERICA
6.3.5.1 BRAZIL
6.3.5.2 ARGENTINA
6.3.5.3 REST OF SOUTH AMERICA
The study involved four major steps in estimating the size of the renewable energy market. Exhaustive secondary research was done to collect information on the market, as well as the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various sources were referred to, to identify and collect information for this study. These secondary sources included reports from the International Renewable Energy Agency (IRENA), Organisation for Economic Co-operation and Development (OECD), Energy Information Administration (EIA), and other industry associations. The secondary sources also included annual reports, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and databases.
Secondary research was mainly conducted to obtain key information about the industry’s supply chain, COVID-19 impact across the stakeholders of the supply chain, total pool of key players, market classification & segmentation according to the industry trends to the bottom-most level and geographical markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The overall renewable energy market comprises several stakeholders in the supply chain, which include global and regional renewable energy components manufacturers and suppliers. Primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, regional renewable energy products dealers, and manufacturers. The primary sources from the supply side include raw material suppliers, manufacturers of renewable energy products, research institutions involved in R&D, and key opinion leaders in the renewable energy market.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the renewable energy market due to the COVID-19 impact. These approaches were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players were identified through extensive secondary research.
- The COVID-19 impact on the market size of the renewable energy market, in terms of value and volume, was determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- All the possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed to estimate the global renewable energy market due to COVID impact and arrive at the exact statistics for all segments and subsegments, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Report Objectives
- Determining and projecting the size of the renewable energy market, with respect to technology type, end-user, and regional markets, over a period, ranging from 2019 to 2021
- Identifying the attractive opportunities in the market by determining the largest and fastest growing segments across regions
- Providing detailed information about the impact of COVID-19 on renewable energy supply chain and its impact on various stakeholders such as raw material suppliers, manufacturers, R&D laboratories, and retailers across the supply chain
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- Analyzing the micromarkets, with respect to individual growth trends, prospects, and their contribution to the total market
- Identifying and profiling the key players in the renewable energy market and the impact of COVID-19 on the key vendors
- Identifying the major growth strategies adopted by players across the key regions due to COVID-19
- Analyzing the value chain and products offered across key regions and their impact on the growth of the prominent market players
- Providing insights on key product innovations and investments in the renewable energy market
Growth opportunities and latent adjacency in COVID-19 Impact on Renewable Energy Market